On Monday 28th April, Dr Neil Shastri-Hurst, Member of Parliament for Solihull West & Shirley, challenged the Labour Government on two of their flagship policies and the detrimental impact they will have on schools.
From January 1, 2025, the UK government imposed a 20% VAT on all education, boarding, and vocational training services provided by independent schools. The Independent Schools Council have already challenged this policy in court, arguing it could limit families' choices and disproportionately impact children with SEND.
Coupled with this, the recent rise in National Insurance contributions (NICs), which increased from 13.8% to 15%, has added further pressures to employers. Simultaneously, the threshold at which an employer starts paying National Insurance has dropped from £9,100 to £5,000, further burdening educational institutions. This policy will inevitably have a knock-on effect on staffing budgets.
Government analysis shows that these policies could result in the closure of over 100 independent schools, risking thousands of children, including those with SEND being forced into an already overstretched state education system.
During Education Questions, Dr Shastri-Hurst challenged the Minister on how these policies align with the Government’s stated ambition toraise school standards.
In response, the Minister dismissed the concerns as “scaremongering”, whilst failing to recognise the very real consequences state schools are now facing as Labour’s policies start to take effect.
Dr Shastri-Hurst said:
Labour’s ideological assault on independent schools will not only limit parental choice but is set to undermine our entire education system. Thousands of children are at risk of being displaced, and state schools, already grappling with immense challenges, will bear the brunt of this misguided policy.
