A record number of parents are reportedly dipping into their pensions and savings to afford private school fees, according to a new study by Rathbones. The report suggests families are facing a "double squeeze" as they fund increased private education costs at the expense of their own long-term financial security.
Researchers found that nearly a quarter of families with children in private school have withdrawn money from their individual savings accounts (ISAs) or long-term investments. Additionally, one in five parents have reduced their pension contributions to manage the higher fees.
The rise in education costs follows the government's decision to apply VAT to school fees, a measure that came into force in April 2025. This change led the majority of private schools to increase fees by as much as a fifth. Major institutions like Eton College and Tonbridge School now charge over £60,000 annually.
The VAT crackdown has also been linked to the closure of at least 77 schools and a drop of 30,000 in pupil numbers, representing over seven per cent of the total private school population. Amanda Cook, Rathbones financial planning director, stated that these pressures are forcing households to make difficult trade-offs.