Fees
THE BSA GUIDE TO BOARDING SCHOOLS • SPRING 2022 / APPENDIX / 157
– finding them
Andrew Ashton Bursar, Radley College
All boarding schools charge fees, but
Planning can be covered under six
to individual requirements. Some schools
these vary depending on the type of
headings:
offer specific schemes tailored for advance
school and boarding requirements. Here are some typical costs (per term) for 2021 (ISC Census, 2021). Age group
Average fee per term
Sixth form
£12,573
Senior
£11,784
Junior
£8,684
In state boarding schools, tuition is paid for by the state. Extras can add considerably to the bill (perhaps up to 10 per cent of fees), depending largely on which activities your child chooses to take part in – for example, music tuition or school trips. Allowance should be made for expenses relating to books, entries for public examinations, stationery and uniforms. Schools do have different approaches to extras, and what is included in the fee, so this is worth careful scrutiny.
PLANNING FOR SCHOOL FEES It is important to prepare for the commitment of paying fees for several years, having in place a strategy that will enable the school fees to be met in the event of death, an illness or loss of income, and considering how fees need not be entirely dependent on earned income, so ensuring a child will be able to complete their education. Planning strategies can significantly reduce the financial burden of school fees, so take professional advice.
• • • • • •
spread the cost of fees
payment of fees, and if you have a lump
invest a lump sum
sum available, it is worth exploring this as
set up a regular savings scheme to
an option.
provide funds to cover future fees have payment protection set up a trust fund look for financial assistance.
SPREADING THE COST Many parents experience difficulties in funding school fees continuously from taxed income. There are several schemes available designed to help parents in this situation. The purpose of these plans is to improve cash flow and hence make school fees more affordable. In essence, this involves spreading an element of the school fees over a longer period of time. For example, a parent may be able to afford comfortably 70 per cent of the school fees from income, but the additional amount may prove to be a strain. In this instance, it may be possible to take out a draw-down plan against the equity in the family house to spread the school fees for the balance of 30 per cent over say a 10-, 15- or 20-year period. INVESTING A LUMP SUM Early investment of capital can avoid the need to use income for providing for school fees in later years, or at worst go a significant way towards reducing reliance on income. The need for tax efficiency and flexibility of approach can be tailored
REGULAR SAVING Regular saving for school fees should ideally be started as soon as possible. The longer you save, the less the impact will be on income when school fees fall due – or consider some sort of endowment or life assurance policy. Income or capital sums derived from such policies are normally tax-free. PAYMENT PROTECTION It is important to ensure the payment of children’s school fees can be continued in the event of a change in your personal circumstances due to serious illness, injury or death. A lump sum can be provided by life insurance. Income protection plans can guarantee income through to retirement in the event of specified illnesses or accidents. Some schools may offer temporary fee support in cases of unanticipated hardship – but it is important not to rely on this being the case, and support may only be provided for a short duration. If you do experience a change in circumstances that affects your ability to pay, it is important to be open with the school from the outset. Fees refund schemes are available which can provide cover in the event of absence through illness or accident, and these are well worth considering.