VAT on private school fees could have ‘seismic impact’ on girls – headteacher

The Government’s decision to apply VAT to private school fees could have a “seismic impact” on girls’ life chances, a leading headteacher has warned.

Alex Hutchinson, president of the Girls’ Schools Association (GSA), warned that Labour’s policy – which is due to come into effect in January – is forcing “stark and unfair” choices on hard-working parents.

Mrs Hutchinson, head at James Allen’s Girls’ School (JAGS) in Dulwich, south London, called on headteachers to “stand up and fight” for private schools so young women can still access an “outstanding” girls-only education.

In a speech at the GSA’s conference in Manchester, she said girls’ schools are at the “forefront of raising opportunities” for women and play a “pivotal role” in creating a more equitable world.

Her plea came after the Independent Schools Council (ISC) announced plans last month to launch legal action against the Government’s decision to apply VAT to independent school fees.

Addressing more than 150 heads of girls’ schools at the two-day annual conference, Mrs Hutchinson described the action as a “powerful moment” and said it was “right” to hold the Government to account.

In a speech on Monday, the GSA president said parents are facing a “turbulent time” at private schools.

Mrs Hutchinson said: “We are at a defining moment in girls’ education. Girls’ schools play a pivotal role in creating a more equitable world – the very foundations of GSA are based on civic duty.

“Our schools have always been at the forefront of raising opportunities for young women through education.

“The Government’s VAT policy has the potential to have a seismic impact on girls’ life chances. It is forcing stark and unfair choices upon hard-working families.”

Last month, Chancellor Rachel Reeves confirmed in the Budget that 20% VAT would be applied to private schools in the UK from January.

The Government has estimated the policy will raise £460 million next year, rising to £1.7 billion by 2029/30.

The president of the GSA, which represents independent and state girls’ schools across the UK, said: “We’re clear that no political decision should adversely impact young people.

“It is unthinkable that any girl in any of our schools feels her educational choice has been limited.”

On Monday, Education Secretary Bridget Phillipson suggested that state schools which had faced funding pressures could provide advice to private schools on how to manage budgets “more effectively”.

Asked about the Government’s VAT policy on LBC, Ms Phillipson did not provide a figure for the number of private school pupils who applied to join state schools between June and September this year.

The Education Secretary told Nick Ferrari: “There was an organised campaign during the general election campaign by various parents’ groups to register for places even when they themselves conceded they had no intention of taking up that place, which I think is not a great way of approaching things.”

Asked why the Government is introducing the change in January rather than the start of the school year, Ms Phillipson said: “We first set out this policy in 2022 so we’ve been clear for a number of years.

“We were consistently clear during the general election about our intention to do so and the need for investment in our state schools is urgent.”

She added: “I know our state schools have been under enormous pressure and have had to deal with it and maybe they could provide some advice to the private sector on how to manage their budgets more effectively.”

On average, the Government expects private school fees to increase by around 10% as a result of the introduction of VAT.

The Government has predicted that 35,000 pupils will move into UK state schools over time, and a further 2,000 will leave private schools to be educated in schools abroad or at home.

Donna Stevens, chief executive of the GSA, told the conference: “I feel personally indebted to our founders and the many leaders through our 150-year history.

“We are at a pivotal moment in girls’ education and we need to collectively stand up to protect girls’ schools.”

An HM Treasury spokesperson said: “The Government has made difficult decisions on tax now to fix the foundations and increase investment in public services and the economy, to rebuild Britain and unlock long-term growth.

“We want to ensure all children have the best chance in life to succeed. Ending tax breaks on private schools will help to raise the revenue needed to break down the barriers of opportunity for children and young people across the country.”