Private Education: VAT
The question
To ask the Chancellor of the Exchequer, pursuant to the Answer of 14 October 2024 to Questions 7840, 7842 and 7843 on Armed Forces: Private Education, whether she has made an estimate of the cost to the public purse of exempting from VAT the fees paid by children educated in private settings through the Continuity of Education Allowance.
Answered by James Murray
On 29 July, the Government announced that, as of 1 January 2025, all education services and vocational training provided by a private school in the UK for a charge will be subject to VAT at the standard rate of 20 per cent. This will also apply to the fees paid by parents in receipt of the Continuity of Education Allowance.
Recognising the enormous sacrifices our military families make, the Ministry of Defence provide the Continuity of Education Allowance (CEA) to eligible Service Personnel. The government will monitor closely the impact of these policy changes on affected military families and the ongoing Spending Review is the right time to consider any changes to this scheme.
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