Eton warns of fee rise due to government VAT plan

Eton College will raise fees by 20% as a result of the government's removal of the VAT exemption on independent schools, it said in a letter to parents.

The £52,749-a-year private boys' school said fees would "likely" increase in January, meaning most parents would have to pay about £63,000.

The Berkshire college said it would do its "utmost" to ensure financial assistance was available to all those who could not afford the increase.

A government spokesperson said ending the tax breaks on private schools would help raise money to recruit new teachers, adding: "It is for individual schools to consider how they manage this cost."

Currently, independent schools do not have to charge 20% VAT on their fees because there is an exemption for the supply of education.

But from January, the government plans to remove the exemption.

In the letter to parents on Friday, the school said the Provost and Fellows - the school's governing body "regret that the government has chosen to tax education in this way".

It said: "Furthermore, we are disappointed that the introduction of VAT will take place partway through an academic year and at short notice.

"We recognise the concern that will be felt by many parents following this announcement."

Parents whose children are in receipt of 100% bursaries will not be affected by the increase, the college said.

The government spokesperson said: "We want to ensure all children have the best chance in life to succeed.

"Ending tax breaks on private schools will help to raise the revenue needed to fund our education priorities for next year, such as recruiting 6,500 new teachers.

"It is for individual schools to consider how they manage this cost based on individual circumstances, including steps to minimise fee increases."

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