Question to the Department for Education:

To ask the Secretary of State for Education, what consideration her Department has given to removing VAT charged on the MDS Settlement Grant for a) MDS Schools and b) parents.

The Music and Dance Scheme provides means-tested bursaries so high achieving students in music and dance can secure world-class specialist training regardless of financial circumstances, including at eight private schools. Since 1 January 2025, the standard rate of 20% VAT has applied to all education services, vocational training and boarding services provided by private schools for a charge. This academic year, grant funding to the schools included an additional £4 million to meet the costs of VAT linked to the bursaries themselves.

The matter of VAT for private school fees was subject to a consultation led by HM Treasury and the government response was first published July 2024 and updated October 2024.