A lot of clients are asking about private school at the moment. And I find it a genuinely tricky one to answer. Not because I don’t have views. There’s no universal right answer, the numbers are now seriously large, and the only real measure of success is one you won’t know for twenty years.
Here’s a proper look at it.
What does it actually cost?
Since January 2025, private school fees carry 20% VAT. That’s changed things considerably.
A typical London or South East day school now costs £22,000–£30,000 a year in fees. Add uniform, trips, lunch, music lessons, sports kit, the skiing trip your child absolutely cannot miss, and you’re realistically looking at around £30,000 all-in per year.
Over 13 years, from Reception to A Level: somewhere between £400,000 and £670,000, depending on the school.
For a 45% taxpayer, funding £30,000 a year in fees requires generating around £55,000 of gross income just to cover the invoice. Every year. For over a decade.
What could you do with that money instead?
Take that same £2,500 a month and invest it into a globally diversified portfolio for 13 years, at a long-run average of 8% a year.
You’d end up with roughly £672,000.
That’s a house deposit. No student debt. The capital to start a business, or simply the freedom to take risks at 18 that most people that age can’t afford.
For those who baulk at the idea of an 18-year-old receiving £672,000, you’re not alone. I certainly wouldn’t be writing this if that had been me. What I do know is that everyone is different. The child who follows every rule and never puts a foot wrong isn’t necessarily going to be good with money, and the one who’s always getting you called into school isn’t necessarily going to be bad with it. You genuinely can’t predict it.
So the choice isn’t really “private school vs state school.” It’s: do I invest in my child’s education, or their financial independence? Perhaps both. Perhaps neither.
Why there’s no simple answer
Because the comparison above is clean. Real life is not.
I loved school. Made friends for life. Genuinely enjoyed learning. I didn’t care much for exams, so by the conventional measure I didn’t “do well.” Others have completely different outcomes. Some children genuinely flourish in that environment: smaller classes, more resource, a culture of ambition. Others would do just as well in a strong state school, freed from the pressures that private schools can quietly amplify.
There are children who need structure, routine, and an environment that draws out the best in them. And there are children who are creative and independent, who might actually be better served by arriving at 18 with a pot of capital than a list of A Level grades.
The honest truth: you only really know whether it worked once they’ve left. And even then, it’s not obvious what “worked” means.
Things to consider
It doesn’t have to be all-or-nothing. State primary, private secondary, or the reverse. A hybrid approach can spread the cost and still give your child what they need at the right moment.
Fees keep rising. Historically 3–6% a year, well ahead of inflation. What costs £30,000 today costs significantly more by the time a child born now reaches secondary school.
Bursaries are larger than people think. Post-VAT, many schools have dramatically increased them to retain pupils. If you’re on the cusp, it’s worth asking.
The opportunity cost is real. £30,000 spent on fees is £30,000 not invested, not into a pension, not off the mortgage. That compounds too, just in the wrong direction.
So what’s the answer?
There is no universal right answer to whether private school is worth it.
The right approach is to model it properly. Understand the total cost: not just headline fees, but the extras, the VAT, the inflation, the gross income required to fund it. Then run the alternative scenario: what does the same money look like, invested patiently for 13 years within tax-efficient wrappers?
The numbers can inform the decision. They shouldn’t make it for you. A good financial planner can model both scenarios clearly, so you can make the choice based on what you actually know about your child and your own financial position.
This is for educational purposes only. It’s not personal financial advice and we’re not recommending any specific course of action. Everyone’s situation is different, and how school fees planning affects your finances depends on individual circumstances. You should seek professional financial advice before making any decisions.
