Eton College Fee Surge to £63,000 Sparks Outrage Amid VAT Changes

Eton College has announced that a proposed change to VAT regulations will increase its yearly tuition to £63,000. The prestigious all-boys institution in Berkshire, which counts among its alumni figures such as Princes William and Harry, Boris Johnson, Eddie Redmayne, and Bear Grylls, expressed its disappointment at the necessity to apply VAT to its fees.

Friday, August 30, 2024, 9:

Families with students at Eton College have been informed that tuition is expected to increase by 20% in January, pushing the annual cost to approximately £63,000, due to adjustments in VAT.

The current fee for students at the private boys' school located near Windsor in Berkshire has risen from £52,749.

The college stated that the increase will not impact parents whose sons receive full scholarships.

Starting in January, the government intends to eliminate the VAT exemption and the relief on business rates currently available to private schools.

The contentious modifications are designed to finance the hiring of 6,500 additional educators in public schools.

The educational institution, established in 1440, counts among its alumni notable figures such as Princes William and Harry, Boris Johnson, Eddie Redmayne, and Bear Grylls.

At present, private schools are not required to apply a 20% tax on their tuition fees due to a tax exemption on educational services.

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The boarding school expressed in a communication to parents that the administration is disappointed by the government's decision to impose taxes on education in this manner.

"Additionally, we are disheartened by the decision to implement VAT mid-way through the school year and with minimal prior notice."

The college committed to doing everything in its power to provide financial aid to all those unable to bear the extra VAT costs.

The government is contemplating a boost to the existing £10 million aid fund to support individuals who are currently dealing with unmanageable rises in their educational expenses.

Get further insight from Sky News: Reeves faces criticism regarding tax and fuel matters. Analysis: Labour must maintain steady tax strategies. Starmer indicates upcoming tax increases.

Prime Minister Sir Keir Starmer is confident that private schools can adjust to the new VAT tax regulations, noting that it is not necessary for them to transfer the financial burden to parents.

Recently, Education Secretary Bridget Phillipson attributed the closure of private schools to their own failures, refuting claims that the government's VAT policy was responsible.

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In 2022/2023, the typical tuition cost for private schools in the UK was identified as £15,200, according to a study from the independent Institute for Fiscal Studies (IFS) published last year.

The study highlighted that this amount is £7,200, or almost 90%, above the per-student expenditure in public schools.

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