Latest news with #schoolfees
Telegraph
a day ago
- Politics
- Telegraph
The fight against Labour's school VAT raid continues
Those hoping for immediate relief from the courts in relation to the Government's imposition of VAT on school fees yesterday had their short-term hopes dashed. But if you read the judgment and examine what is going on in schools, the Government now has a right mess on its hands. The High Court rightly found that, for the 100,000 or so children in private schools with special education needs who are forced to move into the state sector because they have closed or their parents can no longer afford the fees, their fundamental rights have indeed been interfered with. However, it said that Parliament was entitled to do this because it has very broad powers when it comes to raising new taxes. In this case, what was being sought by the claimants was a 'declaratory remedy' which would have sent the legislation back to Parliament to resolve. So, what happens now? The Chancellor Rachel Reeves and beleaguered Education Secretary Bridget Phillipson are no doubt delighted that they have apparently won. But the truth is, like special needs children themselves, they are not out of the woods. They won by a nose and could yet lose in subsequent contests. The first thing to say is that the special needs system is in total chaos. Since the pandemic, there is a huge backlog of children who do not have 'statements', in other words official education health and care plans, who are in a queue or appealing at tribunals hoping to get one. Local authorities are understandably reluctant to award them, in part because of a questionable previous court ruling, which said they have to pay for taxis for special needs children to get to their school. If you talk to a taxi driver, many of them make a fortune providing this service which, in general terms, seems excessive and incredibly costly. Yet now, parents who previously were paying for their own children's school fees and indeed transport, have had it confirmed that their children have a fundamental right to an appropriate education and their legal claims against local education authorities have now been given additional force. It would have been cheaper and simpler if VAT had not been imposed on school fees and they stayed where they were. Second, thousands of parents were waiting for this judgement, having either given provisional notice to leave private schools or waiting to decide whether to embark on that costly journey in the first place next term. So far, 11,000 children have left private schools because of this measure. My guess is that twice that number, will now not turn up next term. Put all this together and the new taxes on education will raise very little money and might even lose revenue. The reality is that Labour have created a giant and costly mess. An appeal is likely. There is no tax on education in any civilised country and, sooner or later, we must hope that a future government will reverse this cruel and costly measure.
Daily Mail
a day ago
- Business
- Daily Mail
BREAKING NEWS Private schools, pupils and parents lose High Court bid to stop labour introducing VAT on school fees
A group of private schools, pupils and their parents have lost a High Court challenge over the imposition by the Government of VAT on school fees. This is a breaking news story. Updates to follow.
Khaleej Times
3 days ago
- Business
- Khaleej Times
Dubai schools hike fees: Parents pay up to Dh5,000 more, consider affordable academies
Dubai parents have begun receiving school fee increase notifications after regulators allowed a hike earlier this year. While some will have modest fee increases of just Dh200 per year for a child, parents of more premium schools will see their fees go up almost Dh5,000 annually for one child. To offset the cost, some parents are opting to pay an entire year's fees in one go, while others are looking to move their children to cheaper schools. On the other hand, some parents are happy that their fee hikes have been minimal and affordable. For Dubai parent Manal whose children study at an Indian syllabus school in Al Quoz, the total fee hike for both her children will be Dh400 per annum. 'I am very glad that the increase is manageable and not a huge burden,' she said. 'We had budgeted for an increase this year so we were not caught off-guard.' In May this year, Dubai's Knowledge and Human Development Authority (KHDA) approved an Education Cost Index (ECI) of 2.35 per cent for for-profit private schools in the emirate for academic year 2025-2026. This allows schools to increase their fees based on their individual school grade as per the results of the Dubai School Inspection Bureau (DSIB), and the ECI. Indian expat Vivek has two children studying in an outstanding premium school in the emirate. The current yearly school fees for his children range between Dh87,000 to Dh92,000 and he would have to shell out an additional Dh10,000 per annum for both children together. 'However, our school gives the option of paying the entire year's fees in one go,' he said. 