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Politics

Election - how soon for VAT on school fees?

502 replies

Labtastic · 22/05/2024 16:27

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...

OP posts:
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Another76543 · 22/05/2024 18:36

Pollipops1 · 22/05/2024 18:33

That’s £7k per year just in VAT for 2 children. A lot of private school parents don’t have a spare £7k a year splashing around.

But they have 35k spare for it?

Everyone has a tipping point. 2 years ago they might have been able to afford £30k. They might not be able to afford £42k with the VAT. £12k a year extra is quite a lot for some families!

twistyizzy · 22/05/2024 18:36

Pollipops1 · 22/05/2024 18:28

@Another76543 I don’t agree based on my experience.

As an example, assume fees were £15k 2 years ago. With 2 years of 8% increases means that those fees are now £17,500. Add the VAT on, that’s now £21k. The VAT becomes the tipping point.

I don’t understand how the additional 3.5k makes it completely unaffordable but the 17.5k doesn’t. Yes it may be the tipping point for renovations, saving more, retiring early, holidays etc but I don’t think it will impact the majority.

Because quite simply that is our tipping point. You can't keep squeezing and squeezing, eventually there becomes a point beyond which you simply can't make the finances work. The 20% is that tipping point for us.

modgepodge · 22/05/2024 18:37

Pollipops1 · 22/05/2024 18:28

@Another76543 I don’t agree based on my experience.

As an example, assume fees were £15k 2 years ago. With 2 years of 8% increases means that those fees are now £17,500. Add the VAT on, that’s now £21k. The VAT becomes the tipping point.

I don’t understand how the additional 3.5k makes it completely unaffordable but the 17.5k doesn’t. Yes it may be the tipping point for renovations, saving more, retiring early, holidays etc but I don’t think it will impact the majority.

I assume you think the same when nurseries put their fees up 10% and parents complain? ‘If they can find £1500 per month for childcare, why is an additional £150 a problem? I don’t understand why they can’t just suck it up?’

BritainDoesNotAppearToHaveTalent · 22/05/2024 18:38

@Wewelcomeyourfeedback the point being made about independent SEN provision is that it is paid for by Local Authorities who don’t have enough state provision. So it is not Mummy and Daddy who would need to “strive a bit more” it is the tax payer.

Another76543 · 22/05/2024 18:40

modgepodge · 22/05/2024 18:37

I assume you think the same when nurseries put their fees up 10% and parents complain? ‘If they can find £1500 per month for childcare, why is an additional £150 a problem? I don’t understand why they can’t just suck it up?’

Or mortgages. Well if you could afford £750 a month, you can afford £1100 per month. I’m not sure what’s difficult to understand that everyone has a tipping point where something becomes unaffordable.

Pollipops1 · 22/05/2024 18:41

Each pupil costs the state on average 8K per year. There are over 500,000 DC at private schools. If 5% leave that means that 25000 will need state education at a cost of £200 million.

Did you not read the below?

“An analysis published this week by the Education Policy Institute (Cruikshanks, 2024) shows that the total number of pupils in state-funded primary and secondary schools are projected to fall from a peak of 7.57 million in 2022/23 to 7.14 million in 2028/29 – a fall of 436,000.”

”It estimates that this will result in school funding in England falling from £42.7bn in 2024/25 to £41.6bn in 2029/30.”

Is 5% the forecast of who will leave? That’s really not very high is it?

Wewelcomeyourfeedback · 22/05/2024 18:42

‘I’m not bitter or upset my child is in a state school at all.’

Ditto. We chose not to, despite being able to afford it - even with VAT changes.
This belief that private parents have that anyone who could afford to would OF course send their kids to these privileged institutions is baffling to me. State schools are so much better, richer, more interesting in SO many ways.

SuperGreens · 22/05/2024 18:43

This will further entrench inequality and the class system. The wealthy landed gentry wont blink at it. The children that will have their education disrupted are the ones who parents are on the knife edge of being able to afford the fees, probably already heavily subsidised by scholarships. Or middle class SEN parents who are desperate and willing to make big sacrifices so their child stands a chance. It is the politics of envy and its utterly pathetic when there are so many real changes that could be made to reduce inequality. Living wages for a start, that the tax payer subsidises fulltime working people with tax credits/UC is disgraceful. Living standards in this country have plummeted in the last 20 years.

