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Our children are at private school

— here’s how we’ll keep paying the
fees
Labour’s promise to put VAT on private education is driving some
families to take drastic measures, reports Ali Hussain

Andrew Smith pays £54,000 a year for his three children; Loveena Tandon pays £21,000 a year for her son but is considering sending him to school in India

Ali Hussain Sunday July 07 2024, 12.00am, The Sunday Times

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an Cook took his 10-year-old son Gabriel out of their local state primary

I school a year ago because he felt that he would benefit from smaller class
sizes.

Cook, a chartered financial planner who lives near Farnham in Surrey, said it
was the right decision and that Gabriel is a lot happier. But he is now worried
about how he will aJord next year’s fees so has decided to cut back his pension
contributions — a move that could add years to his retirement age.

Thousands of other parents are taking similar measures so that they can cope
with the prospect of higher school fees under a Labour government that has
pledged to make private schools pay VAT. Some are diverting money from their
businesses, finding lump sums to pay fees in advance and even considering
sending their children abroad.

For some of the 6.5 per cent of children who go to private school, it may no
longer be an option. We speak to four families about what they are doing to
prepare for higher costs.

Ian Cook says VAT could add about £4,000 a year to

his son’s fees

‘I’m pushing back my retirement’

Ian Cook, 50, has one child at private school

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Cook said that it was now “very unlikely” that he will be able to retire in his
early sixties, as he had planned. Gabriel is about to move up to the secondary
level of his private school in Hindhead, Surrey, which will cost about £22,000 a
year.

Cook, a former army sergeant, said that if the school passed on the full extra
VAT cost to parents “it could add more than £4,000 a year, which is something
I’ve already started planning for. Many of my clients are having to do the same
thing.

• The grandparents guide to giving: propert y, trusts and Isas

“I haven’t been able to save into my pension as much as I would like, which will
probably mean I have to push back my retirement.”

Cook said that his son’s move from the state primary near their home had,
however, been a big success: “The impact of the move has been huge. My son has
changed dramatically. He seems a lot happier and he’s exposed to more sports
and other activities which he may not have had access to otherwise. I will do
whatever I can to keep him in private school.”

Andrew Smith with his children, William 14, Emilia,

11, and Isabella, 6

‘I have already paid in advance’

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Andrew Smith, 45, has three children at private school

Andrew Smith pays about £54,000 a year in private school fees for his children,
William 14, Emilia, 11, and Isabella, 6.

Smith who owns and runs a dental practice in Bromley, south London, has paid a
year in advance for Isabella and William in the hope that this would save him
from any VAT change. Emilia is about to move to secondary school and her dad
hasn’t yet decided how many years in advance to pay for her, because he isn’t
sure when her fees will go up, or by how much.

He said: “In principle I have no problem with paying VAT on school fees. We
have to find the money to pay for better state education and this sounds like a
perfectly reasonable way of doing it.

“What is not helpful is the lack of clarity about when and how the new charges
will apply. This is not great for families trying to plan their finances. It is
especially complicated for parents like me, who have a child who is in the
process of moving schools. Labour should spell these details out now so that
parents can plan ahead.”

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Smith, a former banker, says he will be using money that he would have invested
in his pension or his business to cover the additional costs.

Loveena Tandon thinks moving her 16-year-old

daughter to a different school could be too
disruptive

‘I could send my son to school in India’

Loveena Tandon, 44, has two children at private school

Loveena Tandon’s has been paying for private education since her children left
primary school. It costs her £21,000 a year for her son, 14, and £24,000 for her
daughter, 16.

Tandon, who lives near Heathrow in west London, does not want her daughter
to have to move schools. She said: “The school has been a huge support for my
daughter so I am focusing my eJort to keep her there for the rest of her A-levels.
It would be too disruptive to move her now.”

A freelance filmmaker, Tandon, 44, may seek a full-time role to ensure that she
has a more stable income and is also considering diJerent options for her son. “I
would like to keep him in the private school, but it may not be aJordable.”

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She has applied to the local grammar school which has an entrance exam and
has even thought about sending him to a private school in Mumbai, where her
sister and mother live. “The education there is great, but this is an extreme
option as I would have to be apart from my son for two years.”

• How to aJord private school fees

‘We’re pulling our son out of school’

Charlotte*, 44, has one child at private school

Charlotte has a 10-year-old son who was diagnosed with attention deficit
hyperactivity disorder and autism spectrum disorder last year. His parents
moved him to a private school with smaller classes where he is much happier.
The fees are about £7,000 a year.

She said: “My son gets overwhelmed by sensory stimuli. Now that he is in a class
of ten instead of 30 and in a smaller, greener environment, he is much happier
and relaxed.”

