UK Government Faces Backlash Over VAT on Private School Fees

Military families express concern as potential VAT exemption discussions emerge amid recruitment challenges.

• The UK government plans to impose a 20% VAT on private school fees starting January 2025, aiming to fund 6,500 new teachers in state schools.
• Military families are urging the government to exempt them from the VAT increase, warning it could exacerbate existing recruitment and retention issues in the Armed Forces.
• Polls indicate that a significant number of military families might consider leaving the Armed Forces if no concessions are made regarding the VAT policy.
• The Treasury is considering options to mitigate the impact on military families, potentially recalculating the Continuity of Education Allowance to absorb the VAT cost.
• While some private schools plan to absorb the VAT increase, others are capping fee hikes to keep education affordable for most parents.

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