Independent schools learn about benefit of Direct Debit

Independent schools across the UK are now enabling parents to spread the cost of fees over the course of the academic year, according to Bacs - the not-for-profit industry body behind Direct Debit and Bacs Direct Credit.

According to the latest statistics released by Bacs, 170 independent schools across the UK now allow parents to pay fees via Direct Debit. From October 2006 until July 2007, this payment method accounted for income totalling more than £575 million, which equated to an average of more than £3 million per school.

The opportunity to pay in instalments using Direct Debit has been welcomed by parents who have seen fees become increasingly costly in recent years. With some independent school fees rising by almost 40% in the last five years* and the total cost of one child's senior schooling totalling as much as £140,000**, it is more crucial than ever for parents to be able to plan ahead when it comes to family finances. Spreading the cost of fees over the course of the term can help to take the sting out of the expense and help parents to remain in control of their budgets. It also benefits the schools which can bank on a guaranteed monthly income - making it much easier to manage cash flow and budget more effectively during the course of each term.

Explaining more, James Nicholson, Financial Director at United Church Schools Trust, said: "A huge number of our parents prefer to pay by Direct Debit, with 70% now choosing to make regular payments. Direct Debit enables us to do three things: 1) Budget effectively - by knowing when school fees will be coming in, we can plan and ensure funds are available for key curriculum activities; 2) It also saves us time, removing the need to chase payments and process other payments such as cheques. Payments by cash, although rare, do cause additional issues around security, and require a member of staff to go to the bank, taking them away from other tasks. And lastly, but by no means least, it enables us to provide a better service to parents, who can spread the cost of fees with Direct Debit."

Michael Chambers, Managing Director of Bacs, said: "The cost of financing a child through private school has been well documented and every little step that helps in terms of money management should be welcomed. A large number of schools now offer Direct Debit as a payment method and we expect this figure to continue to rise in the future."

For more information about Bacs and our services visit Bacs key facts.

Contact Bacs press office.

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