Private schools are set to pass on most of Labour’s punishing VAT raid to parents despite fears it will ‘damage’ children.
Analysis shows that half of the country’s 2,600 independent schools are planning to hike fees by around 15 per cent, despite Treasury predictions.
In October the Treasury suggested the average fee increase from January 1 would be 10 per cent across the nation’s 2,600 independent schools.
But a fifth of schools – including Eton – will go even further by demanding the full 20 per cent from parents, according to The Daily Telegraph.
The average fee increase was found to be 14 per cent. This is equivalent to an extra £2,600 a year for day pupil fees, taking them up to an average of £21,800 a year. For boarding pupils, the increase would be worth £6,200 a year.
At Eton College, boarding fees have increased from £17,583 to £21,100 per term, while Harrow and Marlborough have passed on 15 per cent to parents, putting both schools’ yearly fees at around £60,000.
Labour’s controversial move to apply 20 per cent VAT to private school fees was designed to fund education in the state sector.
However, critics fear the tax raid will only further burden state schools by forcing some pupils out of the private system due to unaffordable costs.
Secretary for Education Bridget Phillipson has defended the implementation of Labour’s VAT raid on private school fees this week
Due to the introduction of the new VAT rates, boarding fees at Eton College have increased from £17,583 to £21,100 per term
The Treasury expects 3,000 children to move from independent to state schools, but an industry survey revealed 5,500 had either applied to join a state school or given notice that they would leave after fees were hiked.
Laura Trott, the Conservative shadow education spokesman said it would be ‘pupils, parents and teachers from the state sector that will end up paying the price’.
Reform UK leader Nigel Farage believes ‘it will damage children’.
Research has also found that Labour’s pledge to recruit 6,500 more teachers could cost £4.9 billion – far higher than the £1.7 billion the VAT policy is set to raise.
Last night, Independent Schools Council chief executive Julie Robinson said she was concerned about the effect the tax would have on children who needed support.
A Government spokesman said they were ‘confident’ the state sector would be able to accommodate the ‘less than 0.1 per cent of pupils’ who may switch schools.