Eton College plans to increase tuition fees by 20% starting January 2025, attributing the hike to newly introduced VAT on private education.
- The decision will see the annual cost rising from £52,749 to over £63,000, impacting many families financially.
- Independent schools, including Alleyn’s and Stowe, follow suit with similar fee increases due to the VAT policy.
- The policy aims to generate approximately £1.5 billion for state schools but faces criticism for its impact on private education affordability.
- Parents are pressed for time to decide on private schooling due to the urgent financial implications and schools’ withdrawal policies.
Eton College has announced a significant 20% fee increase effective January 2025, citing the introduction of VAT on private education as the primary reason. This change will see annual fees rise from £52,749 to over £63,000, affecting most families except those on full bursaries.
The UK’s decision to apply VAT to private school fees aims to bolster funding for state schools, a move that has been met with criticism from leaders of independent schools. In a letter to parents, Eton expressed regret over this policy, underlining the financial burden it imposes.
Lord Waldegrave of North Hill, Eton’s outgoing provost, acknowledged the challenges this presents to parents, suggesting that the 20% increase could render Eton unaffordable for some. He noted, “While this news was not unexpected, we regret that the Government has chosen to tax education in this way.” The college is considering expanding its £10 million financial assistance fund to support affected families.
While Eton is the first major institution to pass the full VAT cost onto parents, other prestigious schools are implementing significant fee increases. Alleyn’s School in Dulwich plans a 15.5% rise in senior school fees, and Stowe School is following with a 15% increase. Additional private schools, such as Latymer Upper School, are anticipated to announce similar adjustments as they comply with the new VAT regulations.
The initiative, largely driven by Labour’s agenda, seeks to generate approximately £1.5 billion for the state sector. However, concerns have arisen regarding the potential shift of students from private to state schools, which could increase pressure on the public education system. Headteachers, including Stowe’s Anthony Wallersteiner, have highlighted these potential repercussions.
Families are now under pressure to quickly evaluate the financial impact of these fee hikes and determine their ability to continue with private education. Most private schools require a term’s notice for student withdrawal, leaving parents with urgent decisions.
Parents face significant financial challenges due to the impending fee increases in the private education sector.
