How much VAT is being passed on?

[VATponderer]

I’m interested to hear how much of the VAT is being passed to parents to pay. At our school (in Scotland) they’ve confirmed the fees will rise 20% in January to cover both VAT and increase in National Insurance.

If your school has confirmed they are passing on less than 20%, what % are they going with and how are they making up the shortfall?

I need to understand more about what our school has investigated in terms of cost savings. There’s no big cash reserves to subsidise it so it would need to come significant spending cuts. And of course that then would impact the education our kids would receive (eg less specialist teachers).

Interested to hear how other schools are managing it.

@FloralGums what has whether or not I tithe have to do with it? Spending money on school fees has nothing to do with it

Also in Scotland and haven’t heard yet but expect to soon, next terms fees are due in less than a month. They have informed us that they have brought in external advisers to help navigate.

We had an 8% rises in August which had been set prior to the announcement that VAT would start in Jan. It was more than usual and made me wonder if they were aiming for ‘just a VAT rise’ in Aug 25 but now we are going to get a double whammy in one year.

Our school has confirmed a 17% rise from January. However, the annual fee increase this year was 12% rather than the usual 8%, so they're clearly making up some of the difference that way too. Doesn't really impact us, but I feel for the families whose finances are a bit tighter, it's a big difference to cover.

Just got January invoice through, plus 20%. Approx £30k per year. Will be looking at local 6th form colleges post GCSE.

Ours have just released that they are absorbing 5.5% of the costs.

17% passed on in our school. Fortunately my dad paid the fees in advance and this was done long before labour even started the election campaign so we aren't affected. Our school is full as people have moved from other schools that have closed or were more expensive.
having experienced my girls school closing in the lent term of my GCSE year I really feel for people going through school closures and uncertainty for their school's future, it's horrible.

Just been confirmed that it's going to be 18%.

Thanks all for sharing. It’s been good to see how it varies school to school. I keep hoping for a last minute reprieve but not holding out much hope.

Ours said 15% but that was back in the summer. They have not mentioned it again since. There are no big capital build costs to claim back.

13% net increase here by reducing the fees and the adding the VAT.

That is for spring and the summer term and then back to normal fee increases from then.

Not our current school as we're looking for the future, but just shy of 10% for a large yorkshire all through school.

They then state there will be 2 years of higher annual increases up to 7.5% before back to normal.

Ours are actually reducing fees and then adding VAT in order to keep things affordable. Tight few years ahead for the business though.

I’m associated with two schools - one is 12% and the other is adding 20% but reducing fees by 3%.

Very concerning for schools that made commitments before the NI increase was added!!

We had 13% increase this school year staggered across the year and a further 10% announced in September 2025, which is 23% in total. The previous year fees had gone up 6% (so by September 2005 it will have been 29% increase since July 2023), but prior to that fees hadn’t gone up at all since 2019.

I meant 2025 not 2005!!

I agree - back at the beginning of the school year, DC school had announced 7.5% from Jan 2025, then some larger amount from Sept 2025. But now there is this extra burden. Not sure how they will adjust, or even if they can (having made the commitment, I mean).

9.5% increase here on fees but 20% on school meals which the school didn’t realise was happening until now.

Have heard of schools announcing few freezes for the next few years this week.
Any one heard of more mergers or schools being bought by schools groups?

Ashfold Prep is joining the Stowe Group.

Concerning, with everything else in the budget including NI rise, how much cost cutting will have to be done if they are to reduce the VAT pass-on and standard fee rate (I also as a parent would be annoyed if a school, and I've seen loads, suddenly reduce the fees from what was stated for September). Im sure teachers' salaries and supportive staff salaries and hours will be cut though to do this. Im intrigued what will happen (probably a net negative outcome I fear)

Our school have slightly reduced fees and so softening the impact of VAT but I am surprised by the 20% VAT on school lunches - I don't read the guidance that way? We have always paid a separate fee for lunches.

Are other schools also putting 20% on lunches?

But breakfast club remains VAT free 🤔

@schoolfeeslave I have no idea, they way the letter reads from the school is that VAT is to be added to the school lunches and they have in fact done this from January 😬 We also pay lunches separately, however, they are now adding this to the school fees to be included within the monthly direct debit.

Hmm - I wonder whether it is all schools or our schools being extra cautious?

I will now be spending more on my DC's lunches per day than my trip to pret/itsu 😂

🤣 oh yes and there’ll be trouble if they come home and say they didn’t eat it