Eton College will add the full 20 per cent VAT cost on to school fees when Labour’s policy is introduced, it has announced.
The £52,000-a-year school said it regretted that the ‘Government has chosen to tax education’ in a letter informing parents of its decision yesterday.
Eton said that only boys on bursaries will be exempt from the fee rise, meaning that for most pupils the cost of attending the 584-year-old school will rise to £63,000 per year.
In the letter to parents, Lord Waldegrave of North Hill, the outgoing Eton provost, wrote: ‘While this news was not unexpected, the provost and fellows regret that the Government has chosen to tax education in this way.
‘Furthermore, we are disappointed that the introduction of VAT will take place part way through an academic year and at short notice. We recognise the concern that will be felt by many parents following this announcement.’
Eton College will charge the full 20 per cent VAT on its school fees from January after Labour’s policy is introduced
Chancellor Rachel Reeves announced last month that VAT will be charged on private school fees from January 1, with the relief private schools receive on business rates also scrapped from April.
Labour says schools can choose whether or not to pass on the cost to parents and the move will raise £1.6 billion to recruit 6,500 state school teachers.
But critics say the extra cost of educating displaced pupils could be higher. The 2022 accounts for Eton – which has more than 1,300 male pupils aged 13 to 18 – show that it has consolidated reserves of more than £560million.
But Lord Waldegrave said that the school does not currently run an operating surplus, with bursaries funded both from donations and from income from its endowment.
‘Therefore, parents only pay for their own son’s education,’ he added.
The letter, co-signed by Sir Nicholas Coleridge, the incoming provost who takes over in September, said: ‘The provost and fellows appreciate that the imposition of VAT is unwelcome news and are also keenly aware of the impact of this decision on all our parents.
‘Please be assured that we will continue to focus on the costs of the school moving forward, although we will not compromise on the quality of the education provided to your sons.’
Eton’s outgoing provost, Lord Waldegrave, has said that the school is not currently running on an operating surplus
Eton said that boys who receive 100 per cent bursaries will not be affected by the change and those on partial bursaries will see this increased to cover the cost of VAT.
The move follows an announcement that Britain’s biggest private girls’ school trust will raise its fees by 12 per cent from January.
The Girls’ Day School Trust, which represents 23 private schools, said it would absorb the remaining 8 per cent and has given parents extra time to withdraw children ahead of the price rise.
It comes as figures from the Independent Schools Council showed that its private schools outperformed state ones – with almost eight in ten pupils achieving top A-levels.
Figures from the ISC group of private schools showed 79.8 per cent of pupils received A*-B grades, compared with the national average of 53.9 per cent.