Removal of independent schools’ charitable status will require them to pay an additional 20 per cent VAT charge by January 1, 2025.
Mimms Davies, Conservative MP for East Grinstead and Uckfield, has written to Keir Starmer expressing her fears about the impact on state schools, military families, music schools and faith schools.
Some schools are yet to confirm an official position but have indicated that fees are likely to rise.
Brighton College said that “in the event of a change in legislation, then VAT may become payable at the prevailing rate”.
Roedean school in nBrighton has informed parents that “VAT will become payable” should the legislation change.
Brighton Girls School currently sets its fees for Year 11 pupils at £6,060 per term. The school said this will rise to £6,787 per term after VAT is added.
Burgess Hill Girls has said it is disappointed by the government’s decision (Image: Burgess Hill Girls) But Ardingly College will absorb half of the cost and pass on the remaining half to parents.
Headmaster Ben Figgis said: “At Ardingly, we have managed to grow our non-fee income from international schools and commercial holiday lettings in recent years, so we’ve been able to give our parents peace of mind, back in March this year, that we will absorb half the VAT and only pass on the remaining half to parents, spread out over two academic years. This means we will have a five per cent fee increase this January, followed by a further five per cent rise, plus inflation, in September 2025.
“We are fortunate to be able to achieve this without in any way compromising the breadth and excellence of our educational provision for pupils.
“Unfortunately, many other independent schools are planning to pass on a greater share of VAT directly to parents as they are not in such a strong financial position and unable to absorb much, if any, of the extra 20 per cent. We will not be squeezing bursaries or scholarships at Ardingly, but I am concerned that many other schools will unfortunately need to do this.”
A spokeswoman for Burgess Hill Girls said: “The largest proportion of our outgoings is investment in our staff, which we will not compromise on and we plan to pass on any benefits we may receive should we be able to reclaim VAT from other aspects of our running costs.
“The board of Burgess Hill Girls shares the general disappointment that the government has taken the decision to levy VAT on independent school fees and that introducing this mid-academic year has the potential to disrupt students’ education as we appreciate the financial pressures that will be felt by many of our families.”
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