vat on fees- can we have another thread with numbers/type of school ONLY?

[dietcokewithice]

I think it would be very useful for many of us to know what other schools are planning, but it's difficult pull this info out from the other thread as it became full of debate!

Be great if people could just post along these lines - eg

'15 percent rise from Jan '25 - London girls private'

'8 percent rise from September '24, rising to 12 percent in January '25 - North East boys private' - or whatever.

Our school (London co-ed) is raising fees by 4 percent in September. No info yet on what they will do from January '25!

thanks

I very much doubt that. In fact it might be why they’re not confirming it, to ensure one more term of fees. My best friend is a teacher at the independent local to us and they have had a good few parents giving notice who have somehow completely missed the fact there is a terms notice. And the school absolutely do pursue them for the money.

However, some are a little more savvy, VAT and the COL have meant that they also have some parents who manage the situation by giving notice every term, only to say they’re not leaving after all - must be a nightmare way to run a business never knowing for certain what money is coming in over the following months.

International school, Surrey.

Approx 12% from Jan 25 + annual hike.

Independent day school, academically selective, south Midlands. Because there is no grammar school system it is very popular with professional parents and the local country set.

School in Edinburgh confirmed likely to be full 20% vat applied from January.

6% fee increase just implemented.

Actually, although I don’t have the Jan number, our school fees went up 15% for this year (independent boys’ school, Surrey) and I do know that they are planning to phase in the full effect of VAT over three years, so hopefully not too big a rise in Jan.

Kids do not have too long to go, so we will manage.

That is shocking, we're also in East Anglia and I know of two schools where the head has left this summer term but both were planned departures with 2/3 terms notice. I don't know of any schools around here that have confirmed or even hinted at what the increase will be.

If schools don't / aren't able to confirm the additional costs until the budget in October and apply the increase from January I wonder where that leaves people with the one terms notice situation.

5.5% for September, girls selective London day.

Decision on VAT when the Government publishes the details, and some warm words about minimising the impact as much as possible.

South London boys secondary, 8% increase.

VAT: they expect to restrict the increase to 15% due to input VAT reclaims, but cannot confirm until more detail is known.

They will not increase the amount payable by bursary holders for 24/25, but scholarship holders will pay the VAT-related increase on their fees.

Most schools have updated their t&c to specify that fees are exclusive of VAT, so would have the right to make no changes in fee structure and simply pass on the full 20% without any notice. they are under no obligation to provide you with a term’s notice on the implications of a government policy when the government has not provided clarity in advance of implementation. And fair enough- they will be locked into their resourcing for at least a term. I suspect part of Labour’s strategy with the mid year implementation is that a) it will slow down and spread out transfers into state and b) will mean the early figures on tax take will be more robust as many have been caught out and will not have had a chance to make alternative plans (especially as this was announced right as schools broke for summer and it has been impossible for many to get info from the state sector).

schools that are suggesting anything less than 20% extra from Jan are really saying that they will reduce their fees in order to achieve a smaller net increase for parents. Mostly this will come from offsetting their own vat expenditure which they can now claim back, so the impact will be modest. A few schools with larger reserves may be able to provide greater cushion, at least in the short term, but within 3-5 years I expect all schools will be 20% more than they would have been otherwise.

Implementation mid year with an announcement right in the school holidays is very cynical by Labour. Shows that they don't actually care about kid's education- moving school mid year really isn't great, I did it myself.

Oh and we have cut (fairly significant) donations for bursaries.

Sadly.

Edinburgh school and no communication here yet. Luckily it's our final year so not a huge impact but let's see.

London coed prep and senior school - 7% increase with effect from September 2024. No word yet about VAT increases from January 2025.

Co ed Day school Yorkshire
Had the fee schedule for the whole year (10% increase) which is well above the usual annual increase so I am going to assume that it won't go up at all in 2024/25 again

The rank and file teaching staff are absorbing the increase in many schools through pay freezes and pension 'reform'.

Boys independent 11-18. No additional rise but increase in class sizes from 15-18 to offset cost

@Cyclingmummy1 - not at our school - teachers are on the most generous possible pension scheme (26 percent?) and that also extends to all support staff I think.

@dietcokewithice I'm pleased to hear it and I hope your school continues to prioritise good pensions, ideally membership of TPS, alongside competitive salaries.

@Cyclingmummy1 - yes they are all on the TPS and well paid for the sector. Arguably the head and some of the senior management are too well paid (head’s salary just shy of 500k per year, which I think is too much! 😂)

As a teacher.....our school will be taking teachers off the TPS next year. The state school teachers meanwhile keep theirs cos the govnt pay it. So thats another saving the govnt don't mention they have made.

Wahayy!

Head salary of £500k?!?!?!?

Head’s salary of 500K is not standard.

@dietcokewithice I agree it's too much. Is it the Head of a 'brand'?

I think headteachers are paid a lot more (like up to that 500k described upthread) if they have overseas franchise schools as they're technically overseeing those as well. But I think there's some income from those overseas franchises which helps cover that salary