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The costs of a private school education are due to increase from next year when VAT becomes chargeable on fees.
From January 1, a 20 per cent VAT rate will be levied on private schools, including boarding services.
The government believes the move is “tough but necessary” and will help secure additional funding for improving state school provision. About 6 per cent of schoolchildren in the UK are educated in the private sector.
Some private schools may choose not to pass on the full brunt of the VAT bill. But parents who cannot absorb further fee increases may have to consider alternative options. Other schools have warned they would not have the cash reserves to shoulder the VAT burden.
Data suggests state schools nationally have enough capacity to absorb pupils leaving the private system. However, experts warn that in some locations there is likely to be heavy competition for in-demand schools.
Are you worried about your ability to pay VAT on fees? Have you taken action to mitigate the problem? Has your child’s school done enough, in your view, to help parents facing a financial crunch? The FT would like to hear your experiences. Please contact us in confidence at laura.hughes@ft.com.
