Private school fees rise nearly twice as fast as inflation
Private school fees have increased by an average of 68% in the past decade, a rate of growth that is over 1.8 times faster than the increase in the Retail Price Index (37%) over the same period, according to latest research by Lloyds TSB Private Banking.
Since 2002, the average annual private school fee has increased from £6,820 to £11,457 in 2012.
Largest increases in South West and London
Regionally, the biggest rises have been in Greater London and the South West with fees increasing in both regions by 79% during the decade. The next biggest increases were in East Anglia (74%), East Midlands (69%) and the South East (68%). The lowest average increases in annual fees were in the West Midlands (53%), the North (60%) and Scotland (63%).
Private school fees are the highest in southern England with average annual fees in London of £13,359 and £12,879 in the South East. The lowest average fees are in the North (£9,171) - almost a third lower than in the capital - and Scotland (£9,816). In 2002, there were no regions where the average annual fee exceeded £10,000, now only the North and Scotland are below this level.
Growth in annual fees rises in line with inflation since 2007
Private school fees have increased significantly more slowly in the past five years than during 2002 to 2007. Since the start of the economic and financial downturn in 2007, the average annual private school fee has grown by 19%. This is very closely in line with the Retail Price Index (RPI) which rose by 18% in the same period.
Private school fees have increased as a proportion of estimated average earnings
The average annual private school fee in 2012 of £11,457 is equivalent to 35% of annual average gross full-time earnings of £33,011; in 2002 the comparable ratio was 27%. With school fees rising by significantly more than the rate of inflation, it has become more difficult for the average earner in many occupations to send their children to private schools.
As a result of school fee inflation, there are several relatively well paid occupations - such as pharmacists, architects, IT professionals, engineers and scientists - where someone on the average earnings for that occupation can no longer send their child to private school without assistance from other sources. In 2002, someone employed in these professions, on average earnings, would have been able to afford to send their child to a private school. (Private school fees are deemed to be affordable for an occupation if they represent 25% or less of gross average annual earnings for someone in that occupation.)
Parents earning the average salary in occupations such as production managers, accountants, senior police officers and pilots face the smallest financial burden in sending their child to a fee paying school with the average annual private school fee representing around a fifth (19%) of their annual average gross earnings.
One third of pupils receive financial help with their fees
The number of pupils at ISC member schools who receive a financial contribution towards the payment of their school fee reached 164,298 in 2012, a 6.4% increase on 2011. Pupils who receive financial help now account for 33.2% of all pupils at ISC schools - slightly higher than the 32.1% that had assistance in 2002. The ISC's member schools are the highest contributor, providing assistance to 27.6% (22.1% in 2002) of all pupils with over half of the assistance coming via various bursary and scholarship schemes.
Decline in private school pupil numbers over the past decade
The total number of pupils in private schools has declined by 13% over the past decade. The number of senior school pupils (11 to 18) has fallen by 19% and those in junior schools by 7%. On the other hand, the number of children in fee paying nursery schools has risen by over a fifth (22%).
Despite the overall decline since 2002, the total number of pupils at private schools is largely unchanged compared to five years ago with around 440,000 registered pupils. The number of senior pupils attending private schools has remained unchanged at around 243,000, while the number of junior school pupils has declined by 3% to 172,000.
Suren Thiru, economist at Lloyds TSB Private Banking, commented: "Private school fees have increased by significantly more than inflation over the past ten years, making it increasingly difficult for the average worker in many occupations to afford a private school education for their offspring.
"All parents want to ensure their child receives the best education to help them benefit from a secure future. It is, therefore, becoming increasingly vital that parents plan their finances as early as possible if they want private schooling for their children."