Nearly half of private school parents rely on family to pay the fees

Nearly half of parents with children at private schools rely on family help to afford the fees with the Bank of Gran and Grandad the biggest source of funding, new research from Premium Credit,  a leading provider of finance for school fees, shows.

Its study found 47% admit to relying on financial support from family with grandparents the biggest source of funding. Nearly four out of five (79%) say grandparents help with some of the fees while 38% say some help comes from aunts and uncles.

Despite the family support around two out of three (65%) parents still find it difficult to pay fees and Premium Credit’s research outlines the cutbacks and choices they are making. Around two out of five (38%) parents who have children at private schools or have had in the past say they take fewer or cheaper holidays while 37% work overtime to afford school fees and 24% say they have taken on more than one job.

Nearly one in seven (13%) say they have stayed in unhappy relationships so as not to incur the cost of divorce or separation while nearly two out of three (63%) questioned say paying for their children to attend private school has delayed retirement plans with one in 20 (5%) saying they will never be able to retire as a result.

Premium Credit’s Schools Fee Plan (SFP) saw a 13% rise in lending last year with the average total amount of funding provided at £7,695. Its analysis2 shows the cost of privately educating a child from reception to A levels is an average £355,516 in a day school rising to £514,594 if they attend a day school to 11 and then board.

Stewart Ward, Director Education Sector & Head of School Fee Plan, Premium Credit said “The cost of private education is rising and inevitably that means many parents have to rely on family help in order to afford the fees and make a range of sacrifices.”

“While it is their choice it is still worrying to see so many saying they have delayed retirement plans with some saying they can never afford to retire. Spreading the cost of their children’s school fees for a small fee through funding plans can make financial sense and ease the strain for parents.”