Military Families Threaten Resignations Over VAT Increase on Private School Fees

Service personnel are warning they may leave the armed forces due to the government’s plan to impose 20% VAT on private school fees. The move, which could increase boarding school costs by up to £15,000 annually, is described as “unsustainable” by military families, who rely on these schools for their children’s education due to frequent relocations.

Military children often attend boarding schools to avoid the disruption of constantly changing state schools. More than 4,000 children benefit from the Continuity of Education Allowance (CEA), which covers up to 90% of school fees, capped at £27,000 annually. With average boarding school fees around £41,000, many parents already struggle to cover the shortfall. The added VAT would significantly worsen this burden.

A family with two children attending schools at the CEA cap would currently pay £5,400 annually after reimbursement. Under the VAT plan, this could rise to £16,200 if the Ministry of Defence (MoD) doesn’t adjust allowances. Even if the CEA is increased, parents would still face higher out-of-pocket costs.

Service members are voicing their concerns to shadow defence secretary James Cartlidge, noting the policy’s potential impact on retention. Replacing experienced personnel costs more than supporting families, with training a single recruit costing nearly £48,000.

Cartlidge warns the armed forces, already struggling with retention, could face an exodus. He urges the government to exempt military families from the VAT, stating, “This is the last thing the military needs. Protecting these families is more cost-effective than replacing the troops we lose.”

Individual testimonies highlight the strain. An RAF flight sergeant said the VAT would cause “irreparable damage to retention and recruitment.” Another family, frequently relocated over 25 years, fears losing the educational stability boarding schools provide.

A major with three children in boarding schools said frequent relocations and operational tours left boarding as the only stable option. A sergeant’s 13-year-old daughter, already attending four schools in two years, wrote about the impact on her future, saying boarding provides the stability necessary for her academic goals.

The Army Families Federation echoes these concerns, noting that families receiving CEA often belong to experienced ranks vital to defence operations. CEO Collette Musgrave warns, “This could be the tipping point for many families deciding to leave the military.”

The government has suggested potential support but offered no concrete plans, leaving families in limbo. Military personnel are clear: without intervention, this policy could severely undermine the armed forces.