GIVEN the choice between paying £2,000 and £1,500 for the same holiday, who wouldn't choose the cheaper deal, even if it meant taking your children out of lessons for a week? As the cost of peak time holidays spirals, it's a choice that many British parents are now making.

Earlier this year, headteachers were given the power to impose £100 fines on parents who take their children on holiday during term time without the school's permission but it seems the amount they save on the holiday far outweighs any fine.

Record numbers of children are going on holiday during term time. Two of Britain's largest holiday companies have reported an increase in the number of families with children of school age going on holiday during the last two weeks of term.

At The Grove Primary School, near Consett, the problem is widespread. Of the parents who take their children on holiday, around 45 per cent choose to do so during term time.

Gwen Calford, whose 12-year-old son Jamie left the school last year, says she doesn't see any problems with going away outside the holiday period. As a one parent family, saving money is an important consideration, and she doubts whether she would be able to afford it otherwise.

"We don't go away very often but when we went to Tenerife a couple of years ago, we went in October during school time and it was much cheaper than going in the summer holidays," she says.

"I know a lot of parents who do it and I don't blame them. I would definitely think about doing it again. I don't think it affected his schoolwork too much so I don't really think it was a problem."

Headteacher Liz Hume says she fully understands parents' motives.

"The main reason they do it is because it's so much cheaper. If you've got a family, you can save up to £1,000 if you go in school time," she says. "We give the children some work to do while they're away but at the end of the day, two weeks isn't going to make a big difference."

Education Secretary Charles Clarke has told headteachers they can use their discretion when it comes to imposing fines, taking into account the work a child will miss and the effect it will have on their progress. So far, heads seem to be reluctant to use their new powers.

Mrs Hume says: "I would never even think about it because a lot of children wouldn't be able to go on holiday if they didn't go during school time. The only thing that I would not give permission for is to take them out during SATS week, but I know my parents wouldn't do that."

The Government argues that children's education is disrupted by term time holidays, although parents are entitled to take their children out of school for a maximum of ten days a year.

A survey carried out shortly after the fines came into force revealed that one in five parents would continue to take their children out of school for holidays. The poll, carried out by Teletext, also found that one in five parents had taken their children away during term time for two weeks or more last year.

Some holidays are even longer. Nicky and Paul Holden, from Barnard Castle, took their two children on a five-month trip round the world and say they have absolutely no regrets about the effect on their schooling. Although full of good intentions at the start, Nicky admits their plans to keep up with ten-year-old Charlotte and eight-year-old Gus' education fell by the wayside. But, in the end, she says the experiences they gained during their time abroad more than made up for any missed lessons.

"We did some maths and reading with them when we felt guilty enough, but as the trip unfolded, the educational benefits seemed to us to be obvious, and built in, as it were. Amazing cities, rare and beautiful animals, state-of-the art museums, intriguing cultures... How could they not be enriched by these experiences?

"Socially, they have blossomed which will, I hope, make up for any temporary shortfall in their mental arithmetic."

It is hardly surprising that thousands of parents are whisking their offspring away from the classroom. Holiday prices rise between 20 and 100 per cent during peak holiday periods and many holidaymakers feel they are being penalised for having children.

With Thomson holidays, for example, a week in a three-star hotel in Tenerife's Playa de las Americas for two adults and two children staying half board costs £2,034 from August 10. For the week beginning September 14, the price falls by almost £500 to £1,554.

Last year, the Office of Fair Trading rejected a call from Liberal Democrat MP Malcolm Bruce to investigate holiday companies' pricing policies. The Department of Trade and Industry has now stepped in and asked firms to address the issue.

Maggy Meade-King, a spokeswoman for the charity Working Families, says: "Sadly, this isn't something we can campaign about because it's about market forces but I would urge tour operators to take a different line. You would think they would want families on board.

"People are between a rock and a hard place. On one hand, I'm sure parents don't want to take their children out of school. They care about their education and these days they can be fined, but for some people it's the difference between ever being able to take their children on holiday or not. I'm sure they're not being negligent but they're being forced into this position by circumstances."