As reported by the BBC, the government’s decision to apply VAT to private school fees has been upheld by the Court of Appeal, marking another defeat for families and schools seeking to block the policy

Judges backed ministers’ argument that the change, which took effect on 1 January 2025, serves a wider public purpose. The Treasury has forecast that ending the tax exemption will raise £1.8bn a year by 2029-30, money earmarked to recruit more teachers in England’s state sector.

The case forms part of a wider legal battle that began in the High Court last year, when three separate groups mounted challenges. Those claims came from families of children with special educational needs and disabilities, parents of pupils at single-sex schools and a coalition representing lower-fee faith schools.

Central to the appeal was the claim from faith school families that the tax breached their human rights and unfairly discriminated against them. The courts rejected that argument, noting that alternatives such as state schooling or home education remained available.

In its judgment, the court acknowledged that some groups, including certain SEND pupils and faith communities, would feel the impact most acutely. However, it ruled that the financial benefit to the state system justified the measure overall.

Following the dismissal of their appeal, the group representing lower-cost faith schools said it intends to seek permission to take the case to the Supreme Court in a final attempt to challenge the policy.