VAT on fees policy: 'We are very concerned for pupils on bursaries and those with SEND', warns ISC CEO

Posted on: 18 Jul 2024

ISC chief executive Julie Robinson has warned of the "huge concern" over the threat posed by VAT on fees to the education of children at state and independent schools.

In an interview with Ben Fryer on BBC Radio Essex, Ms Robinson was asked about the potential effects of the government's plans to tax independent school fees.

Making specific reference to the county, Ms Robinson explained: "There are 53 independent schools in Essex, educating about 12,500 pupils. For their parents, the government adding 20 per cent VAT on top of their fees is going to make it unaffordable in many cases. We don’t know exactly how many will seek state school places, but we know from surveys that around 20 per cent of parents say they will have to think again and re-plan.

"We're particularly concerned about the effect this will have for children on bursaries and especially [children with] special needs. If we think about children who have additional needs provision at the moment, there are nearly 2,000 of those in Essex and 1,500 of them don't have an Education, Health, and Care Plan (EHCP) so they're not supported by the local authority. If VAT forces those children to change school, there is no real guarantee that those children are going to be able to find the right kind of education that they need locally. [It] takes a lot of time to make the right school choice for your child, you get established in a school, so for those children to face the disruption of having to move schools – and we still don’t know when this tax is going to come in – it’s really disruptive for the families.

"The children displaced from independent schools into state schools are going to add pressure on those state school places. We don't know exactly how many, we don't know exactly where and into which year groups, but all the estimates suggest tens of thousands of children across the country are going to be seeking places in state schools - and there's no guarantee it's going to be easy. 

"What we really need is a full consultation and impact assessment from the government to make sure that we are not subject to unintended consequences of this policy, which could potentially damage the state system. We are still hopeful and we are expecting engagement with the Labour Party on this. There's lots that independent schools can do for the wider education system, and that’s where we'd like to focus our efforts.

"Small schools work on really tight finances, they don't have a lot of economies that can easily be made. Schools have suffered increased costs recently, in particular wage costs, which [account for] over 70 per cent of the outgoings of a school. It’s difficult for them to cut costs, especially smaller schools, and we know that those smaller schools are typical for the sector.

"Schools and families are going to work together to try and ensure these children can carry on with their education, but it is a worrying time for everyone."

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