'This has given us a lump sum discount so the total fee increase for me has come to about Dh3,000 per year for both children.' 'No other option' German parent Greta said that she will 'feel the pinch' of the school fees increase but has 'no other option' as all schools have hiked their charges. 'Three of my children go to a British syllabus school in Jumeirah and I got the email yesterday that my school fees have been hiked by Dh2,000 per child per annum,' said Dubai resident Greta. 'That is a total increase of Dh6,000 per year in school fees alone. The books, uniforms and other study material are not included in that. However, changing the school is not an option for us because my eldest will be going to Year 11 in the next academic year and I don't think it is wise to change him now. Maybe next year, I might look into it.' However, she added that she discussed cutting down on some extra-curricular activities and her husband to offset the cost of school fees. Dubai currently has 227 private schools serving 387,441 students from 185 nationalities. The sector recorded an unprecedented 12 per cent increase in student enrollment in the 2023-24 academic year. For Mohammed Iqbal whose children study at a British syllabus school in Qusais, the increase has been manageable. 'My children are both in secondary school and the total fee hike has been Dh1,200 annually,' he said. 'I was expecting a little more than that so I am very happy.' Second year in a row Parent R.M. whose children attend a British syllabus school in Dubai said she has been hit with fee increases for two years in a row. 'Last year, our school increased fees by 4.55 percent and this year again, they announced a 2.35 percent hike,' she said. 'While I understand that the cost for businesses is going up, it puts a burden on parents because unfortunately salaries don't increase at the same rate as the costs. I began researching schools as soon as I heard about the fee hike but then soon realized that changing schools would bring with it a fresh set of challenges. So we decided to stay put at our current one.' Meanwhile some parents foresaw the fee increase and moved their children ahead of time. Umm Mohammed said that she decided to move her daughter from an expensive school in Dubai to a more reasonable one. 'We were paying over Dh55,000 in annual fees at our previous school,' she said. 'It was already the higher upper limit of what we could afford. So last year, we decided to move her to another school. Now we pay Dh30,000 inclusive of school fees, uniforms and books. When the announcement of the school fees came, I was relieved. At our previous school, the fee increase would have been really difficult for us. But now, the fee increase is about Dh1,000 per annum. It is very manageable for us. I think it was the best decision to move her.'
Yahoo
25-05-2025
- Business
- Yahoo
‘We earn £345k, but soaring private school fees mean we can't go on five holidays'
Last summer, Al Moy, 38, an investment banker and father of three, received a letter from his daughter Ali's school saying they were increasing their fees by £10,000. Shortly afterwards, fees for the school his son Harry went to went up by £5,000. 'Almost overnight, the school fees went up from £55,000 per year to £70,000. The increase was shocking, but not entirely unexpected,' Moy says. 'Ultimately, I believe, the education provided and the sacrifices we will have to make are worth it.' Al is not quite sure why the increase at his daughter's school was so much more than his son's, but said they broke it down as £7,000 VAT, £2,000 on social activities and a £1,000 administrative fee. Moy earns a comfortable salary of £225,000, while his wife, Alexandra, who also works in banking, earns £120,000. Currently, they have two out of three children at fee-paying schools. Despite their collective income of £345,000, they have had to make a number of cutbacks to offset the increase in fees. These include holidays, eating out in restaurants, the weekly shop and household outgoings. As well as the fees for their 13-year-old daughter, Ali, and nine-year-old son, Harry, Al and Alexandra spend around £10,000 a year on a part-time nanny for their two-year-old, Barry. They try to alternate the days they work from home to make sure one of them is always around to help out with childcare and the school run. A recent report by financial planning firm Saltus found that the total 'lifetime' cost of sending a child to a private day school is now £476,399 – £94,486 more than before the VAT exemption was lifted. It is due to surpass £500,000 for children starting in 2026. Saltus questioned families about how they were going to manage the increase in fees, and while almost half (48pc) said they planned to keep their children in private school, three quarters (76pc) said they planned to make changes to do so. Four in 10 (41pc) said they would be cutting down on holidays, more than a third (36.6pc) said they would try to reduce everyday spending, and a quarter (23.6pc) said they would either be getting a new job that paid more or take on additional work, the Saltus Wealth Index Report showed. The Moys, who are originally from Singapore but also lived in New York for 20 years, have decided that rather than disrupt their children's education, they will make sacrifices in other areas of their lives. 