Christian schools, parents and pupils, being supported by Christian Legal Centre, say they will pursue a judicial review as opposition to Labour’s policy grows.
The schools bringing the challenge include the award-winning Emmanuel School in Derby, the Branch Christian School in Yorkshire, and the King’s School in Hampshire.
The claim also includes several Christian parents, and even pupils, who are accusing the Labour government of illegally discriminating against them through the policy.
They say that the policy will force Christian schools to close and deny Christian parents the right to give their children a Christian rather than a secular education.
The issue was debated in a Westminster Hall debate yesterday on 8 October 2024. The Treasury has, however, confirmed that the plan will go ahead despite major opposition building.
The legal claim comes after the Labour government announced a draft bill on 29 July 2024, which included plans to pass legislation through the Finance Bill for the 2024/2025 Budget which will amend the VAT Act 1994.
The policy will result in private schools having to charge VAT on school fees from 1 January 2025. Many independent schools could be forced to close, parents unable to pay the increased fees, and pupils with special needs unable to finish qualifications and access tertiary education.
Around 370,000 pupils attend independent faith schools in England alone, the majority of which are Christian schools.
In a letter submitted to the government and circulated to MPS on 8 October 2024, the claimants say that the introduction of VAT on school fees would breach protected property rights under Article 1 to the First Protocol to the ECHR.
They say the government’s move is unprecedented as education in the UK has never been taxed. They add that the government’s proposed measure fails several key legal requirements and that there is an international consensus that compulsory school education is not to be taxed.
Lawyers supporting the case say that the policy is not proportionate as it is not based on a parent’s ability to pay.
They say the policy is ‘oppressive’ as the government is providing no alternative to schools that face closure due to the proposals.
Lawyers state the imposition of VAT on private school fees will prevent parents from being able to educate their children in conformity with their Christian beliefs and fails to afford due respect to parental rights under European law and therefore violates their Convention rights.
They say the proposed VAT extension disproportionately impacts parents, and in particular Christian parents, who wish their children to be educated in Christian schools which have predominantly Christian teachers and cover all subjects from a Christian worldview perspective.
They claim, therefore, that the government is breaching their rights under Article 14 of the ECHR the right to protection from discrimination.
Vulnerable parents and children impacted
One family, bringing the legal claim, who do not wish to be identified, includes a single-mother and guardian of two children, who currently attend a fee-paying Christian school.
Both are previously looked after children and have been with their guardian for a number of years.
The guardian is a former youth worker and full-time carer who had to give up working to ensure the needs of the children are met.
For one of the children, the guardian had to previously take legal action against a local authority to ensure special needs education would be funded.
A tribunal determined that a state school could not meet the child’s needs, and an independent Christian school was recommended instead. It still took 18 months to get the child a school place.
The other child in the guardian’s care suffers from anxiety attacks.
The child had struggled with education since the lock down during the pandemic.
Another single parent of five children also faces severe consequences if the Labour government continues with the policy.
The mother of five lost her husband several years ago and three of her children now attend an independent Christian school.
The parent believes they would be unable to afford the expected significant increase in fees, and fears that the school may be forced to close as many have already done.
The guardian does not want the children to go to a secular school where Christian beliefs are not promoted, and due to their special needs they cannot be educated at home.
One child is also in the final year of school. They are neuro-divergent with autism and are completing the International Christian Certificate of Education (ICCE), which is the equivalent of GCSEs.
However, this qualification is not offered in state education. Therefore if the school is forced to close, the child’s ability to access tertiary education will be put in serious doubt.
Proposals are short-sighted
Caroline Santer, Headteacher at The King’s School in Hampshire, said:
“The proposals are short-sighted and the government does not appear to realise, or care, about the impact they will have on the UK’s education system.
“The VAT increase affects families who are not from affluent backgrounds but want to send their children to a Christian school. Following the draft legislation, a number of families have been forced to take out loans.
“The school will also feel the effect of the VAT increase as we will lose 80% relief on business rates. The policy will also have a significant impact on teachers’ wages and on the ability of independent schools to maintain their buildings.”
Ben Snowdon, Headteacher at Emmanuel School in Derby, said:
“The consequences of this policy could be devastating for independent Christian schools and many other low-cost independent schools across the country. It is especially concerning to parents who are not from affluent backgrounds and who have children with special education needs.
“At Emmanuel School we share the government’s desire to ensure that all children have access to high quality education, but we’re deeply concerned that the government’s VAT proposals will hinder this aim.
“Emmanuel is an incredibly diverse community with many of our families making huge financial sacrifices to send their children because of our Christian ethos and because of our reputation within their communities.
“A significant proportion of the children in our school are from lower-income families who simply cannot afford additional school fees. These families have chosen low-cost private education at immense personal sacrifice in order to access Christian education which is not available to them in state schools or because their children have SEN.
“If these children are forced to leave the school or the school becomes financially unviable and fails, the government will have to bear 100% of the cost of their education, which the government currently receives for free.
As a school we are unable to absorb the costs associated with the imposition of VAT on school fees. Our low fees are only possible because of the sacrifices our staff already make by accepting lower salaries than those available to them in the state sector. The fees at our school of £4,320 are less than the government contributes per child to local state primary schools.
“If the government’s proposals are implemented, for Emmanuel and other schools like us, it will result in a net cost to the government as well as removal of diversity and choice in education for lower income families.”
Stephen White, a Christian parent, said:
“As Christians, we believe that it is our duty as parents to raise our children in line with our beliefs.
“This means giving them a positively Christian education and not a secular education. Our first choice has always been to send our children to a Christian school where these values are taught.
“We have always prioritised paying the school fees at the expense of many other things which we would love to do as a family, such as holidays, sports clubs and music lessons, for example. However, with the proposed VAT changes it looks increasingly impossible for us to be able to keep the children in the school.
“This policy therefore forces us to home school our children as we will not send them to a state school. We believe this is wrong and discriminatory and must be challenged.”
Andrea Williams, chief executive of the Christian Legal Centre, said:
“VAT will make independent faith schooling unaffordable for many families and may force some small faith schools to close.
“Around 370,000 pupils attend independent faith schools in England alone, the majority of which are Christian schools. Fees at these schools are typically below the independent school average and sometimes below the state per-pupil funding levels.
“It is unfair, and we argue, it is a breach of their human right to impose VAT on such schools. Labour must row back on this policy urgently. If they don’t, we will have no choice but to pursue every legal avenue in the pursuit of justice and protection of independent Christian schools in this country.”