Ministers expected independent schools to absorb 1% of VAT from profits
Wednesday, 22 October 2025
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A recent Freedom of Information request revealed that UK ministers expected independent schools to absorb less than 1% of the VAT on fees policy from their profits, with most of the 10% fee impact passed to parents or mitigated through efficiency measures. Government calculations assumed schools would make savings and slightly reduce service quality, resulting in an overall 10.3% fee increase. Shadow Education Minister Saqib Bhatti criticized the approach, warning that many schools cannot afford the VAT, risking closures and forcing thousands of children to leave, highlighting the policy's potential impact on both the affordability and quality of independent education.

Source: independentschoolmanagement.co.uk