We are continuing to explore the impact of VAT on UK private school admissions. The legal challenge to the government’s policy of adding VAT to private school fees, brought by three independent families, was dismissed by three High Court judges last week. Lawyers acting for families and private schools at the judicial review hearing had made the case that the government’s policy was discriminatory and in breach of human rights law. The Independent Schools Council (ISC), which supported some of the families, said it was reflecting on the next steps.
Sophie Kemp, a judicial review expert, from the law firm Kingsley Napley, which represented some of the families, said it was a “disappointing decision” but that it had been important to challenge the government’s policy. She added that “the court felt that it was not able to interfere because of the leeway it must give to Parliament.”
There is no doubt that private school admissions have fallen as a result of the government’s policy. Abercorn School in St John’s Wood, London, closed last year. The Village School for Girls in Hampstead, London, will close it doors for the last time in July 2025. The Village cites financial pressures, including the impact of VAT on school fees and increased National Insurance contributions, as some of the reasons prompting its closure. Amherst School, formerly Our Lady’s Convent School in Loughborough, Leicestershire, will close in 2025, stating that financial pressures and falling pupil numbers have contributed to this decision.
At Lumos Education, we have noted an increase in families moving from the private to the state school sector. We’ve received enquiries from more families looking for support with grammar school applications. We’ve also had more clients requesting help with applying for bursaries and scholarships at private schools. Several families have enquired about the French school system in London. Some French schools are subsidised by the French government, and, thus, have lower fees. We advise families on the state schools similar to private schools in London and throughout the UK. Some local authorities, such as Surrey, have told us that they are struggling to find enough places for the private school pupils flooding the state school system.
At Lumos Education, we explored the impact three months after VAT was added. The full implication of adding VAT to private school fees won’t be seen for several years. However, since January 2025, when policy was introduced, we have seen some smaller private schools closing. It will be interesting to see the impact on the state school sector, and how it copes with the influx of children from private schools.
