Private school fees soar by eye-watering 22.6pc as impact of Labour's punishing VAT tax raid hammers parents

Daily Mail​

15-05-2025

Average private day school fees have risen by more than a fifth in a year following Labour 's tax raid, new data suggests.
Figures from the Independent Schools Council (ISC) show the average fee in January was £7,382 a term – or £22,146 a year.
This a 22.6 per cent increase on January last year, when the average termly fee was just £6,021.
The dataset, from 1,380 schools, is the first to show the sector-wide impact of Labour's 20 per cent VAT on fees, which was introduced at the start of this year.
The large increase in 2025 compares to smaller rises of just 8.4 per cent in 2024 and a 6.4 per cent in 2023.
It suggests a portion of the value of the VAT has been passed on to parents, although the exact amount will vary by school.
Julie Robinson, ISC chief executive, said the sector had been hit by a 'triple whammy' of national insurance changes, an end to charitable business rates relief and 'the blow of 20 per cent VAT on fees'.
She said schools have 'done what they can to keep baseline fee rises to a minimum'.
However, she told the BBC: 'It seems clear to us that the Government has underestimated the effect.
'We know parents have already left the sector because of the threat of VAT coming in so we do expect the reality of this to lead to further decreases but the full effects will only become apparent over the next few years.'
VAT on private school fees was introduced across the UK on January 1, following a manifesto pledge by Labour.
They said the money was needed to pay for 6,500 teachers and other state school improvements.
In October last year, the Government said it expected fees would rise by 10 per cent as a result of the policy.
It said schools did not have to pass on the cost to parents and could absorb some of it through efficiencies.
One mother, who gave her name as Kath, told the BBC she removed her 12-year-old son from his private school in October due to a fee increase caused by VAT.
She said: 'We worked it out and it was unaffordable. Within two terms the cost was going up by 26 per cent to almost £8,000 a term.'
Her son has special educational needs and disabilities (SEND) and she originally chose the private sector due to the small class sizes and support offered.
She added: 'We are a typical middle class family, we are not rolling in it, we have one second hand car and few holidays, we watch our money.
'At the very least I believe they should have brought it in at the start of the academic year.'
'Moving him mid-year was a traumatic experience… The state system is stretched and underfunded.'
David Morton, headmaster of The King's School in Gloucester, which charges pupils between £3,725 and £9,050 a term, said the policy is 'misjudged'.
He said: 'It's low to middle income families and those children on bursaries where the impact of VAT is being felt most.'
The figures are from the ISC annual census, due to be released next week.
A Treasury spokesman said: 'This data misrepresents reality – the increases in fees are not only down to VAT.
'Average fees have risen by 75 per cent in real terms in the past 25 years and pupil numbers have remained steady.
'Ending tax breaks for private schools will raise £1.8 billion a year by 2029/30 to help deliver 6,500 new teachers and raise school standards, supporting the 94 per cent of children in state schools to achieve and thrive.'
It comes as families with children at private schools wait to find out whether their High Court challenge against the Government over the imposition of VAT on fees has been successful.
Several private schools, children who attend them and their parents brought legal action against the Treasury, as they claimed the policy of applying VAT to fees was discriminatory and incompatible with human rights law.
This includes children and families at faith schools, and families who have sent their children with special educational needs (SEN) to private school.