What will be the effect on socio-economic mobility of the UK government’s plan to impose value added tax on school fees?
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What will be the effect on socio-economic mobility of the UK government’s plan to impose value added tax on school fees?

Chenxi Yun 1*
1 Suzhou Foreign Language School, Suzhou, Jiangsu, 215011, China
*Corresponding author: chenxiyun87@gmail.com
Published on 23 September 2025
Journal Cover
JAEPS Vol.18 Issue 9
ISSN (Print): 2977-571X
ISSN (Online): 2977-5701
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Abstract

This paper focuses on the effect on socio-economic mobility of the UK government’s plan to impose value added tax on school fees, offering a comprehensive review of academic literature and the latest authoritative news. This policy has both positive and negative impacts on socio-economic mobility. Intended outcomes can be achieved when expected tax revenue is reinvested in state education, reducing the gap in education quality and career outcomes between state and private schools, while certain groups may not benefit from the policy and may even see their mobility reduced. There is also uncertainty about the overall impact of the VAT on the UK government budget and the education attainment of the UK society.

Keywords:

mobility, value added tax, state school, private school

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Yun,C. (2025). What will be the effect on socio-economic mobility of the UK government’s plan to impose value added tax on school fees?. Journal of Applied Economics and Policy Studies,18(9),47-50.

References

[1]. Green, F., Anders, J., Henderson, M., & Henseke, G. (2017). Who chooses private schooling in Britain and why? (LLAKES Research Paper No. 62). Centre for Learning and Life Chances in Knowledge Economies and Societies (LLAKES),UCL Institute of Education. http: //www.llakes.ac.uk

[2]. HM Revenue & Customs. (2024). Private school fees — VAT measure. UK Government. https: //www.gov.uk/government/publications/vat-on-private-school-fees/applying-vat-to-private-school-fees

[3]. McGough, K., & Agerholm, H. (2025, June 6). Private school pupil numbers drop by 11, 000.BBC News. https: //www.bbc.com/news/articles/c2lk2p7wpr4o

[4]. Wood, P. (2024, June 10). Oxford University admits fewer state school pupils for third year in a row.The Telegraph. https: //www.telegraph.co.uk/news/2024/06/10/oxford-admits-fewer-state-school-pupils-third-year-in-a-row/

[5]. Labour Party. (2024). Break down barriers to opportunity. https: //labour.org.uk/change/break-down-barriers-to-opportunity/

[6]. Organisation for Economic Co-operation and Development. (2010). A family affair. In Economic policy reforms 2010: Going for growth (pp. 181–198). OECD Publishing. https: //doi.org/10.1787/growth-2010-38-en

[7]. Wood, P. (2025). Labour's VAT raid forcing private school teachers into unpaid overtime.The Telegraph. https: //www.telegraph.co.uk/news/2025/04/16/labours-vat-raid-private-school-teachers-unpaid-overtime/

[8]. Makransky, G., & Lilleholt, L. (2018). A structural equation modeling investigation of the emotional value of immersive virtual reality in education.Educational Technology Research and Development, 66(5), 1141–1164. https: //doi.org/10.1007/s11423-018-9581-2

[9]. HM Government. (2017). Industrial strategy: Building a Britain fit for the future. Department for Business,Energy & Industrial Strategy. https: //www.gov.uk/government/publications/industrial-strategy-building-a-britain-fit-for-the-future

[10]. Carnevale, A., Smith, N., & Melton, M. (2011). STEM: Science, Technology, Engineering, Mathematics. : Georgetown University Center on Education and the Workforce. hdl.handle.net/10822/559306

[11]. Rajandiran, D. (2021). Singapore’s teacher education model for the 21st century (TE21). In F. M. Reimers (Ed.), Implementing deeper learning and 21st century education reforms (pp. 59–78).Springer. https: //doi.org/10.1007/978-3-030-57039-2_3

[12]. Torres, A. C. (2012). "Hello, goodbye": Exploring the phenomenon of leaving teaching early.Journal of Educational Change, 13(1), 117–154. https: //doi.org/10.1007/s10833-011-9172-z

[13]. OECD. (2016). PISA 2015 Results (Volume II): Policies and Practices for Successful Schools. OECD Publishing. https: //doi.org/10.1787/9789264267510-en

[14]. Bandura, A. (1986). Social foundations of thought and action: A social cognitive theory. Prentice-Hall.

