VAT on fees: how Labour’s tax plans threaten educational stability for military families

Independent boarding schools provide much-needed continuity for many children of service personnel. They ensure that pupils can continue their education disruption-free while their parents are deployed across the UK and overseas. The government offers valuable financial assistance to these families, many of whom otherwise could not afford the fees. If the policy to add VAT to fees comes to fruition, these families are among those who would be hardest hit – and the stability their children long for would be in jeopardy.

Every year, over 4,700 children from military and diplomat families receive funding through the Continuity of Education Allowance (CEA). This means they can access high-quality boarding provision and the associated benefits of that: a safe, secure environment; routine and familiarity; and a close network of teachers and friends. The value of this support cannot be underestimated; military families are highly mobile, frequently relocating due to the nature of consecutive assignments.

Labour’s tax plans risk making boarding schools unaffordable for service families, who are required to pay at least 10 per cent of the fees on the condition of the CEA. Families priced out of these schools would have limited options in terms of equivalent provision in the state sector, meaning they would struggle to access a place that meets their needs. The policy could also have a knock-on effect on the recruitment and retention of service personnel, as it could discourage people from becoming a service member or diplomat.

Children displaced from the independent sector would add pressure to state boarding schools, which have fewer places available and are often at capacity. There are currently 40 state boarding schools in the UK, with only 5,000 places available. The 500 boarding schools in the independent sector add vital capacity, educating thousands of children receiving support through the CEA.

It’s clear that Labour’s tax plans pose a significant threat to military families, and as such we are urging the party to:

1.?????? Exempt CEA families from their tax proposals.

2.?????? Conduct a full impact assessment of VAT on service families and the independent schools supporting them.

All children deserve the chance to thrive at school, free from interruption. And those individuals serving our country should be able to carry out their duties with peace of mind, knowing their children have a stable environment where they can learn and grow.