School fees 'becoming less affordable'

A new survey by a financial services company has claimed that private school fees are less affordable than they were five years ago.

Halifax Financial Services found that school fees rose from 30 per cent of average earnings in 2000 to 35 per cent of average earnings in 2005 - this due to a 43 per cent increase in school fees alongside a 24 per cent increase in earnings.

The group states that private school education can be classed as 'affordable' if its cost is 25 per cent or lower than annual pre-tax earnings.

Martin Ellis, chief economist at Halifax, said: "The rapid rise in private school fees over the past five years has made it increasingly difficult for many parents to send their children to private schools.

"This highlights that people in many more occupations than before now need to plan ahead for education expenses and start a regular savings plan if they want to send their children to private schools."

In August this year, Sainsbury's Bank reported that an increasing number of parents were taking out loans to pay for their children's school fees.

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