Impact of VAT on Private School Fees: Surge in Demand for 11 Plus Tutoring

Private tutoring companies have reported that the introduction of VAT on independent school fees has triggered a notable increase in demand for assistance with 11 plus entry tests for state grammar schools. The director of one tutoring firm asserted that the heightened competition could result in even academically gifted children, who lack this additional paid support, finding it increasingly difficult to secure a place in grammar schools. The i Paper has also engaged with parents and examined test entry statistics, which indicate that the already fierce competition for selective state school placements is intensifying in certain regions of the country due to the new tax.

Aneesa Shariff, a resident of Leeds, West Yorkshire, who has two children enrolled in a private preparatory school, noted that “most” of the current Year 5 students are now “preparing for the 11 plus exam” aimed at their nearest state grammar school, which is a significant 40-minute drive away. “This marks a significant shift from previous years when nearly all the students at the school were primarily preparing for entrance exams to local independent secondary schools,” she remarked.

‘Academically Ambitious’ Parents Turn to Grammars

The Good Schools Guide, a trusted resource for parents navigating the private school selection process or seeking sought-after state alternatives, has also observed this trend. Grace Moody-Stuart, a director at the guide, mentioned that there has been an uptick in inquiries from parents about grammar schools since the announcement of the 20 percent VAT on private school fees. “These academically high-performing schools, which already attract thousands of applicants for their entrance tests, are likely to see an increase in applicant numbers as ambitious parents seek alternatives to private schooling,” she explained.

“Consequently, as more families consider the grammar school option, successful applicants may need to reside closer to the school than before, and the academic standards required for admission are expected to rise even higher.” The Grammar School Heads Association (GSHA) has reported that its member institutions have not noticed a “significant increase in applications for grammar school places this year.” However, other sources within the grammar sector have suggested that increased demand could be forthcoming, especially given the VAT on school fees was only implemented in January, indicating a potential delay in response. This means that interest in 11 plus examinations may surge in the upcoming academic year, as parents become more aware of the financial implications of private education.

Private Tutors Employed to Navigate 11 Plus Challenges

Evidence from tutoring firms suggests they are already gearing up to assist children with these high-stakes entrance exams. MyTutor, a national online tutoring service that typically focuses on GCSE and A-level support, has experienced a 20 percent increase in 11 plus enrollments this year, rising from 350 students in 2023 to 411 in 2024, with projections of 520 students for 2025. Managing director James Grant attributed this “increase in demand” to changes in private school VAT, noting that the most significant growth is occurring in London, with Yorkshire and the South West also witnessing similar trends.

“With intense competition for 11 plus places, many parents are investing in tutoring to secure their children’s admission to state-funded selective schools,” he added. There is also evidence of a growing demand for state school placements at the upper echelon of the tutoring market. Luke Knightly-Jones, founder of Royal Tutors, a boutique tutoring firm located in Knightsbridge, London, which charges affluent parents £100 per hour, has also noted this phenomenon.

‘Six-Year-Olds Being Prepared for Grammar School Tests’

He shared that all ten of his British clients are pursuing grammar school exams this year instead of private school entrance exams, with “every single family” citing VAT as a primary motivation. Previously, around eight families would typically choose private schooling while only two would aim for selective state schools. Knightly-Jones further revealed that families are initiating tutoring for the 11 plus at much younger ages, with his youngest client being just six years old. “The VAT is likely to disadvantage naturally bright children who lack access to the level of tutoring that these other children receive, thus reducing their chances significantly,” he claimed.

Grammar Schools in Numbers

Grammar Schools in Numbers

According to research published by the House of Commons Library in 2023, there are 163 state-funded grammar schools across England, catering to approximately 188,000 pupils. This represents about 5.3 percent of all state-funded secondary school students. The geographical distribution of grammar schools is quite uneven, with only 35 out of 317 local authorities in England housing them, and 60 percent of these schools located within just 11 authorities. Notably, there are 32 grammar schools in Kent, 19 in Greater London, 15 in Lincolnshire, and 14 in Buckinghamshire. For context, 57 of the 163 grammar schools (35 percent) are situated in the South East. Additionally, while 24.6 percent of secondary school students qualify for free school meals, this figure drops to just 6 percent among grammar school students, who are also less likely to have special educational needs. It is important to note that there are no state grammar schools in Wales or Scotland; however, Northern Ireland has 67 state grammar schools, comprising about one-third of its secondary schools.

Claims of ‘Gamed’ School Admissions

Moody-Stuart pointed out that families who find themselves unable to afford private school fees now have greater financial resources to compete for coveted state school placements. “Funds that were once earmarked for school fees can now be redirected towards private tutoring and purchasing homes near the desired school,” she explained. “While relocating or investing in expensive tutoring may enhance a child’s chances of admission, grammar school admissions often resemble a lottery. If a child does not perform well on assessment day, merely sharing a postcode with the school will not guarantee entry.”

  • Anti-selection advocates argue that any additional competition will exacerbate the inequities associated with grammar schools.
  • Dr. Nuala Burgess, chair of the Comprehensive Future pressure group, stated, “The fact that grammar school admissions can be manipulated by those who can afford private tuition underscores the inherent unfairness in the 11 plus system.”
  • “When a family’s wealth can secure an advantage in our state education system, something has clearly gone awry,” she added.

Ms. Shariff noted an increase in parents seeking private tutoring for the 11 plus this year, complementing classroom practice, as competition for entry into local state grammar schools has never been more intense. “This shift is a direct consequence of the educational tax imposed by the Labour government, which has forced many parents out of independent secondary schools and into preparation for state grammar schools,” she remarked. “In our vicinity, state grammar schools are scarce, leading to historically high competition which is now even more pronounced.”

‘Huge Surge’ in Tutoring Demand

London-based tutoring firm Titanium Tutors reported a “huge surge in demand for 11 plus tuition” since September 2023, with the most frequent requests emerging from areas such as Bexley, Richmond, and North Finchley in recent years. Joe Hytner, the founding director, indicated that various economic factors, including Covid, the rising cost of living, and Labour’s VAT imposition on private school fees, have prompted an increasing number of clients to consider transferring their children to grammar schools to alleviate financial burdens. He also mentioned a notable rise in requests for early initiation of 11 plus coaching in response to the VAT policy.

Enjoy Education, a tutoring firm serving clients across England, indicated that grammar schools in Surrey have become “particularly” competitive, as well as those in the West Country and Essex. A senior figure in the grammar school sector, who wished to remain anonymous, stated that while it is premature to assess the direct impact of VAT on competition for grammar school places, there could be localized increases where private schools are situated nearby.

Data from Plymouth City Council reveals a rise in the number of children taking the 11 plus exam, with 558 girls sitting for the test in 2024-25 compared to 432 girls in 2023-24. The council does not track boys’ data as the grammar school catering to them handles testing directly. In the London Borough of Bexley, 6,423 students took the test this academic year, an increase from 6,301 the previous year. However, Bexley Council reported having “no concerns” regarding the competitiveness of the 11 plus due to VAT.

A spokesperson for the Grammar School Heads Association remarked, “It is naturally in the commercial interest of tutoring companies to suggest that demand is increasing, but that does not reflect the actual experiences of schools.” A government spokesperson added, “This government is committed to dismantling barriers to opportunity and ensuring every child has the best possible chances in life. Ending tax breaks for private schools is expected to generate £1.8 billion annually by 2029/30, which we can reinvest in our essential public services, including supporting the 94 percent of children attending state schools to thrive.” They emphasized that the anticipated impact from students transitioning from private to state schools will be minimal, representing less than 0.1 percent of all students.

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