New analysis by Saltus reveals families earning £100,000 a year have less disposable income than those on minimum wage when sending two children to private school, primarily due to VAT increases on fees. The average cost for two children is now £50,302 annually, necessitating a gross income of almost £150,000 to maintain median disposable income levels. This financial strain leads many families to reconsider private schooling. The Independent Schools Council is challenging the VAT imposition, claiming it discriminates against parents seeking quality education for their children.
Even those earning six figures are facing incredibly difficult financial decisions. These are people who have budgeted carefully, planned responsibly and prioritised education, but now they find themselves in a position where earning £100,000 is no longer enough to afford the education they aspire to for their children.
Families now face an average annual fee of £50,302 to send two children to day school once VAT is applied. A gross income of nearly £150,000 would be required to cover those fees and still retain the UK median disposable income of £37,430 per person.
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