VAT on Private School Fees Triggers Exodus and Legal Challenges

In a surprising turn of events, the government’s decision to introduce VAT on private school fees has sparked a significant exodus of students from the independent education sector. This shift has seen over 13,000 children leaving private schools, a figure that vastly exceeds government forecasts.

Data from the Independent Schools Council (ISC) reveals that by January 2025, enrollment in private schools fell to 538,215 from the previous year’s 551,578. It’s noteworthy that the ISC’s data encompasses only about 80% of private institutions in England and Wales, suggesting that the true number of departures could be significantly higher.

The VAT policy is currently under legal scrutiny, challenged by Christian groups and parents of children with Special Educational Needs (SEND) who argue it is discriminatory. The High Court recently heard concerns that approximately 6,500 SEND students might lose their places due to this tax change.

The outcome of the judicial review remains pending.

Caroline Santer, a headteacher advocating against the policy, highlighted that many smaller private schools face closure because of the tax, consequently increasing the burden on state schools as they accommodate more students whose families can no longer afford private education.

Santer expressed concern over the ongoing uncertainty faced by parents deliberating on the financial feasibility of private schooling for their children.

Jill Holt, head of a small Christian school in Dewsbury, shared similar sentiments: “Our small church-based Christian school is unique and essential to the educational needs of our families, 25 per cent of whom have identified additional needs and 15 per cent with emerging additional needs.” She emphasized the challenge posed by the government’s stance, noting that, “Our fees, which are less than £4,000 a year, are a fraction of the national average of £22,000.”

Holt added, “Our families choose to send their children to us because of the Christian ethos, not because they are affluent – most have to sacrifice to send them to a school that upholds their Christian values and caters for their individual needs.”

The Christian Legal Centre is backing the legal opposition, with its chief executive, Andrew Williams, urging a policy reversal, describing it as an “irrational and disproportionate attack on families.”