Ahead of its introduction, Labour’s new tax has already had a fatal impact on nine independent schools across the country, which have been forced to close because they could not afford an extra 20 per cent charge of VAT without making their fees unviable for parents.
However, the true impact of Labour’s Education Tax will only really start to be felt once introduced in January 2025 – when schools will see a 20% tax introduced overnight – the first time education in the UK has been taxed since the introduction of VAT.
This could cause significant upheaval for pupils whose families may no longer be able to afford fees, or where a school has to close because the Education Tax makes it unviable.
The Education Tax will disproportionately harm children with SEND, where families have often fought to get the right support for their child – which could now become unaffordable. Many military families will also be priced out of independent schools as the fees become too expensive for those who make the greatest sacrifice in serving our country. One think tank has estimated that this policy will actually cost the taxpayer £1.6 billion a year.
However, the Government has produced no impact assessment to suggest either how much money they expect this tax to raise or the groups of people it might disproportionately effect – yet they are still rushing ahead to introduce this tax part way through this academic year.
Headteachers, parents and think tanks have all warned Labour time and time again of the disastrous impact this tax will have but they are ploughing on regardless.
In Government, the Conservatives made education a priority because they recognised that the quality of a child’s education can shape the rest of their life. That is why the former Conservative Government recruited over 27,000 teachers, made England one of the top performing countries for education in the Western World, and supported schools with the highest level ever in real terms funding per pupil.
Commenting, Mark Jenkinson said:
“I know many parents work hard with the primary motivation to offer their children the best start in life.
“These new figures confirm that 230 pupils in Penrith and Solway will have their education taxed – for some this may mean that they must leave their school part way through the year, disrupting their education and that of the class they join. This includes pupils with special needs and pupils from military families. Conservatives are raising these points, but the Labour Government just don’t care.
“It will also worry parents in many of our towns and villages where access to school places is difficult because of lack of local school capacity. Our councils are not holding developers to account, and making them deliver school places where they’re needed, meaning many children miss out on their catchment school places every year.
“The fact that they are rushing this policy through without even doing an impact assessment, shows their chaotic approach to Government. The Conservatives will hold them to account.”
Commenting, Shadow Education Secretary Damian Hinds said:
“All education and training provision is exempt from VAT. Labour’s Education Tax is a worrying development that could be a slippery slope. We are against this retrograde step.
“The impact of the Education Tax could see thousands of pupils move to state schools, increasing class sizes and disruption for teachers and pupils, increasing costs for the taxpayer and ultimately making it less likely that parents will secure a place at their preferred choice of school. Labour have said the prospect of larger class sizes in the state sector is “fine”; we disagree.”
