Foreign, Commonwealth and Development Office: Private Education
The question
To ask the Secretary of State for Foreign, Commonwealth and Development Affairs, pursuant to the Answer of 30 July 2024 on Question 1266, what recent estimate he has made of the potential impact of the introduction of VAT on private school fees on his Department's budget for (a) 2024-25 and (b) 2025-26.
Answered by Catherine West
From 1 January 2025, VAT will be charged on private school fees at 20 percent. We have contacted the schools to ask how they intend to implement the introduction of VAT, but we do not yet have a full picture. Based on an assumption of how schools might apply the increase to parents and the impact on fees, we expect that the increased cost to the FCDO could be around an additional £1 million for 24/25 and £2.5 million in 25/26. The FCDO will continue to assess the longer-term financial impact.
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