How to plan for private school fees and create more choices for your family

Planning for school fees is not only about meeting a future bill. Done well, it can help your family make confident decisions without sacrificing financial security or other long-term goals.

Suggested read time: 5 minutes 

Every parent wants to give their children the best possible start. For some families, that means considering independent education; for others, it may mean preparing for university costs, tutoring or support with a first home later on.

A conversation about how to pay private school fees often becomes something broader: what matters most to the family, which trade-offs feel acceptable and how money can create freedom rather than pressure. That is why starting early matters. It gives you more time to build a plan that supports education while protecting your wider lifestyle and financial goals.

What do private school fees cost?

Fees vary considerably by school, age, region and whether a child is a day pupil or boarder. The Independent Schools Council reported an average termly day-school fee of £7,382 in January 2025, including VAT—more than £22,000 across three terms. Since 1 January 2025, education and boarding services supplied by UK private schools have been subject to VAT at the standard rate of 20%.

The headline fee is only the beginning. A realistic school-fee budget may also need to include:

·       Registration fees and deposits

·       Uniform, devices and equipment

·       Trips, clubs, music lessons and sport

·       Transport, meals and childcare

·       Future fee increases

·       University or further-education costs

Using the fees for the school you are actually considering—and allowing for increases and extras—will give you a more useful target than relying on a national average.

Why starting early makes school fees easier to plan for

Time creates flexibility. Starting several years before fees are due may allow you to spread the cost, save regularly and consider investing some of the money intended for later years. Starting later may mean relying more heavily on current income, existing savings or help from relatives.

Early planning also helps you test affordability. A forecast can show how school fees might affect mortgage repayments, retirement savings, emergency reserves and day-to-day spending. The aim is not to fund education at any cost; it is to understand what is sustainable for the whole family.

A useful first step: estimate the total cost, decide when each payment will be needed and separate near-term fees from money that will not be required for several years.

Saving or investing for school fees: which may be appropriate?

The right approach usually depends on when the money will be needed and how much investment risk you can accept.

Money needed in the next few years

Cash savings may be more suitable for fees due soon because the value is not exposed to investment-market falls. Competitive savings accounts and Cash ISAs may help, subject to eligibility and allowance rules. The trade-off is that inflation and rising fees can reduce what cash will buy over time.

Money intended for later school years

Where the time horizon is longer, a diversified investment portfolio may offer greater growth potential than cash. Investments can fall as well as rise, however, and there is no guarantee that the required amount will be available at the right time. A plan may gradually move money into lower-risk or cash holdings as each fee date approaches.

Using ISAs

An adult ISA can hold cash or investments and may provide tax-efficient growth and withdrawals. ISA rules and allowances can change, and the best use of an allowance will depend on your wider circumstances.

A Junior ISA can be useful for longer-term support after childhood, but it is not normally a way to pay school fees before age 18. The money belongs to the child and is generally locked until their 18th birthday. For the 2026/27 tax year, the Junior ISA subscription limit is £9,000.

Five practical steps for planning school fees

1. Define the goal: Choose the likely start date, school stage and number of years you hope to fund.

2. Build a complete budget: Include current fees, VAT, likely increases and the extras that matter to your family.

3. Map your cash flow: Work out what can come from income, what must be saved in advance and which other goals need protecting.

4. Match the strategy to the timetable: Keep near-term money accessible and take investment risk only where the time horizon and your circumstances support it.

5. Review the plan regularly: Revisit it when fees, family circumstances, tax rules or priorities change.

School-fee planning is really life planning

Most families are not building wealth simply to watch a number grow. They want security, more time together and the freedom to make choices. Education may be one of those choices, but it sits alongside retirement, housing, holidays, caring responsibilities and support for future generations.

A good financial plan brings those priorities together. It can help you see whether private education is affordable, where compromises may be needed and how to avoid placing unnecessary strain on the family later. It should evolve as your children grow, your career changes and your goals become clearer.

Folan Brookes can help you model the cost of education, explore suitable saving and investment options, and understand how school fees fit within your wider financial plan.

Ready to plan ahead? Contact the Folan Brookes team to arrange a conversation about your family’s goals and the options available to you.

The value of your investments and any income from them can fall as well as rise. You may not get back the amount you invested.

HM Revenue and Customs practice and the law relating to taxation are complex and subject to individual circumstances and changes which cannot be foreseen.

For specialist tax advice, please refer to an accountant or tax specialist.

Folan Brookes Financial Consultants Limited is an appointed representative of The Openwork Partnership, a trading style of Openwork Limited, which is authorised and regulated by the Financial Conduct Authority.

Approved by the Openwork Partnership on 28/07/2026

Sources

·       Independent Schools Council, Annual Census 2025 (average day-school fee in January 2025). Annual Census press release:https://www.isc.co.uk/media-enquiries/news-press-releases-statements/

·       Look for the press release titled:

·       "Impact of VAT on fees 'worse' than ministers predicted, says ISC CEO" (17 May 2025)

·       VAT on private school fees (Policy Paper)https://www.gov.uk/government/publications/vat-on-private-school-fees

·       HM Revenue & Customs, guidance on charging and reclaiming VAT related to private school fees (updated 5 February 2026).

·       GOV.UK, Junior Individual Savings Accounts overview (2026/27 subscription limit and access rules).