Private schools begin sacking teachers ahead of VAT rise

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Private schools begin sacking teachers ahead of VAT rise
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Labour's policy to levy VAT on private school fees from January 2025 has forced the sector to 'remove the fat', industry insiders say

Labour's policy to levy VAT on private school fees from January 2025 has forced the sector to 'remove the fat', industry insiders sayParents have expressed concerns they could “pay more but get less” as schools are forced to cut their core costs to absorb a proportion of the VAT on fees.A source at a private schools association said staffing costs can be up to 80 per cent of school budgets meaning some have “little other choice” but to make cuts.

The Independent Schools Council maintains that there is a wide range of private schools and many do not have a large surplus, raising concerns about school finances and survival. He said: “I’m concerned that school won’t be able to invest in new infrastructure projects, or they might have to cut back on the number of teachers in the school, and you might find you’ve got larger class sizes.“You will probably see a narrowing of subject choices at GCSE and A-level,” he added, explaining options like Latin, Greek and some creative arts could be discontinued.

“The key thing they don’t want to touch is teaching and very few schools that I know at the moment are having to let teachers go,” he toldMs Sanderson and Mr Roskilly both said the offer provided by most private schools is unlikely to get worse and pupils will not notice a decline.This could result in bigger class sizes, declining facilities, fewer free extra-curricular options and narrowing subject choices for pupils.

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