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The VAT hike and the rising cost of education: Why alternative schooling remains an affordable option

The 2024 National Budget Speech has confirmed a phased increase in VAT from 15% to 16%, marking the first hike since 2018. The increase will be implemented in two stages: 0.5% on 1 May 2025, and another 0.5% on 1 April 2026.
The VAT hike and the rising cost of education: Why alternative schooling remains an affordable option

While increased spending on education is necessary, many South African families are already feeling the strain of rising costs. School fees, transportation, uniforms, and additional expenses continue to put financial pressure on parents. As costs rise, many families are looking for alternative education models that offer high-quality learning at a more affordable price.

Home and online schooling: A cost-effective solution

With household budgets tightening, home and online schooling are becoming attractive alternatives to traditional brick-and-mortar schools. By removing costs such as transportation, uniforms, and school fund contributions, parents can allocate their education budgets more efficiently.

“Parents are increasingly looking for ways to ensure their children receive a quality education without the financial strain,” says Louise Schoonwinkel, MD at Optimi Schooling, of which Impaq is a registered trademark. “Home and online schooling provide a structured, CAPS-aligned education at a more predictable and often lower cost compared to traditional schooling, especially when considering the additional expenses that come with mainstream schools.”

How homeschooling helps families save

  1. No transport costs: Many learners travel long distances to school, adding to monthly expenses. Home and online schooling eliminate this cost entirely.
  2. Reduced uniform and school fund expenses: Many schools require multiple uniforms, sports kits, and contributions to various school funds. Home learners can avoid many of these costs.
  3. Lower monthly tuition fees: Some private and top-end public schools come with high tuition fees that increase annually. Impaq’s home and online schooling solutions offer structured education at competitive, more manageable rates.
  4. Customised learning resources: Parents have the flexibility to choose learning materials that suit their budget rather than paying for compulsory school resources.

Education without compromise

Despite being a more affordable option, home and online schooling do not compromise on quality. Learners follow the CAPS curriculum, receive structured support, and can transition to traditional schooling or higher education with ease.

“Families should not have to choose between affordability and quality education,” adds Schoonwinkel. “With the right support, alternative education models provide the same academic outcomes while giving parents control over their education spending.”

Final thoughts

As the VAT increase takes effect in the coming years, parents will need to make strategic financial decisions about their children’s education. Home and online schooling remain viable, cost-effective alternatives that provide the flexibility, structure, and quality education that families need in a changing economic landscape.

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