ISC Daily News Summary 19 May 2025

Independent school headteachers have warned that Labour's VAT on fees policy could disproportionately impact pupils with special educational needs and disabilities (SEND). The warnings come as data from the Independent Schools Council's (ISC) latest annual census, which has been shared with PoliticsHome, shows a 78 per cent increase in the number of children with SEND attending independent schools in the past decade. The number of pupils in ISC schools with additional needs has risen from 66,026 in 2015 to 117,618 in 2025, according to the census. The figures also show a 5.8 per cent year-on-year increase, from 111,154 pupils with SEND support in 2024 to 117,618 in 2025. Responding to the findings, the ISC’s chief executive, Julie Robinson, expressed concern that there “might not be the right spaces in the right places for children with SEND needs whose education is disrupted by this policy”. She explained: "Many parents have considered the current system and have instead opted for a local independent school so that their child can get the right support straight away. Independent schools play a vital part in their community’s education ecosystem, and we are particularly worried about how this tax on education might impact local SEND provision. Independent schools are a vital part of the SEND landscape and, in many cases, offer parents a choice that helps their child to thrive." Further highlighting the impact on families, Kim Venables, headteacher of Salterford House School in Nottinghamshire, said she has seen an increase in pupils moving from the state sector to her school, which is a mainstream setting with a specialist SEND unit. “I’m concerned about the impact if schools like ours take these children with SEND and then we close — what happens then to these children?” she asked. Matthew Bryan, headteacher of Kingswood House in Surrey, told PoliticsHome that open day attendance has dropped and more parents of children with additional needs are asking for financial help, which is "not sustainable... because we need to keep the finances secure". By Matilda Martin.

The Sunday Times reports that the number of pupils at independent schools has fallen by more than 13,000 in a year, a record drop that headteachers blame largely on the introduction of the VAT on fees policy in January. According to the ISC's annual census, the like-for-like number of pupils dropped from 551,578 to 538,215 in the year to January. The figures cast doubt on ministers' predictions that only 3,000 children would leave the independent sector during the 2024-25 academic year as a result of the tax, rising to 14,000 by summer next year. Commenting on the census findings, Julie Robinson said: "Our data shows a significant decrease in pupil numbers. It is going to take a few years until we see the full impact of this, but [we believe] it’s worse than the government predicted. Anyone who’s interested in the government’s VAT policy as a revenue raiser should be seriously concerned by these numbers. It risks raising absolutely nothing [in revenue] and yet the damage it is doing in terms of disrupting the education of children is already clear.” Aatif Hassan, founder and chairman of Dukes Education, which runs 27 independent schools and colleges and is a member of the ISC, said the latest figures underestimate the true effect of the VAT policy: "These figures do not reflect the full damage inflicted on the education sector by the imposition of VAT. We are just beginning to see the impact on families and the flow through of that will become more apparent in September and next academic year, on both independent and state schools." Describing the impact on pupils with additional needs, Mr Hassan added: "At a time when SEND funding needs extra investment, it seems counterintuitive to load the state sector with even more pupils." By Louise Eccles and Joey D’Urso.

The ISC's census will also show that boarding schools are being affected by a fall in the number of international pupils, which has dropped by almost 14 per cent since its peak in 2020. Figures shared with The Times reveal that, in January, there were 25,500 non-British pupils with parents living overseas at independent schools, down from nearly 29,500 in 2020. There has been a 2.6 per cent drop in the year to January alone, amounting to almost £29 million in lost fees. Some 93 per cent of overseas pupils whose parents stay in their home country choose to board; 54 per cent are at an independent school sixth-form. The largest decrease in applications has come from Spain, Nigeria, Russia, Thailand and Hong Kong. Attributing the decline to the government's VAT on fees policy, David Walker, director of the Boarding Schools Association (BSA), said: “British boarding is not only world-renowned but good for business, generating billions and contributing to the UK’s soft power. The government has scored an own goal by charging VAT on school fees in a bid to raise funds. We cannot afford to be complacent if we are to remain welcoming and globally relevant.” Julie Robinson also raised concerns about the wider implications of the decline in international pupils. Speaking to The Times, she warned: "The decrease in the attractiveness of the UK as an international destination should be a concern across education given the ripple effects this will have elsewhere, especially within higher education." By Nicola Woolcock.

Dozens of independent schools under Reform councils could be saved from closure after Richard Tice pledged to help them amid Labour's VAT on fees policy. The party's deputy leader told The Telegraph its newly elected council leaders will do “whatever we can” to help independent institutions deal with the policy. This could include providing emergency funding to schools or facilitating mergers with the state sector to avoid unnecessary closures. The 10 county councils won by Reform at the local elections are home to more than 140 independent schools, which together educate tens of thousands of pupils. Mr Tice said: “The schools VAT policy is a catastrophe. Schools are closing, children’s education is being damaged and jobs are being destroyed. Reform will do whatever we can to mitigate the impacts of this policy before we win the next general election so we can scrap this absurd VAT on fees.” Reference is made to figures from the ISC. By Noah Eastwood and Ollie Corfe.

Following the news that St Clare's School in Porthcawl is to close, a group of parents has launched a plan to save it. The group has already formed a parent action committee and is looking into taking the school into independent, community-led ownership, possibly through a cooperative, trust, or social enterprise model. By Lois McCarthy, WalesOnline.

A number of schools in membership of the ISC's constituent associations are mentioned across this weekend's coverage.

In a written question in the House of Commons, Conservative MP Dr Neil Shastri-Hurst asked what steps are being taken to improve access to independent special schools for children with complex needs in regions where maintained provision is (a) limited and (b) oversubscribed. Responding, schools minister Catherine McKinnell said: "The department has now published allocations for £740 million in high needs provision capital allocations for the 2025/26 financial year to support local authorities to deliver new places in mainstream and state-maintained special schools, reducing reliance on the independent sector to meet the needs of children and young people with SEND."

Conservative MP Ben Obese-Jecty submitted a question in which he asked what progress the chancellor has made in implementing a new business rates regime. Exchequer Secretary to the Treasury James Murray said ministers will publish an interim report setting out a "clear direction of travel for the business rates system", adding that more details will follow in this year's Autumn Budget. Hansard.

In a question in the Scottish Parliament, SNP MSP George Adam asked whether ministers have considered the future location of the Registrar of Independent Schools following the decision to refocus Education Scotland. In response, education minister Jenny Gilruth said: "Education Scotland is being refocussed to lead curriculum review and improvement. To support this, the Scottish Government has taken the decision to relocate the Registrar of Independent Schools from Education Scotland to the Scottish Government." Ms Gilruth explained this will support Education Scotland’s new focus while maintaining close links with the General Teaching Council for Scotland. Scottish Parliament.