Question to the Ministry of Defence:

To ask His Majesty's Government what assessment they have made of the impact on the recruitment and retention of Armed Forces personnel from the decision to charge VAT on private school fees.

The Ministry of Defence and Ministers recognise the significant sacrifices that our military families make in serving our nation. We continue to support Continuity of Education Allowance (CEA) as the means of mitigating the disruption to Service children’s education caused by Service commitments involving frequent moves of the family home and recognise its importance for the Service personnel who utilise it.

To protect the integrity of the allowance the Secretary of State for Defence directed that the cap on the current rates be lifted, and CEA rates recalculated, in recognition of the likely increase in school fees that will occur in January 2025 with the introduction of VAT on private school fees. This re-rating exercise will complete at the end of November, with new rates effective from 1 December 2024 for claimants in time for the start of the spring term on 1 January 2025.

Protecting the integrity of CEA highlights our wider commitment to putting people at the heart of Defence. This principle drives the Government’s focus on improving Armed Forces recruitment and retention, enabling Defence to continue to attract and retain the best possible talent.