More than fifty private schools shut since Labour put VAT on fees

Times

a day ago

More than 50 independent schools have closed or announced plans to shut since Labour imposed VAT on private school fees.
Sector leaders said the policy was already driving out pupils and putting more schools at risk of collapse.
At least 54 private schools — including top prep schools, sixth-form colleges and specialist provision for children with additional needs — have shut or announced plans to close since VAT was added to fees on January 1.
Labour promised in its general election manifesto to introduce VAT on private school fees, a move the Treasury has described as a 'revenue-raising' measure.
The mid-year policy change is expected to generate around £1.6 billion a year. Labour says the money will be used to support state education, including paying for 6,500 new teachers.
• Labour's VAT plans blamed for fall in private school entries
On average, approximately 50 mainstream private schools typically close each year for a range of reasons, including financial struggles and school standards issues.
The government maintains that the policy is not causing significant disruption but fell short of providing data on how many pupils had left the independent sector.
'Ending tax breaks for private schools will raise £1.8 billion a year by 2029-30 to help fund public services, including supporting the 94 per cent of children in state schools to achieve and thrive,' a Department for Education spokesman said.
• Parents and private schools lose High Court case against VAT on fees
'The number of children in independent schools has remained steady, while the most recent data shows the rate of families getting a place at their preferred secondary school is at its highest in almost ten years.'
However, the latest school census figures suggest a sharper decline in private school numbers than expected.
Latest government figures show that in January, there were 582,477 pupils in independent schools in England, down from 593,486 the previous year, a drop of 1.9 per cent or 11,009 pupils. It is the first fall in private school enrolment since the Covid-19 pandemic.
While the number of independent schools still rose slightly over the same period, from 2,421 in January last year to 2,456 in January this year, the increase would likely have been higher were it not for the introduction of VAT on school fees, the drop in pupil numbers seen as the more significant pressure on the system.
The government insists the drop in pupil numbers is to be expected, yet independent schools say the 20 per cent surcharge and business rates are pricing parents out.
Julie Robinson, chief executive of the Independent Schools Council (ISC), said the number of pupils leaving independent education was 'already much higher than the government predicted' and warned that many schools were unlikely to survive the next few years. 'Anyone interested in this policy as a revenue raiser should be concerned by the number of pupils who have already left independent education, which is already much higher than the government predicted,' she said.
According to the ISC, it is reasonable to assume that the majority of pupils who have left the independent sector have been absorbed into mainstream education.
Robinson added: 'While there is a combination of factors contributing to school closures, for many the government's decision to tax education has proven a bridge too far. We are likely to see further closures over the coming months and years as the effects of VAT and other tax measures mount up.'
Earlier this year, parents and private schools lost their legal battle against VAT on fees in the High Court. The judgment, passed in June, dismissed the joint case brought by three groups, which had argued that the policy discriminated against children with special educational needs and disabilities (Send), among others.
For families of children with complex needs who depend on specialist provision at smaller schools — often with lower fees and tighter budgets — the ruling has heightened fears that financial pressure could force closures, displacing students without suitable alternatives. Independent schools support more than 100,000 children with Send, provision Robinson described as 'crucial in meeting capacity shortages and local need for specialist education'.
She said that parents turned to independent schools after struggling with the 'time, cost and stress' of securing an education, health and care plan, a legal document that outlines specialist provisions for disabled children and those with additional needs.
'For some, VAT has meant that this is no longer an option and we remain concerned about children falling through the cracks as specialist schools are threatened or become out of the reach of the parents who have depended on them,' she said.