Overview

• The 20% VAT on private school fees, set to begin in January 2025, is expected to raise £460 million next year and up to £1.7 billion by 2029.
• The Independent Schools Council (ISC) argues the policy undermines the right to education and disproportionately impacts small, faith-based, and special needs schools.
• The government predicts that around 37,000 students will leave private schools, with many moving to state schools, potentially costing the Treasury £300 million.
• Military families will receive an increased Continuity of Education Allowance, but concerns remain about the financial burden due to rising fees.
• Critics argue that the policy could exacerbate inequalities by forcing more students into the already strained state school system.