VAT on private school fees has not caused pupil exodus, says Bridget Phillipson

Bridget Phillipson, the education secretary, stated this week that the imposition of 20% VAT on private school fees has not led to a significant number of pupils transferring to the state sector. This tax was applied to private school fees starting in January 2025, ending a previous exemption. Phillipson cited newly released admissions data for England, which indicates no substantial increase in applications to state schools since the tax took effect. The expectation prior to the tax implementation was that it would cause a considerable shift of students from independent to state-funded education. However, the data presented by Phillipson suggests this predicted exodus has not materialized, contradicting earlier concerns and speculation within the education sector. The government's decision to apply VAT aimed to generate additional revenue and potentially level the playing field between state and private education funding.