Private education costs in the South West are the third highest in the UK, and are expected to rise by almost £4,000 on average when a VAT increase comes into force in January, new research has found.

According to data from Pepper Money, the average cost for a child to attend private education in the South West is currently £19,401 per year.

This number is based on fees for 11 to 16-year-olds in full-time private education.

The upcoming 20 per cent VAT increase will push the average annual cost up to £23,282 - an additional £3,880 per year.

The average cost in the UK to put a child through private education is £17,128 a year.

The most expensive region in the UK for private education is the East of England, with parents currently paying an average of £20,856 per child, which will rise by £4,644 due to the VAT increase.

In contrast, the smallest increase will be experienced in the Channel Islands, where parents will see a rise of £2,326.

Despite being one of the most expensive regions, no South West counties feature in the 10 most expensive for private education.

The most expensive county is Redcar and Cleveland, with yearly fees of £43,000. This area is expected to see increases of £8,600 in January.

The Guardian reported up to 100,000 families will be priced out of private education in the new year.

Currently, 7.1 per cent of students in independent schools benefit from means-tested bursaries, with an average award of £11,807 per year per student.

However, this amount often falls short of covering the full fees, and the increase in costs could see families seeking higher bursaries, which they may fall short of.

The rising cost of private education is forcing parents to look into short-term credit options, which often come with high interest rates.

However, Pepper Money suggests second-charge mortgages could provide an alternative. It allows people to spread the cost of education over a longer period with lower interest rates.

Ryan McGrath, director of second charge mortgages at Pepper Money, said: "Private education comes with significant financial commitments, often running into tens of thousands of pounds per year.

"When you factor in additional costs like uniforms, extracurricular activities, and school trips, the total expenses can be staggering.

"For many families, covering these costs with credit cards or loans means dealing with high interest rates, which only add to the overall financial burden."