Private school fee taxation and the education landscape

Will the changes affect you?

Until now the fees for private schools, also known as independent schools, have been exempt from VAT (value-added tax). The government has recently announced that private school fees will be taxed from the start of 2025. Combining potentially higher school fees with the current higher cost of living could cause more families to consider alternative education.

The change to private school fee taxation

From 1st January 2025, the government will change the tax relief of all organisations that provide education. This means the standard rate of VAT (20%) will be added to all private school fees from this date forward.

The change has been brought about to better invest in state education. Ending tax breaks on private schools will raise much-needed funds for public services including improving education.

While it’s not a given that all independent schools will raise their school fees by 20% there is a strong possibility of school fees increasing making private education unaffordable for more families.

If your child attends an independent school or if you are planning to send your child to an independent school it is worthwhile checking the school’s approach to the tax change. Each school has the power to decide whether to raise school fees or not and by how much.

Child writing notes during his school lesson

Will private school taxation have a knock on effect on state-funded grammar schools?

There is currently speculation in the press that this change in taxation will lead to even more people applying for selective grammar schools.

State-funded grammar schools

Grammar schools are selective secondary schools that exist in some parts of the country. Children have to pass the 11 Plus exam or a similar entrance test, to gain a place. On average, grammar schools in the UK receive around 6 to 10 applications per place, though this can vary widely depending on the location and reputation of the school. In more competitive areas, such as parts of London and the South East, the number of applicants per place can exceed 10 to 15 applicants for each available spot.

If you believe grammar school is the right route for your child, then Explore Learning's carefully crafted 11 Plus tuition can get you there. Find out all you need to know in our grammar school guide and the entry requirements for your local schools in our comprehensive school finder tool.

Public or state schools

Private and grammar schools are not the only route to helping your child reach their full potential. Tuition is a way many families find they can boost their child's education.

Explore Learning tuition is highly effective as a complement to a child’s state school education. It’s an affordable way to bridge the gap with personalised, adaptive learning. We focus on a child’s individual needs, build confidence, resilience and academic progress that helps them to reach their full potential.

Other schooling alternatives

Beyond the main alternatives of state schools and grammar schools are other high quality educational options like Montessori, Waldorf, Forest or Online schools, homeschooling and micro-schools.