How much does private school cost?

Fee increases are being limited this year, with some schools fixing theirs at a competitive 2.2 per cent

The recession is starting to have a significant impact on the cost of independent schools in the UK, with schools showing a keen awareness of the pressures parents are under. After years of fee rises in excess of the rate of inflation, many private schools are setting their 2009/10 increase at very competitive rates.

This year Vicky Tuck, headteacher of Cheltenham Ladies College, has restricted her fee increase to four per cent “in anticipation of harder times to come”. Sherborne School, a top boarding and day school in the South West, is limiting its increase even more, to just 2.2 per cent. Such moves may mean a slight increase in class sizes, or a limit on capital projects, but hopefully it will ease some of the pressures on parents at the moment.

How to pay school fees

School fees are normally paid in advance at the start of each term, so expect to make three yearly payments to the bursar's office. Many schools, however, offer parents the option to pay monthly or in 10 yearly instalments. This is normally operated via a collection company, which pays the school in advance and effectively provides credit for the parents, who reimburse them via their monthly instalments.

This is slightly more expensive than paying direct to the school, but many parents like the convenience of funding school fees from their monthly salary. There are a number of companies that offer this facility, many of whom advertise online.

Day or boarding school?

Many day schools in Britain offer a superb education for less than £10K per year. Fees at the prestigious inner London day schools range between £3500 and £6700 per term, but outside the capital costs tend to inflict less damage on the wallet.

The Royal High School, Bath, for instance, charges £3100 per term and £6077 for full boarding, with a 10 per cent discount for the families of Armed Forces personnel. This year, almost a third of the school's students achieved A* grades at GCSE.

Prices are similarly competitive the further north you go. Manchester Grammar School (MGS) charges £3080 per term, or £9240 per year, and achieves consistently excellent results. In August 2009, students at the school gained more than 70 per cent A grades at A-level. 

Inevitably boarding schools cost more than day schools, but parents are saved the costs of food, laundry, transport and electricity during term time. Most good independent boarding schools cost from around £19,000 a year at least and this figure can rise to almost £30,000 if you want your child to attend one of the most prestigious schools, such as Eton, Harrow or Cheltenham Ladies College. 

Search within a slightly lower price range and you’ll find a wealth of boarding schools that may not have the kudos of famous schools but offer a superb all-round education. 

What about the extra costs?

As any parent with children at independent school will tell you, it's important to factor in the extras costs, such as uniform, sports kit, musical instruments and lessons, club membership, trips and meals. All this can add an extra 20-25 per cent to the cost of independent school per child per year.

For more details, read our feature on the extra costs of independent education and find out how to save money on them.

Savings for families

If you send several children to the same school, you may qualify for a sibling discount (normally between 10 and 20 per cent). There are caveats, however. The reduction may only be applicable to the third child in a family and all of your children may have to be at the school for you to qualify for the discount. 

Most independent schools offer scholarships and bursaries, which can really help families make savings. If your child is particularly talented academically or in sport, music or drama, enquire at the schools you've shortlisted about scholarships (plus read our feature on how one family saved up to a six-figure sum thanks to a scholarship to Millfield).

Schools are becoming more generous with bursaries due to the economic downturn. They are seeing a steep increase in the number of parents coming to them who have been hit hard by the recession - perhaps they have been made redundant or their business is not doing as well as usual. Around 30 per cent of children at independent schools receive some form of financial support, so it's well worth asking if you think you have a valid case.

Schools will also consider offering bursaries to the children of lone parents, teachers, the Clergy and members of the Armed Forces. Find out more in our feature about bursaries. 

Planning ahead for fees

If you'd like your child to attend independent school, give yourself a headstart by beginning your financial planning as early as possible. The estimated cost of independent school from the age of 3 to 18 can be at least £120,000 and you've got to take into account inflation, also.

See an independent financial adviser (IFA) who is experienced in offering advice on tax-efficient school (and university) fees planning. It's not possible to receive tax breaks if you want to send a child/children to independent school, but there are tax-efficient ways of saving for school fees. For more advice, see our feature on tax-efficient saving.

Tom-Brown.com offers free money makeovers for parents interested in independent education. These are carried out by IFAs and the findings are published on our site. If you're interested in taking part, please email editor@tom-brown.com

For a list of IFAs in your area, visit www.unbiased.co.uk 

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