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Daily News Summary
17 March 2025

VAT on fees: Independent schools reducing staff and bursaries to survive, survey suggests
Letter: 'We all want to play our part in improving educational outcomes for every child'
House of Commons written answer: Independent schools and VAT
Poorest children missing more school and further behind post-pandemic
Education secretary: Parents must 'think differently' on SEND support for children
Conservatives to call for vote on smartphone ban in schools

VAT on fees: Independent schools reducing staff and bursaries to survive, survey suggests

 

Most independent schools are reducing staff and bursaries in a bid to stay afloat following the government's introduction of VAT on school fees, a straw poll of 84 independent schools by The Times has found. Nineteen schools told the paper they had been cutting subjects to save money, while 24 were opting for a less generous pension scheme. Of the respondents, 25 said they were reducing their state school partnerships, 25 were cutting back on trips, 32 were making staff redundant, and 50 were not intending to renew the contracts of some department staff. Commenting on the findings, chief executive of the Independent Association of Prep Schools (IAPS) Dominic Norrish said: "The impact of taxing education is real: it’s showing up in national measures of inflation; it has been cited in the announced closure of more than a dozen independent schools; and it has prompted thousands of parents to reconsider their educational options. However, parents will rightly wait for the least damaging time to move their child to another school. The true impact will take several years to fully surface and will see more of the smallest and affordable schools close." By Nicola Woolcock. 

The Daily Mail also covers the findings, and cites a recent warning from chief executive of the Independent Schools Council (ISC) Julie Robinson that Labour has been "underestimating" how many independently educated pupils would leave the sector as a result of the tax policy. By Francine Wolfisz. Also covered by Jon King for the Daily Express. Several schools in membership of the ISC's constituent associations are mentioned across the coverage.

Rachel Reeves is reportedly spending hundreds of thousands of pounds on legal fees in defence of the government's VAT on fees policy. The chancellor has enlisted four King's Counsels (KCs) - the most senior and costly barristers in the country - to lead the government's case when it goes to the High Court next month. Speaking to the Mail on Sunday, legal experts claimed the move was a clear sign ministers view the case as a direct threat to "a manifesto promise" and an "unprecedented challenge". By Elizabeth Ivens. 

In an article for Independent School Management Plus, master of Magdalen College School Helen Pike explores some of the reasons behind teachers leaving the profession in light of the recent National Foundation for Educational Research (NFER) report that revealed teacher vacancy rates in England have reached record highs. Ms Pike notes that contributing factors include stagnant pay and inflexible working conditions, leading to increased teacher attrition and falling recruitment. 

 

Letter: 'We all want to play our part in improving educational outcomes for every child'

 

In a letter to The Telegraph, warden of Glenalmond College Mark Mortimer criticises Labour's "ill-considered and reckless" VAT on fees policy, which "is already proving counter-productive, triggering the closure of schools and increasing the pressure on an overstretched state sector". Amid the news that ministers are set to miss their teacher recruitment target, Mr Mortimer says the real issue lies in teacher absenteeism, costing taxpayers over £1.2 billion and results in a significant loss of school days. Emphasising that "independent schools share with the government a desire to improve educational outcomes for every child", he suggests: "The answer, surely, lies not in misguidedly targeting the independent sector, but in the government working with the whole of the education sector to improve working conditions for teachers, ensuring that the profession is a respected and attractive one, and that retention rates improve." The letter appears halfway.

 
The Telegraph

House of Commons written answer: Independent schools and VAT

 

In a written question for the Treasury, shadow education minister Neil O'Brien asked how independent schools who were not previously VAT-registered but did produce taxable supplies that were under the registration threshold will be treated under the new VAT guidance. Responding, Exchequer Secretary to the Treasury James Murray said: "A private school, or any other business, making taxable supplies under the threshold has no requirement to register for VAT. Once the value of taxable supplies made exceeds the VAT registration threshold, which currently stands at £90,000, they must register for VAT. On 1 January 2025 supplies of education by private schools become subject to VAT at the standard rate of 20 per cent. These fees must be included with the value of all other taxable supplies in calculating taxable turnover. If the taxable turnover of a private school now exceeds the threshold, either due to supplies of education alone or a mix of education with other taxable supplies, they must register for VAT. This requirement extends to any person over the threshold and to taxable supplies of any nature. The change in legislation and new guidance applies only to supplies of education by a private school and does not affect other taxable supplies." Hansard.

 
Hansard

Poorest children missing more school and further behind post-pandemic

 

Research by the Education Policy Institute (EPI) suggests the poorest children are missing more school and falling further behind their peers. Shared with BBC News, the new analysis reveals that young people from low-income families are now up to 19 months behind their classmates by the age of 16. The report also suggests that if school attendance were the same for all pupils, the gap, measured by GCSE results, could reduce from 19 months to 15 months. By Branwen Jeffreys. 

Dr Eva Jiménez, author of the EPI's report, writes in Tes about the connection between absenteeism and the attainment gap for disadvantaged students, highlighting the key findings and explaining why they should drive action. She states: "We need fairer school admissions, as well as better information, advice and guidance to ensure higher-attaining disadvantaged students in particular don’t opt for courses below their potential."

 

Education secretary: Parents must 'think differently' on SEND support for children

 

Bridget Phillipson has called for the 2014 Children and Families Act to be changed to reform the current system for special educational needs and disabilities (SEND) support in England, amid concerns it is driving local authorities towards insolvency. Addressing delegates at the Association of School and College Leaders annual conference in Liverpool, the education secretary said: "I think we need to take a step back from the system that we have right now, the system that came from the 2014 reforms, and start to think very differently about what that system will look like. And that’s a conversation that in the months to come we’ll be having with parents." For 11 years, local authorities in England have funded SEND provision through high-needs budgets but, as claims for additional support through education, health and care plans have risen, councils now face deficits estimated to be around £5 billion. By Richard Adams, The Guardian

Schools Week reviews the "unprecedented" number of responses to the Education Select Committee's SEND inquiry and highlights a number of key sector solutions. By John Dickens. 

 

Conservatives to call for vote on smartphone ban in schools

 

The Conservatives will push for ministers to be given a vote on banning mobile phones in schools as parents raise concerns that they are "disrupting learning" and posing safeguarding issues. In an interview with Laura Kuenssberg yesterday, shadow education secretary Laura Trott said the party will try to amend Labour’s schools bill to include the ban, describing the approach as a "no-brainer". She said "We think this is incredibly important. We hope Labour will put politics aside and vote for this." By Steven Swinford, The Times.

 
The Times

 

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