UK's 20% VAT on Private School Fees Detailed

Labour's plan to impose a 20% VAT on private school fees starting January 2025 is expected to force some families to withdraw their children from private schools due to increased costs. Experts warn that this policy could disrupt families mid-academic year and disproportionately affect small and specialized schools. The UK government predicts that up to 40,000 students may move to state schools, though this would represent a small fraction of total state school pupils. Despite this, concerns remain about potential overcrowding in state schools and the financial impact on households. Analysis suggests the policy may raise significantly less revenue than initially estimated, especially if a substantial number of pupils transition to state education. The government has initiated consultations with stakeholders to address unanswered questions and mitigate potential negative effects.