Eton College to raise fees by 20% after VAT introduction

Eton College has announced it will increase fees by 20% from January 2025, passing the full cost of the newly introduced VAT on private school fees directly to parents.

This change will see annual fees rise from £52,749 to over £63,000, affecting most families except those on full bursaries. The decision follows the government’s move to apply VAT to private education, a policy aimed at raising funds for state schools, which has been met with criticism from independent school leaders.

In a letter to parents, Eton expressed regret over the government’s decision, highlighting the financial burden this tax would impose. Lord Waldegrave of North Hill, the outgoing provost, noted the difficulty for parents adjusting to such a significant increase on short notice, stating, “While this news was not unexpected, we regret that the Government has chosen to tax education in this way.” He acknowledged that the 20% rise might make Eton unaffordable for some families, adding that the college might expand its £10 million financial assistance fund to support those impacted by the fee hike.

Eton is the first major school to pass the full VAT cost onto parents, while other prominent institutions, such as Alleyn’s School and Stowe School, have also announced significant fee increases, albeit at lower percentages. Alleyn’s in Dulwich will raise senior school fees by 15.5% from January 2025, and Stowe is planning a 15% increase. Latymer Upper School in west London and other private schools are expected to announce similar changes as they adjust to the new VAT rules.

The VAT policy, driven by Labour’s agenda to generate approximately £1.5 billion for the state sector, has prompted concerns about the affordability of private education. Headteachers from various schools, including Stowe’s Anthony Wallersteiner, have voiced opposition, warning of potential repercussions such as a shift of students from private to state schools, which could increase the burden on the public education system.

Parents now face a tight deadline to make decisions about their children’s education, as most private schools require a term’s notice to withdraw pupils. With these substantial fee increases on the horizon, families must quickly assess the financial impact and decide whether private education remains a viable option.

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Eton College to raise fees by 20% after VAT introduction