VAT on fees: Schools and parents 'cannot easily weather the storm of this increased cost', says ISC CEO

Posted on: 29 Dec 2024

Speaking to Paul Brand on LBC, ISC chief executive Julie Robinson explains some of the key concerns surrounding Labour's tax policy for independent schools.

Ms Robinson said: "ISC survey data shows over 8,500 children have already left or didn't start at independent schools this September, and another 3,000 are expected to leave this January. That's nearly four times the government estimate for this year alone, and the real test is going to be in September 2025."

When asked about the notion that independent education is a "luxury", Ms Robinson said: "All children should have great school options and parents should be able to very easily find what suits their family, but it's not really a luxury for parents who have children with special educational needs, or particular faith needs - for them, it's part of their culture. Children have been directed towards independent schools because they can't find what they need in the state system. This is not a luxury for these parents, that's why they've tried really hard to afford independent schools up to this point - and they shouldn't have extra VAT whacked onto those fees now, because of course this is a tax on parents."

"What the government is choosing to do with this policy is add VAT to education, something which is not normal across the world. Independent schools already pay over £5 billion in tax every year. What the schools have not done before is charge parents VAT on the services schools provide, and for those parents who are just about able to afford independent education for their children, this is going to price them out.

"[The policy] doesn't take into account the reality that many parents in schools can't afford this tax and that's going to displace children into the state system, where we know state schools - through no fault of their own - are already strapped because of financial pressures. And are there going to be spaces in the right places with the right provision for those children who then move into the state sector? It's a real worry.

"We want great education for all, but there's no one-size-fits-all for independent schools; yes, there will be some parents who can afford this, but typical schools and their parents are not going to be able to easily weather the storm of this increased cost."

On the subject of special educational needs and disabilities (SEND) provision, Ms Robinson said: "There is a lot of strain on special needs [education] and Bridget Phillipson herself has said that the SEND system is broken. By driving children out of independent schools and into the state system, you're going to make the queue for EHCPs [education, health and care plans] and additional needs provision even longer. That's going to disadvantage those children who are already struggling to get what they need, and it's going to increase competition for the very best state school places."

"I don't think this policy is going to achieve what it says it is; the evidence is definitely thin over what the long-term impact is going to be. We are really worried, in fact, that this is going to cause damage not only to independent school pupils but children in the state sector who will have less breadth of choice for the kind of education that suits them best."