The cost of sending children to private school will almost double after the introduction of VAT on fees, analysis suggests.
The parents of a privately educated child leaving school this year after A-levels are likely to have spent an average of £204,622 on fees, according to Weatherbys Private Bank. The cost of putting a child of the same age through boarding school is estimated to have been £413,471. However, costs vary widely with the Good Schools Guide putting the highest annual fees at £75,000.
Weatherbys says that for a child starting in reception at a private school this September the cost could ultimately reach £377,000 — £763,000 if they were boarding. This assumed annual inflation of 3 per cent, which accounts for two thirds of the increase, with VAT responsible for the rest.
Last September private schools put up fees by an average 6.7 per cent. When 20 per cent VAT was imposed in January, many schools initially cut fees by 5 per cent to cushion parents from the immediate impact, but overall, the average fee rose by about 22 per cent.
Oliver Barnett from Weatherbys said: “I’m sure sending out invoices with VAT on was a nailbiting moment for some heads, nervous about losing pupils. We expect that schools will attempt to recover some of the discount they gave in January. Historically, schools increase fees above inflation, so our 85 per cent growth estimate is conservative.”
