As VAT and Cost Pressures Mount, ISA and Sencillo Open £1 Billion in Fee Finance to 800-Plus Schools

Independent schools are confronting a changed financial landscape, and a new partnership aims to give families a longer runway to manage the cost. The Independent Schools Association (ISA) has named Sencillo, an AI-powered education finance platform, as its exclusive preferred partner for fees financing. The arrangement makes £1 billion in funding available to families at more than 800 ISA member schools, allowing parents to spread the cost of fees over the long term. The service is free for both schools and parents, with schools paid in full and in advance.

The timing reflects mounting pressure across the sector. Since January 2025, independent schools have absorbed what has been described as a "triple whammy" of tax changes: 20% VAT on fees, the loss of schools' charitable business rates relief, and higher employer National Insurance contributions. The impact is felt by families and providers alike.

Fees for parents rose 22.6% in a single year once VAT was added, according to the Independent Schools Council (ISC). Average day fees now stand at around £22,400 a year including VAT.

Enrollment trends underscore the strain. Government figures estimate the number of pupils at independent schools in England fell by more than 22,000 in the year to January 2026, to 560,255, the lowest level in at least a decade. More than 100 independent schools have closed, including the 106-year-old Rendcomb College in the Cotswolds.

Under the model, Sencillo partners with schools to pay the child's fees in full and upfront. Families then repay over a longer term through Sencillo's FCA-regulated lending partners, with planning tools that help them manage the journey and show the full cost of their child's education from nursery to university.

The approach is designed to ease the school's operational and financial burdens while supporting admissions and retention efforts. Schools pay nothing, do not have to chase debt, carry no liability on their balance sheet, and receive money upfront. Reduced administration also helps schools operate more efficiently.

The service has been live with schools since September. The partnership launches ahead of ISA's Autumn Leaders Conference on 18 and 19 November in Kenilworth, where hundreds of heads and senior school leaders from ISA member schools are expected to gather.

Adam Amos, CEO and founder of Sencillo, said: "Education costs continue to rise and with VAT now on fees, families are more squeezed than ever. Collaborating with The ISA and their Schools means we can give thousands of parents a clear plan and the option to pay fees in a responsible way, so their children can stay in the school they love."

Rudolf Eliott Lockhart, CEO of the Independent Schools Association, said: "Sencillo provides an alternative way of funding school fees that could transform the independent sector. We highly recommend that heads and bursars look at it to see if it could work for their current and prospective parent bodies."

Media Contact

Contact person: Adam Amos, CEO
Company: Sencillo
Website: https://www.sencillo.finance/