More than 3,000 privately-educated pupils utilized to hitch state faculties between June and September as Labour’s VAT tax raid forces mother and father to pay further £2,000 on charges
More than 3,000 private school pupils have already applied to join the state sector amid Labour’s tax raid, new figures revealed today.
Private school fees will be subject to a 20 per cent rate of VAT from January when Labour ends an exemption for education, Rachel Reeves confirmed in her Budget.
Critics of the policy, which will hit parents £2,000 each per pupil on average, have branded it a ‘tax on aspiration’ and warned it will simply force more parents to send their children to the already overburdened state sector.
New data provides fresh evidence an exodus is already underway, with 124 local councils in England, Scotland and Wales receiving 3,011 applications from private school pupils to move to a state school between June 1 and September 9.
The figures, obtained in Freedom of Information requests by the Telegraph, are likely to understate the scale of private school exits given a further 83 councils either did not respond or said they did not have the data.
Carrdus School, in Oxfordshire, which is owned by leading girls’ school Tudor Hall, recently announced it will be closing its doors in the spring if it cannot find a buyer
Critics of the policy, including Tory leader Kemi Badenoch, have branded it a ‘tax on aspiration’
An additional 2,500 pupils have given notice to leave in January, according to separate data compiled by the Independent Schools Council (ISC) following a survey of its 900 members.
Today, ISC chief executive Julie Robinson accused Labour of ‘underestimating’ how many privately educated pupils would leave as a result of the policy, with the Treasury previously predicting the figure would be 3,000 for the entire 2024-25 academic year.
There are thought to be more than 550,000 children at independent schools across the UK.
Over the weekend a prestigious prep school became the latest private institution to announce it will be shutting its doors within weeks because of Labour’s tax raid.
Carrdus School, in Oxfordshire, which is owned by leading girls‘ school Tudor Hall, said it will be closing its doors in the spring if it cannot find a buyer.
In a letter to parents, Chair of Governors Alison Darling said falling numbers triggered by the VAT policy plus the extra burden of employers’ national insurance announced in the Budget meant Tudor Hall could no longer afford to finance the school.
If it closes, it will be the tenth private school to shut since the closure of Alton School in Hampshire in May, according to reports.
Hitting out at the Government’s failure to delay the highly controversial January timing of its 20% VAT on fees, Ms Darling said: ‘Despite the support of our professional associations in lobbying the Government in recent months, the Government has not responded to the call to reconsider its policy nor, even, to delay implementation until September 2025.’
She wrote that: ‘the outcome of VAT on school fees has resulted in a number of Carrdus parents giving notice to withdraw their child from the school either at the end of the autumn term, or at the end of the academic year.
‘The combination of VAT across both schools, further compounded by the increase in employers’ National Insurance contributions, and the Carrdus pupil roll falling further below a sustainable number, means that Tudor Hall is no longer able to make the substantial financial commitment to Carrdus School that is required.’
The school in Banbury, which educates over 100 boys and girls aged 3-11, is described as a ‘gem’ by independent schools bible the Good Schools Guide.
It comes as the ISC launched legal action against the Government over claims its policy is discriminatory, including against children with special educational needs and disabilities.
It has instructed leading barrister Lord Pannick KC, who represented Boris Johnson during the Partygate inquiry, to fight its case.
The Independent Schools Council (ISC) has instructed leading barrister Lord Pannick KC, who represented Boris Johnson during the Partygate inquiry, to challenge the policy
The ISC is hoping for a judicial review of the policy on the grounds that it breaches articles of the European Convention on Human Rights.
It will argue on behalf of parents who are unable to find suitable alternatives in the state sector, including for children with special educational needs and disabilities.
The Office for Budget Responsibility believes the move will send 35,000 children from private schools into the state sector.
In an email seen by the BBC, Chief Executive Julie Robinson said they ‘will be defending the rights of families who have chosen independent education, but who may no longer be able to do so as a direct result of VAT on their fees’.
‘We continue to ask the government to work with us to mitigate the risks of this policy on specialist arts education, on low-fee faith schools, on small girls’ schools and on children with Send.’
The legal claim will focus on the ‘right to education’ and allege discriminatory practices against independent schools.
The ISC has called on the government to delay their plans and consider the impact on small schools, faith schools and pupils with special educational needs and disabilities.
MailOnline has contacted the Treasury for comment.