Families priced out of private education by rising fees

Fewer pupils. Higher costs. Private schools are struggling to survive after being hit with multiple financial shocks in 2025. It’s been reported that at least 54 independent schools in England have already closed or announced shutdown plans since the start of the year. 

Inflation coupled with the government’s VAT reforms are being blamed for the financial squeeze facing schools – and parents. A recent analysis shows that it could cost at least 85% more to send future generations of children to private school.

School term fees increase 22% in a year

In the latest Attwaters Private Wealth Guides, we looked at how headteachers were responding to the financial challenges. According to reports, some schools reduced their fees in an attempt to take the sting out of the 20% VAT price hike. However, parents are still facing bigger bills overall.

Data from the Independent Schools Council shows private school fees were 22% higher in January 2025 compared with a year ago. The average cost per term for a day school is now just under £7,400 including VAT.  

Inflation is expected to continue to push up fees in the future. This means parents enrolling a child into a reception class in 2025 could end up paying around £377,000 to keep them in private education until their A-Levels. Add boarding into the mix and the costs rise to approximately £763,000.

A third of private pupils receive financial support

For some families, it’s too high a price to pay. The annual ISC census found pupil numbers were already down by 2% in January 2025 on the previous year. The new intake at schools that completed the census in 2024 and 2025 also fell by 5%.

Despite the economic challenges, independent schools have continued to invest in bursaries to help make fees affordable for more families. The 2025 census revealed that around a third of all independent school pupils now receive financial support. This equates to more than £1.5 billion – an increase of 11% on the previous year.

State schools face bigger influx of pupils

Even if you don’t have children at private school, the fallout from the changes could still impact your family. When the government introduced the new VAT rules, it predicted that 3,000 children would be displaced from independent schools into the state system.

According to the ISC, the number that have moved this year is already four times higher. This has prompted concerns that the state system won’t be able to cope with the influx – especially if pupils have Special Educational Needs and Disabilities (SEND). The 2025 ISC census found that one in five pupils attending private schools require SEND support – an increase of 6% on last year.

You can find more articles like this in our Private Wealth Guides, which highlights some of the top independent schools local to Essex and Hertfordshire. You can also head to our social media pages, where we publish the content from the guides with the hashtag #PrivateWealthGuide.