Nearly six in 10 wealthy parents would rather invest £100,000 into property or savings than pay private school fees, according to wealth manager Saltus.
The survey of high net worth individuals revealed that 59 per cent would choose an Isa or real estate investment for their child's future over funding private education, if forced to choose between the options.
The findings arrive as parents across Britain evaluate GCSE results this week and consider whether independent schooling remains worth the financial outlay. Data from the Independent Schools Council shows that pupil numbers typically drop by 6.6 per cent between Years 11 and 12, as some families opt to switch to the state sector for sixth form or college.
Private education costs have climbed since 2025, when Labour made school fees subject to Value Added Tax (VAT). According to the Good Schools Guide, a parent sending a child to an independent school from reception at age four to age 18 can expect to spend £410,000 on average, climbing to £670,000 for a top London school.
Schools increased fees by an average of 4.4 per cent after the change to VAT rules, rather than passing on the full 20 per cent tax rate to parents.
Financial sacrifices to cover school fees
While wealthy parents might think money is better invested for their children's future than spent on school fees, many are still happy to fund both.
However, Saltus found that 68 per cent of high net worth individuals who had children in private school had made, or expected to make, financial changes and sacrifices to enable them to stay there. This was up from 55 per cent in its previous report.
The most common sacrifices included cutting down on holidays and other big-ticket discretionary spending, which 42 per cent said they had done or would do, up from 29 per cent six months ago. One in five, or 20 per cent, said they either have, or will, get a new job that pays more.
In addition, 16 per cent said they would move to a more affordable area, while 12 per cent said they would downsize their home. Some 20 per cent said they would reduce their pension contributions, and 13 per cent said they would take out a bigger mortgage on their home.
Perceived value of independent education
Despite the monetary outlay, the majority of high net worth families still believe private education delivers significant benefits. Sixty-nine per cent believe the quality of teaching and facilities justifies the expense, rising to 81 per cent among parents who attended private school themselves. In total, 57 per cent of those surveyed attended private school themselves.
Henrietta Grimston, chartered financial planner at Saltus, said: "There is clearly still a lot that parents value about private education. The majority of HNW families believe it delivers better teaching, long-term outcomes, networks and opportunities, with those who were privately educated themselves particularly positive about the benefits."
Grimston noted that while stretched parents are reluctant to move children during GCSE years, sixth form is a key turning point. "However, the ISC data shows that while stretched parents are very reluctant to move their children out of private school during the GCSE years, sixth form is a point where families are more willing to stop and reassess the decision," she said.
"And while cost is no doubt playing a part - the cost of a private sixth-form education has risen by between around £300 and almost £2,000 in just a year - and is already much more expensive than junior or senior fees, which is a significant extra cost at a time when many families are already making sacrifices to keep their children in private education."
"Therefore, the decision is not simply about whether they can afford another two years of fees," Grimston added. "It is about whether they still believe it is the best use of their money, particularly when there are other ways they could invest in their child's future."
