Question to the Ministry of Defence:

To ask the Secretary of State for Defence, what assessment his Department has made of the adequacy of the uplift in Continuity of Education allowance for costs associated with VAT on independent school fees.

Following the budget statement by the Chancellor on 30 October 2024, the Ministry of Defence (MOD) confirmed it would carry out an in-year re-rating of the continuity of education allowance (CEA), which is a contribution towards boarding education. The methodology used to calculate the new rates remained the same as previous yearly calculations, a weighted average of the fees charged by the top 75% of schools used by CEA claimants.

The MOD will monitor the impact on retention in service for those claiming CEA following the introduction of VAT on independent school fees. This will inform a review of the CEA calculation methodology ahead of revised rates being produced for the new academic year starting September 2025.

The MOD provides the option for all eligible Service personnel to claim CEA as a contribution to boarding education to minimise the disruption to their children’s education caused by service commitments involving frequent moves of the family home. To be eligible, the Service person’s circumstances must fit within specific regulations, especially around accompanied service and family mobility.