'Both schools have excellent reputations and academic programmes, and our daughter is at an age where her peer group is everything. She's been at that school with the same group of friends since she was five so it would be a real wrench to move her,' Moy says. Moy, who went to private school in Singapore, says he doesn't have much experience of the UK state school system, but wants to give his children the best possible education he can. He feels a private school is the best way to do that. The biggest cutback they have made on their outgoing is holidays. 'Before the VAT increase, we'd have gone on around five holidays a year, including several long-haul trips,' he says. 'In previous years, we've been to the US a few times and stayed in New York and travelled around, visiting the Hamptons, but now it's mostly Europe and maybe one long-haul trip a year instead.' Moy estimates they have cut their holiday spend from around £40,000 per year to £20,000. During their last holiday to Holland, for example, they travelled mostly by train, didn't hire a car and did fewer activities as a family. 'We planned everything quite carefully and, while we didn't want the kids to feel in any way restricted, we also made sure that we were more mindful of budgeting and stayed in cheaper hotels. 'The biggest highlight for our daughter was probably a visit to the tulip fields,' Moy says. Rather than go away for two weeks at a time, they now take shorter breaks too. Another area the Moys have cut back on is eating out and being more careful when they do the food shop. 'Before we would just go to Waitrose and M&S, but now we go to Sainsbury's too and always look out for the offers and promotions in each different shop,' he says. They used to go out two or three times a month and enjoyed eating at restaurants like The Ivy, Bill's, Gail's and Gaucho's, but now they only go out about once a month. 'We rotate restaurants now and ask the kids what particular restaurant they might like to eat at,' says Moy. With at least one of the couple working from home during the week, it's been almost impossible to reduce the cost of utility bills, but they have cut back on some other household outgoings, such as the gardener. 'The gardener used to come twice a month, but then he increased his costs from £230 a year to £245 a year. We only have him come once every other month now.' Although they have tried to shield their children from the stress of worrying about finances, Moy thinks his daughter has also become mindful about reducing her spending. 'She loves to buy sweets and take them to school, but now she'll ask whether she really needs or wants them, and take something along from the pantry at home instead.' Moy says he understands why Labour put the VAT changes for private school fees in place and they didn't want to do a U-turn, but doesn't think they thought it through. 'It seems as though families like us are paying more and more, and being squeezed on everything from our salaries to our outgoings. I know each party has its flaws, but I think the Conservatives are at least a bit more transparent,' he says. The Moys have another two years before their youngest starts school. Will they go private as they have done with their older two? They are currently trying to weigh up whether they can afford it. 'We're looking at different options and researching the best local schools, including state schools,' he says. 'Fortunately we have two years before we have to decide.' Who knows what the financial landscape will look like by then. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Telegraph
25-05-2025
- Business
- Telegraph
‘We earn £345k, but soaring private school fees mean we can't go on five holidays'
Last summer, Al Moy, 38, an investment banker and father of three, received a letter from his daughter Ali's school saying they were increasing their fees by £10,000. Shortly afterwards, fees for the school his son Harry went to went up by £5,000. 'Almost overnight, the school fees went up from £55,000 per year to £70,000. The increase was shocking, but not entirely unexpected,' Moy says. 'Ultimately, I believe, the education provided and the sacrifices we will have to make are worth it.' Al is not quite sure why the increase at his daughter's school was so much more than his son's, but said they broke it down as £7,000 VAT, £2,000 on social activities and a £1,000 administrative fee. Moy earns a comfortable salary of £225,000, while his wife, Alexandra, who also works in banking, earns £120,000. Currently, they have two out of three children at fee-paying schools. Despite their collective income of £345,000, they have had to make a number of cutbacks to offset the increase in fees. These include holidays, eating out in restaurants, the weekly shop and household outgoings. As well as the fees for their 13-year-old daughter, Ali, and nine-year-old son, Harry, Al and Alexandra spend around £10,000 a year on a part-time nanny for their two-year-old, Barry. They try to alternate the days they work from home to make sure one of them is always around to help out with childcare and the school run. 