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VAT on school fees: ‘We have had to make the decision to pull her out’
Sarah Lambert is still battling to find a state school place for her 13-year-old daughter from January, when the Labour government rolls out the introduction of <a class="break-all" href="https://archive.is/o/uckAq/www.ft.com/content/452e7d35-bedf-4309-81ee-9ee3bdc45f24" rel="nofollow" target="_blank">value added tax on private school fees.
Already stretched to their financial limits, Lambert and her husband are unable to afford the increase to daughter Nicole’s new private school fees and have no choice but to remove her from the school in the new year.
Their daughter is one of the 3,000 private school pupils ministers expect to move to the state system before the end of the 2024-25 academic year, as a result of the move to apply a 20 per cent VAT charge to independent education and boarding schools.
Ministers argue that applying the levy on these schools will raise £1.5bn for investment in state schools, including recruiting 6,500 teachers. But they face a backlash from both parents and private schools, who fear it will make fees unaffordable for much larger numbers of students and have questioned the ethics of taxing education.
At no point did we even think that a luxury tax of 20 per cent could be added to education. It has blindsided us
Sarah Lambert
“We have had to make the decision to pull her out as our school has had to add 15 per cent to her £20,000 a year fees,” says Lambert. The mother of three works two jobs as a nurse practitioner in a GP surgery where the family lives in Lincolnshire, and as a 111 call handler. Her husband, Will, who spent 23 years serving in the British Army, now works in security.
“When we signed Nicole up for private education we did it on a seven-year trajectory, accounting for growth [and] inflation as much as we could,” she says. “At no point did we even think that a luxury tax of 20 per cent could be added to education. It has blindsided us.”
The couple are among thousands of parents wondering if they will be able to find the extra several thousand pounds a year to cover the higher fees coming into force. Their anxiety has been heightened by the largest tax-raising Budget in living memory last month, which included big tax rises for wealthier people.
Sarah Lambert: ‘At no point did we even think that a luxury tax of 20 per cent could be added to education’ © Fabio De Paola/FT
“Nicole doesn’t have a school to go to yet as we have been unable to secure her a place,” Lambert says. “I just feel sick, no one wants to have to take their child out of a school they’re thriving in.”