Do your homework on school costs
Summer 2007
Every parent wants the best for their children, not least when it comes to education. Many are now finding themselves faced with the dilemma of whether to move house or to pay for their children’s schooling.
Private school fees have traditionally risen faster than most other prices as measured by the Retail Prices Index. In 2005/06 – the latest year for which figures are available – fees rose by 5.7% on average according to the Independent Schools Council (ISC). Even this high figure was the lowest increase recorded since 1999.
The relentless rise in school fees has not yet resulted in a shrinking number of privately educated pupils, currently around half a million. One reason why spiralling costs have not been a deterrent is the average class sizes in the private sector. According to the ISC, in 2006 the average pupil/teacher ratio was less than ten to one. In the state maintained sector, the corresponding 2005 figure for English secondary schools was over 20 to one. Over 11% of state pupils were in class sizes greater than 30.
As an alternative to paying high school fees, many parents consider moving into the catchment area of a good state school. But this also has its price.
According to some research undertaken last year, properties in the catchment area of a good state school can be worth up to £25,000 more than those on the wrong side of the dividing line. Research has also revealed that only 3% of pupils in the top state schools have free meal entitlements – a key measure of deprivation – against 17% nationally.
Your education choice could therefore be to pay up on school fees or pay extra on your mortgage to buy in the right catchment area. If moving looks the better option, be warned that you may not get the catchment area premium back when you sell and you may not even achieve your goal. New admission rules introduced for 2008 mean that some over-subscribed schools may resort to lotteries to allocate pupil places. Just such a system was announced in Brighton earlier this year, provoking howls of parental protest and garnering nationwide news coverage.
Whatever route you choose, as far as possible you should make sure that you stick to it. Once a child is settled in a school, it can be very disruptive for their education if they are moved elsewhere.
Keeping your family protection cover up to date is one way to provide that allimportant continuity. If the money is there – even if you are not – your child’s education can continue uninterrupted.