'Before the VAT increase, we'd have five holidays a year' A recent report by financial planning firm Saltus found that the total 'lifetime' cost of sending a child to a private day school is now £476,399 – £94,486 more than before the VAT exemption was lifted. It is due to surpass £500,000 for children starting in 2026. Saltus questioned families about how they were going to manage the increase in fees, and while almost half (48pc) said they planned to keep their children in private school, three quarters (76pc) said they planned to make changes to do so. Four in 10 (41pc) said they would be cutting down on holidays, more than a third (36.6pc) said they would try to reduce everyday spending, and a quarter (23.6pc) said they would either be getting a new job that paid more or take on additional work, the Saltus Wealth Index Report showed. The Moys, who are originally from Singapore but also lived in New York for 20 years, have decided that rather than disrupt their children's education, they will make sacrifices in other areas of their lives. 'Both schools have excellent reputations and academic programmes, and our daughter is at an age where her peer group is everything. She's been at that school with the same group of friends since she was five so it would be a real wrench to move her,' Moy says. Moy, who went to private school in Singapore, says he doesn't have much experience of the UK state school system, but wants to give his children the best possible education he can. He feels a private school is the best way to do that. The biggest cutback they have made on their outgoing is holidays. 'Before the VAT increase, we'd have gone on around five holidays a year, including several long-haul trips,' he says. 'In previous years, we've been to the US a few times and stayed in New York and travelled around, visiting the Hamptons, but now it's mostly Europe and maybe one long-haul trip a year instead.' Moy estimates they have cut their holiday spend from around £40,000 per year to £20,000. During their last holiday to Holland, for example, they travelled mostly by train, didn't hire a car and did fewer activities as a family. 'We planned everything quite carefully and, while we didn't want the kids to feel in any way restricted, we also made sure that we were more mindful of budgeting and stayed in cheaper hotels. 'The biggest highlight for our daughter was probably a visit to the tulip fields,' Moy says. Rather than go away for two weeks at a time, they now take shorter breaks too. 'Families like us are paying more and more' Another area the Moys have cut back on is eating out and being more careful when they do the food shop. 'Before we would just go to Waitrose and M&S, but now we go to Sainsbury's too and always look out for the offers and promotions in each different shop,' he says. They used to go out two or three times a month and enjoyed eating at restaurants like The Ivy, Bill's, Gail's and Gaucho's, but now they only go out about once a month. 'We rotate restaurants now and ask the kids what particular restaurant they might like to eat at,' says Moy. With at least one of the couple working from home during the week, it's been almost impossible to reduce the cost of utility bills, but they have cut back on some other household outgoings, such as the gardener. 'The gardener used to come twice a month, but then he increased his costs from £230 a year to £245 a year. We only have him come once every other month now.' Although they have tried to shield their children from the stress of worrying about finances, Moy thinks his daughter has also become mindful about reducing her spending. 'She loves to buy sweets and take them to school, but now she'll ask whether she really needs or wants them, and take something along from the pantry at home instead.' Moy says he understands why Labour put the VAT changes for private school fees in place and they didn't want to do a U-turn, but doesn't think they thought it through. 'It seems as though families like us are paying more and more, and being squeezed on everything from our salaries to our outgoings. I know each party has its flaws, but I think the Conservatives are at least a bit more transparent,' he says. The Moys have another two years before their youngest starts school. Will they go private as they have done with their older two? They are currently trying to weigh up whether they can afford it. 'We're looking at different options and researching the best local schools, including state schools,' he says. 'Fortunately we have two years before we have to decide.' Who knows what the financial landscape will look like by then.
