In the midst of a cost-of-living crisis, the repercussions on the ethnic minority families are stark. While parents are cutting costs on basics such as a cup of coffee from a new cafe, some have not taken a single holiday in the last half a decade, to save enough to provide for their children, especially their education, if possible in good and private schools in the UK. While one can argue, sending children to a private school in itself is a privilege few can afford, Asian parents argue for it, emphasising on the extra benefits and personal attention their children receive at such schools, for a wholesome personality development. Moreover top notch education for their children, has essentially been a key priority for the community.
A petition titled 'Stop Labour from adding 20% VAT to private school fees and forcing kids to change schools' has been initiated by a working family on Change.org. Signed by 117,000 parents so far, the campaign seeks to halt Labour's pledge to end the tax-exempt status of private education, which would result in a 20% VAT being added to private school fees. This policy change could potentially force thousands of students, like the petitioner's son, to leave the schools they currently attend and love.
Labour's proposal has sparked significant concern among many families who have made substantial sacrifices to afford private schooling. The petition argues that private schools are not merely "playgrounds of the wealthy" but serve a diverse range of students, including those with special education needs, students of particular faiths, and children from military families.The petition calls on supporters to urge Labour to reconsider their proposal and recognise the value of private schools. It advocates for an education policy that benefits all children and asks Labour to create a more inclusive and supportive educational framework.
The proposed VAT hike is feared to price out many families, compelling them to move their children to already crowded state schools. This influx of students would place additional strain on state schools and local authorities, which would need to find the necessary funds, space, and resources to accommodate them. Parents who currently pay school fees in addition to taxes for state education may now contribute to the public education burden, rather than alleviating it by opting for independent schools.
Shadow Chancellor Rachel Reeves indicated that there would be no return of the 45p tax rate or a cap on bankers’ bonuses, but significant taxes await working families who manage to send a child to private school, despite Sir Keir Starmer’s assurance of not increasing the burden on working people.
VAT on private school fees: a risky move, says 'Education Not Tax'
Critiquing Labour's proposal to add 20% VAT to private school fees, the website ‘Education Not Tax’ describes Labour’s plan as one that could significantly impact families and the education sector.
Loveena Tandon, with two children in private school in Year 11 and Year 9, shares the immense strain a proposed policy has placed on her family. Sharing her ordeal with Asian Voice, Tandon said she’s unable to buy a house in an area with good schools, she chose private education despite the significant financial burden. This policy has caused her sleepless nights, as it threatens to price her, and many others, out of private education entirely. Loveena describes how she has made substantial sacrifices: she doesn't buy expensive presents for her children or take them out often. If a computer is needed, it serves as both the Christmas and birthday present for that year. She also avoids spending on coffee, lunches, or dinners outside to make ends meet.
Loveena Tandon, Spokesperson - Education not Taxation told Asian Voice, “Labour's plans to add VAT to independent school fees will force many families to take their children out of the school they know and love. Parents across the country are up at night, worried about their children's futures. Over 117,000 parents have signed a petition calling on Labour to change this policy. Children are trying to make sense of what's happening, and asking why they have to leave their school. Local authorities like Cambridgeshire County Council are already feeling pressure as parents explore their options to move children into state schools. We all want great schools, but we can't get there by pitting schools against each other. Nor should parents be vilified for sending their children to an independent school rather than, for example, moving closer to a popular state school and taking the place of another child. We can do better than this. Hopefully, we will.”
Can’t penalise the parents
This website also features stories of families who sent one or more children to independent schools, and why they made that choice.
Some South Asian origin parents who are a part of this petition have shared their grievances on the petition. Sumit Kumar wrote, ”We are hardworking professionals and we cut down on our personal expenses and holidays to get our son private school education because the public schools in our area are the 2 worst schools (not one of the worst) in Cambridgeshire. If this charge is levied on private schools it would further impact us. So unless the government can drastically change the condition of these public secondary schools in St Neots, it is just unfair to parents like us. If the schools in a catchment are rated at the bottom 2 of the county, you can’t penalise the parents further.”
Another petitioner Batool Jafri wrote, “Not everyone who sends their children to private schools are “rich”. I currently have 3 children in private education and as a family, we have had to make huge sacrifices to do this. We live in a rented terrace house, we don’t own a big fancy house as is the misconception. Both of us drive very old cars but we’re happy that these sacrifices mean our children will have had a better opportunity of improving themselves. We didn’t make this decision lightly but we were forced to when my eldest was only given a place in a failing school. So how about you pledge more money to the state schools and improve them so parents like myself are not forced to make drastic lifestyle changes to educate their children.”
