Wealthy British parents are deserting the UK's private school sector as fees skyrocket post-VAT. Since January, when Labour introduced a 20% Value Added Tax on private school fees, there has been a notable shift towards German and Swiss educational institutions.
Enquiries from British families have surged at these schools, with Jamie Perfect, Director of the International School of Bremen in northern Germany, describing their requests as "overwhelming". The competitive pricing of European schools is a major draw, with fees often £15,000 lower than those at UK boarding schools. For example, the International School of Bremen offers first-year boarding for under £42,000 – significantly less than many UK equivalents.
The Labour Government's VAT policy was a key election commitment aimed at funding an additional 6,500 teachers for state schools. Despite facing legal challenges, which were ultimately overruled by the High Court, the tax has had a significant impact on private school fees. Analysis by the Independent Schools Council (ISC) shows average private school fees have risen by 22.6% compared to last year.
As costs escalate in the UK, a growing number of British families are relocating to areas around Lake Geneva or nearby mountain villages in Switzerland, where schools like St George's International School offer high-calibre education combined with outdoor opportunities. Tom Shennan-Barker, Senior Head of Admissions at St George's, observed a trend of wealthier parents not only enquiring but actively moving abroad.
The international education market is attracting significant investment, with private equity firm CVC acquiring a 20% stake in an international schools group valued at €7 billion. Leading UK private schools like Brighton College are planning to open new campuses in Spain and Italy, anticipating demand from affluent families seeking economical alternatives overseas.