Question to the HM Treasury:
To ask His Majesty's Government whether they will exempt students in receipt of Music and Dance Scheme grants from paying VAT on independent school fees.
Since 1 January 2025, all education services and vocational training provided by private schools in the UK for a charge have been subject to VAT at the standard rate of 20 per cent. This also applies to fees paid by students in receipt of the Music and Dance Scheme grants.
This is to ensure fairness and consistency across all schools that provide education services and vocational training for a charge.
However, the Department for Education has decided to adjust its Music and Dance Scheme bursary contribution for families with a relevant income below £45,000 to account for the VAT that will be applied on fees, ensuring that the total parental fee contributions for families with below average relevant incomes remain unchanged for the rest of the 2024/25 academic year.