No holiday in the last five years
Vikkas Puri, a local restaurateur with one child in private school told the newsweekly, “The current economic climate makes it very challenging for businesses to survive. We struggled significantly during Covid, and just as we were beginning to recover, the cost of living crisis and inflation hit. Managing salaries and school fees has become extremely difficult. We often cut back on personal expenses, including going out or taking holidays. In fact, we haven't been on holiday in the last five years. We are far from privileged. Education is a priority for our family, as everyone comes from an educational background. The Labour policy will severely impact us.”
Class ceilings
Ben Gill from Beacon Care Services (a nursing agency service) told us, “We are small business owners, based in west London. Our forefathers were economic migrants from the subcontinent, who set down roots in areas such as Southall and Hounslow which continue to be known for lower property prices but high levels of poverty. We now chose to live here due to family and links to community but decided to invest in sending our children to private schools, within the more affluent parts of the borough, to give them the best possible start in life. We are fortunate to be nearing the end of our private school journey. However, I say this with all sincerity: we would not have been able to sustain this journey if there was an additional 20% on top of our school fees each term. Social mobility is a cornerstone of the Labour Party policy; to breaks down the barriers of opportunity for every child at every stage, and shatters the class ceiling. My wife and I attended state schools. Having sent our children to private schools, we understand how much more they have to offer in terms of an enriched curriculum and as platforms for social mobility. Surely making private schools more difficult to access only strengthens the class ceiling?”
Rishi Sunak had previously accused Keir Starmer of stoking a “class war” by maintaining his vow to add VAT on to private school fees if Labour wins the next election, a move that Sunak said would “punish” affected parents.
The prime minister said Labour’s approach “illustrates that they don’t understand the aspiration of families like my parents who were working really hard”.
Sunak also mentioned that his parents “wanted to do something for their kids that they thought would make a difference to them. Labour’s approach to that is to clamp down on it.”
He added: “They don’t understand the aspiration that people have to provide a better life for their kids. They want to punish them for that as part of some class war. I don’t think that is right.”
Oxfordshire County Council are also seeing increased demand for in-year transfers. "Currently, there are very few or no places available in secondary schools in Oxford, primary schools across Didcot, primary schools in Wantage and the surrounding villages in Year 4 and Year 6, primary schools in Witney Year 6,” said the Council website.
Labour's proposed VAT imposition on private schools might have already incurred approximately £22 million in costs to taxpayers, as indicated by recent figures released by the Independent Schools Council (ISC). The ISC disclosed that nearly 3,000 fewer pupils enrolled in private schools this academic year compared to the previous one.
This significant drop suggests that parents are reconsidering private education due to looming VAT implications. Labour's plan to revoke tax breaks for independent schools, which would subject them to a 20% VAT, might intensify financial strain on families already grappling with rising school fees.
According to the ISC's annual survey, average term fees have surged to over £6,000, with boarding school fees reaching a record £42,459.
Sir Keir Starmer's proposal aims to redirect VAT proceeds, estimated at £1.7 billion, to bolster public education. However, headteachers caution that this policy could further diminish accessibility to private education, concentrating privilege among the affluent.
The ISC predicts that imposing VAT could prompt an "acute shock to the system," exacerbating financial hurdles for less affluent families already struggling to afford private education.
Government sources suggest that accommodating these students in state schools could cost taxpayers an additional £22 million annually, equivalent to hiring 400 teachers.
Despite these concerns, a spokesman for Labour was quoted by The Telegraph, “Labour will invest in delivering a brilliant state education for all our children, funded by ending tax breaks for private schools. Independent schools have raised fees above inflation for well over a decade and do not have to pass Labour’s proposed change onto parents. Indeed, pupil numbers have not been affected despite yet another rise in fees.”
Amidst political debates, the children affected by Labour's proposed VAT on private schools should remain the priority, independent of the political regime that will come to power this year in Britain. The potential exodus from private to state schools due to financial strains warrants concern for their well-being and the burden it places on public resources. Whether it is 14 years of Conservative rule, or Labour’s potential victory to Downing Street this year, the emotional upheaval for children forced to leave familiar schools adds another layer of complexity and should not become the butt of political turmoil. Policymakers on either side of the coin must prioritise children's interests, fostering inclusive education without exacerbating inequalities for a better future for young Britain.
