Not all pupils with special needs can be exempt from plans to charge VAT on fees because private schools would exploit a ‘loophole’ to avoid the levy, a shadow minister has said – The Telegraph reports.
Under the Labour party plans, only children with an education, health and care plan (EHCP) will avoid paying VAT on fees, despite the fact these are hard to obtain and many pupils with SEND do not have them.
The Independent Schools Council (ISC) is calling for an exemption for over 96,000 students in its schools who are receiving SEND support but who do not have an EHCP.
Helen Hayes, a shadow education minister, told MPs that special schools would not be exempt from VAT on fees because Labour believes private schools would exploit a “loophole” by claiming to be special schools.
Defending the policy during a Westminster Hall debate, she said: “It is the way we avoid a loophole whereby any school can claim that it is a special school.
“Without there being an independent test of the places that are provided, any school could claim that it was a special school, and that… would provide a loophole that schools could use to evade the policy.”
Much of the parental opposition to VAT on fees has come from those with children with special needs, and many have claimed they would be forced out of the private sector because of the extra costs.
Special school heads says they were worried they might even be forced to close when the charge comes in, if Labour wins the next election.
Neil O’Brien, Conservative MP for Harborough, who questioned Labour over its policy, told The Telegraph: “It would be perfectly possible to exempt special schools from these new taxes, but Labour know there is a massive black hole in their spending plans and are desperate for cash.
“To try and paint the parents of children with special needs as dodgy characters trying to exploit a ‘loophole’ is so wrong. Parents of children with special needs work so hard and often have no practical choice except small independent schools to get the care their vulnerable children need.”
He added: “Instead of the help they deserve, Labour plan to whack them with massive new taxes. Schools will shut and vulnerable children will end up moving school and having to travel long distances.
“Whatever you think of this policy, all special schools should be exempt – it is just so wrong to be whamming them with massive new taxes when they do such good work for needy children.”
Julie Robinson, chief executive of the ISC, said: “Whether or not their independent school is designated as a special school should be irrelevant to this. We are keen to work with Labour to make sure this exemption would be targeted at the families and children who need it.”