Eton College tells parents fees likely to rise by 20% over Labour’s VAT plan
The private boys’ school said fees will rise in January, although all those on bursaries will be unaffected.
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Your support makes all the difference.Eton College will raise fees by 20% as a result of the Government’s removal of the VAT exemption on independent schools, it said in a letter to parents.
The £52,749-a-year private boys’ school said fees will “likely” increase in January, meaning most parents will have to pay about £63,000.
Parents whose sons are in receipt of 100% bursaries will not be affected by the increase, the college said.
From January, the Government plans to remove the VAT exemption and business rates relief for private schools to enable funding for 6,500 new teachers in state schools.
The Provost and Fellows regret that the Government has chosen to tax education in this way
Currently, independent schools do not have to charge 20% VAT on their fees because there is an exemption for the supply of education.
In a letter to parents on Friday, the Berkshire boarding school said: “The Provost and Fellows regret that the Government has chosen to tax education in this way.
“Furthermore, we are disappointed that the introduction of VAT will take place partway through an academic year and at short notice.
“We recognise the concern that will be felt by many parents following this announcement.”
The college said it will do its “utmost” to ensure that financial assistance is available to all those who cannot afford the additional VAT.
It will consider increasing the current £10 million financial assistance pot to help those who “now face an unaffordable increase in the cost of their education”.
Sir Nicholas Coleridge will succeed Lord Waldegrave to become the chairman of the governors in September 2024.
The governing body of Eton College is known as “the Provost and Fellows”.
A Government spokesperson said: “We want to ensure all children have the best chance in life to succeed. Ending tax breaks on private schools will help to raise the revenue needed to fund our education priorities for next year, such as recruiting 6,500 new teachers.
“It is for individual schools to consider how they manage this cost based on individual circumstances, including steps to minimise fee increases.”