Private school fees across the UK surged by 22.6% in January 2025, following the government’s introduction of VAT on private school tuition, according to the Independent Schools Council (ISC).
Fees Spike Amid Triple Financial Blow
The ISC, which represents around 1,400 private schools nationwide, reported that the average termly fee for a day school reached £7,382 in January 2025—up from £6,021 the previous year.
This steep increase includes the 20% VAT introduced by the government on 1 January, part of a wider Labour policy aimed at raising funds for the state education sector.
ISC Chief Executive Julie Robinson warned that this policy, combined with the removal of charitable business rates relief and changes to national insurance, has created a “triple whammy” for the sector. “It seems clear to us that the government has underestimated the effect,” she said.
Parents Forced to Withdraw Children Due to Rising Costs
Many middle-income families say they are being priced out of the private education system. One parent, Kath, withdrew her 12-year-old son with special educational needs from his school after learning that fees would increase by 26% within two terms, reaching nearly £8,000 per term.
“We’re not wealthy. We had to make a fast and difficult decision mid-year,” she said. “Now we are fighting to get the right support in the underfunded state system.”
Schools Brace for Decline in Enrolments
Private schools are already seeing signs of declining enrolments. The ISC said some institutions recorded a 4.6% drop in Year 7 admissions in September 2024.
Headmaster David Morton of The King’s School in Gloucester called the policy “misjudged,” arguing that it disproportionately affects lower and middle-income families rather than the wealthiest.
Government Defends Policy Despite Judicial Review
The Treasury insisted that fee increases are not solely driven by VAT, noting that private school fees have risen 75% in real terms over the past 25 years. A government spokesperson said: “Ending tax breaks for private schools will raise £1.8 billion annually by 2029-30 to fund 6,500 new teachers and improve standards in the state sector.”
A judicial review challenging the VAT policy—brought by parents of SEND children and faith schools—is currently underway. The court was told the mid-year timing was chosen to maximise revenue, which is projected at £460 million this year alone.
Despite some projected fallout, the government estimates only 35,000 pupils will move from private to state schools—less than 1% of all state school pupils. With a declining birth rate and falling student numbers expected by 2030, officials say state schools will be able to absorb the shift.
