Question to the HM Treasury:

To ask His Majesty's Government what estimate they have made of any additional gross earnings needed by working people to meet the cost of the planned introduction of VAT on independent school fees.

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 per cent. This will also apply to boarding services provided by private schools.

The Government will confirm the introduction of these tax policy changes at the Budget on 30 October. Details of the Government’s assessment of the expected impacts of these policy changes will be published at the Budget in the usual way.

The Government does not expect fees to go up by 20 per cent as a result of this policy change, and the Government expects private schools to take steps to minimise fee increases.

Recognising the enormous sacrifices our military families make, the Ministry of Defence provide the Continuity of Education Allowance (CEA) to eligible Service Personnel. The Government will monitor closely the impact of these policy changes on affected military families, with any changes to this scheme considered at the upcoming Spending Review.

The Government has considered the policy’s interaction with Human Rights law, and is confident that it is compatible with all of the UK’s human rights obligations.