UK: Catholic Schools Denounce Labour's VAT on Faith Education

Michael Ringer

20 Oct 2025 — 3 min read

Christian schools closing due to taxes from Labour government

London, United Kingdom - The Catholic Education Service has condemned the Labour government's decision to impose Value Added Tax on private school fees, arguing the policy disproportionately harms faith-based schools following a wave of Catholic school closures.

Beginning January 1, 2025, private school fees and boarding charges across the UK became subject to the standard 20 percent VAT rate. The government justified the tax by stating additional revenue would support state education funding.

Paul Barber, director of the Catholic Education Service, told The Telegraph the tax increase has "disrupted the lives of children" whose parents can no longer afford rising fees or whose schools have been forced to close.

Barber emphasized that most Catholic independent schools are small institutions with fewer than 400 pupils, operated "as inclusively as possible" as registered charities. He stated these schools charge lower fees and provide more bursaries than many other private institutions.

"The policy has hurt working families who have made sacrifices to send their children to schools where their faith and wellbeing are supported," Barber said.

He noted that multiple factors have contributed to Catholic school closures: "The combination of the pandemic, VAT on fees, business tax, rising costs, as well as declining birth rates means the number of these schools in England has reduced by almost a third in the past six years, from 116 in 2019 to just 79 today."

Among recent closures was St Joseph's Preparatory School in Stoke-on-Trent, which shut its doors on December 31, 2024, one day before the VAT came into effect.

The Catholic Education Service represents Catholic schools across England and Wales, working with dioceses to support Catholic education. Catholic independent schools typically serve families seeking faith-based education aligned with Catholic teaching and values.

Labour defended the policy as necessary to generate revenue for improving state education, arguing that private schools benefit from charitable tax advantages while serving primarily wealthy families. The government estimated the VAT would raise £1.6 billion annually for state schools.

Critics of the policy, including various faith leaders and education advocates, have warned the tax could force middle-income families out of faith-based education and increase pressure on already-strained state schools as displaced students seek alternative placements.

The policy has sparked broader debate about religious freedom, educational choice, and whether governments should penalize families who seek faith-based schooling for their children.

THE CRUSADERS OPINION

Labour just made it harder for Catholic families to educate their children in the faith. That's the policy's real effect, whatever its stated purpose.

These aren't elite boarding schools for the wealthy. Most Catholic independent schools serve working families making sacrifices to give their kids faith-based education. They charge lower fees, offer more financial aid, and operate as charities. The VAT hits them hardest.

Paul Barber got it right: this policy "disrupted the lives of children" and "hurt working families." Catholic schools dropped from 116 to 79 in six years. St Joseph's in Stoke closed literally the day before the tax took effect. More closures are coming.

Labour says the money funds state schools. But what about families who want their children taught Catholic values alongside academics? What about parents who choose schools that reinforce rather than undermine their faith? They're now punished with a 20 percent tax increase.

The irony burns. Labour claims to support working families and religious freedom. Then they tax religious education out of reach for ordinary Catholics. They force faith-based schools to close. They push Christian families into secular state schools that often contradict their beliefs.

This is hostility toward Christian education dressed as education funding. If Labour wanted to help state schools, they'd fix the system directly instead of attacking faith schools serving families the state system fails.

Catholic parents aren't wealthy elites. They're working people sacrificing to keep their kids in schools teaching Christ alongside curriculum. Labour just made those sacrifices much harder or impossible.

Religious freedom includes educating your children in your faith. When government taxes that choice prohibitively, religious freedom erodes. That's what's happening to Catholic families in Britain right now.