Britain has a new socialist government, and surprise surprise, they’re taxing people. And as you can imagine, those taxes are already having major implications for British taxpayers and parents – and it’s only been a few months since the new prime minister was sworn in.
A recent survey has revealed that over 140,000 children could be pulled out of private schools by the end of this academic year as a result of Labour’s planned VAT increase on private school fees. The survey, conducted as part of the prestigious Saltus Wealth Index Report, found that nearly a quarter of parents (23%) might remove their children from private education before the new 20% tax on fees is implemented in January or by the summer.
The survey, which included 993 parents of private school students, revealed that rising fees are already a significant financial burden for many families. Nearly all the parents (96%) admitted that they were tightening their belts due to increasing costs, and 15% said they could no longer afford to enroll their children in private schools. Some parents (18%) have already turned to family and friends for financial help, while others (13%) may be forced to take their children out of school mid-year.
The potential exodus from private schools could add significant pressure to the UK’s state education system, as the survey suggests up to 140,000 children may need state school places. Currently, around 620,000 children, or just under 7% of the UK’s student population, are educated in private schools. If these projections hold, the number could fall below half a million, disrupting both private and state education sectors.
A number of parents indicated they would try to find alternative solutions, such as moving their children to less expensive private schools (21%) or switching from boarding to day school (11%). A smaller portion (10%) mentioned considering moving abroad to escape the additional costs.
The imposition of VAT on private school fees is part of Labour’s plan to raise an estimated £1.5 billion annually for state education. However, the government’s estimates claim that only between 18,000 and 40,000 students will leave private schools as a result of the tax. Critics argue that a higher number of students moving to the state sector could negate or even reverse the intended financial benefits.
The broader Saltus Wealth Index Report, which surveys 2,000 individuals with assets of £250,000 or more, reflects growing concerns among high-net-worth individuals about the state of the economy and their personal finances. Rising private school fees have now become a major source of anxiety for many, with 87% of respondents relying on the so-called “Bank of Mum and Dad” to cover educational and other family-related expenses.
This controversial VAT on private school fees is expected to impact families significantly, leading to a potential reshaping of both the private and public education sectors in the UK.
