Are private schools becoming less popular?
- TBA
- Jan 10
- 3 min read
Updated: Mar 13
In the recent Autumn Budget, the government officially announced a comprehensive reform of the tax policy for private schools.
Starting 1 January 2025, private school fees (including tuition and boarding costs) will be subject to a 20% VAT at the standard rate.
Under the new rules, any payments made after 29 July 2024, for terms commencing January 2025 or later, will incur VAT. Furthermore, tuition and boarding fees paid before 29 July 2024, for terms after January 2025 may also be subject to VAT, depending on the prepayment arrangements.
An exodus from private schools?
This change has alarmed many parents, prompting a wave of withdrawals from private schools. According to a recent study by a UK educational organisation, over 13,000 students have already left or are planning to leave private schools.
For families who have recently moved to the UK, or are considering a move, this raises important questions – is sending children to private schools still worth it?
How much will fees increase?
And if state schools are the alternative, how can families secure places at better schools?
Are private schools becoming less popular?
Despite declining birth rates, private school enrolment had been steadily increasing until recently. However, the trend has now reversed.
According to a survey by the Independent Schools Council (ISC), private school enrolment dropped by 1.75% in September 2024 compared to the previous year. An additional 0.71% decline is expected in January 2025, when the VAT policy takes effect—potentially leading to 3,950 students leaving private schools.
The most significant decline has been in junior schools, with enrolment dropping by 2.55%. In contrast, secondary schools saw a smaller decrease of 0.57%. Smaller private schools (fewer than 300 students) have been hit the hardest, with a 3.19% decrease, compared to a 1.34% decline in larger schools.
Geographically, Wales experienced the largest drop in enrolment (5.52%), followed by Yorkshire and Humber (2.7%) and the North West (2.53%). London saw the smallest decline at 0.64%. Boarding schools were particularly affected, with a 2.4% drop in enrolment, while day schools saw a 1.45% decrease.
Key transition years showed the largest declines: Year 7 (secondary school entry) enrolment fell by 4.6%, reception year by 3.7%, and Year 3 by 2.4%, as some schools begin admitting students at age seven.
Adjusting to the increased costs
Amongst parents surveyed, 44% planned to reduce spending on private education due to the new tax policy.
Notably:
13.4% plan to immediately transfer their children to public schools
10.4% intend to withdraw their children after the current school year
11% will switch from boarding to day schools
20.5% aim to move their children to less expensive private schools
Local governments are concerned that the influx of students into state schools could strain the system. For instance, Kent County Council has warned that many state schools are already at capacity.
Are private schools still a worthwhile investment?
While private schools will charge 20% VAT on tuition and boarding fees, the government estimates the effective cost increase for schools will be about 15% of their fee income after reclaiming VAT on expenses. Some schools have pledged not to increase fees, while others are expected to cap rises to prevent losing students.
For families considering private schools, thorough financial planning is essential. Research the actual costs, including tuition, boarding, and VAT, to determine affordability.
Securing a state school place
Public primary schools in the UK typically begin their academic year in September, with application deadlines from September to January of the previous year.
For example, to enrol in September 2025, applications must be submitted by January 2025. Local councils manage public school admissions and assign places based on application forms.
Tips for improving admission chances:
Research Schools: Attend open days, review Ofsted reports, and check academic results.
Understand Admission Criteria: Familiarize yourself with the admission policies of schools in your area.
Complete the Common Application Form (CAF): List at least three schools in order of preference. Accurate and truthful information is critical to avoid application rejection.
Schools prioritise applications based on criteria such as proximity, siblings already enrolled, religious affiliation, or in some cases passing relevant entrance exams. Children in foster care or previously in care receive the highest priority.
Can buying a home help secure a school place?
Proximity can significantly affect admissions. Parents often move closer to preferred schools, but compliance with regulations is crucial. The address on your application must be your child’s permanent residence.
Proof of a new address may include:
A solicitor’s letter confirming the purchase completion date
A signed 12-month lease agreement
Evidence of severed ties with a previous address
While some schools offer places based on distance, others admit students from farther away depending on demand. Early preparation and timely applications are key to securing a place in a good school.