Private school fees have soared by 22.6 per cent in the past year, pushing the average annual cost to over £22,000, according to the Independent Schools Council (ISC).
This sharp increase follows the government's introduction of a 20 per cent VAT charge on private school fees, implemented on January 1st of this year.
Data from the ISC reveals that the average fee for a private day school reached £7,382 per term in January (inclusive of the 20 per cent VAT), a significant jump from £6,021 per term in January of the previous year.
This 22.6 per cent surge contrasts markedly with the more modest increases of 8.4 per cent in 2024 and 6.4 per cent in 2023.
The ISC's comprehensive census, encompassing data from approximately 1,400 UK independent schools surveyed in January, is slated for release next week. This data provides a stark illustration of the financial impact of the government's VAT policy on private education.
The rationale behind this policy was articulated by Chancellor Rachel Reeves in October, who stated that applying VAT to private school fees would contribute to "providing the highest quality of support and teaching" within the state sector.
At the time, Treasury minister James Murray suggested that most private schools would be able to keep fee increases “affordable” for parents by absorbing a “significant proportion” of new VAT charges.
A policy paper in November said the Government expected private school fees to increase by around 10 per cent on average as a result of the policy change.
But Julie Robinson, chief executive of the ISC, said: “Independent schools have been faced with a triple whammy of financial blows: the requirement to add VAT to their fees, the removal of charitable business rates relief and the rise in national insurance employer contribution rates.”
She added: “These statistics show that school leaders have done what they can to keep baseline fee rises to a minimum in the face of this unprecedented tax on education.”
Families with children at private schools are waiting to find out whether their High Court challenge against the Government over the imposition of VAT on fees has been successful.
Several private schools, children who attend them and their parents brought legal action against the Treasury, as they claimed the policy of applying VAT to fees was discriminatory and incompatible with human rights law.
This includes children and families at faith schools, and families who have sent their children with special educational needs (Sen) to private school.
UK to begin talks on return hubs for failed asylum seekers
Scotland’s largest NHS union accepts 8% pay increase
Criminals sent directly to jail hits six-year high amid summer disorder
Starmer pays tribute after death of journalist who exposed grooming gang scandal
The rise in remote working could have a negative impact on UK growth. Here’s how
Trans people fearing arrest after Supreme Court ruling, say campaigners
