School Fees
School Fees - Figures for 2022 |
Type |
Average Annual Fees |
Change on Year |
Day |
£15,654 |
3.04% |
Boarding (day) |
£20,832 |
1.19% |
Boarding |
£37,032 |
2.87% |
Source: Independent Schools Council (Annual Census). |
Are independent schools popular?
Although school fees can be a very daunting prospect, independent schools have become very popular. Over 670,000 children attend fee paying independent schools in the UK,
that's around 7% of all schoolchildren!
How much will it cost?
This obviously depends on the fees charged by the particular school you send your child to, but average rates are shown below:
Average school fees |
School Type |
Average Annual Fee (3 terms) |
Equivalent for basic rate taxpayers* |
Equivalent for higher rate taxpayers* |
Estimate of total between age 5-18** |
Day |
£15,654 |
£19,568 |
£26,090 |
£277,279 |
Boarding (day) |
£20,832 |
£26,040 |
£34,720 |
£368,997 |
Boarding |
£37,032 |
£46,290 |
£61,720 |
£655,947 |
Source: ISC (average annual fees only) | * ignores National Insurance Contributions | **assumes fees increase by 5% a year. |
Use our School Fees 'How Much' Calculator to discover how much school fees could end up costing you.
School fees unfortunately have a history of rising faster than both inflation and wages, making them increasingly expensive in real terms. Just take a look at the
charts in the Candid Stats section at the top of this page.
How could I pay for school fees?
Surplus IncomeGifts From RelativesRe-MortgagingInvestments
This is the simplest option if you’re fortunate enough to have sufficient spare income. Remember, school fees are paid out of income after tax (see above table), so
factor this in when working out affordability.
Also beware that if fees continue to rise faster than earnings, you could find yourself struggling in future.
Gifts from grandparents or other relatives can be a practical way to fund fees while helping those relatives move assets out of their estate to reduce potential
inheritance tax liabilities. Whether this is viable depends on the relatives having sufficient assets to gift without unduly compromising their ability to lead a
comfortable retirement.
Annual gifts of up to £3,000 fall immediately outside of their estate, as do gifts made from surplus income. Other gifts will normally fall outside of their estate
after seven years.
Grandparents whose wealth is mostly tied up in their property could consider releasing equity by either downsizing or using a lifetime mortgage, although it’s
obviously not a decision to be taken lightly.
Re-mortgaging to a more competitive rate can make significant inroads towards paying fees.
For example, the interest payments on a £300,000 mortgage at an annual interest rate 3.00% would be
£750 per month. Re-mortgaging to a more competitive deal of 1.50% would reduce the monthly
payments to £375 per month, saving £4,500 a year.
Homeowners with reasonable equity in their homes could also release some of this in the process as a low cost form of borrowing, lessening the pain by spreading
repayments over the term of the mortgage. However, this should be treated with caution, as a fall in house prices might risk falling into a negative equity situation.
Parents wanting to fund fees solely from investments will have their work cut out.
For example, assuming annual investment returns of 6% (after charges) and annual school fee increases of 5%, they would need to invest a lump sum of £286,000 (boarding)
or £119,500 (day) to fund fees from age 5 to 18 (assuming this sum is invested throughout the schooling period and capital is run down to zero by the time the child leaves
school). Obviously, this is unrealistic for many, but building up an investment portfolio before the child starts school could make a worthwhile contribution to school
fees.
Planning for school fees is really no different to any other form of investing, you simply need to establish when you will need to access the money and structure your
portfolio accordingly.
Finally, it's worth bearing in mind that if you instead invested the equivalent of school fees for your child’s retirement, they will likely have a very comfortable
retirement indeed. Assuming day school fees (between ages 5-18) were instead invested with a real return of 3%, the child could enjoy an index-linked retirement income
at age 65 of around £39,000 in today’s terms!
Use our School Fees Affordability Calculator to get a clearer idea of whether you can afford to give your child a
private education.
What about 'school fees plans'?
You might come across some providers and financial advisers pushing various 'school fees plans'. There is nothing special about these and there are no magical
solutions to funding school fees. These plans are usually just a combination of borrowing and investing. If you do look at such schemes, strip them down so you can see
exactly what's involved and double check all fees and commissions, some advisers might package products together to boost their cut.
Scholarships & other assistance
If you really want to send your child to an independent school but the fees are simply out of reach, then not all is necessarily lost.
According to the Independent Schools Council (ISC) around one third of children attending independent fee paying schools receive some form of fees assistance, with
scholarships and bursaries being the most common form of assistance.
ScholarshipsBurseries
These are normally awarded to pupils who can demonstrate either excellent all round academic promise or special abilities in the arts, sport or technology.
However, before you get your hopes up you should check with schools to see what's potentially on offer and assess the realistic likelihood your child could qualify.
Scholarships rarely fund all fees and could cover as little as 10%.
Burseries and grants are normally related to your financial situation and not your child's academic ability. They are paid by schools or linked foundations and are normally means
tested. The levels of assistance and criteria to receive it vary between schools, so check to get a clearer idea of what assistance you might receive.
University/College Fees
If your child goes to univeristy or college after school you may find yourself paying out yet more money. There'll probably be three main expenses:
Tuition FeesAccomodationLiving Expenses
Tuition fees vary between universities and colleges, but the maximum charge for the current school year is £9,250. Your child can
normally get a government student loan to cover these fees. Student loans are attractive as interest is based on the inflation rate (effectively making it interest free in
real terms) and your child ultimately ends up paying the fees, not you!
Accomodation costs will depend on whereabouts in the country your child studies and the standard of accomodation they select. As a rule of thumb expect annual costs to be
around £2,500 - £4,000.
This includes items such as food, drink, books, telephone, travel and going out. Costs can vary widely, largely depending on how financially disciplined your child is! However,
average annual costs seem to be in the region of £5,000 - £7,000.
As well as a student loan for tuition, your child might also be eligible for a government student loan for maintenace, intended to help cover living costs. The maximum
loan for the current school year is £9,250, rising to £12,010 in London.
To find out more about student loans, read the relevant section in the Candid Money guide to loans here.
School Fees Jargon
Here's some of the more common School Fees jargon you might come across:
Boarding School | A school where pupils reside for the whole term, only going home during holidays. |
Bursaries | Means tested financial assistance given to some pupils at private schools. |
Day School | A school where pupils attend for the day then go home afterwards. |
Scholarship | Financial assistance given to some pupils at privatre schools who demonstrate either excellent all round academic promise or special abilities in the arts, sport or technology. |