The rising cost of education in the UK: planning and saving for your child’s future .

Early years education 

Spending on early years education and childcare has seen significant growth. In 2023-24, total spending reached £4.1 billion, nearly quadrupling since 2001-02. This increase is largely due to expansions in free entitlement programs. By 2027-28, spending is expected to double again to £8.5 billion, driven by new entitlements for children under three years old¹.

Primary and secondary education 

Despite increased funding, many schools are struggling to meet rising costs. In 2025-26, 94% of secondary schools and 76% of primary schools are projected to go over their budgets. School costs are expected to grow by 3.6% next year, while mainstream school funding will only rise by 2.8%². This gap highlights the financial pressures schools face, which could impact the quality of education provided.

Higher education 

The cost of higher education has also been rising. Tuition fees for undergraduate courses in the UK can reach up to £9,250 a year¹. Additionally, the average student in England graduates with around £45,000 in debt¹. This debt burden can have long-term financial implications, affecting graduates’ ability to save, invest, and purchase homes.

How we can help 

Given the rising costs of education, planning and saving for your child’s future is more important than ever. Here’s how a financial adviser  can help you:

1. Personalised savings plans: We can help you create a tailored savings plan that aligns with your financial situation and goals. This might include setting up a junior ISA  or other tax-efficient savings accounts.
2. Investment strategies: For long-term education savings, we can recommend investment strategies that balance risk and return. We can help you choose the right mix of assets to grow your savings over time.
3. Budgeting and cash flow management: We can assist in creating a budget that accommodates education expenses without compromising other financial goals. We can also help manage cash flow to ensure you can meet both short-term and long-term needs.
4. Navigating financial aid: We provide guidance on available financial aids and grants.
5. Ongoing support  and adjustments: As your financial situation and goals evolve, we can provide ongoing support and make necessary adjustments to your overall financial plans.

The cost of education in the UK continues to rise, presenting significant financial challenges for families. By understanding these costs and working with us, you can develop a comprehensive plan to save for your child’s education and ensure they have the resources they need to succeed.

References

1. Annual report on education spending in England: 2024–25 | Institute for Fiscal Studies
2. Spending per pupil or student a year at different stages of education (2024–25 prices) | Institute for Fiscal Studies

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