FUNDING INDEPENDENT SCHOOL FEES DELAYS RETIREMENT FOR 61% OF PARENTS
"But just one in eight are planning to take children out of independent schools, School Fee Plan research shows"
12th May 2026 – Paying for independent school fees is delaying retirement for more than six out of 10 (61%) parents with privately educated children, according to new research1 from School Fee Plan, a leading provider of finance for school fees.
The research found that for almost half (49%) of independent school parents the delay to their retirement date is five years or less but for some (4%) the cost of paying school fees means they will never be able to stop working completely.
Premium Credit’s School Fee Plan’ study looked at the financial and lifestyle sacrifices parents are making to pay independent school fees with eating out and holidays most likely to be ditched. Around 25% of parents say they take fewer and cheaper holidays while 28% say they eat out less and 29% work extra hours. Around one in five (17%) have gone into debt.
The introduction of VAT on school fees in January last year has intensified the pressure with 17% saying they have taken on extra work or second jobs as a result while 15% have consulted financial advisers about selling investments.
It is also leading to tougher decisions about keeping children at independent schools with some parents saying they will consider taking some but not all of their children out of independent schools. The research found 12% of parents plan to take children out of independent schools with a further 27% thinking about doing so.
However nearly half of them (47%) say at least one child will continue at independent schools with GCSEs and A-levels the main reason for doing so. Around two-thirds (66%) planning to keep one child at independent schools said GCSEs and A-levels were the main reason.
The total amount lent through Premium Credit’s School Fee Plan (SFP) last year is around 9% higher than in 2023. However the average amount of funding through SFP is now around £24,288 which is 12% higher than 2024 and 24% higher than in 2023.
Stewart Ward, Director Education Sector & Head of School Fee Plan, Premium Credit said: “Parents are clearly willing to make financial and lifestyle sacrifices in order to pay independent school fees as demonstrated by the impact on retirement plans.
“The impact of the VAT introduced last year is further concentrating minds and highlighting the need for ways to improve cashflow and budgeting such as switching to smaller, more convenient payments.”
For further information on SFP, please visit School Fee Plan
