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Whitehall “braced for private schools collapse” 6

1000 replies

ICouldBeVioletSky · 19/05/2025 11:18

Continuation of previous threads to discuss VAT on independent school fees.

OP posts:
Thread gallery
26
twistyizzy · 24/05/2025 17:00

Newbutoldfather · 24/05/2025 16:58

There are so many on here that don’t understand (or are disingenuous) about how private schools have priced most middle classes out over the last quarter of a century or so.

Yes, everything has gone up (doh!). We use CPI to measure this. Private school inflation has been running at approximately 2xCPI over the long cycle.

Why is this? It is hard to know. It is neither teacher’s salaries, which have risen sub CPI since 2010 at least, nor is it class sizes, which have increased.

And no, as a PP said, it isn’t profits as they are charities.

It is an arms race led by pushy parents for flashiness and facilities. So, parents want tiny A level classes to be supported (History of Art, for instance), They want theatres staffed by an array of technicians and professional level lighting. They want the school to be open and staffed to look after pupils from 7:30AM to 6PM. They want a large marketing department and many want a large SEN team. There is plenty more I haven’t mentioned that wouldn’t have been the norm 25 years ago.

The above all have some value but parents aren’t generally consulted and a lot of this isn’t about education at all but the enjoyment of a bespoke and privileged experience, often to the detriment of genuine resilience; not a story they tell, obviously.

Several heads of famous private schools admit to this and say the arms race is parent driven. The 20% isn’t nice but it’s nothing compared to the 100% odd in excess of CPI that fees have gone up since I attended school.

You keep on talking about the elite public schools which make up only approx 1% of all indy schools. You purposely ignore the majority of indy schools which don't buy into the "arms race" of all those flashy facilities.
Just because your own experience is limited to the public schools please stop perpetuating the myth that all independent schools are like this!

Newbutoldfather · 24/05/2025 17:09

@twistyizzy ,

You keep arguing with facts. The rise I am talking about is the average for the sector, not only the top schools.

And, virtually all schools are in the facilities arms race, just at different levels.

I back what I am saying with actual research and data, as well as my own experience.

twistyizzy · 24/05/2025 17:11

Newbutoldfather · 24/05/2025 17:09

@twistyizzy ,

You keep arguing with facts. The rise I am talking about is the average for the sector, not only the top schools.

And, virtually all schools are in the facilities arms race, just at different levels.

I back what I am saying with actual research and data, as well as my own experience.

You haven't used any evidence! There are state boarding schools with better facilities than many independent schools.

Runemum · 24/05/2025 17:15

@Newbutoldfather My son's private school does not have any of the things you are talking about-no swimming pool, no theatre, no large grounds but then it is a cheaper private school. It has aimed to keep fees as low as possible. It is the parents of children at this type of private school that will be most affected by the VAT rise.

SabrinaThwaite · 24/05/2025 17:20

RockaLock · 24/05/2025 16:50

In that case, my apologies @SabrinaThwaite - I have misread/misunderstood your comment.

But the point still stands that the introduction of VAT to private school fees and boarding, but not to any other form of education and not to state school boarding fees, cannot with a straight face be said to be simplifying the current UK VAT framework.

It was given as an example of a reason that couldn’t be ascribed to spite and envy.

And it could be part of a tax simplification if there was a wholesale overhaul of the system, involving a (probably lower) flat rate tax applied with very few exemptions - so VAT would be added to state boarding fees, private healthcare, Jaffa Cakes etc.

But no government is going to do that.

Araminta1003 · 24/05/2025 17:23

@Newbutoldfather - excuse me but you are missing the very glaringly obvious point which is that VAT on school fees actually encourages a further arms race because capex attracts VAT spend. So the big sports hall at Winchester and Eton into the millions (some donation funded) well HMRC will be repaying the VAT. That is a fact.
HMRC is ENCOURAGING these schools do now spend more capex and less PAYE, making them have to sack staff! What an absurdity.

EasternStandard · 24/05/2025 17:28

‘Since I attended school’ gives the timing in that post. I think most are aware that over a long period of time fees have gone up. At the same time 20% in one go is a sector damaging jump. It would be for any sector.

I do wonder if the policy gets some support because I could afford it but now can’t so let’s whack another 20%

It still isn’t good policy and adds burden to the state sector, which comparable countries try to avoid.

FairMindedMaiden · 24/05/2025 19:50

twistyizzy · 24/05/2025 17:00

You keep on talking about the elite public schools which make up only approx 1% of all indy schools. You purposely ignore the majority of indy schools which don't buy into the "arms race" of all those flashy facilities.
Just because your own experience is limited to the public schools please stop perpetuating the myth that all independent schools are like this!

I think what @Newbutoldfather is trying to say is that he can no longer afford to send his children to the school he went to. Therefore, people who can afford it should be taxed until they also can’t afford it or the school shut down.

