VAT on fees: 'Difficult decisions have had to be made', warns ISC spokesman

Posted on: 11 Jan 2025

Speaking to The Telegraph, an ISC spokesman discusses the financial challenges independent schools are facing following the imposition of VAT on fees, amid reports of teacher pay freezes and pension cuts.

The spokesman said: “Schools have been dealing with a range of financial challenges in recent years, including increases to teacher pension contributions and energy bills. Now they face a triple tax whammy of VAT on fees, the loss of business rates relief, and national insurance rises.

“In such circumstances, difficult decisions have had to be made – and school leaders will continue to face unpalatable choices over the coming months and years.

“When the employer contributions to the Teachers’ Pension Scheme were increased, unions – including the NEU – warned that the unfunded rise for independent schools would force more dropouts from the TPS.

“When the current government announced a rushed implementation of its tax on education, unions – including the NEU – warned that it risked teacher jobs and a narrowing of the curriculum in some schools.

“It is a real shame that these warnings were not heeded, and that schools, teachers and ultimately children are now paying the price for ministers playing politics with education.”