🔗 Share this article

Affluent UK families are increasingly exploring boarding schools in continental Europe as soaring private school fees push them to seek more cost-effective choices abroad.

Increasing Inquiries from British Parents

German institutions have reported a noticeable rise in inquiries from British parents who are facing elevated fees domestically, following the imposition of a 20% VAT on private education by the current government.

"We've been inundated with applications," remarked the director of a German private institution. "UK families has always been our main competitor. We offer a extremely competitive fee structure versus UK schools."

This institution, which operates as a nonprofit, charges €12,500 per year for younger students to high school costs of up to €18,700 annually.

Financial Effect of the VAT Measure

The introduction of VAT to private education costs was a key election pledge by the current government. Ministers stated the funds would be allocated in part to hire an extra teachers for state schools.

The policy was met with a number of court cases, though these were rejected by the judiciary earlier this year.

Many independent institutions initially cut fees slightly to protect parents from the initial hike, but on average, fees have increased by 22.6% compared with the previous year.

Continental Alternatives Gaining Attention

Schools in Germany are noting a rising wave of inquiries from wealthy UK parents wanting to educate their kids overseas.

• Increasing numbers of parents are actually taking the leap to regions such as the shores of Lake Geneva or nearby alpine towns.
• Students are transferring out of renowned UK schools to become residential pupils, aiming for a balance between high-quality schooling and the exceptional opportunities offered by the alpine environment.

Market Development and Funding

Development in the international education industry is drawing major investment. This week, a investment firm struck a deal to purchase a 20% share in an international schools group that priced it at €7 billion.

At the same time, a prominent independent institutions in the UK is preparing to launch schools in Italy as it attempts to serve high-net-worth households leaving the country.

Shifting Demographics

According to a latest census, the number of Spanish students at British independent institutions with families living in the UK fell by 13% this year.

In contrast, the number of US students with parents living in the UK increased from 4,367 to 4,728 over the last year. Those from China also rose from 4,551 to 4,701.

"The introduction of VAT on UK education costs has encouraged many families to reconsider the return they are receiving from the UK's educational system," commented the admissions head at a prestigious international boarding school. "Legacy-wise, people were just automatically enrolling their children to the very same school they attended, but now there is more variety available."

This trend has opened minds among parents, emphasizing that there are alternatives to consider beyond the traditional UK private school route.