VAT on private school fees not caused exodus to state sector, says Bridget Phillipson

Bridget Phillipson, the education secretary, stated this week that the imposition of 20% VAT on private school fees has not resulted in a significant migration of students to the state sector. This tax, applied from the beginning of 2025, ended the previous exemption for private schools. Phillipson cited newly released admissions data for England, which indicates no substantial influx of pupils into state schools following the tax implementation. She further commented that the Labour government's objective is to "rebalance the system to focus on 94% of kids in state schools." The initial speculation suggested that the VAT increase would lead to a notable shift from private to state education, a prediction that the current data appears to contradict. The policy aimed to generate revenue and address perceived inequalities in the education system. The government's stance suggests that the impact on state school admissions has been minimal, contrary to some expectations.