Private School Fees or a Private Tutor? A guide for parents 2024.

Recent headlines highlight a 20% rise in private school fees with the impending addition of VAT from January 2025. Parents are understandably concerned about the financial implications of such changes. As private school fees continue to rise, many parents seek alternatives to ensure their children receive the best education possible.

This article aims to shed light on the benefits of both private schools and private tutoring, helping families make informed decisions about the future of their children's education.

Content:

1. Private School Fees
2. The Private School Experience
3. The Rise of Private Tutoring
4. Making an Informed Choice
5. The Bottom Line

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Private School Fees

The education landscape in the United Kingdom has long been discussed and debated. One of the most significant aspects of this conversation revolves around the choice between sending a child to a private school or opting for the services of a private tutor.

Private Schools face 'Mini Exodus' with 1 in 4 Pupils potentially withdrawn now Labour is adding VAT to Private School Fees.

Private schools in the UK are confronting a significant challenge, with one in four pupils potentially being withdrawn when the Labour Party implements VAT on private school fees from January 2025. The Independent Schools Council (ISC) has revealed that fees have already risen by 8 per cent for the 2023-24 academic year, reaching an average of £18,000 annually. This increase has contributed to a 2.7% decline in enrolments this academic year.

Data from wealth manager Saltus indicates that more than one in five (21 per cent) high-net-worth parents are considering withdrawing their children from private education if fees rise further. Additionally, 26% stated they would switch to the state system if Labour imposed a 20% VAT on school fees. The Saltus Wealth Index Report, which surveyed 2,000 individuals with investable assets exceeding £250,000, highlights the growing financial strain on families.

Rising Fees and Impact on Enrolment

The ISC's report underscores the financial pressures private school parents face. The 8% fee increase for the current academic year follows a 5.8% rise the previous year, exacerbating the financial burden on families. The Saltus report found that 71% of parents with children either already in or about to start private school are reconsidering their educational plans due to these rising costs.

Private schools in the UK may face a significant financial challenge when Labour imposes VAT on school fees. Research from wealth manager Killik suggests that the cost of educating two children at a private day school could rise to nearly £1.2 million, factoring in a 20% VAT. This estimate assumes a 5% annual fee increase, although recent trends have shown average rises of 7% per year. Parents are already struggling with the current fee hikes, and the additional VAT could push many to reconsider private education, potentially leading to a "mini exodus" from private schools.

The Saltus Wealth Index Report surveys high-net-worth individuals and found that more than one in five parents might pull their children out of private schools if fees increase further. If VAT is added, 26% said they would switch to the state system, with 71% reconsidering their plans for private education. Experts warn that imposing VAT on school fees would exacerbate the financial strain on families, forcing many to make difficult choices about their children's education.

Potential Effects of VAT Implementation

The prospect of adding a 20% VAT to private school fees has significant implications. The Saltus report revealed that 76% of respondents believe such a measure would cause substantial issues. Half of the surveyed parents indicated they might keep their children in private education but would need to make adjustments, such as switching from boarding to day school or opting for less expensive schools.

Gianpaolo Mantini, Partner at Saltus, commented on the situation: "When Labour imposes VAT on school fees, then we could see the cost of private tuition rise by at least a further 20% in the years to come. Previous price rises are already significantly impacting parents' ability to pay, with many forced to beg and borrow to keep their children in private schools. Further rises will almost certainly price some families out of private education completely."

Financial Strain and Parental Concerns

Carl Green, Financial Planning Director at wealth management firm Evelyn Partners, echoed these concerns: "With the looming prospect of VAT being imposed on school fees at 20%, it is no wonder parents are already thinking twice about sending their children to private school. Against the background of cost-of-living increases and surging mortgage payments that have stretched even comfortable household budgets, an 8% hike would have been, for many parents, the last straw in the struggle to fund private education. Coming on top of this, a VAT shock at 20% could prompt a mini-exodus from private schools."

