Wes Streeting, Labour's Health Secretary, has defended the government's decision to impose Value Added Tax (VAT) on private school fees, stating that the sector "can't complain" about the policy. The controversial measure, set to take effect in January 2025, has sparked debate and legal challenges.
Streeting emphasized that Labour had been transparent about this plan long before winning the election. The policy aims to redirect funds towards improving state education, which serves 93% of UK students. This move aligns with the UK's position as having the highest proportion of privately educated children in Europe, despite only about 1 in 16 pupils attending private schools.
The Health Secretary addressed concerns raised during an interview on GB News, particularly regarding a legal test case brought by Alexis Quinn, mother of an autistic child. Quinn fears the 20% fee increase will force her daughter to return to state education mid-year. Streeting suggested that students with special needs might be exempt from the VAT, stating:
"I'm not familiar with the specific case, but from what you've just described it sounds like that pupil would be entitled to an ECHP [Education, Health and Care Plan] which would then exempt them from VAT on school fees."
[[Wes Streeting on potential exemptions]]
The Education, Health and Care Plan (EHCP), introduced in England in 2014, could provide a lifeline for some families affected by the new policy. However, the broader impact on the private education sector, which contributes approximately £13.7 billion annually to the UK economy, remains a concern.
Eton College, founded in 1440 by King Henry VI, has become the first private school to announce it will pass on the full 20% VAT to parents. This decision will increase annual fees to £63,000, significantly higher than the average annual fee of £15,000 for private day schools in the UK.
Critics argue that the state sector may struggle to accommodate an influx of students if private schools become unaffordable for many families. Currently, the UK government spends about £5,000 per pupil annually in state schools, ranking the education system 14th globally according to recent studies.
A separate legal challenge is brewing in the High Court, claiming the policy violates human rights law, particularly for children with special educational needs. This adds to the complexity of implementing the VAT measure, which the government argues will fund priorities such as recruiting 6,500 new state school teachers.
As the January 2025 implementation date approaches, the debate surrounding this policy is likely to intensify, balancing the government's aim to improve state education against the potential disruption to the private education sector and affected families.