Dr Neil Shastri-Hurst, the Member of Parliament for Solihull West and Shirley, and fellow co-signatories highlighted in a letter to the Chancellor on 6th September 2024, that there will be a punitive effect upon the education of those from military families in receipt of Continuity of Education Allowance (CEA).
The scheme helps children whose lives are regularly disrupted by the frequent postings of their parents. CEA provides military parents with the peace of mind that their child will have a stable education and allows children to achieve to the best of their abilities by avoiding constant disruption, particularly in important examination years. In his letter to the Chancellor, Neil requested the Government provides ring-fenced funding to the Ministry of Defence to allow for a 20% increase in CEA to mitigate the impact of the Government’s policy.
Neil’s letter was co-signed by Lincoln Jopp MC MP, Jack Rankin MP, David Reed MP, Ben Obese-Jecty MP, and Mark Garnier MP.
On 21st October 2024, Neil received a response from James Murray MP, the Exchequer Secretary to the Treasury.
Dr Neil Shastri-Hurst MP said:
I am disappointed with the response I have received from the Treasury. Military personnel sacrifice so much for our country and our national security. To receive the standard reply about VAT on schools, with two sentences about the Continuity of Education Allowance (CEA) is not good enough. The policy is due to come into effect in 71 days and it is clear that the Treasury does not have a clear plan.
Armed Forces families who receive the CEA deserve to know how the introduction of VAT on independent school fees will affect their children. The CEA helps children to maintain a stable education, which would otherwise be disrupted as a consequence of the frequent deployments and postings of their parents. It is clear that the Government have failed to consider how the blanket Education Tax will affect military families.
It is of huge concern that many military and diplomatic families may no longer be able to afford their children's education due to Labour’s Education Tax. The Government must now be prepared for the consequences.
