School fee planning

“Deciding to invest in education can be the most important decision a parent makes.”

Deciding to invest in education can be the most important decision a parent makes. But operating a school is expensive. Almost two-thirds of the cost is in staff, the most valuable resource a school has. Money is also needed to pay for facilities, utilities, food and teaching resources. There can be a wide range in fees to cover this cost according to age group, the school and what it offers. Extras add to the bill and schools have different approaches to this, so it is worth checking. PLANNING FOR SCHOOL FEES

Fees for a boarding education from 13 to 18 vary from £60,000 (in a state boarding school where tuition is paid by the state) to more than £200,000. In 2021–22 the ISC census reported that the average

termly boarding fee was £12,344. So it is important to prepare for paying fees. Financial planning can help reduce the burden, so do take professional advice. Planning should consider the following. SPREADING THE COST ? the equity in the family house to spread fees over the term of the mortgage. INVESTING A LUMP SUM Early investment reduces the need to use earnings for fees in later years. This approach can be tailored to individual Andrew Ashton Bursar, Radley College fee planning School Schemes can help spread fee payments requirements. Some schools offer schemes over a longer period to make them more for advance fee payment; if you have a affordable. One way of doing this is against lump sum available, this is worth exploring.

REGULAR SAVING

Regular saving should start as soon as possible. The longer you save, the less the reliance on earnings when fees fall due.

PAYMENT PROTECTION

It is important to ensure the payment of fees can continue in the event of a change in circumstances. A lump sum can be provided by life insurance. Income protection plans can provide income in the event of specified illnesses or accidents. Fees refund schemes can provide cover in the event of absence through illness or accident.

TRUST PLANNING

Trust planning can be useful to make provisions for school fees and achieve inheritance tax benefits. Financial advice should be sought when establishing trusts.

FINANCIAL ASSISTANCE

Bursaries Many schools offer bursaries to help parents pay fees. These are awarded after a ‘means test’ of family income. Bursaries may be awarded in addition to a scholarship where financial need is demonstrated, and the child would otherwise be unable to enter the school. Parents will usually be asked to complete an application, providing details of their financial circumstances with supporting evidence.

Grants Charitable trusts can help in cases of need. For example, the Royal National Children's SpringBoard Foundation (RNCSF) supports children in the UK who are from challenging circumstances. The charity helps by providing grants and boarding school places for children who have suffered trauma, tragedy or neglect in their young lives. Details can be found at www.royalspringboard.org.uk or through the Directory of Grant Making Trusts at www.dsc.org.uk

Scholarships Many schools offer scholarships to attract talented pupils. A scholarship is awarded for academic promise or based on ability in music, art or another specialism or allround merit. They are usually awarded after a competitive examination and interview and take no account of financial need. Scholarships vary in value – they may be honorary accolades that come with no fee discount. In general, schools limit the value of scholarships, such that any extra funding being awarded is strictly subject to financial need.

Other educational awards Many schools offer awards to children of members of the Armed Services, clergy, teachers or other professions. Some support children of former pupils, singleparent families and orphans, or offer concessions for siblings.

There is much to consider and a great deal of financial help available. Read this Guide thoroughly and explore schools’ websites. Above all, do not be afraid to ask schools how they can support your family. It can be a lengthy task, but potentially very worthwhile. Plan early and seek advice.

FURTHER INFORMATION

SFIA School Fees Planning Tel: 0845 4583690 webenquiry@sfia.co.uk

www.schoolfeesadvice.org

Andrew Ashton was educated at Newcastle Royal Grammar School and Oxford University. After a career at Barclays and in consulting, Andrew has been Bursar at Radley College since 2008. Andrew has also served as a governor at a number of schools.