School fees rise by 41% in five years

Private school fees have increased by 41%, more than twice the rate of inflation over the past five years (18%), according to new research from Halifax Financial Services.

Over the past year, private school fees rose by 6%, 50% more than the increase in retail prices (4%).

More occupations no longer able to afford private school fees

The above-inflation school fee increases have made it more difficult for the average earner in many occupations to send their offspring to private school. In 2002, the average worker in 23 occupations could afford to send their child to private school2. In 2007, there are only 13 occupations where this is the case.

The average worker in the following ten occupations could afford to send their child to private school in 2002 but can no longer do so without assistance from other sources: scientists, police officers, tax experts, engineers, journalists, clothes designers, teachers & lecturers, writers, trading standards officers and computer programmers.

School Fees

School fees have risen by 41% since 2002

In 2007, the average annual cost of sending a child to private school was £9,627 compared to £6,820 in 2002, an increase of 41%.

School fees increases significantly outstrip inflation

Retail prices increased by 18% between 2002 and 2007. In real terms, private school fees have risen by 20% since 2002. Average annual earnings have increased by 4% in real terms over the last 5 years.

The South East is the most expensive region

The average fee in the South East is £10,908 a year.This is nearly £3,000 (£2,964) a year higher than in the North – the least expensive region – where the average annual school fee is £7,944 a year.

Private School Affordability

School fees rising as a proportion of earnings

Average private school fees now equate to 32% of average annual gross earnings (£30,504) compared to 27% of average annual earnings (£24,911) in 2002.

Key public sector workers cannot afford to give their children a private education

Private schools have become unaffordable for police officers and teachers on average earnings over the past five years. For teachers, average school fees for day pupils represent 28% of the average salary; while for nurses, day school fees represent 36% of their average salary.

Directors can afford to educate their children privately

At the top end of the scale, senior directors and Chief Executives earn an average £149,000 a year. For them, school fees are affordable, representing 6% of their gross earnings.

Increased support from schools to ease affordability difficulties

Schools have sought to ease the apparent affordability difficulties for many parents by increasing the number of bursaries available. Nearly a third (31%) of pupils at ISC independent schools receives support from the schools worth over £300 million. In 2000, 20% of pupils received support from the school.

School Fees for Boarding Pupils

Boarder fees are more than twice those for day pupils

The annual cost of boarding fees (£20,970) is more than double the average for day pupils (£9,627). The average fee for a boarder is now 36% higher than the £15,364 annual cost in 2002.

Broadly constant ratio between boarder and day fees

The difference in cost between enrolling a child as a boarder or as a day pupil has changed little over the last 5 years. In 2007, school fees for boarding were, on average, 2.2 times school fees for a day pupil. In 2002, school fees for boarding were 2.3 times school fees for a day pupil.

Boarding school fees represent almost 70% of average earnings

Fees for boarding presently equate to 69% of average annual gross earnings, compared to 62% in 2002.

Senior directors can still afford boarding

In 2007, average private school fees for boarding pupils accounted for 25% or less of average annual gross earnings in only one occupation: senior directors. In 2002, there were two occupations where this was the case: senior directors and doctors & consultants.

Number of Pupils Attending Private Schools

Increasing number of private school pupils

The number of pupils going to private schools increased by 6% between 2001/02 and 2006/07 (from 631,800 to 669,300). During the same period the number of pupils attending state schools fell by 2% from 9,484,200 to 9,289,300.

1 in 15 attend private school

Private schools accounted for 6.7% of pupils in school in 2006/07, compared to 6.2% of pupils in 2001/02.

Martin Ellis, Chief Economist at Halifax Financial Services, commented: "Private school fees have risen by significantly more than average earnings over the past five years, making it increasingly difficult for many parents to send their children to private schools. The average earner in a number of occupations, including engineers, journalists and teachers, can no longer afford private education for their offspring.

With school fees continuing to rise by more than inflation and private education proving increasingly popular, parents need to plan their finances as early as possible if they want to afford private schooling for their children."