Question to the HM Treasury:

To ask His Majesty's Government what assessment they have made of the impact of applying Value Added Tax to independent school fees on Foreign, Commonwealth and Development Office staff based abroad who have children studying at UK boarding schools.

On 29 July, the Government announced that, as of 1 January 2025, all education services and vocational training provided by a private school in the UK for a charge will be subject to VAT at the standard rate of 20%. This will include fees paid by CEA.

A small minority of diplomatic officials and service personnel are posted abroad for extended periods. In such circumstances, the Ministry of Defence and the Foreign and Commonwealth Office provide the Continuity of Education Allowance (CEA) to ensure this does not interfere with their children's education.

The government will monitor closely the impact of these policy changes on affected military and diplomatic families with any changes to this scheme being considered as part of the ongoing Spending Review.