Phillipson: VAT on private school fees did not cause pupil exodus to state sector
Education Secretary Bridget Phillipson has stated that the introduction of VAT on private school fees has not triggered the predicted mass transfer of pupils to state schools. New admissions data for England shows no significant influx since the tax was applied.
UK Education Secretary Bridget Phillipson has said that adding 20% VAT to private school fees has not led to the expected exodus of pupils into the state sector. The Labour government implemented the tax from January 2025, ending the previous exemption for private school fees.
According to newly published admissions data from the Department for Education (DfE) for England, there has been no surge in applications to state schools. Phillipson stated that the predicted exodus has not materialized and that critics who warned of overwhelmed state schools were wrong. The data shows that nearly 85% of families received their first choice of secondary school place, higher than in 2024 and 2025.
In London boroughs with high proportions of privately educated children, such as Hammersmith and Fulham and Kensington and Chelsea, application numbers actually fell. The DfE noted that 94% of secondary applicants and 98% of primary applicants received an offer from one of their six preferred schools, describing the situation as "not a system under pressure."
Experts cautioned that falling birth rates and post-Brexit population shifts may partly mask the impact of VAT. The DfE's 2026 school survey found that while overall pupil numbers fell by 1.2%, independent schools saw a 3.8% drop, a loss of 22,000 pupils compared to 2025. The Independent Schools Council reported that its members lost 30,000 pupils, though this includes schools in Scotland, Wales, and Northern Ireland.
Despite the decline, the DfE census recorded an increase in the number of private schools operating in England, with 41 more schools in 2026. This was driven by 88 new independent special schools opening, offsetting the closure of 47 mainstream private schools. The VAT on private school fees is raising more revenue than initially forecast, expected to reach £1.8 billion annually by 2029–30. The funds were pledged to hire 6,500 additional teachers, but the National Audit Office has cast doubt on the DfE's ability to meet this target.
