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Private School Fees Rise 22.6% Following VAT Policy Implementation

The UK Government's VAT on private school fees has driven costs above £22,000 annually on average, with closures and legal challenges escalating.

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Overview

  • The Independent Schools Council (ISC) confirms a 22.6% increase in private school fees, far exceeding the Government's 10% forecast.
  • Families now pay over £22,000 annually on average, with many top schools passing the full 20% VAT onto parents.
  • The policy, introduced in January 2025, is part of a broader Government effort to fund state education improvements, including recruiting 6,500 new teachers.
  • More than a dozen private schools have already closed, with Treasury documents warning up to 100 additional closures could follow in the next three years.
  • A High Court ruling is pending on a legal challenge asserting that the VAT policy is discriminatory and violates human rights laws.