[15]. Mason, A. (2006). Rawlsian fair equality of opportunity. In S. L. Morgan, D. B. Grusky, & G. S. Fields (Eds.), Mobility and inequality: Frontiers of research in sociology and economics (pp. 68–88). Oxford University Press. https: //doi.org/10.1093/acprof: oso/9780199264414.003.0004

[16]. Butcher, B. (2025). Find the best value private schools in your area.The Telegraph.

[17]. Adams, R. (2025). No exodus to state sector after VAT added to private school fees, say English councils.The Guardian. https: //www.theguardian.com/education/2025/mar/10/no-exodus-to-state-sector-after-vat-added-to-private-school-fees-say-english-councils

[18]. Sutton Trust & Social Mobility Commission. (2019). Elitist Britain 2019: The educational backgrounds of Britain's leading people.

[19]. Department for Education. (2023). Schools, pupils and their characteristics: January 2023. UK Government. https: //explore-education-statistics.service.gov.uk/find-statistics/school-pupils-and-their-characteristics

[20]. Department for Education. (2024). School funding: Everything you need to know.Education Hub. https: //educationhub.blog.gov.uk/2024/03/school-funding-everything-you-need-to-know/

[21]. Woolcock, N. (2025, May 2). Private schools branch out and merge to offset VAT effect on fees.The Times. https: //www.thetimes.com/uk/education/article/private-school-vat-fees-alleyns-london-qdkh96hr2

[22]. Clarke, V. (2025, April 2). Private school VAT 'discriminatory', court hears.BBC News. https: //www.bbc.com/news/articles/cp915z1le4ko

[23]. Ivens, F. (2025, May 10). Another private school forced to close under Labour VAT raid [News article]. https: //www.telegraph.co.uk/money/tax/outstanding-private-school-close-labour-vat-raid/

[24]. Becker, G. S. (1975). Human capital: A theoretical and empirical analysis, with special reference to education.National Bureau of Economic Research.

References

[1]. Green, F., Anders, J., Henderson, M., & Henseke, G. (2017). Who chooses private schooling in Britain and why? (LLAKES Research Paper No. 62). Centre for Learning and Life Chances in Knowledge Economies and Societies (LLAKES),UCL Institute of Education. http: //www.llakes.ac.uk

[2]. HM Revenue & Customs. (2024). Private school fees — VAT measure. UK Government. https: //www.gov.uk/government/publications/vat-on-private-school-fees/applying-vat-to-private-school-fees

[3]. McGough, K., & Agerholm, H. (2025, June 6). Private school pupil numbers drop by 11, 000.BBC News. https: //www.bbc.com/news/articles/c2lk2p7wpr4o

[4]. Wood, P. (2024, June 10). Oxford University admits fewer state school pupils for third year in a row.The Telegraph. https: //www.telegraph.co.uk/news/2024/06/10/oxford-admits-fewer-state-school-pupils-third-year-in-a-row/

[5]. Labour Party. (2024). Break down barriers to opportunity. https: //labour.org.uk/change/break-down-barriers-to-opportunity/

[6]. Organisation for Economic Co-operation and Development. (2010). A family affair. In Economic policy reforms 2010: Going for growth (pp. 181–198). OECD Publishing. https: //doi.org/10.1787/growth-2010-38-en

[7]. Wood, P. (2025). Labour's VAT raid forcing private school teachers into unpaid overtime.The Telegraph. https: //www.telegraph.co.uk/news/2025/04/16/labours-vat-raid-private-school-teachers-unpaid-overtime/

