School fees/sterling: class struggle
Foreign parents benefit from weak pound, while UK families face big cost rises
The start of a new school term brings with it belt-tightening among middle-income UK families whose children attend private schools. Extra pension payments for teachers mean this year’s fee increase was the biggest in five years. But demand remains brisk from foreign parents, including Chinese people. The weakness of the pound over the past decade has taken the edge off fee increases.
For those stuck with sterling, rises have outpaced inflation. Fees are up 46 per cent in the past decade, according to the Independent Schools Council. For those paying in renminbi or Hong Kong dollars, the increase is a fraction of that. That is one reason why almost 8,000 students from China were present this year, twice the number from 2011. Student numbers from Russia on the other hand have collapsed in line with the rouble, down 22 per cent since 2016.
Many schools charge foreign boarding students up to a 10th more than British counterparts. Additional resources for teaching English are often cited as the reason, but schools are also maximising their incomes. Top public schools often cap foreign student numbers, maintaining the luxury status of a British education overseas. Newer, less prestigious institutions, often backed by venture capital, are ramping up prices and admitting a higher proportion of foreigners.
With Brexit keeping sterling near multi-decade lows, expect foreign demand for British schooling to keep on rising.