Jack Walters
Guest Reporter
Chancellor Rachel Reeves has been told that putting VAT on school fees mid-year is “cruel and punitive”.
Dominic Norrish, the chief executive of the Independent Association of Prep Schools (IAPS), penned a letter to Reeves over the decision.
In his letter, which was also addressed to Education Secretary Bridget Phillipson, Norrish suggested the decision was deliberately destructive and would undermine the policy’s aims.
“It is not the start of the academic year for pupils, the fee year for schools, nor the fee payers’ tax year, or even the Government’s budgetary year,” he said.
“A mid-year start creates numerous problems for schools, parents and the tax authorities that do not need to exist.”
Norrish added: “January feels like an arbitrary date, attractive merely due to its proximity to the present.
“Large numbers [of families] will be forced, now at very short notice, to move their children elsewhere.
“You have cited previous annual rises in fees as evidence that parents will cope this time too, seeking to equate the gradual compounding of inflationary fee rises with a 20 per cent hike in a single year. This isn’t a credible argument.”
He also said: “Unless you have experienced having to unexpectedly change school as a child, leaving behind all of your established relationships and slowly gained sense of psychological safety, it can be hard to grasp how seismic the effect can be.
“It is an experience that no parent would choose for their child.
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“You have argued that parents have had plenty of notice of your intentions and — presumably — could have moved their child to another school for this September, or found the extra funds for VAT.
“Regrettably, this comes across as unempathetic cant, which cannot have been your intention.
“Regardless of how long ago Labour’s intentions were announced, implementing VAT on fees, a school term after forming a Government, does not give parents enough time to act in their child’s best interests and appears cruel and punitive.
“A more considered implementation date would safeguard VAT income for the purposes it has been identified, by slowing the worst effects of higher fees and giving schools and parents time to adapt rather than exit.”
Parents are already starting to take legal action over the policy, with the mother of a child with autism penning a pre-action letter to the High Court.
Paul Conrathe of Sinclairs Law, which is representing the family, said: “This punitive tax will have a devastating impact upon the education and welfare of children with special needs, at a time when special needs provision in the state sector is inadequate and a complete shambles.
“They are a violation of their human rights to education and freedom from discrimination.”
Eton College has also revealed it will pass the full 20 per cent levy on to parents, excluding those who were on bursaries.
The Government does not believe the decision will cause an exodus of children into state schools.
In a blog last week, the Government said: “We don’t expect that raising VAT will cause private school fees to go up by 20 per cent.
“This is because private schools, like other businesses, don’t have to reflect the VAT increase in the amount fee payers are charged.
“We expect that private schools will try to minimise any fee increases.
“We expect the number of pupils who might decide to change schools to a state school from private schools to be minimal.
“There is also lots of evidence to suggest that there are more than enough state school places for pupils who may move from a private school.”
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