Will Labour’s private schools tax plan flood the state sector? Of course not

“Some comments suggest withdrawing really large numbers of students. I really don’t think we’ll see that,” said Louis Hodge, deputy director for school systems and outcomes at the Education Policy Institute.

“Independent school fees have been rising steadily for a decade, with little impact on the number of children attending schools. We would expect some movement, but it will likely be minimal.”

The plan is not intended to “destroy the state system,” Hodge added. Rather, it will generate a “relatively decent” pot of money that can be reinvested in education.

“It would be good to target these funds at truly disadvantaged state school students, rather than just use them in a generalized way,” he said.

The Institute for Fiscal Studies estimates that Labor’s policies would encourage 3-5% of private school students to leave private schools, significantly lower than the 40% figure reported by the Daily Mail.

The state system would probably be able to absorb them. Indeed, local authority figures show there are already hundreds of thousands of vacancies in English schools, with Schools Week estimating that there will be around 713,000 primary school vacancies next September. There will be 313,000 vacant places in secondary schools.

The Big Issue demands an end to poverty in the upcoming general election. Will you sign our open letter to party leaders?

Josh, a deputy headteacher from south London, said he would welcome a move from the private to state sector because wealthier parents would invest in the quality of state education.

“As more and more upper-middle-class children or middle-class families start attending public schools, hopefully the people in power will become more interested in improving these schools,” he said.

“I find it quite scandalous that people with a hand and in power, people in government – ​​their children do not go to public schools. Yet they are responsible for running our deeply underfunded state system.”

How will Labor reform private schools?

There are around 2,600 private schools in the UK, with around 7% of the country’s pupils attending.

This minority dominated top positions in government, the judiciary, the civil service and the media, holding approximately 39% of senior positions.

Critics have described institutions as “machines of inequality.” According to a 2022 report from the Institute for Fiscal Studies, “something must be done” to address this disparity.

“There is a huge difference – about three to one – between the two sectors in terms of average learning resources per student,” it explained.

Currently, independent schools benefit from a range of tax benefits, including VAT exemption. Starmer has promised to abolish these exemptions, which would mean an increase in tuition fees by around 20%.

It’s not a particularly radical policy – in fact, six years ago Michael Gove wrote a column in the Times questioning the wisdom of redundancy.

“Private school fees are exempt from VAT. This tax advantage allows the nation’s wealthiest, and even the world’s wealthiest, to purchase a prestigious service that will give their children a lasting positional advantage in society, at an effective 20% discount. How can this be justified?” he asked.

However, despite relatively modest aspirations, this is a step in the right direction, Josh said.

“Baby steps. I don’t think Labor can follow a policy of ‘let’s abolish private schools’ – look how much they’ve been attacked for that policy alone,” he told the Big Issue.

“But this is an important step. It signals an intention to reform those institutions that are essentially incubators of the ruling elite and the unjust status quo.”

The Institute for Fiscal Studies said the policy would generate around £1.5 billion a year, which Labor has promised to use to employ 6,500 extra teachers.

That money should go to students who need it more, Hodge said.

“It’s important to remember that there is wide variation for the 93% of children in the state system, they are not one homogeneous group,” he said. “The students on this block who are consistently disadvantaged, this is where we really need investment.”

He added that early education is a good start because “the advantage among students starts younger and younger.”

A report by the Nuffield Foundation found that just 57% of English pupils eligible for free school meals achieved a good level of development at the end of Reception in 2019, compared with 74% of their better-off peers.

Schools can help people emerge from deeply rooted inequalities by acting as a leveler. Unfortunately, insufficient investment means that inequalities persist throughout schooling.

According to the same study, less than half of disadvantaged children reach expected levels of achievement by the end of primary school, compared with almost 70% of their better-off peers. And of those who do achieve expected results, just 40% of disadvantaged pupils achieve good GCSEs in English and maths, compared with 60% of better-off pupils.

“Adverse differences between students start younger and younger. This is an issue that needs to be addressed urgently,” Hodge said.

However, inequalities can also be addressed at the other end of education.

“More private schools and wealthy students are going to really good universities. We should think about university admissions policies, regardless of whether they reflect the environment from which students come,” he added.

“Could universities do more to reach some of our financially disadvantaged communities and families?”