Election - how soon for VAT on school fees?

[Labtastic]

So I see we're likely to have an election in early July. Obviously that spells the end of the godawful tories which is great, but also hastens the incoming VAT on school fees which, for us, is bad. We are one of those families that no one believes exists who stretch ourselves with school fees, and are going to be very pushed for an extra 20%.

Question is - do we think Labour can make this happen in time for September? It'll be our DC's last year of fee paid education and was hoping the timeline for VAT coming in would be stretched out a bit...

Our school has just put out an email within last hour to confirm if VAT is brought in then they will immediately cease all bursaries for new starters.
30% of the DC at the school are on bursaries according to last year's accounts. They will honour those but no new awards from September 2024.
They are also looking at their fee structure and more info will follow before Sept 2024

Agree. It doesn’t affect the rich. It affects those already making financial sacrifices.

It wasn’t necessary to be quite so rude.
Many people who will be priced out of paying for independent schools have chosen to send their DCs there because the state education setting may not suit them.

The charitable status of independent schools is questionable, but using the VAT from fees to channel into state schools won’t solve the problem as that money won’t be extra funding when independent school children whose parents have been priced out, are displaced into state schools that to not have the capacity or resources to take them.

Legislation has to go through parliament, I strongly doubt they'll dedicate their first few weeks to pushing this through! My best guess is September 2025 at the earliest!

This is precisely why this policy is an ill thought out one. There are many consequences which people haven’t thought through. Too many people think that this VAT is a “tax on the rich”. In reality, the ultra wealthy people won’t care. It’s hard working families who will feel it most.

Our schools have previously said they think it will be Apr 25 at the earliest and both appear to be indicting it will be passed on in full to parents.

Wow - well there you go! And many more will follow suit.

Crikey. I can totally understand why they are saying that though. A school has to be financially viable. It’s a crying shame that those families who often stand to benefit most from an excellent education will now not be able to access it. Hard working families will be hit. The ultra wealthy won’t be affected at all.

Well yes of course they will. This is what we have been trying to tell people on here for months, that the families which will get hit are the lower income ones.
We have been called scaremongering etc but it was quite obvious that this would happen

Of course it was obvious. Well, it was obvious to those with even a slight understanding of the economics. It was also obvious that grammar schools would face an increase in applications, pushing out other families. That’s already happening.

I think ( and hoping) they are going to kick it in to the long grass.

Labour have really tried to create a 'them V us' situation and knew people would chomp at the bit for this.

Luckily one dd goes to state secondary this year ( which I had to appeal and sit in front of a panel board to get her in to as all the places went kids from feeder schools) so we’d be able to manage the others rise in fees - however I know many people with 2/3 kids and they will have to leave. Which will put a burden on the local state primaries ( which are only small) and then the parents who voted Labour will winge about class sizes.

The state schools are already full, when the class sizes reach max they can turn away kids on solid grounds. Kids from private schools are at the back of a very long list of priority places.

This is going to cause havoc and I’m bloody hoping that someone in Labour is intelligent enough to recognise this.

It's pretty straightforward. Doesn't need legislation. It just announced in the budget. VAT changes can either take place immediately, at the state level of the next fiscal year (April 2025) or on a date of the governments choosing.

Meanwhile there will be people on here wringing their hands gleefully at the thought of all of these rich kids suffering by having to leave their schools.

I will vote Labour but I don't believe in this policy. I was a free school meals kid with a single parent and it was only through a government assisted place and a scholarship that I went to an independent school. It really helped me and I have worked very hard to have enough money to put my son into a private secondary school. He has Asperger's and a small nurturing school has made all the difference to his mental health. It is not the Etonians who will be affected if Labour bring in this policy.

I don’t believe Labour will actually do it, but if they are foolish enough to they will probably pave the way to Conservatives to stay in power.

I think people realise this. Of course it will be families who can't afford the 20% who will be hit.
But there are so many lower income families who could only dream of sending their children to private schools. You need to reach out to them if you want to stop this going through.

A friend of mine gets a bursary for her dd based on athletic ability. She can easily pay the full fees so bursaries are not necessarily based on financial hardship.

I never thought I'd ever have to deal with this issue, but we're relocating in August and moving DD just before GCSEs. The schools we visited didn't have space, the council can't tell us where we'll be allocated until we move and DD just wouldn't cope with that, she needs certainty and calm. So we're paying for 2 years of private school, to get her through her GCSEs in an environment she can hopefully thrive in.
I've planned for needing 20% extra next year, though the school have said people can pay a few years in advance to get around it, but we can only afford to pay monthly.

Scholarship probably. Bursaries are usually based on financial need, and means tested.

Yes I agree with this. Our girls go to a prep and dd did extremely well in her CEMS, but the grammar we have spent years thinking she would go to have raised their entry level really high and only take the top 2% 😯

Yep it won’t be a bursary - unless she is hiding money. The financial checking is brutal and has to be done every year

Yes it won't stop me voting labour, though we're in a safe Tory seat. Annoying as we're moving to an area labour have a good chance of getting back after losing it in the fall of the red wall last time around. I was looking forward to feeling like my vote made a difference!

It all depends on what they announce. Tax legislation is different to most other legislation. They can announce that VAT will apply from August/September if they want, then they have until April 2025 to get the legislation through the Commons (Commons only as finance).

So it depends what their policy is. And what they announce.

I don't disagree with the policy but think it should never have been zero tax in the first place. I think there will be lots of unintended consequences with this policy. If they could gradually introduce it might lesson the pain. Lots of private schools locally have huge numbers of bursary students. I can't see that continuing. The real issue is the disparity in state school education. I would introduce lottery allocation for schools and no sibling policies to be fair to all.

It’s not the fault of private schools that the State schools are in a shambles. It’s nothing more than spite/green eyed monster to agree with this policy