With Sir Keir Starmer doubling down on his policy to scrap the VAT exemption on independent school fees “straight away” if Labour wins the election next month, thousands of anxious parents are considering the future.
With the prospect of fees increasing by up to a fifth, up to 17pc of private school pupils might be forced to leave the independent sector over the next five years, according to a report by the education consultancy Baines Cutler.
With the average UK independent school fee currently £18,063 – up from £16,656 last year – the number of new pupils at private schools has already dropped by 2.7pc in the past year, according to the Independent Schools Council.
So while some parents are already withdrawing their children from independent schools, others are contemplating moving into a catchment area for a top grammar school.
For some already considering quitting Britain for higher pay, lower taxes, sunshine and a better quality of life, a steep increase in school fees is the final straw and they are debating a new life abroad for their family.
So where are the most popular places to go, and how much can they expect to pay for a private education in the sun?
Uprooting the whole family is a drastic move – and one that involves, post-Brexit, applying for visas wherever you go. But families relocating overseas for lifestyle and education reasons is nothing new. Remote-working trends and also an appetite for alternative types of curriculum have fuelled relocation to countries such as Spain and Portugal and as far as Thailand and Bali.
For some families, for whom there are other “push” factors about life in the UK, the school fees increase is the final straw. With no personal income tax and small business-friendly tax incentives, Karen* (not her real name) has already toured a school in Dubai and priced up moving her family from near Peterborough. Her two children are currently in year 4 and 8.
“Our nearest state secondary is already oversubscribed. We both run our own businesses and being stung by the increase in corporation tax [from 19pc to 25pc], the VAT on schooling will be the final nail in the coffin,” she says. “We could run our businesses from Dubai and it’s easy to get a visa if setting up a business there.”
She says that rent and groceries in the UAE are very expensive. “But we have calculated we would be £100,000 a year better off with more disposable income. School fees are similar to the UK right now [before the VAT change].”
In the UAE there are 784 international schools, and the education provider Taaleem is opening four new British schools in the region. They include the Dubai British School in Al Wasi with spaces for 1,650 pupils opening next year. Following the UK curriculum, it will charge fees from Dh42,000-76,000 (£8,944-£16,180) a year.
Private school fees are generally lower abroad. The average annual tuition fee is $9,215 (£7,210) in the UAE, lower than the European average of $14,035, according to ISC Research, the international schools analyst, which reported a 7.8pc increase over five years in the number of international schools across the world.
It is clear from Facebook groups that tax breaks and sunshine are luring British teachers to move abroad, further exacerbating the shortage of in UK schools. Teaching roles are the most highly sought foreign job, according to relocation specialist 1st Move International.
The Mougins British International School on the Cote d’Azur, France, is one of the many international schools reporting a rise in British families seeking places. Currently about a third of pupils are British.
“We are maintaining interest from the UK despite substantial hurdles after Brexit. This year we certainly seem to have more interest from families currently living in London,” says head of school James Wellings. Fees for 2024-25 are from €15,171 to €23,700 per year.
Aside from the practical consideration of finding education near where parents are working, international schools are often sought for offering a broader education than British schools, and not just skiing or sailing.
The International Baccalaureate (IB) has six rather than the three core A-Level subjects – and its progressive outlook promotes citizenship, community and ethics. Standards across schools are monitored by the IB board.
A programme to nurture talented sports children alongside the IB makes Sotogrande International School in Andalusia one of the most popular options in Spain. It has grown substantially over the past decade with a new performing arts centre and state-of-the-art science laboratories.
British expats are the biggest group of the 1,300 students – of which there is an average net gain of around 100 pupils a year. The annual fees are from €9,010 to €25,950.
At Mallorca’s Agora Portals – one of 18 international schools on the Spanish island – Clara Gil says there’s been an increase in enquiries from British families this year. British students are the third largest nationality group, after Spanish and German.
“At the moment we have a waiting list for September entry in some age groups: 4th grade [Year 5], 6th [Year 7] and 9th grade [Year 10].”
A new school is opening in September, too. The Raoul Wallenberg International School in Palma – of Swedish origin but with the Cambridge Curriculum – will charge tuition fees of €8,400 per year to €10,200 (up to Year 7).
But it is Portugal that has seen the most notable spike in pupil numbers in the most established international school countries in Europe, up 60pc in five years, according to ISC Research.
One of the newest schools is United Lisbon, part of the UK-based Dukes Education group. It has 620 pupils of 50 nationalities and annual tuition fees are between €10,643 and €21,745.
The campus is expanding to cater for the growing demand, says Martin Harris, United Lisbon Executive Director.
“We have seen a rise of enquiries and applications from the UK for September 2024 onwards. The attractive quality of life for families in Lisbon is a chief driver for this growth, coupled with favourable tax rates, investment opportunities and a varied outdoor lifestyle.”
International schools in Portugal have been in such high demand for five years that some are at capacity, reports Nathalie Willis-Davis of Tendoria Education, a consultancy. “There has been a particularly high demand for Year 4 places for September.”
Not all international schools require entrance tests, she says.
“Tests provide the school with a clearer understanding of the incoming students’ levels. They are not anywhere near the high-stakes events that the 11+ or 13+ are.”
But families will need to apply for a visa, such as the D7 or D8, depending on their working status.
Many international schools have quotas on particular nationalities, reports ISC Research, which can make it easier for UK entry. In terms of judging how good schools are, parents can be guided by accreditation bodies like BSO, the UK government’s inspection scheme for British international schools.
Not all international schools are of a high quality, as forums such as the International Schools Review show. But the international schools community, built to cater for pupils coming and going frequently, is very welcoming, says Louise Greene, a consultant who moved her 13-year-old son from England to Portugal in 2023.
“The children are no strangers to change and have a very outward mindset.”
While international schools may be highly focused on preparing British pupils for entry to UK universities, families who move themselves abroad need to be aware that they will face higher tuition fees as they will count as overseas students.
According to the British Council, the average fee is £22,200 per year – double the £9,250-a-year “home” fee UK residents pay for university.
While Karen says that their tax savings in Dubai will make it more affordable, Harriet from Oxfordshire is thinking of the Netherlands for both school and university for her two children in years 5 and 6.
“We had been planning on private schools in this county from year 9 but are now thinking about the British School in The Hague,” says Harriet, 46, a project management officer in scientific research who could apply for a transfer to her employer’s Netherlands office (with family visa).
“We used to work in The Netherlands before having children. Assuming a 15pc increase in fees in the UK from Sep 2025 and a 5pc increase per year otherwise, we think we might pay £148,000 for our eldest and £171,000 for our youngest. The British school in the Hague would be about £131,000 and £137,000 – a saving of just over £50,000.”
She says the school has space and is non-selective.
Her children would gain freedom of movement in the EU – an advantage for their future study and career options.
“Many Dutch universities have courses in English and the fees are a fraction of those in the UK – €2,500 per year for Dutch citizens, which we could all become after five years.”
The cost of living in a country, including property prices and rental rates have to be considered alongside the school fees, says Alan Turner of Dubai-based wealth manager Hoxton Capital Management. Grocery bills in the city are often higher than in the UK.
“There is a visible increase in British inflow into Dubai including families,” says the father of two children in an international school. “Yet some families are dissatisfied with the quality of the schools here… despite the great facilities and structure offered in the better schools here the learning quality is not always a match for UK private schools.”
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