Parents and religious schools are challenging the UK government’s decision to apply VAT to private school fees, saying it could increase costs and change access to religious education.
The case will now be decided by the UK High Court after previous courts rejected claims that the 2025 tax reform breached protections for people’s rights to education, property, and equal treatment.
At the heart of the dispute is the government’s decision to extend VAT on private school fees to 2025, a move designed to raise money for public education funding but which has quickly increased cost pressures across the private sector. Religious schools, parents and students involved in this challenge say that the impact is not imaginary. It already shapes financial decisions within families and school budgets.
Families say rising costs are already pushing the scores
The legal challenge includes Charedi Jewish and Evangelical Christian schools, as well as parents who say even small increases in fees can quickly become unmanageable.
In some societies, private education is closely linked to religious life, meaning that the financial impact extends beyond education to cultural advancement. Parents involved in the case say the concern is not only long-term affordability, but whether the children will be able to stay in their current schools for the next academic cycle.
The schools involved in the case warn that they have limited ability to collect taxes without passing them on to fees.
The government says VAT is necessary to fund public education
The government is introducing VAT on private school fees following its 2024 election pledge, pitching the policy as a way to raise more funding for the country’s education system.
Officials refused to exempt religious schools during negotiations, saying they would reduce revenue and create inconsistent tax spending across the various institutions. The change was introduced through the Finance Act 2025, which marks a structural change to the way private education is taxed in the UK.
Schools face a direct financial transaction
This policy creates direct financial pressure: schools can take VAT, reduce already tight budgets, or pass the cost on to parents at higher costs.
In many private and faith-based schools, there is limited flexibility in either direction. Personnel, resources, and operational stability all sit within tight boundaries. For small schools, even small changes in enrollment can quickly affect financial performance, adding another layer of uncertainty to next year’s planning.
Courts have already rejected previous challenges
Both the Divisional Court and the Court of Appeal rejected arguments that the VAT policy is illegal or inconsistent with the protection of human rights. The judges ruled that governments should retain broad discretion over tax policy, where the impact is disproportionate on different social or religious groups.
The Supreme Court will now decide whether those decisions should stand or whether the policy violates protections under the European Convention on Human Rights.
What happens next
The High Court will decide whether VAT on private school fees remains or is abolished under human rights law, a decision that could change the way private education is funded in the UK. For the families concerned, the case is not only about the tax but also about rising costs will gradually reduce access to faith-based education.
This decision will ultimately define how far governments can use tax policy to reshape parts of the education system while balancing revenue needs with social impact.
