Eton has written to parents saying it will increase tuition fees by a fifth after the government removed VAT exemption for private schools, raising annual fees from £52,749 to around £63,000.
“The president and alumni regret that the government has chosen to tax education in this manner,” the university said in the letter.
“Furthermore, we are disappointed that the introduction of VAT is coming halfway through the academic year and at such short notice, and we know this announcement will cause anxiety to many parents.”
From January, the government will scrap VAT exemptions and business rates relief for private schools to raise funds for 6,500 new teachers in state schools.
Currently, private schools have a tax exemption for the provision of education and therefore do not have to charge 20% VAT on tuition fees.
The largest private girls' school organisation has also announced a 12 per cent increase in tuition fees from the new year, citing the government's VAT plans.
The Girls' Day School Trust (GDST), which represents 23 private schools in England including Wimbledon, Blackheath and Shrewsbury, said it would cover the remaining 8%.
The national average annual tuition fee for day schools is £18,064, but a 12% increase would bring it to £20,232.
In a letter to parents this week, the GDST said: “Since the government’s announcement at the end of July, we have worked swiftly to deliver on our commitment to significantly reduce the overall financial impact of these tax changes on parents’ tuition fees.
“Following detailed cost considerations and Council approval, we can now confirm that rates, including VAT, will increase by 12% from January 2025.
“We have been able to mitigate the overall financial impact of the removal of 20% VAT and business tax credits by leveraging the opportunities presented by our size and scale and passing on to our customers any benefits we receive where we are able to recover VAT on other aspects of our operating costs.”
The majority of our expenditures are investments in our staff, and we will not compromise on providing the academic, extracurricular and emotional guidance you expect from our school. We understand the financial pressures many families will feel.”
The government has been contacted for comment.
