Independent School Fees: VAT

Lord Vaux of Harrowden Excerpts

Monday 21st October 2024 Lords Chamber

[Lord Livermore (Lab)]

The answer to the noble Lord’s question is no, because the assumptions underlying that report are incorrect. We expect that a large number of private schools will take steps to absorb a significant proportion of this VAT liability, so the majority of that fee will not be passed through.

[Lord Vaux of Harrowden (CB)]

My Lords, 3,000 military families take advantage of the continuing education allowance and send their children to private school. In previous answers, the Minister has said that no decision will be taken on how the impact of the VAT rise will be dealt with for those families until the spending review. The Armed Forces are facing a retention crisis, as is well known. Why does the Minister think that leaving those families with this level of uncertainty is going to help with that retention?

[Lord Livermore (Lab)]

The core answer to the noble Lord’s question is that very many private schools will take steps to absorb a proportion, if not all, of the new VAT liability, so there may actually be no increase in fees in such circumstances, which is why it is right that we leave it until the spending review. It is worth pointing out that very many military personnel send their children to state schools and want them to benefit from the improvements that will happen in those schools.