Industry News
Families turn to grandparents for fees help
Posted on 24th December 2007
Home-owning grandparents who have benefited from the property boom are increasingly being asked to help with their grandchildren's school fees.
According to a report by the Financial Times many of Britain's over-60s, who are believed to hold a high proportion of the nation's wealth, are using trusts and other financial instruments to pay for the education of their children's children.
Martin Stephen, high master of St Paul's independent school in London, told the newspaper: "An increasing number of grandparents are contributing towards school fees", pointing out that many see this as a way of reducing their inheritance tax bill.
Recognising the financial contribution that many grandparents are making to the education of their grandchildren, some private schools are holding annual Grandparents Days to allow grandmas and granddads to see how their money is being spent, the FT reports.
Meanwhile figures from the Independent Schools Council show that school fees increased by an average 5.9 per cent in the financial year 2006-7.
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