Parents are increasingly discussing problems paying fees with independent schools as they look for ways to keep children in private education, research from School Fee Plan, a leading provider of finance for school fees, shows.

Its study with independent school parents found nearly six out of 10 (59%) who have found it difficult to pay fees have raised the issue with schools – more than double the 29% who said they had done so in a survey last year.

School Fee Plan’s research found around two out of five (39%) parents say they currently or have in the past found it difficult to pay fees, and around one in eight (12%) are planning to withdraw children from independent schools as a result.

However not all children will leave their schools – nearly half of parents (47%) planning to or thinking about withdrawing children from independent schools say at least one of their children will continue in private education. Around four out of five (79%) headteachers and bursars of independent schools say they are aware of parents withdrawing children from schools but continuing to pay for at least one of them to stay in private education.

The main reason for parents keeping at least one child at independent schools is exams – with 36% saying children were about to start GCSEs, and 30% saying they were about to start or are going through A levels. Around one in three (33%) believe one child is better suited to an independent school.

The School Fee Plan research found independent schools are focused on being as flexible as possible despite pressures on their finances, as well as parents, following the introduction of VAT on school fees in January last year.

Headteachers and bursars questioned estimate that on average, fees at their school will rise by around 3.7% at the next review, with more than a fifth (21%) expecting to keep fee rises below 3%. Across the independent sector as a whole, however, more than four out of five (82%) expect fees to rise faster than the historic rate of between 3% and 6%4 over the next three years. Around one in six (16%) think fees will rise significantly faster than the historic rate, while just 15% believe fees will not change much over the period.

The total amount lent through Premium Credit’s School Fee Plan (SFP) last year is around 9% higher than in 2023 and the average amount of funding through SFP is now around £24,288 – which is 12% higher than in 2024 and 24% higher than in 2023.

Stewart Ward, Director Education Sector & Head of School Fee Plan, Premium Credit said:

“Independent schools are working hard and trying where possible to limit necessary fee increases. Parents clearly value independent schools, but some are having to make difficult decisions on keeping one child in private education. They could benefit from schemes which help improve cashflow and make budgeting easier by switching to monthly payments.”

“Schools can help by working with companies which can offer these schemes, enabling parents to spread lump sum payments each term into monthly payments.”

For further information on SFP, please visit School Fee Plan, Premium Credit.