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Tax & education · UK-wide

Scrapping VAT on private school fees: what would it save?

Reversing the 20% VAT that Labour added to private school fees in 2025 — a policy backed by both the Conservatives and Reform UK.

Status: Proposal — not law Region: UK-wide Backed by: Conservative & Reform Active: 2026

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What's being proposed

In January 2025 the Labour government removed the long-standing VAT exemption on private school fees, adding 20% VAT to them to help fund state education. Both the Conservatives — who list "scrapping VAT on School Fees" among their pledges — and Reform UK say they would reverse it. Reform goes further, proposing not just to remove the VAT but to add 20% tax relief on fees; this page models the core shared policy: removing the 20% VAT.

Where it comes from

Labour framed the VAT change as ending a tax break for private education to fund state-school priorities; opponents framed it as a tax on aspiration that could push some families out of the independent sector and into state schools. The petition against VAT on school fees gathered well over 100,000 signatures, reflecting how contested the measure is. Scrapping it would return private fees to their pre-2025 VAT treatment.

The saving is simply the VAT element of your fees. If schools passed the full 20% on, then for every £1,200 you pay today, £200 is VAT — which is what removing it would save.

The case for and against

Supporters argue

  • It lowers costs for fee-paying families and removes what they see as a tax on educational choice.
  • It could ease pressure on state-school places if fewer families are forced to switch.
  • It restores a long-standing exemption.

Critics argue

  • The VAT raises revenue earmarked for state education, which reversal would remove.
  • The benefit goes to families who can afford private fees, who are on average better off.
  • Independent analysis suggested the pupil movement from the policy was smaller than opponents predicted.
Interactive calculator

What would you save?

Enter what you pay now per year (including the 20% VAT) to see the VAT element that scrapping the policy would remove. Multiply by the number of children for a household total.

A what-if, not a forecast. Nothing here is law. This assumes the full 20% VAT was passed on to fees; in practice some schools absorbed part of it, so your real saving may be smaller. Not financial advice.

Your fees

The saving is the VAT element of fees: with 20% VAT, that's one-sixth of the current (VAT-inclusive) fee. The calculator assumes the full 20% was passed through to fees; schools that absorbed some of the VAT would mean a smaller real saving. Reform's additional 20% relief is not modelled here. Not financial advice.

Sources & further reading

Figures are illustrative and based on reported proposals; rules could change and schools' pricing varies. General information, not financial, legal or tax advice.