Parents 'risking debt to educate children'
Published On 30 July 2007
Many parents are risking debt - and a potential a reliance on IVAs - as they opt to send their children to private schools, a new study suggests.Research carried out by Halifax Financial Services found that private school fees have increased by 41 per cent over the last five years. Over the same period inflation has risen by just 18 per cent.
This above-inflation increase means that the typical salaries for a number of occupations no longer cover school fees. For example, the average salaries of engineers, journalists and teachers no are no longer enough to pay for private education.
Despite this, the number of children in private education has increased by 0.5 per cent since 2001, suggesting that some parents could be risking debt or taking out a homeowner loan to afford the bills.
"Private school fees have risen by significantly more than average earnings over the past five years, making it increasingly difficult for many parents to send their children to private schools," explained Martin Ellis, chief economist at Halifax Financial Services.
"With school fees continuing to rise by more than inflation and private education proving increasingly popular, parents need to plan their finances as early as possible if they want to afford private schooling for their children."
