Families Come Together To Help With Private School Fees

Families are coming together following the Government decision to add VAT on independent school fees from January 1st next year, new research from Premium Credit’s School Fee Plan, a leading provider of finance for school fees, shows.

More than half (54%) of relatives including grandparents, aunts and uncles and siblings who currently help pay for private school fees say they have offered to increase the amount they contribute while another 36% say they could afford to but have not been asked.

In addition around 40% who have grandchildren, nieces, nephews or siblings at private school but who do not currently contribute to fees say they would be willing to do so.

Premium Credit’s research shows around 23% of private school parents receive financial help from relatives with 58% of them saying they are helped by grandparents and 34% by aunts or uncles. Around 86% of private school parents questioned say they will be able to continue paying fees after VAT is added.

Parents are taking action themselves - around 11% say they are considering moving jobs for higher pay while 17% are looking to take on more work or second jobs. Around one in eight (12%) say they will look to get their children into less expensive private schools while 11% have asked grandparents and other relatives to start helping. Around one in seven (14%) have asked grandparents and other relatives to increase the amount they already give.

The total lent through Premium Credit’s School Fee Plan (SFP), which allows you to spread the cost of a child’s school fees, was around a quarter more last year than in 2021. Total lending increased by 10% last year compared to 2022 and the amount of funding provided through SFP in the first three months of this year is 9% higher than the same period last year. The average amount of funding through SFP is now around £20,300.

Families play a key role in supporting parents with private school fees and the research shows they are happy to increase that support highlighting the value many place on private schools even if paying for fees comes with a financial impact on them.

Schemes such as SFP which enable parents to spread the cost of school fees already play an important role in supporting families with paying school fees and should be considered as part of financial planning.

The ability to pay school fees monthly helps parents and other relatives to spread the costs and budget more effectively and is becoming much more popular.

For over 25 years, SFP has helped parents finance their children’s independent school fees by enabling them to spread the cost rather than paying a lump sum each term. SFP is the convenient and manageable way for parents to pay for independent school fees and extras such as music tuition and trips. It splits the cost into regular monthly direct debits, like any other household bill. It has a net promoter score of +70 which is regarded as excellent.

The process of applying for a SFP for both parents and schools is seamless. Parents apply to open their account online before the beginning of any term. If the application is approved, SFP will notify the parents and the school. SFP sends the full payment to the school at the start of each term.

For further information on SFP, please visit https://www.premiumcredit.com/products/school-fee-plan-1-parent