Data sourced by consumer lending company Pepper Money has revealed that the average cost for a child to attend private education in the UK is £5,718 per term and £17,128 per annum. With the addition of the 20% VAT in January 2025, parents can be expected to pay £20,596 per year, an additional £17,340 on average, over the course of their child’s five years at secondary school, which is over an additional year’s worth of fees per child.

Pepper Money has researched fees across the UK for 11-16-year-olds in full-time private education to understand the potential impact of the upcoming 20% VAT increase and the resulting effects it may have on families in the near future.

The most expensive region in the UK is the East of England. The average cost to put a child into private education in this region is £20,658 and will increase by £4,644 per year. The region that will see the smallest increase is the Channel Islands, which will see an increase of £2,326 each year.

While East of England is the most expensive region overall, the most expensive county across the UK is Redcar and Cleveland, which sees the average term fees of £14,333 and annual fees of £43,000. This area is expected to see increases of £8,600 in January. This was followed by Moray and Rotheram with average annual fees of £35,280 and £33,250 respectively.

Pepper Money says that with costs reaching up to £43,000 each year, Private education is a significant financial undertaking for many parents, no matter their income. While considered a luxury for many, there are a significant number of families that will struggle to swallow the additional 20% increase when brought in 2025.

A recent report by The Guardian revealed that up to 100,000 families will be priced out of private schooling in the new year. Currently, 7.1% of students in independent schools (39,358 pupils) benefit from means-tested bursaries, with the average award being £11,807 per year per student. However, this amount often falls short of covering the full fees, and the increase in costs could see families seeking higher bursaries, which they may fall short of. If there’s increased pressure on fees, more people could require this assistance, so this support could be placed under strain.

Pepper Money adds that with the cost of Private Education on the rise, parents are having to look for further ways in which they can provide this level of education for their children. Using short-term credit to finance private school education could be less effective due to several inherent drawbacks. Credit cards and personal loans typically carry high interest rates, which can significantly increase the overall cost of education. As tuition fees rise, the accumulated interest on borrowed funds can lead to substantial financial strain, making education more expensive over time.