The coalition claims that government tax policy would compel many schools to shut down, leaving deep families with no alternatives.
Private religious schools have held dialogues with ministers over proposing to exclude small private entities from VAT if the fees are far below those of the elite schools such as Eton.
The coalition, presenting over 270 Christian, Jewish, and Muslim private religious schools that often depend on donations and volunteers to survive, stated that the government’s policy of charging 20% VAT to fees from January would force many to shut down and leave deeply religious families with no choices.
Sector leaders suggested that some families cannot turn to slightly regulated “homework clubs” or unregistered illegal schools with little or no protection.
The coalition told the media, “For the Christian, Jewish and Muslim families we represent, attending a faith school is not a choice; it is integral to their way of life.”
A headteacher of one Haredi Orthodox Jewish school stated: “Parents in our community simply cannot afford higher fees, and we lack the resources to make up the shortfall. We will be forced to close our doors if this policy goes ahead.
“The result will be that thousands of Jewish children will be left without an appropriate educational option, with many parents turning to home education as the only viable alternative.
“This would disrupt the children’s learning and place an enormous burden on families who rely on our school not just for education, but also for cultural and religious continuity.”
The coalition includes the Christian Schools Trust, Seventh-day Adventist schools, the Association of Muslim Schools, and Chinuch UK, representing Haredi schools, which is proposing that the independent religious schools charging an annual fee of less than £7,690 should be excluded from VAT on fees.
The group has held a series of meetings with ministers and officials from the Treasury Department and has discussed their proposal since August.
The coalition told the media that it wished the government would postpone the VAT on fees until September next year to permit an equal impact assessment of the consequences for their communities’ faith.
The coalition stated: “We argue those faith schools whose fees fall below the per-pupil funding level in the state sector should be exempted from VAT. This cost-neutral mitigation would allow the families we represent to continue to attend a school that reflects their faith and values.”
According to participants of the dialogue, the discussions were received with interest. One MP stated that the Treasury has objected to the complexity of what an exemption would cause.
A spokesperson for the Treasury stated that an examination of the expected impact of the VAT policy will be excluded from the VAT.
The spokesperson stated, “We want to ensure all children get the best chance in life to succeed. Ending tax breaks on independent schools will assist to raise the revenue needed to meet our education priorities for next year, such as hiring 6,500 new teachers.”
According to the group’s calculation, the government’s spending on public schools averages £7,690 per student. Almost all religious schools involved in the charge are below the level, with some as low as £2,000 per year and others heavily relying on donations.
Meanwhile, Westminster School in London charges £37,000 for day pupils. The Independent Schools Council, an advocacy group, stated its 1,400 schools charged an average of £18,000 last year.
Ismail Gangat, the chair of governors and founding trustee of Azhar Academy Girls school in east London, rated “outstanding” in all areas by Ofsted, stated the school’s fees of up to £3,900 still meant extensive sacrifices for parents working as teachers, builders, and taxi drivers.
Gangat stated: “I am sincerely concerned that if VAT at 20% is proposed, we simply cannot afford to bear the cost to ensure the school remains affordable for our parents,” adding that even a small number of pupils leaving would threaten the school’s viability.
“We are convinced that the secretary of state for education, and the Department for Education and its civil servants haven’t taken our schools into consideration; it’s as though we do not exist.”
