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Private Schools See Enrollment Drop Due to Planned VAT on Fees

The impending VAT on private school fees is prompting parents to reconsider enrollment, with significant implications for both private and state education sectors.

  • Private schools in the UK report a 1.7% decrease in pupil numbers, attributed largely to the planned introduction of VAT on school fees.
  • The Independent Schools Council (ISC) warns that the VAT policy could lead to more students transitioning to state schools, potentially overwhelming the system.
  • Some private schools are already experiencing significant enrollment declines, particularly in Year 7, where a 4.6% drop has been noted.
  • The government plans to use the £1.5 billion raised from the VAT to fund additional teachers and educational resources in state schools.
  • Critics argue that the policy could have unintended financial consequences, with estimates suggesting it could cost the UK Treasury between £360 million and £1.8 billion.
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