Eton College has announced a 20% increase in tuition fees, effective January 2025, as a result of new VAT charges on private education.
- The annual cost for attending Eton will rise from £52,749 to over £63,000, placing significant financial pressure on many families.
- This decision follows the government’s policy to apply VAT on private school fees, aimed at generating additional funds for state education.
- Eton and other independent schools, including Alleyn’s and Stowe, have expressed concerns about the potential for driving students to the state sector.
- Parents now face urgent decisions regarding their children’s education, with private schools requiring a term’s notice for pupil withdrawal.
Eton College has announced a substantial 20% increase in its tuition fees, to be implemented from January 2025. The new annual fee will exceed £63,000, a significant rise from the previous £52,749. This adjustment comes in response to the government’s decision to apply VAT to private education fees, a move designed to raise funds for state schools.
Independent schools across the United Kingdom have reacted critically to this policy. Eton College expressed its regret over the government’s decision in a letter to parents, noting the financial burden that this tax would place on families. Lord Waldegrave of North Hill, Eton’s outgoing provost, highlighted the difficulty for parents to adapt to such a steep increase at short notice. He remarked, “While this news was not unexpected, we regret that the Government has chosen to tax education in this way.”
The introduction of VAT may render Eton unaffordable for some families, prompting the college to consider expanding its £10 million financial aid fund to assist those affected by the fee hike. Eton is the first major institution to pass the full cost of VAT onto its patrons, although others, like Alleyn’s School and Stowe School, have also planned significant fee increases, albeit by slightly lower percentages.
Alleyn’s School has announced it will increase its senior school fees by 15.5% starting in January 2025, and Stowe School has confirmed a 15% rise. It is anticipated that other private schools, such as Latymer Upper School in West London, will follow suit as they adjust to the new VAT regulations. This taxation policy, advocated by the Labour party, aims to generate approximately £1.5 billion for the state education sector.
There is considerable concern among headteachers about the repercussions of this policy, including the possibility of transferring students from private to public schools, which could strain the state education system. Anthony Wallersteiner of Stowe expressed opposition to these changes, predicting potential challenges for both private and public sectors.
As families grapple with the impending fee increases, parents are now pressed to make swift decisions regarding their children’s educational futures. Private schools generally require a term’s notice for pupil withdrawal, meaning the timeline for decision-making is tight.
The introduction of VAT on private school fees is poised to significantly alter the landscape of British private education, prompting strategic decisions from schools and families alike.
