Private school teachers are being sacked and having their pay cut because of Labour’s VAT raid on fees, union warns_Nhy
Private school teachers are being sacked and having their pay cut because of Labour’s VAT raid on fees.
The policy is hitting some of the country’s most prestigious private schools hard with cost cutting measures seeing pay, pensions and jobs being axed.
The policy means private schools must pay a 20 per cent VAT tax on their fees with the knock-on consequence that less popular subjects such as Latin are being removed from the curriculum to save money.
Labour Chancellor Rachel Reeves confirmed in her Budget speech in October that the policy would be introduced this year despite bitter opposition branding it a ‘tax on education’.
The row between the government and union representatives for teachers is at a nadir with Daniel Kebede, the general secretary of National Education Union vowing to ‘robustly defend’ his members against the Labour Party.
Mr Kebede told The Telegraph: ‘We have had some reports from members that the VAT increase is impacting upon jobs, pensions and pay increases.
‘The NEU continues to talk to the government about mitigating the unintended consequences on staff.
‘Where terms and conditions are threatened by an employer, NEU will robustly defend our members.’
Labour Chancellor Rachel Reeves confirmed in her Budget speech in October that the policy would be introduced this year despite bitter opposition branding it a ‘tax on education’
Teachers at some private schools are being sacked and having their pay cut because of Labour’s VAT raid on fees (stock image)
Private schools increased their fees earlier this month in an effort to stabilising their income revenue following the tax move (stock image)
In response to the unprecedented tax private schools increased their fees earlier this month in an effort to stabilising their income revenue.
This includes Prince William’s old school Eton which is putting fees up by 20 per cent while others are opting for an increase of 15 per cent.
At Eton boarding fees have increased from £17,583 to £21,100 per term while at Harrow and Marlborough fees are roughly £60,000.
Sir Keir Starmer’s government justifies the VAT tax by arguing the money raised from it can be reinvested in the state school system.
However, if parents with pupils at private schools decide they cannot afford the fees, they are likely to move their children into state schools which will increase already overly large class sizes.
The Prime Minister attended Reigate Grammar School when it transitioned into a private school from 1974 and 1981.
Hs last five years there it was a fee-paying school. His fees were paid by Surrey County Council. His wife, Victoria, was educated at a private school.
In January 2017, he spoke at an event for the Henry Smith Club at the private members’ East India Club in London, telling guests that the private school paved the way for his successful career.
A government spokesman said: ‘Through our Plan for Change we are determined to break down the barriers to opportunity children face, driving high and rising standards across education. Our teachers are integral to that mission.
‘Ending tax breaks for private schools will raise £1.8bn a year by 2029-30 to help deliver 6,500 new teachers and raise school standards, supporting the 94pc of children in state schools to achieve and thrive.’
