Sir Jacob Rees-Mogg, a former Cabinet minister and Eton alumnus, has expressed disapproval of Eton College's decision to increase fees by 20% in response to Labour's VAT policy. The prestigious institution, founded in 1440 by King Henry VI, announced it would raise annual fees to £63,000 starting January 2025, fully incorporating the new VAT charge.
Rees-Mogg stated, "Eton is making a mistake" by not absorbing some of the cost increase itself, given its substantial wealth. The school, which boasts a 400-acre campus and has educated 20 British Prime Ministers, faces criticism for potentially alienating middle-income families.
The fee increase is a direct result of the Labour Government's policy to apply VAT to private school fees, a move Rees-Mogg describes as "class warfare." This policy, set to take effect in January 2025, has sparked concerns about its impact on smaller private schools and families' ability to afford private education.
Eton's decision highlights the complex landscape of private education in the UK. The school, known for its distinctive black tailcoat uniform and rich history, caters to various groups: a small number of extremely wealthy families, bursary recipients, and a large middle-income segment. Critics argue that the full VAT pass-through disproportionately affects the latter group.
The policy has also raised legal concerns, particularly regarding its impact on children with special educational needs (SEN). Lawyers have initiated a challenge, claiming the measure could violate the European Convention on Human Rights by potentially forcing SEN students out of private schools if parents can no longer afford the increased fees.
"It would be strongly arguable that for a new government to impose VAT on independent schools would breach the right to education"
Labour defends the policy as necessary for improving state schools and recruiting more teachers. However, critics, including former Winchester College headmaster Tim Hands, argue it may hinder social mobility and lead to "selection by wallet."
As the debate continues, Eton College, with its rich traditions like the annual "Fourth of June" celebration and unique "Eton Fives" handball game, faces the challenge of balancing its prestigious history with the evolving educational landscape. The outcome of this policy and Eton's response could have far-reaching implications for the future of private education in the UK.