In what many families are calling a major setback, parents who challenged Labour’s VAT policy on private school fees have lost their legal battle in the High Court.
The policy, which added a 20% tax on private education from January this year, has been heavily criticized for its impact on students with special needs, religious education, and girls-only schooling.
The Fight for Fairness in Education
The case, brought by several private school families (mostly anonymous), tried to argue that the tax went against human rights—especially the right to education under the European Convention on Human Rights (ECHR).
Some families claimed the policy discriminated against them due to their children’s specific educational needs or religious preferences.
Despite some strong arguments, the judges ultimately sided with Parliament.
Court Acknowledges Concerns, But Stays Firm
In their ruling, judges admitted the policy would negatively affect students with special educational needs (SEN), especially those without an official Education, Health and Care Plan (EHCP).
They noted some SEN students would end up in state schools with far less adequate support.
But the judges were clear: Parliament has the power to make tough decisions, and this tax falls within their right to decide what’s best for public funding.
They also pointed out that the ECHR doesn’t guarantee private education access.
SEN Families Speak Out
Families of SEN students from across the country protested outside the court during April’s hearings.
Many said they turned to private schools only because the state system failed them.
Legal teams highlighted a report by the National Audit Office that called the state’s SEN system “unsustainable”—something even the Education Secretary agreed with.
Yet government lawyers argued that evidence based on this report couldn’t be used, since it involved “Parliamentary proceedings.”
The court agreed, calling it inadmissible.
Labour Considered SEN Exemptions – Then Dropped It
The court also heard that Labour had toyed with the idea of exempting SEN students from the VAT hike but later scrapped it, saying it wouldn’t bring in enough money.
Government lawyer Sir James Eadie KC said the tax is expected to raise £1.5 billion next year and £1.7 billion annually by 2029.
He defended the policy as essential for boosting funding in the state education system and improving fairness in taxation.
Real-Life Impact on Students and Families
There are already some exemptions for SEN students with an EHCP—but most don’t qualify, leaving thousands to pay the tax or shift to poorly equipped state schools.
The ruling acknowledged this hardship but still upheld the policy.
Other families involved include Jewish children in religious schools fearing antisemitic attacks in state schools, a girl needing an all-girls environment due to harassment, and Christian families seeking faith-based education not offered in the public sector.
Some Parents and Groups Refuse to Back Down
Stephen White, a parent from Bradford Christian School, helped lead protests and has vowed to keep fighting.
The Christian Legal Centre, which supported the legal case, announced plans to appeal.
The Independent Schools Council (ISC) is also considering its next steps, saying it remains focused on supporting families.
ISC chief Julie Robinson said they’re still reviewing the judgment.
Boarding Schools Already Seeing Drop in Numbers
David Walker from the Boarding Schools’ Association warned that the VAT could hurt children more than help public schools.
Boarding student numbers are already down by 4%, and closures or disrupted education may follow.
He called on the government to “end its assault on independent education” before more children are caught in the crossfire.
Mixed Signals from the Government
The government has always said the new tax will help fund 6,500 new teachers.
But after the Spending Review this week, Prime Minister Keir Starmer posted on social media that the money will now go toward affordable housing instead.
That move sparked backlash.
Tory leader Kemi Badenoch questioned, “You said ‘every penny’ would go into state schools… but now it’s housing?”
A Tax with a Ripple Effect
The Office for Budget Responsibility estimates that 35,000 students could leave private schools due to the added cost.
Critics say this could overwhelm already stretched state schools and harm vulnerable students the most.
Still, the government stands by the decision. A spokesperson said: “Ending tax breaks for private schools will raise £1.8 billion a year, helping support the 94% of pupils in state schools.”
What Comes Next?
With legal appeals likely and political debate heating up, the story is far from over.
Parents, educators, and politicians alike will continue to spar over whether this policy is a step toward fairness—or a blow to educational choice.