How's the Private School VAT increase impacting you?

[mumsthewordi]

To private fee paying ...are kids/s still in private ? Are you comfortably still able to afford and happy paying it ?

To state, how do you feel? Have you been impacted by more kids in class or would you expect that to play out this year? Or perhaps you weren't supportive ?
Do you think state schools will improve ?

Full disclosure
A struggling fee paying parent of one kid only other is at state and my oh is an amazing secondary school teacher - we are a divided household indeed at time, but we've made choices best for us.

For me it's more that this is not an easy time to change the decision that was made several years ago. For various reasons a school move at this stage would not be feasible so I'm stuck. I already don't take holidays (I don't mean abroad, I literally don't go on holiday) and drive a 14 year old car. From what I see at the school gates, my situation is not the norm though so others may be able to cut back on expenses like the Range Rovers or their multiple holidays abroad. I'll cover the cost by a combination of reducing my pension contributions by the extra 3% I currently pay (netting me a small increase in take home after tax and NI), and remortgaging.

I am in favour of tax and redistribution of wealth and understand that I am just unlucky to be on the margin here, but also not a fan of the way this has been implemented. It will not hit the seriously wealthy. The aspirational middle class people who have stretched themselves are the ones who will feel it most. It also takes no account of the fact that better state schools are already exclusive to the wealthy because of house prices, and this policy will only exacerbate that problem. I'll do whatever it takes not to disrupt my child partway through his schooling so I will absorb it and if I am honest I believe most parents will do the same. The bigger risk is a drop in intakes. If I could travel back in time I would send my child to the local state school.

It's hard enough to get transport for kids and send kids already in state education

Yes. That's my experience. My oldest child, (when she was still at school) who has very high care needs and can't cope with being on a bus with noisy children, was not given a separate taxi by the council until I involved our MP. The council would not even listen to her social worker.

And again, public transport isn't always available ie rural areas. We don't have a public bus route within a 2 mile radius.

Then I guess you will have to drive then. They aren't going to have a change of heart just because you are ex private 🙄😆

You would be expected to walk (or drop) your children within 3 miles and the bus takes them in from there.

Not RTFT but we have one in state (y10), and one y7 in private since Sept. We're tightening our belts, but we needed to do that anyway as just had a load of building work done too!
I've not heard of any movement between schools...

How do you get the kids to private school, and why wouldn't that work for state school?

We have one in independent and three in state (two secondary, one primary; eldest went to the same state primary before switching to independent - we were two years into what ended up being a four year process to obtain an ASD diagnosis for her and, after she got lost in a tiny state primary couldn't see her coping with a large secondary).

She has just started Y12, so we were at least able to go into this with our eyes open and fortunately she has/kept an academic scholarship, otherwise we'd have thought twice. After leaving (a lovely) primary (it just didn't work for her in Ys 5 and 6), she has thrived at her tiny independent school, which isn't about academic achievement but success being individual.

We had a place for her in the sixth form of the secondary that DC2 and 3 attend but didn't want to unsettle her, so have bitten the bullet and paid. As we have for everything arising from her ASD. I appreciate we are fortunate to be able to do so, but it does mean missing out in other things. But that's our choice.

The impact will come later, as people defer entry to independents or leave at particular key stages. As someone who lives in an entirely selective county, it's way more likely to affect the Y6 children moving to Y7, with increased competition for grammar places, I would expect.

I don't have any issue with the policy per se (and voted Lib Dem so knew it would be coming in), as state schools need the support. I do, however, have an issue with how it's been implemented with no concern for the children. There are so many children with mild/moderate SEND at DD1's school
and they are the type who will just get lost within the system if they have to move. Which benefits no one.

Private school bus. The local state bus doesn't come through our village but the Indy one does.

Personally we are fine, will just pay the extra. If anything it’s positive for us as there is less competition for the eye wateringly expensive senior schools we are looking at. They all seem to be upping their marketing and comms on admissions.

It’s bad news more broadly as at least 10% -15% are moving from our current school. Many of whom are playing the system with state school places (moving house, pretending to move house, attending church etc) There is only one secondary school with places in our city, and even then, very few and only in 2 years. The council website says they are ‘exceptionally busy with in year applications’ and to expect delays.

Kids are going to be taxied 16-20 miles a day to the nearest school with places (which is ‘requires improvement’ and make the local press for how bad it is)

In the short term, the impact is going to be small. The overwhelming majority will be doing anything necessary to keep their children where they are until the end of the school year, ideally the next transition point. This is the reason the government are not formally assessing impact post Summer 2025 - so they can deceive the public that there has been little impact with the policy.

