Educator Criticizes Implementation of Mid-Year VAT on Private School Fees as Deliberately Destructive
The head of the Independent Association of Prep Schools expressed concerns that the introduction of VAT on private school fees mid-year could lead to school closures. Dominic Norrish from IAPS stated that implementing this policy in January will create administrative and budgetary challenges for schools, force parents to seek state placements for their children, and may result in the closure of smaller independent schools.
Norrish wrote to Chancellor Rachel Reeves and Education Secretary Bridget Phillipson, urging them to allow for consultation with the sector and adopt a more thoughtful timeline for introducing VAT. He questioned the logic behind the January 2025 start date for adding VAT to private schools’ fees.
Labour had promised to end tax exemptions for private schools during the election campaign, redirecting the funds to improve the state education sector. From January 2025, a 20 percent VAT will be applied to independent schools’ fees, with charity schools losing charitable business rates relief from April 2025.
Educators had expected the changes to take effect at the start of a new school year in September 2025, giving more time for preparation. However, the sudden announcement in July of the imminent VAT introduction has raised concerns about its disruptive impact.
Norrish warned that the mid-year change will burden schools with administrative challenges and force many parents to withdraw their children from independent schools due to fee increases. Some schools have already decided to close as a result of this policy change.
The IAPS chief predicted that the abrupt implementation of VAT will lead to more school closures, resulting in an influx of students transferring to the state sector mid-year. The rushed nature of the change is expected to negatively impact schools, children, and the overall education sector.
Concerns have also been raised about the financial strain on parents and the lack of preparation time for schools to handle the VAT implementation. The government argues that the impact on the state school sector will be minimal, citing research showing sufficient available places in both primary and secondary schools.
