UK SchoolsIntelligence

VAT on School Fees: Where Things Actually Landed

Since January 2025, independent schools have charged 20% VAT on fees, following the Finance Act 2025. In practice, most schools didn't pass on the full 20% — many raised fees ahead of the change and then partly absorbed it, so the average net increase families have seen works out closer to 14%. Two-thirds of schools cut fees elsewhere to soften the blow.

ISC Census 2026: Enrolment Down 3.5%

The Independent Schools Council's 2026 census recorded 526,611 pupils across 1,455 member schools, down 3.5% year on year. New admissions fell 5.6% to 96,828, with Reception, Year 7 and Sixth Form entry hit hardest. Boarding numbers dropped 8.2% to 57,836 pupils — now just 11% of the total.

Over 100 Schools Have Closed Since VAT Began

More than 100 mainstream independent schools have closed since VAT took effect, affecting roughly 25,000 pupils and families, according to ISC chief executive Julie Robinson. Rising National Insurance costs and energy bills have compounded the pressure alongside VAT. Further closures are expected through 2026.

Bursaries Are Growing, Not Shrinking

Despite the financial pressure on schools, means-tested support has expanded: 34.5% of independent school pupils — over 183,000 children — now receive fee assistance worth £1.5bn in total, up 11.4% on the previous year. For families concerned about affordability, bursary and scholarship conversations are more relevant than ever.

35 UK Schools Still Rank in the World's Top 100

The Spear's Schools Index 2025 places 35 British independent schools among the world's top 100, down from 40 the year before — including Eton, Harrow, Cheltenham Ladies' College and Gordonstoun. Some internationally mobile families are now also considering schools in Asia and the Middle East, but the UK's academic reputation remains a major draw.

London Schools Are Proving the Most Resilient

Enrolment declines have not hit every region equally: London independent schools saw the smallest drop nationally at -1.5%, compared to steeper falls of -2.3% in the Southeast and larger declines still across the Midlands and North. For international families targeting London, demand and competition for places remain strong.