180/03

Embargoed: Not for use before: 00.01hrs, Thursday 20 November 2003

UK HIGH EARNERS UNDERESTIMATE THE TRUE COST OF SCHOOL FEES

More than half (56 per cent) of the UK’s high earners believe that you need to pay to receive the best level of schooling yet many are underestimating the true cost of private education, according to Premier People from Lloyds TSB Premier Banking.

Premier People, a report examining the lifestyles, priorities and aspirations of the UK’s high earners, also found that, rather than being influenced by better sports facilities or extra curricular activities, many are opting for private schooling simply because they believe they will get a better level of teaching and education than at state schools.

However, with annual private school fees averaging £9,0001, the report shows that whilst more than half (53 per cent) of high earners say that they would send their children to private school, many are ill prepared for the impact it may have on family finances. Over 40 per cent are underestimating the true cost and more than one in ten (13 per cent) are underestimating it by as much as a half. A further 13 per cent admitted that they simply didn’t know the financial impact private education would have on them.

Mark Cheshire, managing director, Lloyds TSB Premier Banking Service, comments: “High earners clearly believe that the best education does not always come free, and this research proves they are willing to invest their hard earned wealth in their children’s futures. However, many are underestimating the true cost of private schooling and, without appropriate financial planning, family purse-strings could be seriously stretched.”

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Smaller class sizes (15 per cent) and fewer disruptive influences (14 per cent) are considered to be main advantages of private schooling yet few people (1 per cent) feel it offers a better level of pastoral care or an opportunity to make contacts in later life as an ‘old boys/girls’ network (5 per cent).

Good state schooling near home is a key deciding factor for many parents. Of those who said they wouldn’t educate their children privately, 70 per cent said it was because they had a good state school near by.

Despite the popularity of Harry Potter and Hogwarts school, it seems that Premier People are reluctant to send their children to boarding school. More than three quarters (77 per cent) said they wouldn’t send their children to boarding school with well over half (58 per cent) saying it was because they don’t want them to be away from home.

As part of the Lloyds TSB Premier Banking Service customers can benefit from help in planning for the financial impact of school fees from their Premier Banking Manager.

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Notes to editors:

1According to the latest figures from ISCis, the Independent Schools’ Council information Service.

In detail, the main features of Lloyds TSB Premier Banking are:

  • Premier share and fund dealing online, for a flat fee trade price of £12.50,in association with comdirect ltd. It provides a share dealing service that is suitable for both serious investors and enthusiasts and allows customers to deal via the telephone or internet in addition to the facility to track share performance free of charge.
  • Premier Will Writing Service provides customers with access to specialist help through the solicitors Irwin Mitchell for £69 (inc VAT) for a single will and £99 (inc VAT) for a mirror will.

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  • Premier Tax Service through KPMG for a flat fee of £195 (exc VAT) offers facilities to complete customers’ tax returns and to claim all appropriate entitlements and exemptions and liaise with the Inland Revenue.
  • Premier Banking also offers AA Breakdown Cover providing breakdown assistance 24 hours a day, every day of the year. The cover also includes Relay Plus and Home Start.
  • Premier customers also get 180 day purchase protection on purchases made with both the Premier debit and credit cards.
  • Premier Home Insurance buildings and contents insurance, tailored to suit individual needs for larger and more unusual properties, can be purchased.
  • Investment Planning Service provides access to a dedicated Lloyds TSB Financial Planning Manager as well as a range of Scottish Widows products and services. Further referral to an IFA can be made if required.
  • Premier customers can take advantage of an exclusive range of specially priced Premier Banking products such as personal loans and savings accounts.
  • Customers can also apply for the Lloyds TSB Premier Mastercard, a bespoke black credit card which, amongst other benefits, offers members access to 400 VIP airport lounges worldwide as well as the Premier Personal Assistant, a ‘concierge’ service designed to help you manage every day tasks.
  • Customers also receive valuable discounts from the Premier Banking Home Shopping service and reduced prices on new cars from CarSelect.
  • 1Premier People profiles the results of research conducted through the TNS Interactive high net worth omnibus survey. 1,000 individuals were surveyed online during October 2003.

For more information:

Catherine Battershill/Rowena Denham

Lloyds TSB Press Office

Tel: 020 7356 2495/2493