In January, private school fees in the UK saw a significant increase of 22.6% compared to the previous year, as reported by the Independent Schools Council (ISC), which represents the majority of independent schools in the country. This rise in fees is largely attributed to the introduction of Value Added Tax (VAT) on private education, a policy implemented across the UK starting January 1. The ISC anticipates that this change will lead to a decline in pupil applications to private schools, although the full impact of the policy is yet to be fully realized. For day schools, the average termly fee in January reached £7,382, inclusive of the 20% VAT, compared to £6,021 in the previous year. The Treasury has indicated that the increase in fees cannot be solely attributed to VAT, as private school fees have been on an upward trajectory for the past 25 years. Chancellor Rachel Reeves stated that the revenue generated from the VAT on private school fees would be directed towards enhancing the quality of support and teaching in the state education sector. Initially, the government estimated that the introduction of VAT would result in about a 10% rise in fees, suggesting that some schools might absorb part of the increased costs. However, the ISC noted that many schools chose to reduce their fees, excluding VAT, to mitigate the financial burden on parents. Despite these efforts, ISC Chief Executive Julie Robinson described the situation as a "triple whammy" for the sector, citing the challenges posed by changes in national insurance, the termination of charitable business rates relief, and the new VAT policy. Robinson expressed concerns that the government underestimated the policy's impact, noting that some parents have already withdrawn their children from private schools due to the impending VAT charges. She expects that the true effects of the policy will unfold over the next several years. The reported 22.6% fee increase stands in contrast to the smaller rises of 8.4% in 2024 and 6.4% in 2023. These figures, provided by the ISC, were part of their annual census, which surveys fees and pupil numbers and is set for release soon. The real-world impact of these fee increases is evident in the story of Kath, a parent who decided to remove her 12-year-old son from his private school in October after learning about the impending fee hike. The fee was set to rise by 26%, reaching nearly £8,000 per term, a cost Kath deemed unaffordable. Her son, who has special educational needs and disabilities (SEND), was initially enrolled in the private sector for its small class sizes and specialized support. Kath, representing a typical middle-class family, expressed frustration over the mid-academic year implementation of the policy, which forced her to move her child under tight timelines. Kath is now in the process of securing an education, health, and care plan to ensure her son receives the necessary support in his new state school, which she describes as stretched and underfunded. Her experience highlights the difficulties faced by families adjusting to these changes, particularly those not in affluent financial positions. David Morton, headmaster of The King's School in Gloucester, criticized the VAT policy as "misjudged," arguing that it disproportionately affects low to middle-income families and students on bursaries, rather than the wealthiest individuals. Morton contends that the government aims to tax affluent areas to support less affluent ones but believes the execution of this policy does not achieve its intended goals. In response to these changes, the government is confident that the state education sector will accommodate additional pupils transitioning from private schools, projecting that about 35,000 students will make this move in the long term. The Institute of Fiscal Studies (IFS) supports this view, suggesting that the state sector can manage these additional pupils due to the overall decline in student numbers expected by 2030. Recent data from the ISC indicates a 4.6% decrease in Year 7 pupils enrolling in September 2024, a trend that experts attribute to declining birth rates and the rising cost of living. The policy's introduction has also sparked legal challenges, including a judicial review brought by groups, including parents of SEND children and low-paying faith schools, with a decision anticipated soon. The court has heard arguments about the mid-year implementation of the policy, designed to maximize revenue, which is expected to generate an extra £460 million this year, increasing to £1.8 billion by 2029/30.