Private school fees will be subject to VAT from January when Labour ends an exemption for the provision of education, the Chancellor Rachel Reeves confirmed

Pictured: Prime Minister Sir Keir Starmer and Chancellor of the Exchequer Rachel Reeves

The Independent Schools Council, which represents most fee-paying schools, voted in favour of legal action against the Government. It has instructed leading barrister Lord Pannick KC (pictured), who represented Boris Johnson during the Partygate inquiry, to fight its case

Starting in the new year fee-paying schools will no longer be exempt from the tax

They say it breaches Article 2 of Protocol 1 of the European Convention of Human Rights that ‘no person shall be denied the right to education’.

They added that those with special needs struggle in public schools as the ‘state sector is inadequate and a complete shambles’ so need the option of private education.

A senior consultant solicitor said it is ‘plainly a violation of their human rights to education and freedom from discrimination’.

Following the Budget, the parents bringing legal action said: ‘The Government is pursuing its ideological agenda of punishing private schools.’

It comes after the revelation that more than 100,000 children with special needs will be hit by Labour’s plan to slap VAT on private schools, after the Education Secretary ruled out giving them an exemption.

Bridget Phillipson said Labour was determined to press ahead with the controversial tax raid in this week’s Budget to fund additional teachers in state schools.

She said that only the small minority of special needs children with a formal education health and care plan (EHCP) statement would be spared the hike.

Rachel Reeves confirmed she was forcing private schools to charge VAT on fees

An aerial view of the famous private school of Bryanston in Blandford in Dorset

The designation, handed out by local authorities, covers fewer than 8,000 of the estimated 111,000 children with special needs taught in private schools, whose parents face a potential 20 per cent rise in fees from January.

One parent who joined the legal action slammed the VAT on school fees as ‘discriminatory and harmful to the welfare of children’.

The mother and carer of three children with special needs – one aged 10 and twins aged five – said her oldest child is bringing the case alongside her.

Her son has anxiety and a physical disability which means he needs daily physio and wears leg splints.

The mother said: ‘My son previously attended a mainstream primary school but was overwhelmed by the large class sizes and changes in staffing and class arrangements.

‘In September 2021 I decided to move him to a small Christian school (60 pupils).

‘With the small class sizes and individual attention he has improved significantly. He still has anxiety but is able to enjoy school and access the curriculum.

‘He has also benefited from the Christian values, ethos and foundation of the school. As a Christian family it is very important to us for the children to experience a continuity of their faith between home and school.

‘I previously worked as a social worker but am unable to work due to fibromyalgia and chronic fatigue.

Currently, independent schools do not have to charge 20 per cent VAT on their fees because there is an exemption for the supply of education. Pictured is Charterhouse School, Godalming

Critics of the plan have argued that the change is coming in too fast and could force some schools to close as parents pull their children out. Pictured is Dulwich College

‘I manage to afford the fees through the use of disability benefits. The school has announced it will pass on the VAT cost in January and I will therefore be unable to afford the children’s education there.

‘A sudden move in January will be very harmful to them all, and especially to Child D as, being in his last year of primary education, he would have to move twice within a 12 month period.’

Paul Conrathe, senior consultant solicitor from SinclairsLaw said: ‘It is remarkable that the Government is pressing ahead with this punitive tax that will have a devastating impact upon the education and welfare of children with special needs.

‘The blow that this tax inflicts will fall heaviest on this vulnerable group at a time when special needs provision in the state sector is inadequate and a complete shambles.

‘These ill-thought out plans will not only harm children with special needs, they are plainly a violation of their human rights to education and freedom from discrimination.

‘It is hoped that my client’s threat of litigation will give the Government sufficient pause for thought so that the welfare of children is prioritised over ideology and flawed economics. If the Government proceeds with its intended plans to impose VAT on independent school fees, then my client will issue proceedings in the High Court.’

The Independent Schools Council – which represents private schools – is also launching separate action against the Government.

They also argue the VAT tax is a breach of the Human Rights Act and the European Convention on Human Rights.

Julie Robinson, CEO of ISC, said: ‘This is a decision that has not been taken lightly and has been under consideration for many months. At all points throughout this debate, our focus has been on the children in our schools who would be negatively impacted by this policy.

‘This focus remains and we will be defending the rights of families who have chosen independent education, but who may no longer be able to do so as a direct result of an unprecedented education tax.’

Emmanuel School in Derby, the Branch Christian School in Yorkshire, and the King’s School in Hampshire previously said they all want a judicial review against the tax raid.

Another parent who is the legal guardian of an eight-year-old boy is also joining the action.

Bridget Phillipson said Labour was determined to press ahead with the controversial tax raid in this week’s Budget to fund additional teachers in state schools

The education secretary said that only the small minority of special needs children with a formal education health and care plan (EHCP) statement would be spared the hike

He was placed in her care five years ago, coming from a traumatic background and he was recently diagnosed with autism.

The boy suffered with ‘anxiety, distractibility and sensory overload’ in public school, needing ear defenders in class.

His guardian said: ‘Earlier this year I decided that Child C could no longer stay at his mainstream primary school.

‘His anxiety levels were rising and given his traumatic background he needed a small nurturing environment in which to learn. I therefore moved him to a small prep school where he has settled well, is receiving extra tuition and is catching up. His anxiety has significantly reduced and he is now accessing the curriculum.

‘I run a small childcare business which makes £25k per annum. Every last penny is spent on paying the private school fees. These are due to rise by 10 per cent as a result of the imposition of VAT on private school fees.

‘I will not be able to afford this. Moving Child C now would be traumatic for him.

‘My story and that of Child C is of ordinary people seeking to provide an appropriate education for their children – many of whom are not able to access this in the broken SEN system in the state sector.

‘I want to challenge the Government over this ill-thought out and harmful policy. My hope is that this case will not only benefit Child C but many other children who need access to independent education.’

A crowdfunder to help pay for the legal action has so far reached £181,143 of £350,000 at the time of writing.

Psychotherapist Ms Quinn added: ‘Many children with SEN, like my daughter, have been forced out of the state sector after suffering mental distress in schools which were not adequately resourced to support their needs.’

She said before being offered the scholarship: ‘I am bringing this case because my local authority refused an EHCP [funding for special educational needs] and a suitable state secondary school was not available.

‘My pensioner parents and I pay for my daughter to attend an independent school which we won’t be able to afford after the government imposes its blanket tax. Once again, ministers are legislating against disabled children in a way that routes them out of educational opportunities.’

Addison was sent to an independent school after her council didn’t fund additional resources to help her local state school cater for her autism following her diagnosis.

She was forced into the fee-paying sector after Kent County Council refused to fund an Education and Health Care Plan (EHCP – formerly known as a statement of educational needs).

By then, the family had run out of time before Addison had to start secondary school.

Her local secondary school advised Ms Quinn that they would not be able to meet her daughter’s needs without the funding of an EHCP.

Ms Quinn, with the help of her retired police officer mother and former military personnel and prison officer father, felt their only option was to send their daughter to a fee-paying school which is nearly an hour’s drive away.

To pay the school fees, Ms Quinn lives with her parents and on her salary, she cannot afford to pay more.

Despite the long journey, Addison is said to be ‘thriving’ after a year at her new school and yet her mother feared for her daughter’s mental health and educational attainment if she is wrenched from the environment in which she feels safe.