Parents who send their children to private schools could face higher fees from today as the government’s flagship VAT policy comes into force.
Labour on Wednesday scrapped the VAT exemption and business rates relief for private schools, forcing some academic institutions to offset the hike with raised fees for parents.
Others have entirely restructured, with thousands of children also estimated to have been displaced by the policy.
Keir Starmer during a visit to Perry Hall Primary School in Orpington. Pic: PA
The government says the change will raise around £1.5bn in 2025 alone – rising to £1.8bn by 2029 – and fund the recruitment of 6,500 new teachers.
But the policy has faced heavy criticism on Opposition benches, with shadow education secretary Laura Trott claiming the policy will “do nothing to help state schools”.
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She accused Labour of “disrupting thousands of children’s education vindictively in the middle of the school year”.
“All it will do will add pressure to the education system,” the Tory frontbencher added.
“It will be pupils, parents and teachers from the state sector that will end up paying the price.”
Education Secretary Bridget Phillipson also faced criticism last week after suggesting that middle class families are in support of the tax raid.
She insisted they have “largely been priced out” of sending their children to private schools already, and claimed to be the “voice of pushy middle-class parents”.
She told The Sunday Times that this was “why there is such support for our policy of ending the tax breaks that private schools enjoy to invest in state education”.
Ms Phillipson said that the average cost of private school fees has risen to £18,000 annually.
“Middle class parents in good professional jobs with housing costs just can’t afford that level of fee and they want brilliant state schools,” she added.
But Priti Patel, the shadow foreign secretary, said the remarks amounted to “more gaslighting from this socialist government that has broken its general election promises”.
Sir Keir Starmer’s spokesperson said the VAT policy will allow Labour to raise standards in the state sector.
The spokesperson stressed that 94% of pupils attend state schools, rather than those in the private sector.