Private school fees in the UK 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 the 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. Regionally, the biggest rises have been in Greater London and the South West with fees increasing in both regions by 79% over the past 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.
Overall, the growth in annual fees has risen 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 in the UK have also 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 at a higher rate than 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.
The number of pupils at the Independent Schools Council (ISC) member schools who receive a financial contribution towards the payment of their school fees 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 has 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.
The total number of pupils in private schools in the UK 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.
Lloyds TSB asked Martin Humphreys of King William’s College for his view on the findings of the report and the ways in which rising school fees have impacted the Island’s private education market: “It is an unfortunate but necessary truth that on the Isle of Man, as in the UK, fees are on the rise. It is, however, also important to remember that a private education and all of its associated benefits represents a huge investment for parents and at King William’s we feel it is worth it.
There is no getting around the fact that a private education is expensive but there is a direct correlation between the cost to the parent and rising costs associated with aspects such as teacher salaries, facilities development, increased employer pension contributions and other factors. There is, however, also a direct correlation between the cost to the parent and those aspects associated with a high-quality private education such as extra-curricular facilities, low class sizes, academic achievement, choice university placements and future support networks.”
Jo Wright, Head of Personal Banking at Lloyds TSB also commented on the results: “Private school fees have increased 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. For parents wishing to educate their children privately it’s becoming increasingly vital that they put financial plans in place as early as possible.”