Newbutoldfather · 24/05/2025 20:22

@FairMindedMaiden ,

‘I think what ** is trying to say is that he can no longer afford to send his children to the school he went to. Therefore, people who can afford it should be taxed until they also can’t afford it or the school shut down.’

Ooh, let’s try and play the ‘I’m richer than you, and you’re just jealous’ card. Pretty sad, really.

My old school is maybe one level lower than St Paul’s and Westminster and is going from strength to strength, although they still try to tap me for money from time to time for some new building or other.

I was fortunate enough to make enough money in my first career to put my children through private schooling with room to spare. I chose not to and, so far so good. It is still always an option if I need it.

People can have a view not based on envy.

twistyizzy · 24/05/2025 20:27

Newbutoldfather · 24/05/2025 20:22

@FairMindedMaiden ,

‘I think what ** is trying to say is that he can no longer afford to send his children to the school he went to. Therefore, people who can afford it should be taxed until they also can’t afford it or the school shut down.’

Ooh, let’s try and play the ‘I’m richer than you, and you’re just jealous’ card. Pretty sad, really.

My old school is maybe one level lower than St Paul’s and Westminster and is going from strength to strength, although they still try to tap me for money from time to time for some new building or other.

I was fortunate enough to make enough money in my first career to put my children through private schooling with room to spare. I chose not to and, so far so good. It is still always an option if I need it.

People can have a view not based on envy.

"My old school is maybe one level lower than St Paul’s and Westminster"
MOST indy schools are several levels lower. You use your narrow experience of top/next to top tier schools and can't imagine any other iteration. Those schools make up 1% of indy sector.

Are you aware some indy schools charge approx 6K per year??

Newbutoldfather · 24/05/2025 20:33

@twistyizzy ,

£6,000 per annum must be vanishingly rare and must be a very special case, as that is less than the per pupil premium in the state sector.

The average secondary school fee is £6,000/term.

twistyizzy · 24/05/2025 20:37

Newbutoldfather · 24/05/2025 20:33

@twistyizzy ,

£6,000 per annum must be vanishingly rare and must be a very special case, as that is less than the per pupil premium in the state sector.

The average secondary school fee is £6,000/term.

From ISC census 2025:
Day school fees vary by region, with average termly fees of just
over £4,000 in the North West, rising to £6,676 per term for day
schools in London (see Table 6 of Appendix One, p32 for more
details). While the majority of day schools charge between
£3,000 and £5,500 per term, 65 schools charge under £2,000.

Jewish and Islamic schools are the most likeky to charge the lowest end of circa 5-7K per year.

Newbutoldfather · 24/05/2025 20:46

@twistyizzy ,

Well I think £6,000 per term is the average at secondary. Preps can be cheaper.

Having been a governor on the finance committee (inter alia) at a state primary, I have no idea how they get the numbers to work, unless they rely on generous financial contributions from the community.

twistyizzy · 24/05/2025 20:55

Newbutoldfather · 24/05/2025 20:46

@twistyizzy ,

Well I think £6,000 per term is the average at secondary. Preps can be cheaper.

Having been a governor on the finance committee (inter alia) at a state primary, I have no idea how they get the numbers to work, unless they rely on generous financial contributions from the community.

Or maybe they just aren't buying into the "arms race" that you claim.
There is 1 near us, they have utilised an abandoned church, have limited facilities and invest all their money into the teaching staff. It is a fab little school going from Yr R-11 serving the local community for kids whose parents want an alternative to state offering.
But hey you probably wouldn't even acknowledge their existence because for you, only elite public schools represent the sector!

twistyizzy · 24/05/2025 20:55

Newbutoldfather · 24/05/2025 20:46

@twistyizzy ,

Well I think £6,000 per term is the average at secondary. Preps can be cheaper.

Having been a governor on the finance committee (inter alia) at a state primary, I have no idea how they get the numbers to work, unless they rely on generous financial contributions from the community.

Or maybe they just aren't buying into the "arms race" that you claim.
There is 1 near us, they have utilised an abandoned church, have limited facilities and invest all their money into the teaching staff. It is a fab little school going from Yr R-11 serving the local community for kids whose parents want an alternative to state offering.
But hey you probably wouldn't even acknowledge their existence because for you, only elite public schools represent the sector!

Newbutoldfather · 24/05/2025 21:03

@twistyizzy ,

I admire them for doing that. I have often thought that there should be a market for cheaper private schools focused on education without the bells and whistles. Had I got into education younger, I might have tried to start one.

But the reality is the median fee is £18,000 per annum and many are far more expensive (and of course many are cheaper or it wouldn’t be the median!).

But, if you think I am focusing on the elite sector, you are using as exemplars a far smaller subset of schools and pupils.

FairMindedMaiden · 24/05/2025 21:04

@Newbutoldfather in that case I’ll correct :

I think what ** is trying to say is that he can easily afford to send his children to the school he went to, but chooses not to and it’s going well. Therefore, people who choose to send their children to independent schools should be taxed until they also choose not to…and it will go well. Then the middle class will also able to afford independent schools.

I’m not too sure about the last sentence to be fair.

