A group representing over 270 independent faith schools in the UK, including Jewish, Muslim, and Christian establishments, are in discussions with government ministers regarding a proposal to exempt small private schools from VAT if their fees are significantly lower than those charged by elite schools like Eton. These faith schools often rely on donations and volunteers to operate and fear that the addition of 20% VAT to their fees starting in January will lead to closures, leaving deeply religious families with limited options.
The leaders of these faith schools argue that for many families, attending a faith school is not a choice but a fundamental aspect of their way of life. They are concerned that the introduction of VAT on fees could force families to turn to unregistered or lightly regulated educational alternatives, which may lack proper safeguarding measures.
One headteacher of a Haredi Orthodox Jewish school in London expressed that higher fees would be unaffordable for many parents in their community, potentially leading to school closures and disrupting the educational and cultural continuity for Jewish children. The group is proposing that private schools charging less than £7,690 a year should be exempt from VAT on fees to alleviate the financial burden on families and ensure the continuation of faith-based education.
The faith school leaders have engaged in discussions with government officials since August, advocating for a delay in implementing VAT and requesting an equality impact assessment to evaluate the consequences for faith schools and their communities. While their proposal has been met with interest, the Treasury has raised concerns about the complexity of implementing an exemption.
The Treasury is currently addressing adjustments for various categories of children, such as those from military families and pupils with special educational needs, complicating the addition of exemptions for faith schools. Despite this, the faith school group remains committed to their proposal, emphasizing the importance of maintaining affordable education for families that reflect their faith and values.
Government spending on state schools averages £7,690 per pupil, which is significantly higher than the fees charged by most private faith schools involved in these discussions. The Independent Schools Council reports that their schools charge an average of £18,000 annually, highlighting the financial disparities between elite private schools and smaller faith-based institutions.
Ismail Gangat, the chair of governors at Azhar academy girls school in east London, expressed concerns about the impact of VAT on their school’s affordability for parents who already make considerable sacrifices to afford the fees. He emphasized the need for the government to consider the unique challenges faced by faith schools and ensure their continued existence and accessibility for families from diverse backgrounds.
In conclusion, the debate over VAT exemptions for private faith schools in the UK underscores the financial pressures faced by these institutions and the potential impact on families seeking faith-based education. As discussions continue between school leaders and government officials, the focus remains on finding a solution that balances financial sustainability with the preservation of educational opportunities for religious communities across the country.