DC go to an academic prep school, fees are modest and overwhelming majority of families have two working parents in professions (high number of medic parents) or owners of local small businesses. Whilst a small number always went onto state secondary (usually selective), the majority would move into private sector. The biggest shift is the number of children who will be moving into state sector - looking at more than 70% this year. Several moved house to be eligible to apply for partially selective schools and unsurprisingly have performed exceptionally well in the 11+. Will know the final outcome in March but based on previous years scores, they will have their choice of schools within the area.

We were always on the fence about private secondary because cost is so much higher than primary. Primary has provided us the wraparound care I needed to progress in my career to consultant - I can cut back my hours significantly in the next couple of years when DC1 goes into secondary (exactly what the NHS needs, another doctor working less). Threat of VAT was the nail in the coffin for us - we bought in catchment of an excellent partially selective comp early last year which DC will both go to. Our house has risen in value since labour got into power

From a personal perspective, this policy has cost us a bit in the short term but it is a cost we can swallow and it pushed us into making a decision we were already leaning towards, we will easily make that (and more) back if we were to sell our house in the future. I still cannot describe enough the hatred for a government who have made such a decision out of pure spite - how they can possibly give vape companies a long grace period to adjust to a tax yet slap it on instantly for children is unfathomable. Those with SEN are the ones who need the private education most and will be worst affected. However the government has succeeded in their policy of divide and conquer judging by the spiteful comments on MN. As with most policies, it will be those who could never have afforded it in the first place who will face the long term consequences - the impact of people never starting private or moving at transition points to the better schools will naturally take places away from another.

Why wouldn't the state school bus get rerouted to accommodate children from your village? Our school bus routes get revised every year in response to changing locations of children. We have loads of villages and hamlets that some years have no children and the next year might have one or two; if they're entitled to school transport, then the bus route is changed to ensure they get it.

The school buses also offer paid for places for children who are attending a school that isn't their catchment. Sometimes these are extensions of the "free" council service, and sometimes they are private services organised on by the school.

And this goes back to my point that it will ultimately be a cost to the taxpayer whereas now we personally foot the cost. So we would save over £500 per term but the cost is just passed on to the taxpayer:

The school buses also offer paid for places for children who are attending a school that isn't their catchment. Sometimes these are extensions of the "free" council service, and sometimes they are private services organised on by the school.

@twistyizzy its really kind of you to think in those terms but it really won’t cost the council the £500 you are saving to reroute a bus if they have to.

I don't have any issue with the policy per se (and voted Lib Dem so knew it would be coming in), as state schools need the support.

I don’t think anyone’s naive enough to think that this will provide any real support to state education given the scale of the deficit and it may end up as a net loss.

For many private parents shifting to state the savings in school fees will simply be invested in pension contributions so the state won’t pick up anything in tax receipts but will pay their children’s school fees.

DD will stay in her private school until she finishes GCSEs but will now probably return to state for 6th form.

As far as I know, no one has left her year group so far. But next September will be the crunch point for the school. I predict a drop in Year 7, 9 and 12 applications.

I know of a number of families with younger, primary aged siblings who are considering moving into catchment of the local grammar schools rather than saddle themselves with another 7 years of fees.

The majority of loud voices from the independent sector seem to be saying they are massively overstretched paying for their children’s education. I would imagine they will spend the money on enriching their children’s lives in other ways not investing, because people rarely scrimp in the same way for the things you describe. I think the money will make its way to local facilities and holidays.

Pension contribution is not investing per se, and it’s non-taxable. If that money is already earmarked it’s not needed.

We have 2 kids. Eldest will remain in private system- youngest when he starts will take up a state place and then we’ll move him over in high school. In my eldest class 8/20 moved before the summer and Christmas in anticipation as they got the state school places. Where we are the parents work to pay fees- it’s not a case of cut down and keep paying the money isn’t there so a lot have moved over and will continue to.

No, we would put it in our pensions. So not taxable.

As costs increase and school budgets are rising in line with this schools may choose to raise their admission numbers

That should read school budgets are not rising…

When I reduce my working hours, I’ll be moving from top rate taxpayer to higher or lower rate - that is going to be a big loss in tax from me for the government, far more than the VAT on current fees is costing. The NHS will have less doctor hours in a field with long waiting lists to be seen.

We will use money to enrich DC’s education in the form of sports and tutoring but they tend not to be taxed. We will likely be spending more on holidays (inevitable when tied to state school term dates) and will certainly be putting more in pension.

Major net loss to government but we all do what is best for our circumstances

Children in state education will eventually but it will take time. You can't expect an impact straight away!

A huge number of children from our years will be moving to state sixth form when the time comes.

Where we live it’s a sixth form college, so not a continuation from any school. Those places are going to be sought after that’s for sure. Added advantage to those people moving from private, of having state school on their univ / Oxbridge applications.

Win win for them I think. Lose lose for the tax payer and already limited desirable ‘positively discriminated’ uni places.