The new Labour government has taken immediate steps to stamp their mark on the UK schools.

VAT on independent school fees

All education services and vocational training supplied by a private school, or a connected person, for a charge will be subject to VAT at the standard rate of 20%. Boarding services provided by a private school will also be subject to VAT at 20%.

This is likely to be introduced from 1 January 2025.

Some independent schools are intending to pass the entire cost on to parents whilst others have announced that they will shoulder some of the increase with an aim to keep the fees affordable for parents.

The government hopes that this will raise £1.7 billion for treasury coffers, though this needs to be balanced by the cost of pupils returning to the state sector due to private schools closing or children being withdrawn from the private sector.   Private schools currently educate around 7% of school-age children across the UK.

Removal of one-word OFSTED ratings

Labour are also removing the one-word OFSTED rating summary – Outstanding, Good, Requires Improvement or Inadequate – in favour of what they describe as a “more nuanced report card”.

There is probably a lot of sense in this as families do get tied up with OFSTED ratings – often out-of-date – without looking to balance a school’s strengths and weaknesses in relation to the aptitudes and interests of their children.

EeHowever, it should be stressed that OFSTED will still be visiting and monitoring schools.