Question to the Ministry of Defence:

To ask His Majesty's Government what measures they use to monitor the impact of imposing VAT on independent school fees on families in receipt of the Continuity of Education Allowance.

The Ministry of Defence (MOD) recognises the unique circumstances faced by our Service personnel and that frequent mobility can disrupt children’s education. Continuity of Education Allowance (CEA) helps by providing the children of Service personnel with a stable education that would not otherwise be available in the state-maintained day school sector, due to their family’s mobility.

Following the introduction of VAT on independent school fees, the MOD conducted an in-year recalculation of the rates of CEA effective 1 December 2024. The single Services will continue to monitor any impact on retention in service for those claiming CEA following the introduction of VAT. Additionally, the MOD will continue to monitor the impact through engagement with the Families Federations and feedback from Service personnel.

The Pay and Allowances Casework and Complaints Cell (PACCC) will monitor the impact on Service personnel changing schools and withdrawing from CEA. Currently, no Service Personnel have withdrawn from claiming CEA as a direct result of the introduction of VAT on independent schools