The Government’s introduction of VAT on private education will put further strain on the resources of state schools and local councils and negatively impact students who need support for Special Educational Needs (SEN), say leading audit, tax and business advisory firm, Blick Rothenberg.
Gabby Donald, a VAT Partner at the firm, said: “The ‘International Day of Education’ is the 24th of January (tomorrow), but less than a month on from the Government’s introduction of VAT on private education there will be little to celebrate for those involved in or in receipt of support for SEN.
“The capacity of state schools to absorb SEN students priced out of private education by the addition of VAT on private school fees is at best extremely constrained, given the numbers of SEN students catered to in the private education sector. Local authorities are responsible for funding SEN provision in state schools and many already face a funding gap that is one of the factors pushing them towards bankruptcy.
“Recent reports from both the National Audit Office and the Public Accounts Committee (PAC) have concluded that the SEN system ‘is reaching, or, arguably, has already reached, crisis point’ as per the PAC Report published 15 January 2025 ‘HC 353 – Support for Children and Young People with Special Educational Needs’ .”
She added: “The system to obtain SEN support in state schools can be extremely difficult for parents to navigate. 98% of the SEN cases that go to tribunal are found partly or wholly in favour of parents or carers. In some cases, the SEN tribunals that the local councils inevitably lose are more expensive than providing the SEN support in the first place. Regardless of the financial implications of legal action, I expect to see an increase in cases as more parents are forced to send their children to state schools.
“The transfer of these students to state schools will not only disrupt their education but will place an additional call upon the SEN resources of the school that they join, potentially impacting existing students.
“The Government hopes that in the long term the imposition of VAT will raise significant additional revenue that can be ploughed into the state education system, but the additional cost to local councils and indeed, to the children in need of SEN support may outweigh it.”
“Sadly, whilst the impact of charging VAT on private education is assessed, it is the children in need of SEN support that will feel the effects of this policy directly.”
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