Teachers losing jobs after private school VAT raid

  • Dismissal
private school vat rise

Peninsula Team,

(Last updated )

Private schools have had to decide whether or not to push Labour’s 20% VAT charge onto parents or absorb the cost since 1 January, but teachers are already being hit by the tax rise

One in five teachers at private schools have reported that staff are being made redundant at their schools, while 26% said recruitment has been frozen, revealed a survey by the National Education Union.

Daniel Kebede, general secretary of the National Education Union (NEU) said: ‘Employers will use the government’s VAT policy as an excuse to continue with more of the same.

‘They must not make the mistake of thinking they have carte blanche to do as they wish. The NEU will take on those employers and will robustly defend our members and support staff in the independent sector.’

The hit on jobs, coupled with the cost of living and slow wage growth in the sector, is forcing teachers to take on additional work. Almost one third (32%) of private school teachers are having to find extra money outside of their working hours, either in a part time job, working overtime, or providing private tuition.

Kebede said: ‘Staff in private schools are seeing their standard of living eroded by the continuing cost of living crisis.’

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One teacher told the NEU: ‘I now have to tutor as I cannot afford to live on my teacher salary alone after 20 years of being in the profession.’ Another said they were ‘working in bars and restaurant during holiday and tutoring during term time’.

The average pay rise for teachers was between 2% and 4%, received by 34% of respondents. However, almost one quarter (24%) said they had received no pay increase at all.

This came after the Independent Schools Council said the VAT policy will ‘likely have a long-term impact on the independent sector’. Already 12 private schools have permanently shut citing the government’s VAT change as the mitigating factor.

Julie Robinson, chief executive of the Independent Schools Council (ISC) said: ‘It is true that a small number of schools close every year. But it is equally true that the government’s triple tax whammy on independent schools will prove a bridge too far for schools already under financial pressure.’

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