More than half (55%) of parents with children at private school said their education could be disrupted in the coming year because of the imposition of VAT on school fees, according to a survey of high net worth individuals.

The Saltus Wealth Index 2024, which surveyed 2,000 people with assets of £250,000 or more, found that 13% with children at private school plan to move them into state education in the next year.

The survey also found that a further 21% of children currently in private education could be moved to a less expensive private school and an additional 11% could change from boarding to day pupils at their existing school.

One in ten (10%) parents said they were considering moving abroad because of rising costs, and the impending addition of 20% VAT on fees. A similar proportion  (11%) said they would have to “call  on the bank of mum and dad” or friends and family for financial support. A further 10% said they would need financial support to get through this academic year and would then move their children to a different school – either into the state sector or a cheaper alternative private school.

When asked to identify their biggest anxiety, health was top of the list (13%) but 6% said paying school fees, up from 0% in January 2024. The majority (96%) of high net worth individuals are already affected by rising school fees even before added VAT, with 15% no longer able to enrol their children.

To finance school fees, 22% say they could be moving house to be nearer a more affordable private school, 18% need additional financial support and 17% have made, or will need to make, financial sacrifices.

The research, carried out by UK wealth management firm Saltus, showed increased confidence in the UK economy overall.  Mike Stimpson, partner at Saltus, said: “The increase of the Index in this survey is a response to the removal of uncertainty around the stability of the previous government and some more positive economic indicators recently. However, there is still considerable anxiety among this important group around tax, inflation, interest rates, and rising costs in a number of areas, including private education.”