Eton College has announced a significant fee increase of 20%, starting January 2025, due to the newly introduced VAT on private school fees. This development has raised concerns among parents, many of whom are now facing tough decisions regarding their children’s education.
The fee increase will elevate annual fees from £52,749 to over £63,000, impacting most families except those on full bursaries. This adjustment has come in response to the government’s decision to apply VAT to private education, a policy aimed at generating funds for state schools.
In a letter to parents, Eton College expressed its regret over the government’s decision, highlighting the financial burden this new tax would impose. The outgoing provost, Lord Waldegrave of North Hill, acknowledged that while the increase was expected, the magnitude is still challenging for many families.
Eton is the first major school to transfer the full VAT cost to parents, setting a precedent for other institutions. Schools like Alleyn’s in Dulwich and Stowe School have announced fee increases of 15.5% and 15%, respectively.
Parents now face a looming deadline to decide on their children’s schooling, with most private schools requiring a term’s notice for withdrawal. This has added another layer of urgency to an already stressful situation.
The reaction from schools has been relatively uniform, with many expressing regret and concern over the possible negative impacts on families and the sector as a whole.
However, critics argue that this shift may lead to unintended consequences, such as overburdening already stretched state school resources while making private education even more exclusive and less accessible.
Most private schools mandate a term’s notice to withdraw pupils, putting additional pressure on families who are still weighing their options.
The decision by Eton College to increase its fees by 20% has sparked significant concern among parents who are now grappling with the financial implications. As other schools follow suit, the broader impact on private education remains to be seen, particularly as families are forced to re-evaluate their educational choices amidst these rapid changes.
