The Government has announced its intention to apply 20 per cent VAT to private school fees across the UK from January.
Draft VAT legislation has been released and a public consultation has opened until 15 September. Full details can be found here: VAT on Private School Fees & Removing the Charitable Rates Relief for Private Schools – GOV.UK (www.gov.uk)
We know some Army families have concerns about how this change might affect their children’s education.
We are raising your questions with the Ministry of Defence (MOD), but at this point – while the legislation is under consultation – there is limited information available. We are stressing the importance of urgent answers for Service personnel and their families, particularly those overseas or who have an overseas posting coming up, and those with children in critical exam years.
We have an extensive enquiries database, which is fully data protection compliant, on which we will record any information you choose to share with us. We will draw on this data for AFF’s submission to the consultation.
Will Armed Forces families be exempt from paying VAT?
The draft policy only notes that the Government will closely monitor the impact for those Service personnel who claim Continuity of Education Allowance (CEA) and states that the upcoming spending review is the right time to consider any changes to the scheme.
My children are at a state boarding school will they be exempt?
The draft policy notes that education and boarding provided by the state will be exempt from VAT.
2.12 Education and boarding provided by state schools (including academies) are not affected by this policy change, meaning they will continue to be exempt from VAT. This reflects the fact that state schools and academies will continue to be “eligible bodies.”
I am claiming Continuity of Education Allowance, will this increase?
Continuity of Education Allowance (CEA) is reviewed annually by the MOD, normally around 1 August each year. When they calculate the rate, they look at the average fee increases across a percentage of schools, to help determine how much CEA will increase that year. We do not know if the MOD will do an additional or earlier recalculation; we are encouraging them to do so.
How much extra will I have to pay?
Schools may approach the application of VAT in different ways. The policy is still draft legislation and open to consultation, so schools may not be able to answer all your questions, but speaking to your school finance department to find out how they plan to address this is a first step.
What is AFF doing?
We have been raising your concerns with the MOD and working with organisations like the Independent Schools Council, the Boarding Schools’ Association and the other families federations to highlight the importance of a stable educational experience for Service children, and the role independent schools can play in this.
AFF will be making a formal a submission to the consultation about the impact this draft policy will have on some Army families.
We would like to thank Army families who have submitted their evidence to us on the impact VAT on private school fees will have on you.
Your evidence will help us to submit a detailed consultation response and aid in our continuing discussions with stakeholders and the Government.
We used your evidence and wrote to the House of Lords to highlight the unique challenges this policy will have on Army families to inform their debate on 5 September.
If you would like to contact us, please email moneysupport@aff.org.uk
POSTED ON 6 AUGUST 2024
UPDATED ON 5 SEPTEMBER 2024
Comments
Very poor timing , our daughter is just starting her GCSE course and we only have the option to leave until Sept 20th the full amount will be passed onto parents,all the decent schools and grammar schools are full usually from reception class or year 7 and as ever military children who are mid year movers are given whatever places are left, usually at schools no one else wants to send their child to. A 20% increase on top of the 10% already paid is unaffordable for most service families must be protected as we do not have the luxury of stability in one area we need to move our children do not! They deserve better. Children with SEND do not really benefit from this at all as often the boarding necessity is not adequate for children with SEND , these children need stability the most, often with additional support needed and medical care, what provision can be in place to support these children and shield them from the frequent moves
5 years, 3 schools in Northwood, Plymouth and London areas. A 4th in 12 months time. CEA is an option, but my wife wants her own career and why should we have to choose to give up our children to a boarding school! Independent school is the only option throughout – given the completion for places in the state sector at less than 4 months notice each time of the move – it’s hard enough to get quality SFA. Education is continually disrupted, so we need access to good schools at short notice than only the independent sector can really provide. Additional cost – £6k per annum for 2 children is the entire holiday budget and then some. Independent school becomes unaffordable as does a military career. Car 10 years old and counting. Not feeling like a middle class professional.
For a single parent, on a single income with zero other financial support from the government other than their salary, posted every 18 months – 2 years, CEA will be critical for allowing a child a sense of stability. It also allows the service person to continue putting service before self, which I am consistently reminded is my duty on a regular basis. However without an increase in CEA, I will be done with service .
It’s really simple. I use independent boarding schools BECAUSE I’m a government employee. If the government want to increase the fees I expect them to meet that cost or exempt me from it. If they don’t, I will pursue private employment to secure a considerably better private salary in order to deliver ongoing continuity for my child’s education now I have committed to this delivery model.
The impact of repeated school moves on my daughter was clear in both attainment, progress and social development. It has take 3 years of independent schooling to catch up (noting that still puts her behind where she would have been from a stable foundation.
The guilt I feel for that impact of massive.
Well said, family first, service second, the “offer” or lack of l, now makes service just a job, not a career or way if life now.