Charlie2121 · 22/05/2024 18:43

Wewelcomeyourfeedback · 22/05/2024 18:04

This 100 times over, in spades and with bells on!

The EU thought it unreasonable enough for them to make it illegal to charge VAT on private schools.

No other country in the world levies tax on education. How come if in your opinion it’s such an obvious move?

Labtastic · 22/05/2024 18:45

Wewelcomeyourfeedback · 22/05/2024 18:42

‘I’m not bitter or upset my child is in a state school at all.’

Ditto. We chose not to, despite being able to afford it - even with VAT changes.
This belief that private parents have that anyone who could afford to would OF course send their kids to these privileged institutions is baffling to me. State schools are so much better, richer, more interesting in SO many ways.

And how much did you pay for your house in the catchment of your richer, better and more interesting state school? Because in my experience the people who can afford to privately educate, but choose state, don't choose sink schools that are failing. And top state schools fuel little property booms all around them. But no one has a go at the people in their million pound houses that surround them while bleating on about how the state system is so "rich and interesting"

OP posts:
Pollipops1 · 22/05/2024 18:46

Or mortgages. Well if you could afford £750 a month, you can afford £1100 per month. I’m not sure what’s difficult to understand that everyone has a tipping point where something becomes unaffordable.

Mortgages & private school are not the same though? I can completely understand why someone may have absolutely stretched themselves to get a mortgage, took an income hit & then struggled with rate rises. I don’t think that example is the same as someone who has 35k spare for school fees but 7k sends them over the age. The vast majority of people who have a spare 35k for fees will have housing equity, other investments, family wealth etc.

Abby00079 · 22/05/2024 18:46

This argument of "well soon you wont be able to afford it and you'll be just like me" seems to suggest that they're OK with the super rich having it but just not anyone aspirational. All it does it create an even bigger divide between rich and poor. But so long as it's not politics of envy.

RoseAndRose · 22/05/2024 18:46

Pollipops1 · 22/05/2024 18:06

state schools will be OVERRUN’ …

This is definitely untrue as school numbers are falling due to birth rates.

They may well be "overrun" in some areas. It's most likely to occur in cities with higher population densities, where there really isn't an oversupply of places. Whilst being imperceptible in lower density/small town/rural areas.

Pollipops1 · 22/05/2024 18:48

And how much did you pay for your house in the catchment of your richer, better and more interesting state school? Because in my experience the people who can afford to privately educate, but choose state, don't choose sink schools that are failing. And top state schools fuel little property booms all around them. But no one has a go at the people in their million pound houses that surround them while bleating on about how the state system is so "rich and interesting"

I paid a lot although it’s the part of London I was born & raised in so would have lived here anyway. I don’t know many people who live in a cheap area but pay for private though tbf. Why would anyone deliberately chose a sink school though?

Pollipops1 · 22/05/2024 18:49

It's most likely to occur in cities with higher population densities, where there really isn't an oversupply of places. Whilst being imperceptible in lower density/small town/rural areas.

its defo a thing in London, don’t know re other cities. I’m sure the top 50 best state schools will be as popular as ever though.

Wewelcomeyourfeedback · 22/05/2024 18:50

Sorry, I’m in an ordinary street in an ordinary city with a mix of private and social housing and all of the secondaries are rated ‘good’. Not an outstanding amongst them.
And we moved here early in our careers when our salaries were average and not top % that they are now.
Try to understand - there are many ordinary people in the world, who hold values that aren’t changed by a change in fortune or income.

Charlie2121 · 22/05/2024 18:51

OnlyFoolsnMothers · 22/05/2024 18:13

I’m a swing voter btw! In no way is it embarrassing to think you pay for things properly in life.

I’m a massive net contributor. My household pays way over 100k income tax every year.

To suggest I don’t pay my way is beyond ridiculous.