Green also highlighted the financial challenges the schools face: "Schools are facing huge expense pressures and are unlikely to absorb the entire cost of VAT being introduced on fees. Some of our clients have already received notifications from their children's schools that some or all of any VAT imposition would be added to fees on top of any customary annual rise."

Broader Implications

The potential exodus from private schools could have broader implications for the education system. Increased demand for state school places could strain public resources, while private schools might face financial instability due to declining enrolments. The situation underscores the delicate balance between maintaining quality education and ensuring it remains accessible to those who value it.

As the debate over VAT on private school fees continues, parents and schools alike are bracing for potential changes that could reshape the educational landscape in the UK. The decision will not only impact individual families but also have far-reaching consequences for the education sector as a whole.

Parents and guardians are understandably concerned about the financial implications of such changes. As private school costs continue to rise, many seek alternatives to ensure their children receive the best education possible. This article aims to shed light on the benefits of both private schools and private tutoring, helping families make informed decisions about the future of their children's education.

The Private School Experience

For decades, private schools in the UK have been synonymous with academic excellence, a wealth of extracurricular activities, and network connections that can prove invaluable later. The potential for a 20% increase in school fees may raise eyebrows, but a private education still offers a range of advantages:

1. Quality of education: Private schools are renowned for their high academic standards. They often boast smaller class sizes, which allow for more individualised attention. Private schools offer a safe learning environment with a strong culture that places emphasis on personal responsibility and ethics. A lower staff-to-student ratio allows for more observation and intervention in case of a conflict.
2. Extracurricular opportunities: Private schools frequently offer many extracurricular activities, including sports, arts, societies, and trips, which enrich a child's educational experience.
3. Networking: Private schools offer a unique environment for building social connections that can prove beneficial in future career endeavours.

However, the soaring costs of private education mean it's no longer within reach for many families. This has led to an increased interest in private tutoring as a viable alternative.

The Rise of Private Tutoring

Private tutoring is gaining popularity as a flexible, cost-effective means of supplementing a child's education. Here are some of its benefits:

1. Tailored learning: Private tutors can adapt their teaching methods to suit each student's specific needs and learning pace, effectively addressing their strengths and weaknesses.
2. Convenience: Private tutoring often offers greater flexibility, accommodating a student's schedule and learning preferences and making it easier to balance with other commitments.
3. Cost-effective: While private tutoring isn't cheap, it can be more cost-effective than sending a child to a private school, especially when school fees are rising.

Making an Informed Choice

With private school fees reaching new heights, families are confronted with the daunting task of choosing between sending their child to a private school or supplementing a free state school education with private tuition. Here are some factors to consider

1. Budget: Assess your financial situation and decide what you can comfortably afford over the long term. Be aware that if your child starts at a private school and you cannot continue to pay the fees, a subsequent transition to a state school will be very difficult for them, as they will lose their peer groups and social structures. In 2023, the average tuition fee for a day pupil at a private school is £20,480 a year and £34,790 for a boarder. Private tutoring is certainly a more budget-friendly option, with tuition fees ranging from £30ph to £75ph. Most families who supplement their child's state school education do so at certain key school stages (e.g. for public exams or SEN support) and likely will focus on one or two subject areas.
2. Your child's needs: Consider your child's learning style, personality, pastoral and academic needs. Some children will thrive in the more nurturing environment of a private school, while others will flourish in the busier environment of a state school with supplementary support from one-to-one academic tutors when needed.
3. Extracurricular activities: Evaluate the extracurricular opportunities available in both scenarios. Can you supplement a state school education with access to high-quality clubs and activities in your local town? 

The Bottom Line

In conclusion, the decision between private school and private tutoring is deeply personal, influenced by factors such as financial capacity, the specific needs of the child, and long-term goals. In a rapidly changing educational landscape, the choice between private school and private tutoring is just one of many decisions parents must make to ensure their children receive a quality education.

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Further reading which may interest you:

• What is a scholarship? What is a bursary? A guide for parents.
  
• How much does a tutor cost? A guide for parents.
• How to find the best tutor for your child. A guide for parents.