November 2009: Education costs on the rise?

Welcome to Dean Associates' Autumn briefing on the leading education stories affecting relocating families and companies.

The end of childcare vouchers?

The government is planning to phase out tax relief on the childcare vouchers scheme from 2011.

The vouchers allow parents substantial savings on the cost of childcare by allowing them to exchange part of their gross salary for the vouchers. The exchanged salary is exempt of income tax and national insurance. Companies also benefit as they don't have to pay national insurance on the exchanged salary.

The government's stated aim is to use the money earned from ending the tax break for funding nursery places for poorer families. There is, however, significant opposition from all parties within Westminster.

More flexibility on school starting age

From 2011, all children will be able to start school from the first September after their fourth birthday or take up a free full-time nursery place as an alternative.

Currently, most children start school in the academic year in which they turn five, with younger children sometimes held back for a January or even an April start.

The government argues that the move will allow the children to gain a headstart in learning, though does run counter to a new, comprehensive review of primary schooling that suggested that children should not start school until the age of six.


Home schooling to come under greater regulation

A new report has demanded that parents "home educating" their children are placed under greater scrutiny. The government has accepted this and has announced plans to compel home educators to register annually with the local education authority.

A significant minority of relocating parents choose to home educate their children. At present, they need do more than notify the council of their decision to remove their child from mainstream schooling.

Throughout the UK over 20,000 children are educated at home.

University fees set to increase

With a review of university tuition fees likely after the next General Election, another signficant voice has suggested that the fees cap - currently set at £3225 per year - is lifted. Many vice-chancellors would like to see the fees doubled to nearly £7000 per year.

The ex-BP boss, Lord Browne, has been charged with leading a review of university fees and is due to report back next year.