More than one in 10 (11%) high net worth parents are considering moving their children from private school into state education due to the introduction of VAT on school fees.
The latest Saltus Wealth Index Report found more than four in 10 (42%) high net worth individuals say their children’s education will be disrupted as a direct result of the Government’s decision to add VAT to private school fees.
In addition to the 11% who say they could be forced to remove their child from the private school system and into state education, 10% said they could move their child to a less expensive private school, while another 10% could go from being boarding to day pupils at their existing school.
A further 7% of HNW parents say they could move abroad to send their children to private school and 4% say they are considering homeschooling their children.
Saltus said fewer than half (48%) of HNW parents say the addition of VAT will have no impact and they will continue to send their children to private school, while 7% said they will have to turn to their parents, or friends and family for financial support.
Mike Stimpson, partner at Saltus, said: “The Labour Government’s decision to add VAT to private school fees has been contentious and that feeling is reflected in our research. Over the last three editions of the Saltus Wealth Index Report, we have seen strong opposition to this policy from parents, many of whom are now struggling to afford to keep their children in their current schools.
“We can now see that the number who say they are likely to have to remove their child has remained significant since the policy was first introduced and now that it has been enacted, the data suggests these parents may well go ahead with pulling their children out. If this were to materialise, the impact on the Treasury’s estimates could be significant.”
Saltus’ report found that more than a quarter (28%) of all respondents are considering leaving the UK permanently and of those, 15% cite the addition of VAT to private school fees as the reason why they are considering leaving.
“While VAT is unlikely to be the only factor in such a big decision, when coupled with other factors such as those feeling the UK is no longer connected to the world post-Brexit and is not a good place to raise a family, the prospect of living elsewhere in the world can tick a number of boxes,” Stimpson added.
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