Group of 1,400 Private Schools Launches Legal Action Over Fees VAT

Lawyers acting for independent schools claim the government is in breach of the human rights act in its decision to impose VAT on fees.
Group of 1,400 Private Schools Launches Legal Action Over Fees VAT
File photo of school children during class at a primary school in the UK on Nov. 27, 2019. Danny Lawson/PA Wire
Rachel Roberts
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A group representing more than 1,400 private schools will launch legal action against the government’s decision to apply VAT to independent school fees.

The Independent Schools Council (ISC), an umbrella body for seven associations representing private schools in the UK and abroad, said its board has voted in favour of the legal challenge on Thursday and a pre-action letter will be issued to the government shortly.

The action was announced after Chancellor Rachel Reeves confirmed plans to impose the additional 20 percent tax on school fees from January in Wednesday’s Budget.

The government has estimated the policy will raise £460 million next year, rising to £1.7 billion by 2029-2030, which it says it will use to raise standards in state schools by recruiting an additional 6,500 teachers, while some of the money will go towards breakfast clubs and the creation of 3,000 nurseries.

Opponents of the policy have accused Labour of waging class war, while others point out it could lead to parents who can only just afford the fees to turn to the state sector—leading to a surge in competition for places, especially at highly rated comprehensives.

Special Needs Schools

Others have raised concerns about the number of children with special needs who attend specialist private schools who may be forced to go to state schools which do not offer the same level of support.

Some headteachers have said their school could face closure because of the policy, especially smaller and less expensive establishments, including religious schools. A group of three Christian schools has launched its own legal challenge under the human rights act, because they argue they are being discriminated against.

Julie Robinson, chief executive of ISC, said in a press release: “This is a decision that has not been taken lightly and has been under consideration for many months.

“At all points throughout this debate, our focus has been on the children in our schools who would be negatively impacted by this policy.

“This focus remains and we will be defending the rights of families who have chosen independent education, but who may no longer be able to do so as a direct result of an unprecedented education tax.”

On average, the government expects private school fees to increase by around 10 percent as a result of the introduction of VAT, according to a policy paper released on Wednesday.

6 Percent Could Leave

The government has predicted that 35,000 private school pupils will move into the state system “in the long-term steady state” after the VAT is introduced in January.

Another 2,000 children, consisting of international pupils who are likely to move to schools abroad, and domestic pupils who will move into homeschooling, are expected to leave the UK’s private sector.

A total of 37,000 pupils leaving or never entering the sector equates to around 6.67 percent of the current private school population, according to government figures. The latest available figure puts the UK’s private school population at 554,253.

The government announced on Wednesday it will increase the funding allocated to the continuity of education allowance (CEA), which supports mobile military and diplomatic families with boarding school fees for their children, ahead of the imposition of VAT.

The announcement on CEA came after warnings from staff they might quit the armed forces if they were not given additional help ahead of the VAT changes.

But the ISC remains concerned about the impact of the VAT policy on small faith schools, specialist arts and music provision, and on thousands of children with special educational needs and disabilities (SEND) in private schools.

Human Rights Act

Its legal case will focus around claims of alleged breaches of the European Convention on Human Rights and the Human Rights Act 1998.

It will be separate from other litigation but the ISC said it will liaise with these other third-party groups.

Labour had considered abolishing the charitable status enjoyed by 70 percent of private schools, but shelved this proposal this after concerns it would affect other fee-charging institutions, including universities.

In response to criticism of the policy, the government has argued that schools are free to reduce their fees so the overall amount paid by parents does not rise significantly, but some smaller fee-paying schools have said this is not possible.

Human rights barrister Lord David Pannick, KC, will lead the action for the ISC, working alongside Paul Luckhurst from Blackstone Chambers and legal firm Kingsley Napley.

Rachel Roberts
Rachel Roberts
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Rachel Roberts is a London-based journalist with a background in local then national news. She focuses on health and education stories and has a particular interest in vaccines and issues impacting children.