Private Schools Announce a 22% Rise in Fees in the Last Year
Private school fees were 22.6% higher this January than last year, says the group for most UK independent schools. The Independent Schools Council thinks fewer students will join private schools because of new VAT changes. They say it's too soon to see all the effects of this policy, which started mid-year.
A Treasury person said the fee rise isn't just because of VAT, noting that fees at private schools have gone up for the last 25 years. VAT on these school fees began on January 1 all over the UK. Chancellor Rachel Reeves said this tax will help improve teaching in public schools.
The government thought fees would rise about 10% because of VAT, noting some schools could absorb some of the cost. The ISC mentioned many schools dropped their fees in January, not counting VAT, to ease the effect on parents. But ISC head Julie Robinson talked about a "triple whammy" of increases in national insurance, an end to charity business rates relief, and a 20% VAT.
"It seems clear to us that the government has underestimated the impact," she said. "We know parents have already left because of the VAT threat, so we do expect fewer students, but we'll only see the full effects in a few years," Ms. Robinson added.
Kath took her 12-year-old son out of his private school in October after learning the fees would rise in January. "We figured it out, and it wasn't affordable. In two terms the cost went up by 26% to almost £8,000 a term," she said. She originally picked a private school because of its small class sizes and support for her son, who has special needs.
"We are a typical middle-class family, not rich, with one used car and few holidays; we watch our spending. They should have rolled this out at the start of the school year."
"Moving him mid-year was hard, but we only had 15 days to accept a place once offered," she explained.
Kath is now starting the process to get an education and care plan for her son in his new school. "The state system is stretched and underfunded. He is happy and tough; now we must fight for his needs." "The government aims to tax richer folks to help others, but the richest are least affected."
"It's the lower- to middle-income families and kids on scholarships who feel the VAT impact most," Mr. Morton stated.
Research from the Institute for Fiscal Studies said it would be easy for public schools to handle more students, as more are leaving than there are in private schools. The ISC said some schools saw a 4.6% drop in Year 7 pupils in September 2024, but experts think it's due to fewer births and living costs.
Three groups, including parents of kids with special needs and low-income faith schools, have started a legal review of the policy. A decision is due soon.
The public sector faces challenges in hiring and keeping staff, and unfilled jobs are at an all-time high. "This data shows the reality—the fee increases aren't only because of VAT. Fees have gone up by 75% in real terms over 25 years while pupil numbers have stayed stable," a Treasury spokesperson concluded.
