The number of pupils at private schools has dramatically fallen by 30,000 since the introduction of VAT on fees.
According to new figures, pupil numbers are down by 6.6 per cent in some year groups with the number of children at private schools falling by 20,000 in the past year alone.
Labour’s policy to impose 20 per cent VAT on private school fees was introduced on January 1 last year.
However, far fewer families are now choosing to enrol at the start of primary, prep school or sixth form, reports The Times.
The school-age population is already in decline due to declining birth rates and Brexit, but numbers appear to be falling much faster in private schools.
The new figures, set to be released later this month by the Independent Schools Council (ISC) census, showed the biggest regional declines were in Scotland, Wales and the northeast of England, however pupil numbers fell across all areas.
When comparing the schools that completed the survey in 2026 and 2025, biggest proportional drops were at the start of sixth form and year 1 of primary school.
Chief executive of the ISC Julie Robinson told The Times: “Behind these figures are families facing difficult financial decisions and schools working hard to preserve the opportunities, expertise and support that parents value. These trends demonstrate that policy decisions can have real consequences for families’ educational choices.”
Private schools across England are seeing numbers being cut
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Ms Robinson said 105 schools have closed since the decision came into effect, including 15 which had been merged with others
Park Hill School in Kingston and Falcons School in Putney both claimed the Government’s introduction of VAT on fees meant they no longer had the means to stay open.
The Old Palace of John Whitgift School in Croydon, south London, Ursuline Prep in Ilford, east London, and London Acorn in Morden, south-west London, also shut their doors last year.
Other closures include The Cedars School in Croydon, an all-boys senior school which shut in September, and Oak Heights, a co-ed senior school in Hounslow, west London, which closed in October.
Rachel Reeves has been criticised for the policy
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PAReacting to the most recent pupil figures, shadow schools minister Saqib Bhatti said: “The number of children being forced out of independent schools is already on track to exceed what Labour predicted, putting even more pressure on the state sector.
“Children and families are paying the cost of a policy that is disrupting education without delivering the benefits Labour promised.”
In an exchange with Lords Leader Baroness Angela Smith released earlier this week, Lord Mandelson said Labour’s policy of removing the VAT exemption for private schools was “probably unwise”.
Lady Smith said there was “grumpiness” from “more on our side than I’d like” over the policy during the WhatsApp conversation in August 2024. Lord Mandelson told her: “I am afraid I think the VAT policy was probably unwise.”
The Department for Education
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A Department for Education spokesman said: “Ending tax breaks for private schools is raising more than initially forecast, delivering over £1.8billion a year by 2029/30 to improve education for the 94 per cent of children in state schools.
“This comes as more private schools opened than closed in 2025, and record numbers of families are getting their first-choice state school place.
“Pupil numbers are falling across the board as a result of demographic change, primary numbers have been in decline since 2018/19.
“This is a reality playing out across both private and state schools.”