A significant portion of wealthy parents believe investing money for their child's future is a more beneficial use of funds than paying for private school education. A survey by wealth manager Saltus, titled the Wealth Index, found that 59% of respondents would prefer to invest £100,000 in an Isa or property for their child instead of using the money for school fees.
The cost of private education has seen an increase, particularly since 2025 when Value Added Tax (VAT) was applied to school fees. Data from the Independent Schools Council indicates a typical drop in pupil numbers of 6.6% between years 11 and 12, suggesting some students transition to the state sector for sixth form.
Financial Sacrifices for Private Education
Despite the growing appeal of investing over school fees, many affluent families continue to make financial sacrifices to maintain private education for their children. The Saltus survey revealed that 68% of high net worth individuals with children in private schools have made or anticipate making financial adjustments to keep them enrolled. This figure represents an increase from 55% in the previous report.
The most common sacrifices reported include reducing spending on holidays and other discretionary purchases, with 42% of respondents doing so, an increase from 29% six months prior. Additionally, 20% of parents are considering or have taken on higher-paying jobs, 16% plan to relocate to more affordable areas, and 12% intend to downsize their homes. Some parents are also cutting pension contributions (20%) or taking out larger mortgages (13%).
Perceived Benefits of Private Education
Despite the financial pressures, a majority of high net worth families still recognize substantial benefits in private education. Sixty-nine percent believe the quality of teaching and facilities justifies the expense. This figure rises to 81% among parents who themselves attended private schools, a group that constituted 57% of the survey respondents.
Henrietta Grimston, a chartered financial planner at Saltus, noted that parents still value private education for its perceived advantages in teaching quality, long-term outcomes, networking, and opportunities. She pointed out that while parents are often reluctant to move children during GCSE years, sixth form presents a more common point for reassessment. Grimston added that the rising cost of sixth-form education, which has increased significantly in the past year, contributes to this decision-making process, forcing families to weigh the expense against alternative investments for their child's future.