Schools: Funding

Earl of Effingham Excerpts
Tuesday 25th November 2025

(1 day, 2 hours ago)

Lords Chamber
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Baroness Smith of Malvern Portrait Baroness Smith of Malvern (Lab)
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No, the Opposition have not apologised, and nor would I necessarily expect them to. That will not stop me continuing, as I think my noble friend has invited me, to identify the facts of the situation as opposed to the rhetoric from the noble Baroness opposite. I am sure that noble Lords will be interested to know that the number of pupils in private schools is still higher than it was in 2021-22 and before the pandemic. As I said, the latest school census data reveal that pupil numbers remain firmly within the historical patterns seen for over 20 years, while private schools have continued to open, even after the Government’s announcement about ending tax breaks: 79 schools have opened since July 2024. The average between 2014 and 2023 was 75 private schools opening each year. The average was 75 and the numbers in the last year were 79.

Earl of Effingham Portrait The Earl of Effingham (Con)
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My Lords, the Chancellor said that every single penny of the money raised from this new VAT would be ring-fenced for state education, but the Prime Minister subsequently said that the decision to levy VAT on private school fees has allowed the Government to invest in housing. Will the Minister please confirm whether every pound of the money raised is going into better education for state-funded pupils?

Baroness Smith of Malvern Portrait Baroness Smith of Malvern (Lab)
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The Treasury’s analysis of this policy suggested that it would be able to raise around £1.8 billion a year by the 2029-30 financial year. As I identified in my first Answer, in this year alone we are increasing the amount of money that is going into our core schools budget by £3.7 billion. I think that demonstrates that, yes, we are investing every pound of that £1.8 billion in the £3.7 billion by which we have increased the core schools budget. That is before we get on to talking about the pay increase that we have been able to provide for our teachers to keep them in our schools, the investment that we are making in special educational needs and disabilities, and the capital funding that will enable schools to have both the condition and the places necessary for the 94% of pupils who have their education in the state system.