Private schools face a ‘double whammy’ with tax increases in the budget

The source added that at a school where the majority of employees are members of TPS, salary costs will increase by 2 to 3 percent.

Cost spiral ia on the upcoming VAT raid means that, according to official figures, a third of private schools in England and Wales have already withdrawn or are planning to withdraw from the programme.

Data obtained through a Freedom of Information request from Wesleyan show that 580 schools have withdrawn from the program since 2019.

Schools that choose to maintain generous pension schemes will have no choice but to pass on the extra costs to parents in the form of higher tuition fees, warned the Association of Independent School Bursars, which represents 1,100 private schools.

Dozens of private schools, including Eton, Winchester and Harrow, announced plans to increase fees since January.

David Woodgate, chief executive of the industry body, said: “Any increase in employer National Insurance contributions would have to be funded by independent schools, which would not be eligible for any funding offered to state schools to cover this increase.

“It would be another tax that schools would have no choice but to burden parents with, and would also risk an additional annual tax, further stretching the budget agreed before the general election was called.

“It also risks further withdrawals from TPS, which will make independent schools increasingly unaffordable.”