ForlornLindtBear · 22/05/2024 18:51

Wewelcomeyourfeedback · 22/05/2024 18:42

‘I’m not bitter or upset my child is in a state school at all.’

Ditto. We chose not to, despite being able to afford it - even with VAT changes.
This belief that private parents have that anyone who could afford to would OF course send their kids to these privileged institutions is baffling to me. State schools are so much better, richer, more interesting in SO many ways.

Same here. It annoys me that you have to be jealous if you dare not be outraged by a mooted policy of a party that has not even been elected yet. The detail of the policy is not yet known. Thank goodness Sunak has now announced an election date and all the super-speculation can end soon. There are so many of these repetitive threads on VAT on school fees. On the scale of issues the country faces, no one is really that bothered about this single policy that may or may not happen- except for the minority of the minority who are directly impacted of course.

modgepodge · 22/05/2024 18:51

Pollipops1 · 22/05/2024 18:48

And how much did you pay for your house in the catchment of your richer, better and more interesting state school? Because in my experience the people who can afford to privately educate, but choose state, don't choose sink schools that are failing. And top state schools fuel little property booms all around them. But no one has a go at the people in their million pound houses that surround them while bleating on about how the state system is so "rich and interesting"

I paid a lot although it’s the part of London I was born & raised in so would have lived here anyway. I don’t know many people who live in a cheap area but pay for private though tbf. Why would anyone deliberately chose a sink school though?

That’s the point. No one chooses sink schools, the children who end up there do so out of necessity, because their parents can’t afford to live closer to the good schools! Equality at its finest.

Pollipops1 · 22/05/2024 18:51

This argument of "well soon you wont be able to afford it and you'll be just like me" seems to suggest that they're OK with the super rich having it but just not anyone aspirational. All it does it create an even bigger divide between rich and poor. But so long as it's not politics of envy.

But the responses to that argument seem to be “well it was ok when I was on that side but now I’m not you should be angry at the super rich & feel sorry for me”.

Pollipops1 · 22/05/2024 18:53

No one chooses sink schools, the children who end up there do so out of necessity, because their parents can’t afford to live closer to the good schools! Equality at its finest.

Who has argued all state schools are equal? I haven’t. It’s a bit odd that so many private school parents are now worried about dc in sink schools!

Wewelcomeyourfeedback · 22/05/2024 18:54

My kids are NOT in a ‘top’ state school. They’re in a completely run of the mill school, where they will flourish hopefully in what they enjoy, will be challenged because of the genuine competition provided with the diversity of that school and will leave it able to make their way in the real world.
This obsession private parents have with ‘top’ - what does that even mean? Why can’t your kid go to school with ordinary children from a mix of backgrounds- you can still use your money for extra curriculars, tutors, fancy holiday experiences if you want. It’s not all or nothing.

PurBal · 22/05/2024 18:54

i don’t think it will be this September. The sector are planning for it. Some schools will absorb. Others have been absorbing rising costs for too
long and won’t. Also talk about imposing VAT on boarding fees, so that’s an additional worry for schools with a significant boarding population. Schools will close, children will move into the state sector if cheaper independents don’t exist and people will lose their jobs (at our school there are 2 members of staff to every 3 students).

Pollipops1 · 22/05/2024 18:55

There’s so much hyperbole on these threads. I really can’t see many dc leaving the private sector as a result & expecting the majority of the population to be passionate and against the change is unrealistic.

Abby00079 · 22/05/2024 18:56

Pollipops1 · 22/05/2024 18:51

This argument of "well soon you wont be able to afford it and you'll be just like me" seems to suggest that they're OK with the super rich having it but just not anyone aspirational. All it does it create an even bigger divide between rich and poor. But so long as it's not politics of envy.

But the responses to that argument seem to be “well it was ok when I was on that side but now I’m not you should be angry at the super rich & feel sorry for me”.

Nobody is asking anyone to feel sorry for them- just pointing out that everyone seems happy to create a bigger class divide!

In reality what will we do - buy another home right next to the outstanding state school and reduce my hours so I'm not paying 45% tax, move abroad - not sure, but realistically it won't actually benefit anyone.