Spend £100,000 on school fees? We'd rather invest it, say three in five rich parents

See more This is Money on Google - save us as a Preferred Source Updated: 02:00 EDT, 21 August 2026 The cost of sending a child to private school has climbed since 2025, when Labour made fees subject to VAT. Parents with children receiving GCSE results this week may be wondering whether the outlay is still worth it.Independent Schools Council data shows pupil numbers typically fall by 6.6 per cent between years 11 and 12, as some opt to switch to the state sector for sixth form or college. Now a survey has suggested that, while many wealthy parents still opt to pay for independent education, they think investing money for their child's future is ultimately a better use of cash. Almost six in 10 (59 per cent) of those who responded to wealth manager Saltus' Wealth Index survey said that, if they had to choose, they would rather invest £100,000 in an Isa or in property for their child than spend the money on school fees. Outlay: Parents can spend £410,000 on a typical private education from aged 4 to 18According to the Good Schools Guide, a parent sending a child to independent school from reception to age 18 can expect to spend £410,000 on average, climbing to £670,000 if they opt for a top London school. Schools increased fees by an average of 4.4 per cent after the change to VAT rules, rather than passing on the full 20 per cent to parents. But while wealthy parents might think money is better invested for their children's future than spent on school fees, many are still happy to fund both. Families to cut holidays and downsizeSaltus found that 68 per cent of high net worth individuals who had children in private school had made, or expected to make, financial changes and sacrifices to enable them to stay there. This was up from 55 per cent in its previous report. The most common sacrifices included cutting down on holidays and other big-ticket discretionary spending, which 42 per cent said they had done or would do - up from 29 per cent six months ago. One in five said they either have, or will, get a new job that pays more, while 16 per cent said they would move to a more affordable area and 12 per cent said they would downsize their home. Some 20 per cent said they would reduce their pension contributions, while 13 per cent said they would take out a bigger mortgage on their home. Despite the monetary outlay, the majority of high net worth families still believe private education delivers significant benefits.Sixty-nine per cent believe the quality of teaching and facilities justifies the expense, rising to 81 per cent among parents who attended private school themselves. In total, 57 per cent of those surveyed attended private school themselves.Henrietta Grimston, chartered financial planner at Saltus said: ‘There is clearly still a lot that parents value about private education. The majority of HNW families believe it delivers better teaching, long-term outcomes, networks and opportunities, with those who were privately educated themselves particularly positive about the benefits. 'However, the ISC data shows that while stretched parents are very reluctant to move their children out of private school during the GCSE years, sixth form is a point where families are more willing to stop and reassess the decision.‘And while cost is no doubt playing a part – the cost of a private sixth-form education has risen by between around £300 and almost £2,000 in just a year – and is already much more expensive than junior or senior fees, which is a significant extra cost at a time when many families are already making sacrifices to keep their children in private education.‘Therefore, the decision is not simply about whether they can afford another two years of fees. It is about whether they still believe it is the best use of their money, particularly when there are other ways they could invest in their child's future.’SAVE MONEY, MAKE MONEYUp to £250 cashbackUp to £250 cashback2.5% cashback when investing at least £2004.56% cash Isa4.56% cash IsaTrading 212: 0.96% fixed 12-month bonus£200 Sipp cashback£200 Sipp cashbackFund a pension with at least £20,000Up to £150 cashbackUp to £150 cashbackOpen a savings account with at least £5,000Welcome bonusWelcome bonusGet up to £200 when you invest £100Affiliate links: If you take out a product This is Money may earn a commission. These deals are chosen by our editorial team, as we think they are worth highlighting. This does not affect our editorial independence. Terms and conditions apply on all offers.