Independent school fees rose by 22.6 per cent between January this year and last year, figures released from the annual Independent Schools Council census show,.
The average fee per term for a day school in January was 拢7,382, which includes 20 per cent VAT, according to the ISC. In January last year the average was 拢6,021.
This year’s 22.6 per cent increase compares with an 8.4 per cent rise in 2024 and a 6.4 per cent rise in 2023.
When the policy was first announced, the government predicted that adding 20 per cent VAT would lead to schools only raising fees by around 10 per cent, by making cuts elsewhere.
Julie Robinson said the sector had been hit by a 鈥渢riple whammy鈥 of increased employer National Insurance contributions, the end to charitable business rates relief and the addition of 20 per cent VAT to school fees.
There are now fears of a mass-exodus from the independent sector because of the rising costs.
“It seems clear to us that the government has underestimated the effect,” Ms Robinson said.
“We know parents have already left the sector because of the threat of VAT coming in so we do expect the reality of this to lead to further decreases [in students] but the full effects will only become apparent over the next few years鈥.
So far this year, 23 independent schools have announced closure plans, with many citing VAT on fees and other cost pressures.
In the past 25 years, average independent school fees have risen 75 per cent in real terms, the Treasury said, stressing that fee rises were not only down to the addition of VAT.
The government claims VAT on school fees will raise an extra 拢460m this year, rising to 拢1.8bn by 2029-30, to be spent on additional state school teachers.
Concerns have been raised about how the state sector will accommodate children who have been forced out of the private sector by rising costs, but the government estimates that the impact will be 鈥渧ery small鈥.
The result of a judicial review of the policy is expected soon.
