According to data from the Independent School Council’s 2023 census, there are over half a million children in the UK who are attending UK independent schools or private schools. The implementation of 20% VAT in January 2025 is expected to put significant pressure on families who are already, in some cases, making great sacrifices for their children.
The Average Cost of Private Education
There are currently 2,500 Independent Schools across the country, educating around 7% of all pupils in the UK. Pepper Money has researched fees across the UK for 11-16-year-olds in full-time private education to understand the potential impact of the upcoming 20% VAT increase and the resulting effects it may have on families in the near future.
According to the data collected, the average cost for a child to attend private education in the UK is £5,718 per term and £17,128 per annum. With the addition of the 20% VAT expected to hit in January 2025, parents can expect to pay an additional £3,468 per year, increasing annual fees to £20,596, which is an additional £17,340 over the course of 5 years.
The Most Expensive Area to Privately Educate Your Child
The average cost in the UK to put your child through private education is £17,128 a year. The most expensive area in the UK is the East of England. The average cost to put your child into private education in this region is £20,658 and will see an increase of £4,644 per year. The region that will see the smallest increase is the Channel Islands which will see an increase of £2,326 each year.
| Area | Average Cost per term | Average Cost Per annum | with 20% Increase | Amount increase per year |
| East of England | £6,955 | £20,658 | £25,303 | £4,644 |
| South + South East | £6,920 | £20,761 | £24,913 | £4,152 |
| South West | £6,467 | £19,401 | £23,282 | £3,880 |
| Scotland | £6,354 | £19,116 | £22,939 | £3,823 |
| London | £6,030 | £18,104 | £21,725 | £3,621 |
| Wales | £5,907 | £17,721 | £21,265 | £3,544 |
| Midlands | £5,598 | £16,794 | £20,153 | £3,359 |
| Northern Ireland | £5,150 | £15,450 | £18,540 | £3,090 |
| North West | £4,374 | £13,016 | £15,619 | £2,603 |
| North East + Yorkshire | £5,263 | £15,755 | £18,863 | £3,109 |
| Channel Islands | £3,876 | £11,629 | £13,954 | £2,326 |
The Top 10 Most Expensive Regions
While East of England is the most expensive region overall, the most expensive county across the UK is Redcar and Cleveland, which see the average term fees of £14,333 and annual fees of £43,000. This area is expected to see increases of £8,600 in January. This was followed by Moray and Rotheram with average annual fees of £35,280 and £33,250 respectively.
| Area | Region | Average Cost per term | Average Cost Per annum | with 20% Increase | Amount increase per year |
| North East + Yorkshire | Redcar and Cleveland | £14,333 | £43,000 | £51,600 | £8,600 |
| Scotland | Moray | £11,760 | £35,280 | £42,336 | £7,056 |
| North East + Yorkshire | Rotherham | £11,083 | £33,250 | £39,900 | £6,650 |
| East of England | Bedford | £10,788 | £32,364 | £38,836 | £6,473 |
| North West | Tameside | £10,500 | £31,500 | £37,800 | £6,300 |
| South + South East | West Berkshire | £9,908 | £29,723 | £35,668 | £5,945 |
| South + South East | Bracknell Forest | £9,837 | £29,510 | £35,412 | £5,902 |
| North East + Yorkshire | North Tyneside | £9,753 | £29,260 | £35,112 | £5,852 |
| Scotland | East Lothian | £9,636 | £28,908 | £34,690 | £5,782 |
| London | Westminster | £9,113 | £27,199 | £32,638 | £5,440 |
Priced Out of Private School
With costs reaching up to £43,000 each year, Private education is a significant financial undertaking for many parents, no matter their income. While considered a luxury for many, there are a significant number of families that will struggle to swallow the additional 20% increase when brought in in 2025. A recent report by The Guardian revealed that up to 100,000 families will be priced out of private schooling in the new year. Not only this, but consideration needs to be made toward lower-income families that seek financial aid in the form of bursaries and scholarships for their children. Currently, 7.1% of students in independent schools (39,358 pupils) benefit from means-tested bursaries, with the average award being £11,807 per year per student. However, this amount often falls short of covering the full fees, and the increase in costs could see families seeking higher bursaries, which they may fall short of. If there’s increased pressure on fees, more people could require this assistance, so this support could be placed under strain.
Parents getting into debt
With the cost of Private Education on the rise, parents are having to look for further ways in which they can provide this level of education for their children. Pulling children out of education and away from friends and support systems can have a detrimental impact on a child’s life and parents are doing all they can to ensure they can keep their children in school, sometimes to the detriment of their finances.
Why Debt and Credit Are Less Effective for Generating Funds for Private School
Using short-term credit to finance private school education could be less effective due to several inherent drawbacks. First, credit cards and personal loans typically carry high interest rates, which can significantly increase the overall cost of education. As tuition fees rise, the accumulated interest on borrowed funds can lead to substantial financial strain, making education more expensive over time.
Moreover, the reliance on debt creates ongoing financial commitments, with monthly payments that can limit a family’s financial flexibility. This may result in added stress and potential difficulties in managing other financial obligations, such as mortgage payments or retirement savings. For families that already have significant debt, adding education loans or credit card debt can worsen their financial situation, potentially leading to long-term financial instability.
Paying in Advance to Avoid Certain Fees
With the UK ending the VAT exemption on private education, parents might consider paying tuition fees in advance to avoid additional costs. However, this strategy is not foolproof. According to recent regulations, advance payments made before the deadline of July 29, 2024, may not be sufficient to entirely bypass the upcoming VAT charges.
How Second-Charge Mortgages Can Help
Second-charge mortgages can be an effective alternative for spreading the cost of private education. Unlike credit cards or personal loans, second-charge mortgages typically come with lower interest rates, making them a more affordable financing option over the long term. By securing the loan against their property, families can access funds at a lower cost, reducing the financial burden of private school tuition.
This option allows parents to spread the cost of education over a longer period, making monthly payments more manageable without the high interest associated with other forms of credit.
Ryan McGrath, Director of Second Charge Mortgages at Pepper Money comments
“Private education comes with significant financial commitments, often running into tens of thousands of pounds per year. When you factor in additional costs like uniforms, extracurricular activities, and school trips, the total expenses can be staggering. For many families, covering these costs with credit cards or loans means dealing with high interest rates, which only add to the overall financial burden.”
Methodology
To find the average cost of private secondary schools in the UK for students aged 11-16, including the impact of the new VAT increase, we followed these steps:
- Gathering Data: We used The Good Schools Guide website to look up a variety of private secondary schools and recorded their annual tuition fees.
- Choosing Schools: We selected a total of 626 secondary private schools from different regions across the UK to ensure our data represented a diverse range of areas and school types.
- Researching Fees: We collected both the annual fees and term fees for each of the 626 schools to obtain a comprehensive understanding of the cost structure.
- Calculating the Average: We added up the tuition fees for all the selected schools and then divided by the number of schools to determine the average cost.
- Including VAT: After calculating the average tuition fees, we applied a 20% VAT increase to this figure to account for the new VAT policy affecting private schools.