Newbutoldfather · 24/05/2025 21:14

@FairMindedMaiden ,

You could always try asking me what I am ‘trying to say’, rather than telling me! I think I can write clearly, and some have even called me eloquent.

But, for the avoidance of doubt, I am not pro VAT but I am not desperately anti either. I am probably marginally anti, which is where most of my private school teacher mates also tend to sit (including some who send their own children private).

We are all against the way it was suddenly imposed though, but this feeling is both about the government and the schools. The government should have phased it in slowly, to allow pupils to finish their school phase. But schools should also have made savings, cut back more and used some reserves to cushion the blow, rather than once again pandering to the wealthiest, who won’t even notice the VAT.

But, in the long run, when new parents decide whether to send their children private or not, it will be the same decision parents made before VAT- can we afford it or not? It was always a massive luxury which most people can’t afford. It has just been nudged a little further along the luxury spectrum. This isn’t a tragedy.

tortoise18 · 24/05/2025 21:19

Newbutoldfather · 24/05/2025 16:58

There are so many on here that don’t understand (or are disingenuous) about how private schools have priced most middle classes out over the last quarter of a century or so.

Yes, everything has gone up (doh!). We use CPI to measure this. Private school inflation has been running at approximately 2xCPI over the long cycle.

Why is this? It is hard to know. It is neither teacher’s salaries, which have risen sub CPI since 2010 at least, nor is it class sizes, which have increased.

And no, as a PP said, it isn’t profits as they are charities.

It is an arms race led by pushy parents for flashiness and facilities. So, parents want tiny A level classes to be supported (History of Art, for instance), They want theatres staffed by an array of technicians and professional level lighting. They want the school to be open and staffed to look after pupils from 7:30AM to 6PM. They want a large marketing department and many want a large SEN team. There is plenty more I haven’t mentioned that wouldn’t have been the norm 25 years ago.

The above all have some value but parents aren’t generally consulted and a lot of this isn’t about education at all but the enjoyment of a bespoke and privileged experience, often to the detriment of genuine resilience; not a story they tell, obviously.

Several heads of famous private schools admit to this and say the arms race is parent driven. The 20% isn’t nice but it’s nothing compared to the 100% odd in excess of CPI that fees have gone up since I attended school.

This is exactly right, and once private schools are charging double their old price and funneling the money into fifteen Steinways or a stable full of horses, (real examples which are extreme, but all overcharging schools are in this arms race) you're not paying for an education, you're paying for the luxuries on top. Which is fine if you want to and can afford to buy that, but also why complaints about a luxury tax ring hollow, particularly when waves around at state of everything else in the country

twistyizzy · 24/05/2025 21:44

tortoise18 · 24/05/2025 21:19

This is exactly right, and once private schools are charging double their old price and funneling the money into fifteen Steinways or a stable full of horses, (real examples which are extreme, but all overcharging schools are in this arms race) you're not paying for an education, you're paying for the luxuries on top. Which is fine if you want to and can afford to buy that, but also why complaints about a luxury tax ring hollow, particularly when waves around at state of everything else in the country

And how about this state boarding school which is VAT exempt?

Whitehall “braced for private schools collapse” 6
tortoise18 · 24/05/2025 21:53

twistyizzy · 24/05/2025 21:44

And how about this state boarding school which is VAT exempt?

Yeah, I don't really think the state should be paying for horses at schools either. Happy to have that detail tacked on to the bill to deal with that one specific situation.

Labraradabrador · 24/05/2025 21:56

tortoise18 · 24/05/2025 21:19

This is exactly right, and once private schools are charging double their old price and funneling the money into fifteen Steinways or a stable full of horses, (real examples which are extreme, but all overcharging schools are in this arms race) you're not paying for an education, you're paying for the luxuries on top. Which is fine if you want to and can afford to buy that, but also why complaints about a luxury tax ring hollow, particularly when waves around at state of everything else in the country

VAT Doesn’t differentiate between ‘overcharging schools’ and fairly charging schools. As a stand-alone private institution it is more expensive to provide the same level of provision as state, so even a basic provision will cost more if provided privately. Most of us arent in private for Steinways or horses, we just want something that isn’t consistently available in state - that may be send support, an alternative curriculum, personalised learning support, etc.

twistyizzy · 24/05/2025 22:00

tortoise18 · 24/05/2025 21:53

Yeah, I don't really think the state should be paying for horses at schools either. Happy to have that detail tacked on to the bill to deal with that one specific situation.

Edited

Well the state is paying for horses. You are paying for horses but the parents don't pay VAT

twistyizzy · 24/05/2025 22:08

tortoise18 · 24/05/2025 21:53

Yeah, I don't really think the state should be paying for horses at schools either. Happy to have that detail tacked on to the bill to deal with that one specific situation.

Edited

Amazing sports facilities courtesy of the taxpayer and they tour Sri Lanka
https://www.lrgs.org.uk/sport

Sport

https://www.lrgs.org.uk/sport

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