By Ben Wilkinson Money Mail Deputy Editor For The Daily Mail
Published: 23:02 BST, 25 August 2019 | Updated: 23:02 BST, 25 August 2019
Private schools facing crippling pension costs may have to raise fees or risk losing teachers, unions warn.
Schools contributing to the Teachers’ Pension Scheme (TPS) will have to pay in 40 per cent more from next month.
While the Government has pledged £830 million to fund the state school increases for a year, the hike is expected to cost private schools an extra £110 million and close to £200 million next year.
Fee paying schools, like St Edward's School in Cheltenham pictured above, will have to raise fees or risk losing teachers, according to teacher's unions. Boarding fees are now an average of £34,704 per year while day schools charge around £14,142
The contribution rates are due to be increased from 16.4 per cent to 23.6 per cent from September to fill a multi-million-pound black hole in the scheme.
It comes as the NHS is threatened by a ‘brain drain’ because of a pension problem which has seen senior doctors turn down overtime and even retire early to avoid hefty tax bills.
Since the changes to the teachers’ pension were announced, private school