Subsequently, the Labour government instituted a punitive level of VAT, at 20%, on private school fees. This decision has caused major upheaval across the education landscape. Lincolnshire County Council has reported receiving 36 applications for state school places from students who were previously enrolled in private institutions. The change, which implements the government’s own manifesto pledge, is expected to bring in £1.8 billion per year by 2029/30. This policy change has not only devastated the private education sector, but families and local councils fiscally.
While there are no documented reasons for these refusals on record by Lincolnshire County Council, the impact on specific cases sheds more light on the issue. Ava, a bright 14-year-old girl, fell out of her private school after rising costs pushed her parents to take her out. Now, she travels an hour by taxi to a state school in Rutland, the nearest available option to her home. The council previously spent £42 a day on her transport. From April, they managed to bring the price down to £23 per day. Even after making this adjustment, there remains an annual transportation outlay of more than £8,000 per council.
Ava’s mom, Sarah, called out the slap in the face of putting the financial burden on taxpayers.
"Six months ago we paid for Ava's schooling and travel and now the taxpayer pays for both," Sarah stated.
She expressed sadness about the loss of freedom that she and her husband had worked so hard to give their daughter.
"My husband and I have normal jobs but we worked and saved hard and made a choice which has now been taken away from us," she said.
The Department for Education remains hopeful that the state sector can stretch itself further to house more students. They think that this is a reasonable policy change not to flood the system.
"The vast majority of pupils do not need home to school transport and we are confident that the state sector will be able to accommodate any additional pupils," a spokesperson from the Department for Education commented.
Education Not Taxation, a business-friendly pressure group, pointed to the huge economic value created by the education sector as a whole.
"It's not really a tax sector because the entire sector contributes billions to the economy," remarked Loveena Tandon.
Statistics from the Independent Schools Council reveal the highest number of private school leavers in recorded history. 8,500 students left from September 2023-2024 and an additional 2,500 students left in January. However, experts are expecting a very small change. Only 0.1% of pupils will move to state schools as a result of the new tax policy.
