The cost of sending a child to private school has increased significantly since 2025, when Labour made fees subject to VAT. Parents with children receiving GCSE results this week may be wondering whether the outlay is still worth it.
According to the Independent Schools Council, pupil numbers typically fall by 6.6 per cent between years 11 and 12, as some opt to switch to the state sector for sixth form or college.
A survey by wealth manager Saltus found that almost six in 10 (59 per cent) of wealthy parents would rather invest £100,000 in an Isa or in property for their child than spend the money on school fees.
The average cost of a private education from aged 4 to 18 is £410,000, according to the Good Schools Guide, climbing to £670,000 if they opt for a top London school.
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Schools increased fees by an average of 4.4 per cent after the change to VAT rules, rather than passing on the full 20 per cent to parents.
Saltus found that 68 per cent of high net worth individuals who had children in private school had made, or expected to make, financial changes and sacrifices to enable them to stay there.
The most common sacrifices included cutting down on holidays and other big-ticket discretionary spending, which 42 per cent said they had done or would do – up from 29 per cent six months ago.
One in five said they either have, or will, get a new job that pays more, while 16 per cent said they would move to a more affordable area and 12 per cent said they would downsize their home.
Despite the monetary outlay, the majority of high net worth families still believe private education delivers significant benefits, with 69 per cent believing the quality of teaching and facilities justifies the expense.
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Henrietta Grimston, chartered financial planner at Saltus, said: ‘There is clearly still a lot that parents value about private education. The majority of HNW families believe it delivers better teaching, long-term outcomes, networks and opportunities, with those who were privately educated themselves particularly positive about the benefits.
However, the ISC data shows that while stretched parents are very reluctant to move their children out of private school during the GCSE years, sixth form is a point where families are more willing to stop and reassess the decision.
The decision is not simply about whether they can afford another two years of fees, but about whether they still believe it is the best use of their money, particularly when there are other ways they could invest in their child’s future.
It is a complex decision.
