The Labour government imposed 20 per cent VAT on top of fees from January 2025 after private schools had previously been exempt from the tax.
Concerns were raised in York at the time of the announcement that the move would put extra pressure on the city’s state schools which could face an influx of pupils.
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Latest Department for Education figures show that the number of pupils in private schools in England has fallen to the lowest point in at least a decade, with more than 22,000 fewer pupils in independent schools in January compared with the same point last year.
The number has decreased by 3.8 per cent from 582,477 in 2025 to 560,255 – the lowest figure in at least 10 years. It is the second consecutive year the number has dropped.
York private school St Peter’s speaks out on VAT on fees – the school has survived and adapted over nearly 1,400 years. (Image: Submitted)
Jeremy Walker is head master at St Peter’s School in Clifton, York, which has pupils from nursery through to sixth form. Founded in AD 627 by St Paulinus, alongside York Minster, the school will be celebrating 1,400 years of history next year.
Mr Walker said: “The impact of VAT on independent school fees has clearly had far more impact on pupils leaving the sector than the government forecast.
“St Peter’s is fortunate in being in a very strong position but no school is immune from the challenges and, while there are no easy decisions in such matters, we have realised a significant amount of cost savings in response.
“Our 1400th anniversary next year is a timely reminder that St Peter’s has adapted to changing circumstances over many centuries and we are very grateful to all our wonderful staff and supportive parents.”
Newly published admissions data for England showed there had been no influx towards state schools since the VAT change, with education secretary, Bridget Phillipson, saying it had failed to trigger an exodus of pupils into state schools.
Elsewhere in the country, a group of private schools, pupils and parents are to take their legal challenge over the introduction of VAT on to school fees to the Supreme Court.
Several schools, children who attend them, and their parents, previously brought legal action against the Treasury, claiming the policy of imposing the 20 per cent tax is incompatible with human rights law.
Three judges dismissed the High Court challenge last June.
The schools, children and parents then appealed, telling judges in January that the addition of VAT would render the schools “unviable”.
However, the Court of Appeal dismissed the challenge in February, and the group of schools and families later said they would make a bid to go to the Supreme Court.
In a decision late last month, Supreme Court justices Lords Reed, Hamblen and Richards ruled the challenge could be heard at the UK’s highest court.
No date for the hearing has been set.
Andrea Williams, chief executive of the Christian Legal Centre which is supporting the case, said: “At its heart, this challenge is about whether the state can impose a blanket policy that disproportionately harms families who are simply seeking to educate their children in accordance with their Christian faith.
“This is about fairness, freedom, and ensuring that the power of the state is exercised within proper limits.”
The VAT addition was a Labour manifesto pledge during the 2024 general election, with money raised to be invested in hiring another 6,500 teachers by the end of this parliament.
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