When, in July 2024, the UK government decided to remove the VAT exemption on private school fees and boarding services, the announcement hit the headlines with a splash. The stated goal of the move was to ‘support public finances and help deliver the government’s commitments relating to education and young people’. With an ever-growing population and 94% of children attending state schools, it’s easy to see why extra money is needed.
The process was speedy – within seven weeks, the government’s technical consultation was complete. Over 17,000 parents, school bodies and tax specialists had their say. By the end of October 2024, the policy was in place and the 20% VAT levy on independent education took effect from 1 January 2025.
Net results
As yet, the story hasn’t fully unravelled. It’s still early days, so commentators wait with bated breath to see how the change impacts independent schools and the pupils who attend them. Will fees surge and enrolments plummet? Will domestic students be outnumbered by counterparts from overseas? Will state schools see tangible benefits or be deluged by higher demand for places?
The issue is economically complex and more politically charged than we could hope to unravel here. But one thing seems likely – there could be collateral casualties and unexpected opportunities. Travel might fall into either of these categories.
Implications for travel
When STC Expeditions started operating nearly 20 years ago, one of our founding aims was to widen the horizons of young people by showing them the real world outside of the classroom. A trip with us isn’t just about going somewhere beautiful and admiring the view. It’s about seeing astonishing landscapes, meeting new people and hearing their stories, then coming home with a fresh perspective and new ambitions for the future.
We’ve always believed that travel should surprise students, push them firmly out of their comfort zones and give them the knowledge they need to debate big issues. Most importantly, we believe travel should be available for everyone.
With that in mind, affordability is something we pride ourselves on. If you ask us for a quote and compare it to the numbers from one of our competitors, you might be surprised by the price gap. It’s not that we aggressively undercut our rivals by compromising on quality. Our expeditions are value-packed, never short on educational experiences and we travel to some of the world’s most out-there places. We keep our quotes low by pricing fairly, working with in-country providers and leveraging our expert knowledge to make your money go as far as possible.
When the story unravels
As the impact of VAT on private education plays out, we’ll continue providing outstanding overseas travel experiences to both independent and state schools. While the dust settles, you might want to plan shorter trips to short-haul destinations. If you have a growing state-school population, you may have the opportunity to take advantage of economies made possible by larger groups. However, as things pan out, you can trust we’ll continue to design itineraries that deliver experiential learning opportunities and meet the high expectations you, your students and their parents have.
Got a question about any aspect of school travel? Give us a call – we’re always happy to talk.