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However, Charlotte, who is self-employed, does not know how she will be able to
aJord the fees if VAT is added. She had already reduced the money she is
putting into her pension and other savings.

Labour has said that children with special needs will be exempt from fee
increases if they have an education, health and care plan (EHCP), which gives
the school additional funding to help the child and could go towards fees.
However, last year there were about 1.2 million children with special educational
needs without an EHCP, according to the Department for Education. Some
children have had to wait up to two years to get one.

“This is too long for us to wait for financial support,” Charlotte said. She and her
husband, who works in IT, have decided to take their son back to the state sector.
“This is not what we would have wanted, but we have been pushed into making
these decisions.”

*Her name has been changed

How to get support

Most independent schools oJer bursaries, which can cover up to 100 per cent of
the fees as well as uniform and extra-curricular activities. Keir Starmer’s old
school, Reigate Grammar in Surrey, which was not a private school when he
started there, says it can cover all fees as well as assistance towards the cost of
uniform, meals and travel.

Eligibility will be based on entrance exams and parent’s income. Families with a
total gross annual income over £100,000 are unlikely to qualify for a bursary,
according to the school’s website.

The Independent Schools Council, a lobby group, said that more than £1.4 billion
of “fee assistance” was provided by schools this year, up 10.2 per cent from the
year before. About £500 million of this was means-tested, rather than based on
ability. The average means-tested bursary was worth £12,900 a year. About 9,330
pupils paid no fees at all, either via a full bursary or a combination of a bursary
and a scholarship, the council said.

A scholarship is usually focused on academic, creative or sporting merit and

does not tend to be means-tested. Some schools may also oJer discounts for
siblings and for parents who work in specific professions. Many schools oJer
discounted fees for children of those serving in the armed forces or children who
live very close to the school.

Falling proportion of private pupils

Pupils in private Proportion in private

Year Total pupils schools schools

2015-16 '.5)m 5'3,029 6.8%

2016-17 '.)7m 5'3,2)' 6.7%

2017-18 '.74m 5'1,'73 6.7%

2018-19 '.'2m 5'0,4'0 6.6%

2019-20 '.'9m 57),'57 6.5%

2020-21 '.91m 5)9,3)) 6.4%

2021-22 9m 5'1,427 6.5%

2022-23 9.07m 591,954 6.5%

2023-24 9.09m 593,4') 6.5%

Table: The Times and The Sunday Times • Source: gov.uk

Don’t rely on paying in advance

VAT may still apply, even if you have paid your child’s school fees upfront,
according to Jas Dhillon from the accountancy firm Lubbock Fine.

He said: “A Labour government will probably try to charge VAT retroactively on

parents who have paid fees in advance. These parents should set money aside in
case this happens to avoid being caught out.”

Dhillon also warned that schools may have advertised “fees in advance”
schemes too hastily and should be careful with the contracts that they oJer
parents. “Many schools promised parents that they could pay upfront and avoid
VAT. They may have overpromised and opened themselves up to challenges
from parents. That may end with them being forced to cover the VAT costs
themselves to avoid confrontation.”

Labour’s VAT plans explained

Labour plans to apply 20 per cent VAT to private school fees. If schools pass on
these costs to parents, it could add thousands of pounds. Average fees are
£18,063 a year for day pupils and £42,459 for boarders, according to the
Independent Schools Council. With a full VAT increase, the fees would be £21,675
and £50,951.

About 594,000 children in the UK are educated in the private sector, some 6.5
per cent of all pupils. About 95 per cent of private schools plan to increase fees,
according to a poll of 350 in March by Censuswide (commissioned by the Daily
Telegraph).

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Labour’s plan to introduce VAT on school fees was announced in September,

with the party saying that the change would come “straight away”. However, last
month the new chancellor, Rachel Reeves, suggested that the policy would not
be enforced until 2025. “These changes would be in our first budget, but they
would come in after that, not retrospectively.”

The Labour Party believes it can raise some £1.6 billion a year by ending the 20
per cent VAT exemption on private school fees. It plans to use the money to
recruit about 6,500 specialist state school teachers in England.

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Comments (54)

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P patrick butler
3 HOU RS AG O

Private schools are part of the class system in the UK. The wealthy being wealthy is not
enough for them. They want a system where their children not only inherit their
wealth but have an unfair advantage over everybody else with privileged schooling
marking them out.

