19th February 2014
Some 37 per cent of parents with children at fee-paying schools are considering taking them out of private education over rising fees according to Lloyds Bank Private Banking.
An even more significant 57 per cent are concerned they may not be able to afford fees in future, while 38 per cent have struggled to meet payment deadlines.
Private school fees have risen 24 per cent the last five years[¹] prompting concerns among some parents that they may have to remove their children from private education.
Despite their concerns over high costs, the vast majority of parents said their decision on which school to send their children to was not motivated by cost.
Classroom size, school facilities and the quality of teaching in a specific subject were named the most important factors in their choice while only two per cent of respondents said ‘lower fees’ played a key role. Nearly a quarter said they don’t have a financial plan in place to pay for school fees.
Sarah Deaves, Investment Advice & Private Clients Director at Lloyds Bank Private Banking, said: “The survey suggests that many parents don’t want money to be a key consideration in their children’s education. But a lack of planning could lead to financial problems that may cause them to consider taking their children out of private schooling.
“With the increased pressure on family budgets, even relatively wealthy parents are feeling the strain of rising school fees, but there are a range of options that can help them plan their finances which could help ease this burden. It’s worth saving as early as possible for these costs, before children are in full time education. I’d always recommend consulting a financial adviser who can look at a family’s overall financial circumstances to help you build a plan that aims to make the costs more manageable.”
About the survey
All figures, unless otherwise stated, are from the Family Futures Survey, carried out by YouGov Plc. on behalf of Lloyds Bank Private Banking Limited. Total sample size was 1,107 adults. Fieldwork was undertaken between 5th – 12th September 2013. The survey was carried out online. The figures have been weighted and are representative of all GB adults (aged 18+).