Eton College plans to increase its fees by 20% starting January 2025 due to the UK government’s introduction of VAT on private school fees.
- The additional charges will see fees climb from £52,749 to over £63,000 annually, impacting most families who aren’t covered by full bursaries.
- Eton expressed disappointment over the government’s tax decision, fearing it could make education unaffordable for some families.
- Other prestigious schools, like Alleyn’s and Stowe, face fee hikes of 15% due to similar VAT implications.
- Families now face quick decisions, as most private institutions demand a term’s notice for student withdrawals.
Eton College, one of the UK’s most prestigious educational institutions, has announced a 20% increase in its fees, effective from January 2025. This decision comes as a direct consequence of the government’s introduction of VAT on private school fees, a move aimed at generating additional funds for state schools. The fee hike will see the annual cost of attending Eton rise from £52,749 to over £63,000, posing significant financial challenges to families, particularly those not benefiting from full bursaries.
Eton has voiced its regret over the government’s tax policy, which it believes will impose a substantial financial burden on parents. Lord Waldegrave of North Hill, the outgoing provost of Eton, acknowledged the difficulties faced by families, stating, “While this news was not unexpected, we regret that the Government has chosen to tax education in this way.” He emphasized that this considerable increase might render Eton unaffordable for some families. To mitigate the impact, the college is considering expanding its £10 million financial assistance fund to help those affected.
Other notable private schools are also responding to the VAT changes with their own fee increases. Alleyn’s School in Dulwich plans a 15.5% hike in senior school fees, while Stowe School has announced a 15% rise. Latymer Upper School in west London and other private institutions are expected to follow suit as they adapt to the new taxation framework. These changes underline a growing concern about the affordability of private education amidst the government’s policy shifts.
The Labour Party’s VAT policy aims to raise approximately £1.5 billion for the state education sector, stirring debates among independent school leaders. Headteachers from various schools, including Anthony Wallersteiner from Stowe, have expressed apprehension regarding the potential repercussions. One of the main concerns is that such tax-driven fee hikes might lead families to transition their children from private to state schools, consequently putting additional pressure on the public education system.
Parents are now under pressure to make swift decisions concerning their children’s educational paths, given the impending substantial fee increases. Most private schools necessitate a term’s prior notice for student withdrawal, leaving families with limited time to evaluate their financial capabilities and decide whether they can continue to afford private education.
The upcoming VAT-driven fee hikes pose significant financial challenges to families considering private education options.