Reply · Recommend (22) · Share

A A Irvin
2 HOU RS AG O

I believe that every child should have the chance to reach their potential. In our
local state school we felt and observed that this outcome was unlikely so we
moved our children to independent schools. Small class size was the main reason.
Every school should oEer this. I would have home educate...
See more

Reply · Recommend (8) · Share

K Kevin Warde
1 HOU R AG O

My problem with private schools is the damage they do to the state schools. My
daughter’s outstanding state secondary school just lost an outstanding senior
music teacher to a nearby private school. Several years ago, I knew an outstanding
maths teacher who also left a state school for a private sc...
See more (Edited)

Reply · Recommend (7) · Share

2 replies

D D Morris
1 M I NU TE AG O

I guess that's what you choose to believe but many parents just don't want to
gamble with their child's life chances by putting them through a state system that
doesn't always make the educating children its top priority. A good education is
the best thing a parent can give their child. Sadly, many...
See more

Reply · Recommended (0) · Share

Show 4 more replies

M Michael Turner
3 HOU RS AG O

Phew. I was worried that we would never see another VAT on school fees article.
Thanks.
PS fair play Andrew Smith.

Reply · Recommend (14) · Share

J JB Pedley
2 HOU RS AG O

Interesting to see the sheer ordinariness of many of the families paying for private
education. And by so doing removing the need for the taxpayer to fund education for
6.5% of Britain's children.

Reply · Recommend (10) · Share

A Ant Woolley
2 HOU RS AG O

They are hardly ordinary if they can aEord the fees they quote in the article.
(Edited)
Reply · Recommend (17) · Share

1 reply

L Leanne Will
1 HOU R AG O

From first hand experience I can confirm most sending their children to private
schools are ordinary, two full time working parent families.
All shall have very personal reasons but in the main it is the very broken
education system.In our case the local primary school educational and sport
resource...
See more

Reply · Recommend (4) · Share

1 reply

Show 1 more reply

J j snooks
2 HOU RS AG O

So the parents who will pull their children out of private schools will be those at the
margin - mainly British parents who had to cut spending in other areas to aEord it .
Those left will be the richer children ( and probably more overseas). Thus widening the
divide.

It's such a dog whistle poli...

See more

Reply · Recommend (10) · Share

J Jonas cox
2 HOU RS AG O

It’s class war, labour wanted to ban the schools but were advised that they would
lose that battle

Reply · Recommend (4) · Share

1 reply

E El Hill
1 HOU R AG O

“I might have to send my child abroad” Give me strength…

Reply · Recommend (7) · Share

N N Kociuba
1 HOU R AG O

Exactly

Reply · Recommended (0) · Share

S S Pal
12 M I NU TE S AG O

The kid should insist on it.

Reply · Recommended (0) · Share

Show 1 more reply

 J J Hughes
3 HOU RS AG O

There are plenty of good state schools around .

Reply · Recommend (5) · Share

F Francesca Sexton-Wainwright
1 HOU R AG O

Not where I live, but I can’t aEord private.

Reply · Recommend (2) · Share

J Jonas cox
2 HOU RS AG O

I can feel an adhd/autistic tidal wave coming

Reply · Recommend (4) · Share

R Rachel Leonard-Milan
1 HOU R AG O

Too late, it's already here!

Reply · Recommend (4) · Share

A A Lockwood
32 M I NU TE S AG O

My children both went to a comprehensive school and rubbed shoulders with children
from all walks of life, both the rough and the smooth. That gave them an excellent
preparation for the reality of living in a mixed society. They seem very good at judging
people for who they are and are not interest...
See more

Reply · Recommend (4) · Share

E E Darroch
7 HOU RS AG O

Let’s ask Blair and Harman.

Then we can ask Lammy about boarding school.

Reply · Recommend (3) · Share

A A Atkinson
4 HOU RS AG O

The first two are no longer in parliament. The second attended a state
comprehensive school that had provision for cathedral choristers to board until
1997.

Reply · Recommend (12) · Share

K K Griffiths
1 HOU R AG O

Lammy was at Kings in Peterborough which is a state boarding school isn’t it? I
assume he was there on a music scholarship, definitely not the same as being at a
big standard state, but a long way from Eton!

Reply · Recommend (2) · Share

M Martyn Bowler
2 HOU RS AG O

The dentist paying over £50k in advance. No doubt from his private patients. Bet he
doesn’t do NHS work.

Reply · Recommend (3) · Share

R Ruth Stewart
2 HOU RS AG O

Why shouldn’t he just do private work? That’s his choice. Dentistry is a business
like any other and the NHS fees simply aren’t viable.

Reply · Recommend (2) · Share

1 reply

R Rachel Leonard-Milan
1 HOU R AG O

School fees will just be passed down the line to the paying patients...

Reply · Recommend (2) · Share

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