The application of VAT to school fees would make private school unaffordable for one in three (33%) of parents questioned while 36% say they would look for a cheaper alternative and 20% say asking family for financial help would be an option
Nearly half of private school parents believe affording fees will become tougher in the year ahead and they are increasingly looking for ways to make the cost more manageable, new research from Premium Credit’s School Fee Plan, a leading provider of finance for school fees, shows (please see the attached press release).
Nearly a fifth (17%) believe affording fees will become much harder while 27% believe paying fees will become slightly harder. Just one in five (20%) expect paying fees will become easier in the year ahead, the study found. The rising cost of school fees is a slightly bigger factor than the cost of living with 63% blaming increases at schools compared with 58% blaming the cost of living and rising interest rates.
Premium Credit’s research shows that on average parents are spending 15% of their income on school fees but nearly a quarter (23%) say a fifth or more of their income goes on these. More than half (51%) who have struggled to pay fees have discussed their issues with the school.
The study found that increasingly parents are looking for other ways to afford fees – more than half (52%) of parents say they would consider a scheme which enables them to spread the cost in return for a small charge. Around 57% who do not pay fees monthly currently say they would consider switching.
Around half (53%) questioned pay fees every term while 7% pay annually and 26% pay monthly with 9% paying a lump sum upfront and 5% preferring to not answer.
Among those struggling to pay currently, nearly two out of five (38%) say they are planning to take children out of private school with another 41% thinking about withdrawing them.
The possible application of VAT to school fees would make private school unaffordable for one in three (33%) of parents questioned while 36% say they would look for a cheaper alternative and 20% say asking family for financial help would be an option.
