The results are in, and it’s a landslide for Labour. That means ploughing ahead with their key manifesto promises, including a newly introduced tax that will be of interest to anyone with children in education right now.
That’s the private school tax, a VAT charge on school fees for private schooling. With VAT currently at 20%, that’s quite a hike. We won’t delve into the politics of this. After the election, there are plenty of political commentators who can pick up that job.
But we did want to offer some guidance to parents who feel stuck about what school to choose for their child. Not all parents choose private schools because it’s an easily affordable expense. For some, it’s a stretch, and it’s about rearranging a tight household budget to put educational spending at the top. It’s those families who might now feel cornered about the education decision they need to make for their child.
The New Tax: What We Know
Here are three facts about the tax that you may or may not know:
- Many schools will pass this fee increase on to parents, and many private schools have already told parents this. The impact of VAT will vary widely among private schools, depending on their financial reserves, funding models, and student demographics.
- Labour currently says they will introduce this in 2025. That means the fee increase will most likely be noticeable for most schools at the start of the September school year in 2025.
- Don’t ignore inflation. Inflation is still relatively high, and schools frequently increase their fees annually. That will be a separate rise to new taxes. Bear this in mind if you are looking two or three years ahead at private school options.
On the plus side, this information provides some clarity. Private schools typically publish their fees, so you will find it easy to estimate future costs. Only your family will know whether or not it’s within your budget. On the downside, 20% isn’t an insignificant amount. If it’s not in your budget, it means you should start planning school alternatives sooner rather than later. Let’s now examine some of those options.
Option 1: Applying for a Bursary at a Private School
Bursaries have long been a feature of private schools, offering means-tested financial assistance to families who want to send their child but cannot afford the full tuition fee.
It’s possible (but not provable) that bursaries may increase at some private schools. That could happen if schools see enrolment numbers drop and choose to keep those numbers high instead of trying to cut costs. Cutting costs could mean letting teaching staff go, which no school wants to do.
The only way to find out about bursaries is to approach private schools and ask. They will be able to tell you what’s available, how to apply, and any means-tested criteria. Expect to complete an application form where you will have to provide financial information to prove you meet their criteria, including proof of income. Your child will also need to take their entrance exams, which for most schools are 11+ and 13+, though more competitive schools also offer earlier tests, including 7+ and 8+.
You’ll also need to meet their application deadline. So, our best advice is to shortlist private schools that are close enough for you to consider for your child and write down all the deadline dates on a spreadsheet. Work backwards from those dates and keep track of them.
Option 2: Apply for a Scholarship
If your child has a talent or a passion they can nurture, you could explore the possibility of applying for a scholarship. Scholarships are based on merit, and schools will keep a list of available scholarships. You’ll often see music, sport and academic excellence on that list. Sometimes, you’ll see other skills like art and drama.
It goes without saying that it’s highly competitive, and some children applying for these scholarships will demonstrate exceptional talent beyond their peers. However, there are financial benefits. Many schools offer a discount on fees ranging from a small percentage to a substantial amount, and in some cases, they may provide a full scholarship that covers all the fees.
Schools will have criteria and application forms on their website. Make sure you read these thoroughly and note the deadlines. You should also bear in mind that the requirements are a minimum, and your child may be competing against children who are more advanced. Music is a good example. If the scholarship criteria is an ABRSM grade 4, some children may play at grades 5, 6 or even higher. You’ll also find that the minimum standards vary greatly depending on the school.
It’s also worth noting the extra pressure that comes with applying for scholarships and whether your child is ready for the application process. For example, artistic awards like music and drama will come with a live audition. And academic awards will have a challenging maths and English paper to sit. Consider your child’s resilience to pressured situations and whether you feel they could cope well with the process.
However, scholarships offer more than a discount on the tuition fees. They come with prestige. A scholarship student may be invited to special events at the school for their subject, so if your child has a massive passion for their skill and wants to pursue it as a career, it’s a valuable stepping stone.
Option 3: A Grammar School
Grammar schools are still showcasing their prowess in education. They offer academic rigour and the chance for your child to sit in classes that will challenge even the brightest child. The selection process might offer these schools an academic advantage when you compare them to non-selective secondaries. Still, they follow this up and often rank high in national rankings, and the vast majority offer a good or outstanding Ofsted rating.
The good news is that grammar schools are free. There are two caveats. They aren’t everywhere in England, so you’ll need to find one that’s a realistic commute. Famously, they are highly selective, and the 11+ entrance exams are tough going for most kids.
Given Labour’s introduction of VAT on tuition fees, it’s also likely that grammar school places will become even more competitive. That means many children will need some prep, even those who are naturally bright and at the top of their class. Even familiarity with the question format can help with preparation because, at that age, few children will have sat a formal exam before.
Grammar schools also have a deadline, and that’s another date to add to your calendar. Test days are typically held in the late summer before the start of year six or early autumn. Different grammars have slightly different score criteria; some top schools will be more competitive than others. So it’s always worth entering your child into the exam for several nearby schools because if they don’t secure a place in one, they may still secure a place in another.
Making the Choice
It’s never easy to make a decision about schooling for your child. We all have our personal experiences of school years, good or bad, but each of us was shaped by that time in our lives. Of course, you want to get this decision right. When weighing the options, you have to look at several factors.
First, your budget, not only now but your capacity for paying part of these fees when your child gets into the upper years (which often come with higher fees). You’ll need to think about the pressure on your child and whether you feel they can cope with entrance exams or scholarship auditions.
You’ll also need to think about your location. If you aren’t planning on moving, ask yourself whether your child’s commute is realistic. If they take the bus, check the timetable to see how long it will take. A long day could lead to an exhausted child lacking the energy for homework and hobbies. Alternatively, are you prepared to move? Remember that anywhere good free schools exist, house prices follow. Is that a cost you can bear?
There is no easy answer, but we’ll leave you with one final thought. Go into this school search with an open mind. Visit the open days, speak to pupils, check out the facilities and read the official reports. Research is your secret weapon. And the more you do, the closer you’ll be to finding the right school.
PS. Before you go, we’d be remiss if we didn’t mention Smarty Panthers’ preparation workbooks. We designed our story-based maths and English books to offer pressure-free summer prep. Get yours today.
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