In a surprising turn of events, the cost of a place at a private school has seen a significant increase of 22.6% in the past year, surpassing government estimates. The Independent Schools Council (ISC) released this information, attributing the spike to the introduction of VAT on fees. This unexpected policy change has left many wondering about the implications it will have on the number of pupils applying for private schools moving forward. As of now, the full extent of the impact remains unclear, given the recent implementation of the policy.
For instance, the average termly fee for a day school in January stood at £7,382, including the 20% VAT, compared to last year’s figure of £6,021. While Treasury officials argue that the fee hike cannot solely be attributed to VAT, they challenge the notion that the data accurately reflects the situation. Despite this, the ISC highlights that many schools managed to mitigate the fee increase by adjusting prices to help alleviate the burden on parents during these challenging times.
The move to introduce VAT on private school fees took effect on 1 January across the UK. Citing the need for improved support and teaching quality in the state sector, Chancellor Rachel Reeves defended the decision to implement this change. The government initially projected a modest 10% increase in fees due to the policy adjustment, anticipating that some schools could absorb a portion of the cost. Nevertheless, Julie Robinson, CEO of the ISC, criticized the government’s oversight in underestimating the adverse effects of the cumulative financial strains faced by schools, exacerbated by VAT, changes to national insurance, and an end to charitable business rates relief.
One concerned parent, Kath, made the difficult decision to transfer her 12-year-old son from a private school after discovering the impending fee rise. Struggling with the prospect of paying almost £8,000 per term, she cited financial constraints as the primary reason for the move. Despite navigating a challenging mid-year transition for her son, who has special educational needs and disabilities (SEND), Kath remains determined to secure the necessary support for him in his new educational environment. The ripple effect of such policy changes continues to reverberate across the education sector, prompting questions about the future landscape of private and state schools in the UK
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