Chinese put off UK schools by prospect of VAT on fees

Posted: 10th October 2023

Chinese families may choose to go elsewhere if they believe VAT will force fees up even higher, a new study suggests.

Labour’s plan to put VAT on school fees if it comes to power could have an adverse effect on the number of Chinese families choosing to send their children to study in Britain, a new survey reveals.

The poll of nearly 1000 parents finds that introducing VAT on fees would have a negative impact on the decision- making of 60 per cent of parents, with 9 per cent saying it would make them choose another country for their children’s education.

The research from the Boarding Schools’ Association and Connexcel also suggests that parents are being put off by perceived discrimination against privately-educated students in Oxbridge admissions.

A potential restriction on the post-study work visa could affect the UK’s desirability as an educational destination, the study reveals.

According to the Independent Schools Council annual census, there are 4,706 pupils studying in UK schools with parents living in mainland China.

Caroline Nixon, international and membership director at the BSA, said that there was a perception that the parents of international students in the UK were “very wealthy” and could easily deal with fee rises.

“People think that international parents who send their children here are not affected by the fees but actually that’s not true, of course there are some super rich oligarchs.

“But there are plenty of international parents just like there are in the UK who count the pennies who are saving and doing what they can to send their children, so we should not be surprised that parents are saying this could affect their decision-making.”

She said that any addition to fees – which are already high compared to other countries – could make them more attracted to other destinations such as the US and Canada.

“International parents have the choice to go anywhere in the world”, she said.

It is unclear at this stage what the direct impact on international parents would be if the Labour policy became a reality, but Ms Nixon said that “any kind of negative rumours”, regardless of the reality in the long term, could negatively affect parents’ thinking.

Despite concerns over possible policy changes, the survey reveals that Chinese parents still hold UK education in very high esteem, and parents are now less likely to express concerns about safety, security and the welcoming nature of schools than in previous years.

The primary reason parents give for educating their child internationally was the pressure the Chinese system places on children.

A total of 73 per cent of parents cited this in 2023, compared to just 41 per cent in 2021.

Caroline Nixon said: “In China it’s incredibly competitive, the Chinese system is focused on academic achievement and you’ve got to do really really well at aged 15 to stand a chance of getting into university.

“It’s also focused in on quite a narrow definition of academic achievement, so there is pressure on children with long hours at school and extra tutoring outside school time.”

The second biggest reason for Chinese parents choosing to send their children to study internationally was the offer of a well-rounded education, with 70 per cent saying this.

The opportunity to enter a top world university was also a key factor, with the proportion of parents citing this as a key factor rising from 33 per cent in 2021 to 50 per cent in 2023.

To find out more about the findings, visit the report here.

Source: Chinese put off UK schools by prospect of VAT on fees | School Management Plus: School & education news worldwide

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