Labour’s latest tax raid on private schools is already backfiring spectacularly, as thousands of British families are priced out of private education while the ultra-wealthy carry on undeterred.
From today, January 1, private schools across the country are hiking their fees—some by as much as 20 per cent—to cover the new VAT slapped on by Keir Starmer’s Labour government.
But instead of levelling the playing field, this move has made private education the preserve of billionaires, Russian oligarchs, and wealthy Chinese parents.
And the fallout is hitting hard at home. Thousands of middle-income families who scrimped and saved to afford private school fees are now forced to pull their children out, while state schools, already stretched to breaking point, are left to pick up the pieces.
State Schools Buckling Under Pressure
Labour claimed the VAT hike—meant to fund more teachers and boost the state sector—would only raise fees by 10 per cent on average. But a shocking analysis by the Telegraph shows that fees at hundreds of schools have risen by an average of 14 per cent, with many prestigious institutions passing on the full 20 per cent hike.
For parents, that means an extra £2,600 a year on day fees, taking the annual bill to a staggering £21,800. Boarding fees are now averaging £63,300 per year, pushing private education further out of reach for ordinary families.
Take Eton College, which educated the Prince of Wales. Fees there have ballooned from £46,296 a year in 2022 to an eye-watering £63,300 today—a 37 per cent increase in just two years.
Meanwhile, Harrow and Marlborough (where Kate Middleton went to school), which now charge close to £60,000 a year, are also outpacing the average household income.
“A Disgraceful Tax on Aspiration”
Parents aren’t the only ones fuming. Critics have slammed the VAT raid as a misguided attack on the one part of the education system that works.
Laura Trott, the Conservative shadow education secretary, said:
“This rise in VAT will do nothing to help state schools. The Labour Government is disrupting thousands of children’s education vindictively in the middle of the school year, and all it will do is add pressure to an already overstretched system.”
Nigel Farage, leader of Reform UK, went even further, branding the move “a disgraceful tax on aspiration.”
He added: “Labour are attacking the one part of the education system that works. This is short-sighted, damaging, and it will harm children.”
A Numbers Game Labour Can’t Win
Labour said their VAT hike was meant to rake in £1.7 billion a year to fund 6,500 new teachers, mental health support, and careers advice in state schools. But critics have rubbished the numbers, pointing out that hiring those teachers alone would cost £5 billion a year, leaving a massive funding gap.
And that’s not all. Labour’s next assault on private schools—scrapping their business rates relief—will come into force in April, threatening to force smaller schools to shut their doors for good.
The result? Thousands of children flooding into state schools at a time when councils are already struggling to cope. Official estimates suggested 3,000 pupils would leave private education in the 2024–25 academic year. Yet between June and September alone, 5,500 students were pulled out, with even more expected to follow.
Julie Robinson, chief executive of the Independent Schools Council, called the policy a disaster, warning:
“Thousands of children will have their education disrupted due to this unprecedented tax on education. Schools are already closing, and the money Labour promised won’t materialise. This is wilful damage that will benefit no one.”
Elitism Entrenched
Labour claimed their VAT raid would level the playing field, but all it’s done is make private education more elitist than ever. Wealthy families from China and Russia are still snapping up places at Britain’s top schools, while ordinary British parents are priced out.
So, what’s the real legacy of this policy? An overstretched state sector, families in turmoil, and private education that’s now the exclusive domain of the super-rich.
Well done, Labour. Your tax raid hasn’t just missed the mark—it’s made inequality worse and left British families paying the price.
