Private school fees

[londonloves]

How much do fees increase year on year, roughly?
I'm trying to work out lifetime cost of private education based on this year's fees but I feel like I need to factor something in for yearly increases. Obviously I know we can't predict inflation/economic factors... but just a rough cut at how much increase is expected.
Can anyone offer a view?
Thanks

I would put in a 4% fee increase per year as a good and prudent estimate. I would also add on 10% of the fees for extras on average per year.. it will vary year to year depending on new uniform, trips, extra lessons, exams etc. So if your fees are say 10000 assume 11000 for the first year and then add on 4% for the next year.

If the fees gradually go up in higher years you can take this into account too. I do it all in a spreadsheet and any left over at the end of each year goes in the University pot (which is almost non existent sadly... but I guess they will be better placed to help themselves by then... one hopes).

This may provide a focus. We switched ds at 8. (2003). His first year's fees were £8k; his upper sixth year was £18,000. Big leap from junior to senior school even though they were one school.

Uniform isn't much (imo) but lunches, music tuition, occasional trips (hard to avoid if you have a v musical or sporty child), all add up. I would estimate in today's figures an additional £2,500 to £3,000 per year. DD was marginally cheaper as gdst is a bit cheaper.

We paid from 2003 to 2017 for two DC. One from 8, one from 12 although dd repeated a year. I'd say about £250,000 so in today's money and if done from age 4, I'd say closer to £650/700.

And then there is uni and they may decide to do Masters/Phd's etc, so take care where you spend your money to support them if the pot is finite

It's typically a bit higher than inflation (though things like the NI hike of the 00s caused much bigger rises then)

I'd allow 5% per annum - always better to have over than underestimated on an the projections of the cost of a commitment you will not want to end early.

If cautious, allow 7% - given what the Bank of England is saying about the need to raise interest rates later this year.

I have to disagree with one point made up thread. You certainly do not stand out if you don't go on trips.

Thanks everyone, really useful input. Going to have to start another spreadsheet!

No one has mentioned I think the VAT that will be added to fees if Corbyn PM. So add another 20% !

VAT can only be added after Brexit.

We cannot tax education in schools and universities for as long as we are in the EU

The 20% VAT may be swallowed by the schools because they will not have to offer any bursaries etc if they no longer are charities and other freedoms will be introduced as a result if that is Corbyn's plan (to remove charitable status) so they might end up having more money not less.

You're confusing two issues. Fees are VAT exempt irrespective of whether the school is a charity or not.

Removing charitable status would require a separate change to the law, because (whatever the charity) you cannot just turn charitable funds and assets into privately held ones.

Even if that happened, there wouid be no VAT on fees for as long as we are in EU. And yes, schools wouid just absorb the cost (which is less that the variation of fees between similar schools anyhow) and probably be quite happy.

But 20% on fees if full-rate VAT-successor imposed is quite a different increase. And no, schools won't be able to absorb the loss of a fifth of their fees income.

DS school provides after school clubs, sport practice or homework supervision until 5.30pm free all term. So that saved on childcare as we didn't have relatives who could do that.

We've not had increses above inflation for last five years.

DS is about to start at a private secondary (state up until now) and so far I've been pleasantly surprised. Yes, the fees are high, but: all food included, all sport included (no more out of school clubs), child supervision until late included (so easier for work), quite a lot of local trips included, no need to buy iPad/laptop (unlike some friends in state) - and he can walk there, so no transport costs. Brilliant secondhand uniform shop where I've managed to get nearly everything for £100. And a good on site discount stationery shop. So yes, you obviously have to plan for fees and increases, but there might be savings too.

dd2 is about to start 6th form and we've said no more extras - no Lamda or music. She's already grade 8 lamda and grade 6 music and there it will stay. Fees have gone up 4% a year on average.

Ds is moving to private and I'll save 100 a month in school lunches and 70 a month swim club fees. A drop in the ocean really but it does all help. I am trying to encourage him to eat there in the evening as well as its all included in the price (he's a day boy at a predominately boarding school)

The 20% VAT may be swallowed by the schools because they will not have to offer any bursaries etc if they no longer are charities and other freedoms will be introduced as a result if that is Corbyn's plan (to remove charitable status) so they might end up having more money not less

Yes, they will become even more exclusive once they aren't charities any more. It's such a short sighted, mean tax!

Also bear in mind private schools can change ownership often and the first thing a new owner is likely to do is put up the fees. Ours just went up 12%

Would you consider just doing secondary privately, OP? Our local London primaries are excellent whereas the secondary schools are dire

Primaries in this area are quite bad too - the very few good ones impossible to get into. We are essentially ok for first child, as grandad has said he will cover the fees. I'm trying to work out what we could manage if we put two through. A lot depends on when I go back to work and how much of a pay cut I take, depending on how many years I've been out.
Thank you everyone so much, this thread is really helpful.