ISC Daily News Summary

Speaking to The Telegraph, several mothers share how their families have been affected by rising fees resulting from the government's VAT policy. They share the lengths they are going to in order to avoid withdrawing their children from independent schools, including taking on multiple jobs. Emma Gillett from Hampshire, who is working three part-time jobs to afford her children's education, says: “I am now so busy I can’t keep up, but the income is what we need right now.” Henrietta Martindale, who moved her two daughters from a state primary in London to an independent day school in East Anglia, carefully budgeted for the fees but did not anticipate the added VAT. To cover the fee increase, Ms Martindale, who runs a calligraphy business, explains how she is diversifying her income by renting out a barn on her property as a creative workshop, ensuring she can meet the higher costs without disrupting her children’s education. "But there is only so much of this work I can do physically," she says. By Annie Hayes.

One in four parents are lying to get their children into top state schools amid Labour's VAT on fees policy, according to a survey by Zoopla. The property platform, which surveyed 1,019 parents who had applied for a school place for their children in the last five years, found parents are faking addresses in school catchment areas and even lying about their religion to secure placements for their children. Researchers say the trend is being driven by the new tax on fees, which has intensified competition for state school places. An accompanying map displays constituencies where independent school leavers exceed unfilled state secondary places. By Maya Wilson-Autzen, The Telegraph.

In a written question for the Department for Education, Conservative MP Simon Hoare asked what assessment the education secretary has made of the potential impact of VAT changes on (a) independent schools and (b) demand on the state sector in his North Dorset constituency. Responding, Parliamentary Under-Secretary for the Department for Education Stephen Morgan said: "The department has made no separate estimate of the number of pupils in North Dorset specifically who will leave the independent school system as a result of VAT impact on school fees." Mr Morgan added that local authorities, including Dorset Council, are receiving funding to support the increased demand for school places, with Dorset allocated nearly £1.5 million for new mainstream school places over the next two academic years.

In a separate question, Conservative MP Damian Hinds asked the education secretary whether any schools have (a) left the Teachers’ Pension Scheme and (b) entered phased withdrawal since 14 October 2024. Education minister Catherine McKinnell responded, saying: "Between 14 October 2024 and 15 January 2025, nine schools left the Teachers’ Pension Scheme outright and eighteen have entered a phased withdrawal."

In a written question for the Treasury, Shadow Minister for Levelling Up, Housing and Communities David Simmonds asked what estimate the chancellor has made of (a) how many independent schools will lose their 80 per cent charitable rates relief and (b) the average annual business rates bill for independent schools in 2025-26. Responding, Exchequer Secretary to the Treasury James Murray said that of the 2,444 independent schools in England (of which 1,139 are charities), 1,040 are expected to lose business rates relief, with an exception for those wholly or mainly concerned with providing education for pupils with an education, health and care plan (EHCP). He concluded: "Government analysis also shows the average increase in business rates per pupil to be £308 in the financial year 2025-26. This note can be found here."

Conservative peer Lord Kempsell submitted a written question in the House of Lords, which asked what steps ministers are taking to mitigate any impact of placing VAT on independent schools on swimming lessons run by swim schools using independent schools’ premises; and what plans they have to exempt swimming lessons from VAT. Lord Livermore, the Treasury minister, said: "The government has conducted careful and thorough analysis of the impacts of placing VAT on private schools, and the government's costings have been scrutinised by the independent Office for Budget Responsibility. The government published a detailed costing note and Tax Impact and Information Note (TIIN) on 30 October 2024. To support access to swimming lessons, the government already exempts them from VAT when they are supplied by an eligible non-profit-making body. This includes lessons provided by eligible bodies using premises owned by private schools." Hansard.

The government is to amend its flagship schools bill after a backlash from school leaders, The Telegraph reports. Sir Keir Starmer has confirmed that an amendment has been tabled to the Children’s Wellbeing and Schools Bill, following criticism that it could lead to curbs on academy freedoms. By Poppy Wood.

Speaking at Prime Minister's Questions yesterday, Kemi Badenoch said deprived children in England will "pay the price" of Labour's changes to schools, calling the Children's Wellbeing and Schools Bill "an act of vandalism". The leader of the Conservative Party argued that the bill would cut pay for teachers in academies, close down routes into teaching and block failing schools from automatically becoming academies. In response, Sir Keir said academies had been introduced by the previous Labour government and were "here to stay". By Kate Whannel, Henry Zeffman and Vanessa Clarke, BBC News. 

Writing in Tes, Catherine McKinnell says the Children’s Wellbeing and Schools Bill will ensure no child is left behind. Ms McKinnell, minister for school standards, writes: "This government is focused on delivering for children and we will do whatever is necessary to achieve that with a bill that delivers for schools, parents and children."