A dramatic shift is underway in the UK’s private education sector, as a wave of elite schools begins to close amid growing financial pressure — and the recent VAT changes may have been the final straw.
As of 1 January 2025, UK private school fees have become subject to a 20% Value-Added Tax, a move that has sent ripples through the independent school system. While many institutions tried to cushion the blow by passing the costs on to parents, the ripple effect has turned into a wave of closures. At least 26 private schools — including some with centuries of history — have announced they are shutting their doors this year.
A Shock to the System
While VAT on school fees wasn’t unexpected, the speed at which closures have followed has caught families, staff, and alumni off guard. The closures aren’t just about the tax, say school leaders — they are the result of a perfect storm of rising operational costs, declining enrollment, and reduced public goodwill toward charitable-status benefits for elite institutions.
Here are some of the most notable casualties so far:
Bedstone College, Shropshire
Despite cutting fees to attract more students, this boarding school will shut at the end of summer term. Its headmaster noted that while the VAT and rising National Insurance costs worsened the situation, years of financial struggle preceded them.
“The VAT wasn’t the root cause — but it was the final nail in the coffin,” he wrote in a letter to parents.
Bishop Challoner School, London
Parents were left reeling after learning this historic school — founded in 1753 — would close on 4 July. With annual fees around £19,686, the school cited falling enrollment and rising costs as key reasons.
“This isn’t a posh place with champagne receptions,” said one parent. “It’s a nurturing, down-to-earth school that’s become a casualty of policy.”
Loughborough Amherst School, Leicestershire
Formerly a convent school, it expanded to become co-ed and had room for 600 students. But with enrollment at less than half, the school will close this summer.
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Moorland School, Lancashire
In perhaps the most abrupt case, the secondary section closed with just two days’ notice in March. Staff were informed by email, and boarding students — some from overseas — scrambled to contact their parents.
“It felt like evacuation,” said one staff member. “The children were in tears.”
Queen Margaret’s School for Girls, York
Set to close on 5 July, the school’s board blamed a cocktail of pressures: VAT, national insurance hikes, rising estate costs, and the loss of charitable business rate relief.
The Royal School, Surrey
Founded for daughters of naval officers, this institution received £16 million in bailouts from United Learning. Still, with just 100 students projected for September, the school’s survival was deemed financially unviable.
St Clare’s School, Bridgend
With only 150 pupils ranging from toddlers to teens, the school blamed “economic volatility” and falling birth rates for its imminent closure.
The Village School for Girls, London
This boutique school in Belsize Park entered a statutory consultation in January. With just 72 pupils, the school has struggled with rising payroll taxes, lower enrolment, and VAT-driven uncertainty.
Wakefield Independent School, Yorkshire
Closing on 3 July, this school left parents blindsided. One parent told the BBC that communication had been “nonexistent,” adding:
“We’re grieving. Not just for the school, but for the community it created.”
The Bigger Picture: Is This Just the Beginning?
While some closures were likely inevitable, VAT has accelerated the timeline for schools already operating on thin margins. Experts warn more closures may follow in the coming academic year, especially among smaller schools outside of major cities, where demand is lower and competition higher.
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What Does This Mean for Families?
The closures have forced thousands of families into last-minute school searches, often with limited availability in the state sector or at nearby private schools. Many are discovering that the affordability gap between public and private education has widened — and now it’s not just the wealthy feeling the pinch.
The Legacy at Stake
As these storied institutions disappear, so too do generations of educational legacy. For many, this moment marks a shift in how the UK values — or reevaluates — private education.
While some hail the VAT measure as a long-overdue equalizer, others see it as a blunt instrument that punishes schools already trying to evolve and serve diverse communities.
In the meantime, the message is clear: No school is too prestigious to fail — and for students caught in the middle, the lesson is a painful one.
