The UK High Court has today dismissed the claims against the Chancellor concerning VAT on independent school fees.
The judgment, which can be read in full on the Judiciary website, was issued following hearings in April 2025 and subsequent written submissions.
BSA director David Walker said, “There are no winners here. It is unlikely VAT will raise the expected funds, given the drop in pupil numbers is already far higher than predicted, with boarding schools seeing a 4% drop in pupil numbers over the last year. This means children and communities are suffering due to disrupted education or school closures. It is a particularly sad day for students with needs that cannot be met in the mainstream system. We urge the government to stop its assault on independent education, before more children are caught in the crosshairs.”
Lord David Pannick KC, on behalf of six claimants supported by the Independent Schools Council (ISC), had argued some SEND, faith or gender needs “cannot be adequately met in the state sector”. He sought a declaration of incompatibility with the right to education under Article 2 of the First Protocol of the European Convention on Human Rights. He also argued the policy is discriminatory, “unprecedented” in Europe, and needed stricter scrutiny.
Although the court found that “the legislation interferes with the individual claimants’ rights”, it also stated “the legislature has a broad margin of discretion in deciding how to balance the interests of those adversely affected by the policy against the interests of others who may gain.”
Julie Robinson, CEO at the Independent Schools Council (ISC), said, “This is an unprecedented tax on education and it was right that its compatibility with human rights law was tested. We would like to thank the claimants who shared their stories on key issues: SEND, faith schools, bilingual provision and girls-only education. It showcased how vital independent schools are for many families and the broad, diverse community choosing what they feel is the right education for their child. The ISC is carefully considering the court’s judgment and next steps. Our focus remains on supporting schools, families and children. We will continue to work to ensure the government is held to account over the negative impact this tax on education is having across independent and state schools.”
VAT on UK school fees was introduced in January 2025. In the same month, data collected by the ISC and separately by the Department for Education (DfE) showed 11,000 fewer pupils at independent schools compared to January 2024 – significantly higher than the 3,000 the DfE had predicted would leave in 2024-25 due to VAT.
Categories: Sector News
