Children with special educational needs face “insurmountable stress and exposure to mental illness” due to Labor’s tax on private schools, the High Court has ruled.
Three mothers with children with such needs are suing the government over the imposition of value-added tax on private schools.
Their lawyers said the tax was an “insensitive, gut-wrenching and ultimately harmful decision” that would hurt “thousands of vulnerable children across the country.”
The tax, promised by Labor in its manifesto, will come into force this month and will add 20% to private school fees.
This is controversial, with Conservative Party leader Kemi Badenoch calling it “the politics of envy”.
And experts warn that children with special educational needs could be hit hardest. According to the Rose Library, one in five independent school students has such needs.
Three parents, all single mothers, have now launched a judicial review into the policy. Their lawyers say the tax discriminates not only against single mothers but also against children with special educational needs.
James Gardner, a senior consulting attorney at Sinclairs who is representing the plaintiffs, said the tax was “ideological politics at its worst.”
He said: “The government is pushing ahead with taxes that are hitting thousands of vulnerable families across the country. For these children with special educational needs (SEN), the state’s education system is failing. It’s going to get worse. It’s a broken system. Even the government is saying that SEN provision is in crisis and the number of school-aged children with special educational needs is increasing exponentially every year. I am on record as admitting that.
“And single mothers who are dealing with reduced incomes and rising costs often find that their ability to work and earn more is hampered by taking on sole childcare responsibilities, but with VAT The impact will be even greater.
“Forcing thousands of parents to transfer their children to already underserved state schools is a callous, insensitive, and ultimately harmful decision.
“It’s deceptive to pretend you’re doing it to increase tax revenue for schools. The numbers don’t add up and the money you raise isn’t going to be used for education anyway. This is ideological politics at its worst. Vulnerable parents and their children are the victims. Our parent-led challenge seeks justice for these families.”
Dr Richard Sopit, Consultant Child and Adolescent Psychiatrist, said: ‘As an expert in the field of mental health and SEN, I have serious concerns about the impact of the Government’s proposals to introduce VAT into private education from January 2025. “I’m concerned. I’m concerned that this will have a disproportionate impact.” Affects the most vulnerable children with SEN who require more time and appropriate transition planning and support to ensure their needs are adequately met with alternative arrangements.
He added: “The unintended consequences of this VAT levy will not only be that more children will be exposed to insurmountable stress and mental illness, but also that very complex children will not be able to make appropriate adjustments.” They will enter the current mainstream education sector without doing so. This, in turn, will have an impact on the education and well-being of other children and the teachers who are trying to support them.”
This week’s filing follows a separate legal challenge from the Independent Schools Council (ISC), filed on December 20, 2024.
A Government spokesperson said: “Removing tax breaks for private schools will unlock additional funding to break down the opportunity barrier and help 94% of pupils in state schools, including those with SEND, to achieve and thrive. It will help us collect.”
“It is clear that less than 0.1 per cent of our students are likely to transfer as a result of these changes, and we are confident that the state department will be able to accommodate them.”