[8]. Makransky, G., & Lilleholt, L. (2018). A structural equation modeling investigation of the emotional value of immersive virtual reality in education.Educational Technology Research and Development, 66(5), 1141–1164. https: //doi.org/10.1007/s11423-018-9581-2

[9]. HM Government. (2017). Industrial strategy: Building a Britain fit for the future. Department for Business,Energy & Industrial Strategy. https: //www.gov.uk/government/publications/industrial-strategy-building-a-britain-fit-for-the-future

[10]. Carnevale, A., Smith, N., & Melton, M. (2011). STEM: Science, Technology, Engineering, Mathematics. : Georgetown University Center on Education and the Workforce. hdl.handle.net/10822/559306

[11]. Rajandiran, D. (2021). Singapore’s teacher education model for the 21st century (TE21). In F. M. Reimers (Ed.), Implementing deeper learning and 21st century education reforms (pp. 59–78).Springer. https: //doi.org/10.1007/978-3-030-57039-2_3

[12]. Torres, A. C. (2012). "Hello, goodbye": Exploring the phenomenon of leaving teaching early.Journal of Educational Change, 13(1), 117–154. https: //doi.org/10.1007/s10833-011-9172-z

[13]. OECD. (2016). PISA 2015 Results (Volume II): Policies and Practices for Successful Schools. OECD Publishing. https: //doi.org/10.1787/9789264267510-en

[14]. Bandura, A. (1986). Social foundations of thought and action: A social cognitive theory. Prentice-Hall.

[15]. Mason, A. (2006). Rawlsian fair equality of opportunity. In S. L. Morgan, D. B. Grusky, & G. S. Fields (Eds.), Mobility and inequality: Frontiers of research in sociology and economics (pp. 68–88). Oxford University Press. https: //doi.org/10.1093/acprof: oso/9780199264414.003.0004

[16]. Butcher, B. (2025). Find the best value private schools in your area.The Telegraph.

[17]. Adams, R. (2025). No exodus to state sector after VAT added to private school fees, say English councils.The Guardian. https: //www.theguardian.com/education/2025/mar/10/no-exodus-to-state-sector-after-vat-added-to-private-school-fees-say-english-councils

[18]. Sutton Trust & Social Mobility Commission. (2019). Elitist Britain 2019: The educational backgrounds of Britain's leading people.

[19]. Department for Education. (2023). Schools, pupils and their characteristics: January 2023. UK Government. https: //explore-education-statistics.service.gov.uk/find-statistics/school-pupils-and-their-characteristics

[20]. Department for Education. (2024). School funding: Everything you need to know.Education Hub. https: //educationhub.blog.gov.uk/2024/03/school-funding-everything-you-need-to-know/

[21]. Woolcock, N. (2025, May 2). Private schools branch out and merge to offset VAT effect on fees.The Times. https: //www.thetimes.com/uk/education/article/private-school-vat-fees-alleyns-london-qdkh96hr2

[22]. Clarke, V. (2025, April 2). Private school VAT 'discriminatory', court hears.BBC News. https: //www.bbc.com/news/articles/cp915z1le4ko

[23]. Ivens, F. (2025, May 10). Another private school forced to close under Labour VAT raid [News article]. https: //www.telegraph.co.uk/money/tax/outstanding-private-school-close-labour-vat-raid/

[24]. Becker, G. S. (1975). Human capital: A theoretical and empirical analysis, with special reference to education.National Bureau of Economic Research.

Cite this article

Yun,C. (2025). What will be the effect on socio-economic mobility of the UK government’s plan to impose value added tax on school fees?. Journal of Applied Economics and Policy Studies,18(9),47-50.

Data availability

The datasets used and/or analyzed during the current study will be available from the authors upon reasonable request.

About volume

Journal: Journal of Applied Economics and Policy Studies

Volume number: Vol.18
Issue number: Issue 9
ISSN: 2977-5701(Print) / 2977-571X(Online)

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