Christian schools alarmed by charging of VAT on fees

The imposition of VAT on private school fees threatens the survival of small Christian schools, which are ‘worlds away from the Harrows and Etons of this world’, the Association of Christian Teachers (ACT) is warning.

Meanwhile, the head of a small private school says Christian parents are being punished, and has challenged the church to support families and Christian education.

The government has announced that 20% VAT will be imposed on private school fees and boarding. While the measure will be effective from 1 January 2025, it will apply to pre-payment of fees – which means attempts to avoid VAT by paying before January will not succeed.

The tax will not apply to fees for children with acute special needs where their needs can only be met in private schools.

Lizzie Harewood (see photo), ACT’s executive officer, said: ‘An increasing number of independent schools in the UK are small Christian schools, worlds away from the Harrows and Etons of this world. They are often financially vulnerable, and serve families that opt out of state education for reasons motivated by their faith. [This poses] a serious threat to their survival.

‘Christian parents already make significant sacrifices to send their children to these schools, helping alleviate pressure on statefunded schools. and many may not be able to afford the extra burden.’

Hayley Bowen is founder and principal of The King Alfred School in the West Midlands, which was established in 2021 and growing each year. Responding to the VAT introduction, she said: ‘I think there is a real lack of knowledge when it comes to the independent school sector.

‘Mainstream government-funded schools receive £7,500 per child per year and often have class sizes of 30 children or more. That means each classroom is receiving £225,000 per class per year from taxpayers’ contributions. The King Alfred School on the other hand only charges between £3,000 and £6,000 per child per year, and we operate much smaller class sizes.

‘Many of our families are from one-income households who consider school fees as part of the cost of living out a faithful Christian life. To be taxed on this by the state is to punish families for trying to be responsible citizens.’

Bowen believes the policy will widen the divide between rich and poor: ‘If there is an exodus of children from the private sector there will be even more pressure applied to the state sector.’

‘This is a key moment for the church to step up and support families and Christian education’, she added. ‘Churches can support bursary places and start funding Christian education as a mission priority.’ Bowen, who helps Christian school startups across the UK, said: ‘If the church funded its schools again we would reverse the decline in Christianity in the West.’

Jamie Burns, who is preparing to open an independent Christian school, St Anselms, in Cardiff in 2025, agrees that the policy will ‘have a disproportionate impact on the smaller and less well-established private schools in the UK’.

‘That said’, adds Burns, ‘we have a firm conviction that the Lord is raising Christian educators across the UK at this time. Perhaps it should be no surprise that the virtuous task of educating a child in the paideia [‘a system of broad cultural education’] of the Lord will be harder than we wish. 1 Peter 4 teaches us to use our gifts to serve the church – in other words we are blessed to be a blessing.

‘Whilst the financial burden will be greater on the school, the church now has the opportunity to be more of a blessing. What a wonderful thing!’