The UK government is unambiguously defending its new plan, announced last month, to levy a value-added tax (VAT) on private school fees. This new policy went into effect on January 1. Labour’s last general election manifesto pledged to make a radical step towards increasing fairness in the tax system. It asks the parents of private school students to fund “their fair share” of education through an upfront $1 billion investment.
About 94% of children in the UK attend state schools. The administration continues to claim that this policy is necessary to raise quality standards in these facilities. They emphasize the need for equitable allocation of educational opportunities. This effort is part of a long-term vision that they believe will serve all students best in the end.
Critics—including many stakeholders who voiced concerns—say the policy was rolled out without due consideration. Bruno Quintavalle, who testified fervently on the behalf of many small Christian schools, characterized the method as “unfair” to those most affected by the proposed changes. The policy only waives fees for children with local authority education health and care plan (EHCP). This plan should at the very least publicly identify their school by name.
Three distinct coalitions of plaintiffs have sued over this hot-button rule. Among those are parents of children with special educational needs and disabilities (SEND) and representatives from low-paying faith schools. The High Court’s hearing is due to finish on Thursday. It has received wide acclaim for its emphasis on the effects of the proposed VAT changes.
Jeremy Hyam KC, acting for two SEND children in maintained/private placements. With an average of 6,500 children with special educational needs and disabilities (SEND) missing out on receiving Education, Health and Care Plans (EHCPs), Mr. Given these VAT changes, many of them are set to leave the private sector. The looming exodus is cause for alarm. We particularly fret that the state system has the capacity to deliver sufficient educational services and nurture to these children.
The government’s position remains clear. Chancellor Rachel Reeves, whose barristers have produced a witheringly fierce prediction. They flanked politicians at HMRC and DfE to underline their determination to make sure private school parents pay “their fair share”. This announcement reinforces the Department’s commitment to advance equity through action and create a more equitable and inclusive educational environment nationwide.
As this important hearing comes to a close, stakeholders still wait with bated breath as we await the court’s ruling on this central issue. As such, the outcome could have profound consequences for the UK’s private and state education systems.
