NOT FOR BROADCAST OR PUBLICATION BEFORE 00.01 HRS FRIDAY 5th SEPTEMBER2014
Lloyds Bank has examined the changing cost and affordability of private schools in Great Britain over the period 2009 to 2014. Data has been sourced from the Independent Schools Council (ISC) and the Office for National Statistics (ONS). All figures relate to the average fees for a day pupil unless otherwise stated. All earnings are sourced from the ONS Annual Survey of Hours and Earnings (ASHE) and are based on estimated average annual earnings for full‐time employees.
Private school costs rise by 21% in five years – four times faster than earnings growth 
Day fees now almost £12,500 a year in 2014, accounting for 37% of average full‐time earnings 
The total number of senior private school pupils has declined by 3% over the past five years 
The South East and Wales have increased to 24% Private school fees for day pupils have increased by an average of 21% in the past five years, a rate of growth that is , marginally faster than the increase in the Retail Price Index (RPI) at 20% over the same period, and four times more that the rise in average earnings1 (5%), according to latest research by Lloyds Bank. Since 2009 the average annual private school fee for day pupils has increased from £10,176 to £12,345 in 2014. Largest increases in South East, London and Wales Regionally, the biggest rises in the past five years have been in Greater London (26%), the South East and Wales (both 24%). The next biggest increases were in the South West and the North (both 22%). The lowest average increases in annual fees were in the West Midlands, East Midlands and East Anglia (all 21%) and Scotland (20%). Average annual day fee in London over £14,000 Private school fees are highest in southern England with average annual fees in Greater London of £14,544 and £13,920 in the South East. The lowest average fees are in the North2 (£9,984) – over £4,500 lower than in the capital ‐ and Scotland (£10,431). In 2009 the only regions where the average annual fee exceeded £11,000 were Greater London and the 1 of 4
South East; in 2014, average annual fees exceeded £11,000 in every region except the North, Scotland and the West Midlands. Private school fees have increased as a proportion of estimated average earnings The average annual private school fee in 2014 of £12,345 is equivalent to 37% of annual average gross full‐time earnings of £33,693; a rise since 2009 when the ratio was 32%. With school fees rising more than earnings, it is becoming more difficult for some to send their children to private school. One third of private school pupils3 receive financial help with their fees – average annual value of assistance rises to almost £4,687 In 2014 the number of pupils receiving a financial contribution towards the payment of their school fee reached 166,268 (33.4% of all pupils in Independent Schools Council (ISC) member schools, up slightly from 33% in 2009). The average value of school funded fees is £4,867 in 2014. Decline in private school pupil numbers since 2009 The total number of day pupils attending private schools4 has declined slightly (‐1%) over the past five years. The number of senior school pupils (11 to 18) has fallen by 3%. On the other hand, the number of children in fee paying nursery schools has risen by 8%, day pupils in junior schools have grown by 1% and day pupils in sixth forms by 4%. Sarah Deaves, Private Banking Director at Lloyds Bank, commented: "Private school fees have increased to almost £12,500 a year which is four times more than the rise in average earnings over the past five years. It is, therefore, becoming increasingly vital that parents plan ahead as early as possible, to ensure that they secure the future they desire for their children. 2 of 4
Table 1: Average Annual Private School Fees by Region 2009‐2014 Region
2009
2014
% change
Scotland
£8,703
£10,431
20%
North
£8,184
£9,984
22%
Wales
£8,922
£11091
24%
West Midlands
£8,850
£10,731
21%
East Midlands
£9,405
£11,370
21%
East Anglia
£10,356
£12,549
21%
South West
£10,566
£12,849
22%
Greater London
£11,586
£14,544
26%
South East
£11,244
£13,920
24%
Great Britain
£10,176
£12,345
21%
Source: ISC as at January 2014; *** North includes the North West, North East and Yorkshire and the Humber Editors' Notes: 1
All earnings figures are sourced from the ONS Annual Survey of Hours and Earnings (ASHE) survey and are based on estimated average annual earnings for full‐time employees. ASHE data for 2012 has been uplifted by national average earnings growth to calculate 2014 estimates. 2
North includes North East as well as the North West and Yorkshire and the Humber 3
All pupils, not just day pupils. Figures on the number of pupils is based on the number of independent schools participating in the survey. 4
Data Source for Private School Fees *The ISC’s member schools are the highest contributor, providing assistance to 28% of all pupils with over half of the assistance coming via various bursary and scholarship schemes. The data for private schools fees is from the Independent Schools Council’s (ISC's) annual census of its independent school members. The ISC publishes estimates of schools fees for all pupils in ISC associated private schools in the UK. ISC brings eight independent school associations together to represent over 1,200 independent schools. Annual school fees were calculated as three times the school fees per term. School fees were measured as at January of each year. Data Source for Average Earnings and Inflation Annual average earnings figures quoted were for those in full time employment. This data was sourced from ONS ASHE survey for years 2009 – 2014. Data for RPI has been supplied by the ONS. Any views expressed within this report are our current in house views as at 3 September 2014 and could be proved wrong and should not be relied upon as fact. Press Office Contacts:
For further information
Laura Ellman
020 7356 2200/07786335317
[email protected]
Siobhan McCluskey
020 7661 4669 / 07795 611 179
[email protected]
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