Lord Lexden

The department does hold some information on the type of school attended by students prior to entering higher education in the UK. However, this is only mandatory for UK domiciled students and is optional for providers to complete for international students. Therefore, the information held by the department is of unreliable quality and Higher Education Statistics Agency publish this information for UK domiciled students only.

HM Treasury will publish a Tax Information and Impact Note that considers the impact of these tax changes at Budget on 30 October.

The Higher Education Statistics Agency is responsible for collecting and publishing data about UK higher education (HE), including on international student numbers and tuition fee income.

In the 2022/23 academic year there were 630,005 international students studying at English universities and other HE providers, generating a total tuition fee income of £10.1 billion.

The Government is committed to expanding Fracture Liaison Services (FLS), supporting ending the postcode lottery. FLS are a globally recognised care model and can reduce the risk of refracture for people at risk of osteoporosis by up to 40%. Officials are working closely with NHS England to consider how best to support systems to ensure better quality and access to these important preventative services.

The Government is committed to expanding fracture liaison services (FLS), supporting ending the postcode lottery. FLS are a globally recognised care model and can reduce the risk of refracture for people at risk of osteoporosis by up to 40%. Officials are working closely with NHS England to consider how best to support systems to ensure better quality and access to these important preventative services.

Applying VAT to private school fees will raise £1.7 billion a year by 2029/30, rising from £1.5 billion in the first full year of the policy.

The Government published the policy costing for this change at the Budget, including setting out the assumptions and methodology.

The independent Office for Budget Responsibility (OBR) has certified the costing, including the assumptions and methodology.

From 1 January 2025, the 20% standard rate of VAT will apply to all education services, vocational training, and boarding services provided by private schools for a charge. This will apply to any fees charged after 29 July 2024 for terms starting after 1 January 2025.

The government has thoroughly assessed the impacts of the VAT policy on small faith schools, including considering all of the evidence submitted through the consultation process. Based on the evidence provided, it is not apparent that small faith schools will be affected more by this policy than other schools.

The government closely examined proposals put forward for how small faith schools could be carved out of the policy, concluded that any carve out would reduce the amount of revenue raised from this policy, be unfair to those schools with fees just above the threshold, and would create many tax avoidance opportunities that would be difficult for HMRC to police.

Furthermore, it is the government’s position that state education is suitable for children of all faiths. All children of compulsory school age are entitled to a state-funded school place if they need one, and all schools are required to follow the Equality Act.

Further detail can be found in the summary responses published on GOV.UK.

HMRC has put in place a number of measures to ensure schools can be ready for the introduction of VAT on private school fees and remains committed to supporting schools with their new VAT obligations, including by providing bespoke guidance and webinars.

We do not recognise reports that HMRC's guidance contains errors. In publishing its guidance, HMRC has addressed areas of uncertainty and will provide further clarification in guidance if that is required. As with all guidance, HMRC will keep the guidance for private schools under review and continue to update it in light of further feedback we receive during our ongoing engagement with the sector – for example, any common questions that arise during the webinars. Following the Budget, an update to the guidance has now been published to reflect the final policy design and legislation.

From 1 January 2025, the 20% standard rate of VAT will apply to all education services, vocational training, and boarding services provided by private schools for a charge.

It will be a commercial decision for individual schools how they fund this additional cost. Charging VAT at the standard rate of 20% does not mean that schools must increase fees by 20%.

Schools can reclaim VAT paid on inputs and reduce costs to minimise the extent to which they need to increase fees. On average, the government expects fees to rise by 10%. After recovery of VAT on their costs, on average the government expects schools to be liable for VAT amounting to approximately 15% of fee income.

The government will use this funding to help deliver its commitments relating to education and young people. In the Budget the government announced a £2.3 billion increase to the core schools budget for financial year 2025/26, increasing per pupil funding in real terms.

Further detail on this can be found in the Tax Information and Impacts Note (TIIN) published alongside the Budget.

From 1 January 2025, the 20% standard rate of VAT will apply to all education services, vocational training, and boarding services provided by private schools for a charge.

It will be a commercial decision for individual schools how they fund this additional cost. Charging VAT at the standard rate of 20% does not mean that schools must increase fees by 20%.

Schools can reclaim VAT paid on inputs and reduce costs to minimise the extent to which they need to increase fees. On average, the government expects fees to rise by 10%. After recovery of VAT on their costs, on average the government expects schools to be liable for VAT amounting to approximately 15% of fee income.

The government will use this funding to help deliver its commitments relating to education and young people. In the Budget the government announced a £2.3 billion increase to the core schools budget for financial year 2025/26, increasing per pupil funding in real terms.

Further detail on this can be found in the Tax Information and Impacts Note (TIIN) published alongside the Budget.