Independent School Fees: VAT

Earl of Clancarty Excerpts

Thursday 13th March 2025 Lords Chamber

[Lord Livermore (Lab)]

As always, I agree with everything that my noble friend says. All the comments that we have heard to date about the Government’s assessments being incorrect have been proven to be wrong. On the number of pupils who would move from one sector to another, that is absolutely in line with what the Government’s assessment said. On the amount of VAT that would pass through to the fees that parents pay, that is absolutely in line with what the Government said. On the number of schools that would close, that is absolutely in line with what the Government said. As my noble friend said, many councils now say that there has been no obvious impact from the addition of VAT on private school fees, and more pupils are receiving their first choice of school than they did last year.

[The Earl of Clancarty (CB)]

My Lords—

[Lord Naseby (Con)]

My Lords—

[Captain of the Honourable Corps of Gentlemen-at-Arms and Chief Whip (Lord Kennedy of Southwark) (Lab Co-op)]

We have plenty of time. We will hear from the noble Earl, Lord Clancarty, and then we will go to the Conservatives.

[The Earl of Clancarty (CB)]

My Lords, while I welcome any relief for the music and dance schools, does the Minister accept that the £45,000 cut-off point for a whole family is too low? When will that be reviewed? Should not the Government do everything possible to encourage UK students into our creative schools, including the Yehudi Menuhin School, whose remarkable students we had the privilege of hearing in the Lords last week?

[Lord Livermore (Lab)]

I am grateful to the noble Earl for his question. I agree with the second part of it that we should encourage people into those schools. In terms of what the Government can do, the Department for Education has already acted and adjusted its scheme, and it will continue to maintain that for the rest of the academic year.