5 practical ways you can mitigate rising private school fees

As a parent, grandparent, or guardian, it’s likely that ensuring the children in your life are given the very best start is incredibly important to you.

With education being a crucial part of any child’s development, paying for your loved one to attend a private school may be something you are considering, or already doing.

However, the Times reports that average day school fees are now £5,552 a term, or £16,656 a year. Boarding school prices are now £13,002 a term on average, a rise of 5.2% compared with 2022.

With that in mind, here are five practical ways you can cut private school fees.

1. Consider specialist bursaries

If you have noticed your child’s private school fees rising in recent times, it may be worth speaking to the bursar to find out what bursaries are available. It’s important to note that there may be certain eligibility criteria.

Many independent schools in the UK offer specialist bursaries for day and boarding. These can sometimes even cover extracurricular activities and school uniforms.

While bursaries may help you cut some school fees, the means-testing involved can often be quite invasive. For instance, your family’s income and financial assets will decide the amount of financial assistance you may be eligible for.

However, the Telegraph reports that even families with a gross household income of up to £126,000 a year, with net assets of up to £1.4 million, may be eligible for a bursary from St Paul’s School.

So, considering specialist bursaries could still be a prudent option if you’re looking to cut private school fees where you can.

2. Start speaking with potential schools early

If you’re looking to put your child through private education, it may be worth speaking to schools about bursaries two years before your child intends to start.

You don’t have to stick to just one school either. You will be able to apply for bursaries at more than one school without any penalties.

While it may be tempting to apply at the obvious entry point for an 11-year-old, you may find you have more success applying for a place for a 14-year-old in year 10 as there may be less competition.

Similarly, if you’re applying for a scholarship, it could be prudent to prepare your child in good time for any assessments they may need to take. That brings us to…

3. Look into the potential for scholarships

Unlike bursaries, scholarships are ordinarily not means-tested. This makes them a suitable alternative should you not want to go through the process of having your income, assets, and liabilities assessed.

Private schools often offer scholarships for sport, art, drama, and music. Most scholarships are typically worth between 20% and 40% of the annual fees, provided your child passes the entrance exams.

With private school fees rising, identifying a potential scholarship opportunity for your child or grandchild could be a prudent strategy.

With scholars likely to have to undertake additional activities relating to their area of specialism, it’s important your child enjoys the skill or hobby they are being funded for.

So, if you have a specific independent school in mind for your child or grandchild’s education, speak to them about their unique scholarships.

4. Explore the discounts that are available

You may also find that the independent school of your choice offers discounts if one of your other children or grandchildren was a previous student there.

While sibling discounts are often modest, even a 10% discount could offer real value when you consider the rising costs of fees.

Additionally, some independent schools offer discounts if you work in specific professions, such as the armed forces or the clergy. So, it’s worth researching your targeted schools in advance.

5. Choose a suitable investment strategy

If you’re looking to reduce financial pressures when your child reaches school age, saving early could be a prudent strategy.

For example, you could consider the tax-efficient benefits of investing in a Stocks and Shares ISA.

In the 2023/24 tax year, you can save up to a maximum of £20,000 into your Stocks and Shares ISA. Any gains are paid free of Income Tax and Capital Gains Tax (CGT).

While it’s important to note that investments always carry risk and past success doesn’t indicate future growth, you could consider putting funds aside from birth until senior school age.

Through your contributions and tax-efficient compound growth, your investment could potentially help cover many years of private school fees in the future.

Be aware that a Junior ISA in the child’s name will not usually be suitable if you want to earmark the money for education as funds will not be available for the child to use until they turn 18.

We can help you to build school fees into your financial plan

If you’re looking to send a child or grandchild to a private school, working with a financial planner could offer real value.

We will help you devise a financial plan that accounts for school fees alongside your other financial goals.

To find out more, please email enquiries@clarionwealth.co.uk or call us on 01625 466360.

Please note

Investments carry risk. The value of your investments (and any income from them) can go down as well as up and you may not get back the full amount you invested. Investments should be considered over the longer term and should fit in with your overall attitude to risk and financial circumstances.