Heath House Preparatory School in Blackheath, London, will absorb the full cost of Labour’s 20% VAT charge to attract new students from rival independent schools. From January, the school will indefinitely cover the £250,000 bill, ensuring stability and preventing disruption for its 120 pupils. Director Harjesh Singh Kaushal hopes to offset the cost by enrolling up to 25 new students annually. Acquired by Singapore-based Global Schools Group in 2023, Heath House cannot reclaim VAT due to its UK location. By absorbing the cost, it avoids raising annual fees by £3,230, becoming a rare outlier in this decision.
How do you foresee the Education VAT impacting the overall affordability of private schooling, particularly for middle-income families?
We believe middle-income families are already facing a stretch to pay for private schooling. VAT imposition will further adversely affect the affordability for such families, especially with the rising cost of living.
What are the primary challenges Heath House Prep School anticipates in absorbing the full 20% VAT cost indefinitely, and how do you plan to manage those?
At Heath House, we are deeply aware of the financial commitment families make to provide high-quality education for their children. Absorbing the VAT on tuition fees is one way we are investing in the future of our students and our school, while also providing our families with a level of stability to minimise disruption during this time of economic uncertainty. This, undoubtedly, is a significant financial commitment from our side and it will have an initial impact on profitability but we are hopeful that long-term growth will support our sustainable, independent school model.
Do you believe the decision to absorb VAT will make Heath House more competitive compared to other private schools that may pass on the cost to parents?
Global Schools Group and Heath House have a strong record of providing outstanding pastoral care alongside an exceptional academic education. Our competitive advantages are the exceptional academic programmes of our schools and the support of our parent community. Every decision we make is made in the interest of our pupils and we believe this makes us different from other schools.
How do you think this policy will influence enrollment trends in private schools across the UK, and do you expect to see a shift from high-fee schools to more affordable options like Heath House?
This policy is likely to prompt many families to re-evaluate their private education options. Our decision is based on our own school community, and we cannot comment on other schools. Every school is facing its own unique circumstances and must make the decision that it believes is best for its community. At Heath House, we carefully considered all options and believe that absorbing the VAT cost is the right approach for us at this time.
What is your opinion on the broader implications of this VAT policy on the private education sector? Do you believe it will increase inequality in education or drive more families towards state-funded schools?
We are focused on keeping Heath House profitable and sustainable so we can continue providing an exceptional academic education for our students and future students. The Independent schools sector is facing multiple challenges but we cannot offer comments on the wider implications of the VAT introduction. At Heath House, our focus is on what we can control - providing an excellent education for our pupils and supporting our families
