Two Months On: Navigating the Fallout from Labour’s VAT Proposal for Private Schools
23rd October, 2024
It has been just over two months since Labour first announced its plans to impose VAT on private school fees and remove business rates exemptions. Since then, the proposal has sparked significant debate, with families, schools, and educational consultants all considering the potential ripple effects. As the initial reactions subside and the policy plays out, we examine the key developments and their implications for families navigating this complex educational landscape.

What’s happened so far:
A Noticeable Shift in Enrolment Patterns
The VAT proposal has undoubtedly influenced family decision-making when it comes to private education. Independent schools across the UK are reporting changes in enrolment patterns, with some parents reconsidering their financial commitments in anticipation of potential fee increases. Notably, there has been a rise in last-minute withdrawals or delayed enrolments as families weigh the cost implications. Catherine Stoker, founder of The Independent Education Consultants, remarked that “many families have already begun to adjust their plans for the coming academic year,” indicating a growing sense of uncertainty and caution around private school investments.
Moreover, a survey by Saltus found that approximately 26% of high-net-worth families would consider withdrawing their children from private schools if the VAT changes are implemented. This percentage represents thousands of students, and the implications for the educational landscape are significant, particularly in high-demand areas such as London, where state schools already face capacity constraints .
The potential migration from private to state education also raises questions about the quality of the educational experience. With more students seeking places at popular grammar schools and other high-performing state-funded institutions, competition for these spots may become even fiercer. Additionally, some private schools may respond to the VAT by offering increased bursary opportunities or restructuring fees to retain students, leading to a varied response across the independent sector.
State Schools Under Pressure: Planning for a Possible Influx
If private school attendance declines by even 3-7%, as estimated by the Institute for Fiscal Studies (IFS), this could mean thousands of students entering the state sector. Such a shift might strain resources and impact student-teacher ratios, extracurricular offerings, and overall academic support in state schools. The Independent Schools Council (ISC) has voiced concerns about how this transition could disrupt both sectors, especially if more students seek places at sought-after grammar and state-funded schools.
The National Association of Head Teachers (NAHT) has expressed concerns that state schools may not have the infrastructure or staffing levels needed to accommodate a sudden increase in enrolments. A surge in student numbers could strain teacher-student ratios, reduce the availability of extracurricular activities, and limit access to specialised support for students who may require additional help
As local authorities begin preparing for this possibility, parents should keep in mind that sudden changes could disrupt a child’s learning experience. Moving schools mid-way through crucial academic stages, like GCSEs or A-Levels, may create challenges in adjusting to different curricula, teaching styles, or exam boards.
Impact on SEND Students: Finding the Right Support
Families with children who have special educational needs and disabilities (SEND) face unique challenges under the proposed VAT changes. While councils can still reclaim VAT for children placed in private schools through an Education, Health, and Care Plan (EHCP), those paying privately may find the increased costs unsustainable. This could limit access to the specialised support that some private institutions offer, leading to difficult choices about where to seek appropriate care and educational support.
While councils will still be able to reclaim VAT for students with SEND placed in private schools through an Education, Health, and Care Plan (EHCP), privately funded placements will be subject to the new charges. This could reduce access to the tailored support some private institutions provide, potentially leading to longer waiting lists for places in state-funded SEND programmes.
Dr. Gavin Morgan, of the British Psychological Society, warns of the risks associated with abrupt school changes for SEND students. “Transitioning to a new environment can be particularly distressing for students with SEND, especially if the change is not planned carefully,” he noted, highlighting the need for thoughtful transitions and continuity of support
The Rise of Private Tuition: A Growing Trend
With VAT on the horizon, more parents are turning to private tuition as a way to bridge potential educational gaps. Recent data from the Sutton Trust shows that one-to-one tutoring had already been on the rise before the announcement, with nearly a third of primary school students and over a quarter of secondary students receiving private tuition in 2019. Since then, the demand has only increased, as parents seek additional support to maintain high academic standards amid uncertainty.
Private tuition offers flexibility, making it an appealing option for families considering a shift from private to state education. It provides a way to continue personalised learning without the full cost of private schooling. If you’re weighing your options, consider whether a hybrid model, combining state education with targeted private tuition, might meet your child’s needs.
Protecting Your Child Amidst VAT Changes: Putting Their Needs First
At the heart of any educational decision should be what’s best for your child’s development and well-being. As you navigate these changes, keep your child’s academic, social, and emotional needs in mind. Here are some key steps to consider:

Plan Transitions Carefully
If you’re thinking about switching schools, try to avoid mid-term changes, especially during important exam years. Moving between Year 10 and Year 11, or during A-Levels, could disrupt your child’s preparation. Plan for transitions at the start of an academic year and seek tutoring support to ease the adjustment. To minimise academic disruption, we work with specialist Academic Coaches who can plug learning gaps as well as work on essential long-term skills like executive functioning and self-esteem.
Evaluate Alternative Educational Paths
Consider whether private tuition, hybrid schooling, or international education might better suit your child’s needs. With increased demand for private tutoring, more families are finding flexible ways to supplement traditional schooling and maintain academic standards.
Consult with Educational Experts
Get professional advice tailored to your situation. At Enjoy Education, we offer bespoke school advisory services to help families find the right path, whether that means staying in the independent sector, exploring state school options, or planning a smooth transition between the two.
To get in touch with our educational consultants, please feel free to call or drop us an email:
+44(0)207 352 8800
enquiries@enjoyeducation.co.uk