Bridget Phillipson hits back at suggestion private school closures linked to VAT insisting 'more have opened than closed'

Speaking to Tonight with Andrew Marr, the Education Secretary rejected the suggestion that an increasing number of private schools are going under financially after Labour introduced a 20% VAT charge on fees in January.

“In terms of the evidence supporting that we've actually seen more private schools open than closed. 

“What we've seen in terms of schools closing is entirely consistent with what we've always seen, which is some schools will open their businesses, they're private businesses,” she told Andrew. 

It comes amid reports that private school pupil numbers have dropped by 30,000, down nearly 7 per cent in some year groups, since Labour introduced the VAT charge.

But Ms Phillipson pointed out that numbers are declining across the state system too, which she said was largely due to plummeting birth rates.

She told Andrew: “What private schools are seeing in the same way that state schools are seeing, is obviously, we've had a big fall in the birth rate.

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“We've got fewer children arriving at school. That means that some state schools, particularly in London, although this is becoming a feature in other parts of the country, are merging or taking difficult decisions about the size of their intake - a pretty much historic low.”

Ms Phillipson added that she does not accept the “constant chatter” about private schools being hit hard by the VAT as she called for a greater focus on the state system.

“We should be spending more time talking about the change that we are driving as a government for the children, [the] majority of children who go to state school,” she said.

Data shows the number of independent schools closing increased from 58 in 2024 to 71 in 2025.The 20 percent VAT charge on private school fees came into effect in January.

Meanwhile, the average capacity of mainstream private school closures rose to 211 pupils in 2021, up from 157 in 2020 and 137 in 2019. Last year, the average capacity of a closing mainstream independent school reached a record 222 pupils, an analysis has shown.

That figure is 36% higher than in 2024 and about 52% more the long-term historical average of 146 pupils.

Tom Richmond, an education policy analyst who carried out the analysis, told The Times: “Despite claims that the sector is in rude health following the addition of VAT to fees, the government’s own data shows that even large institutions are being pushed over the edge by the financial burdens recently heaped onto independent schools.

“If this pattern of school closures continues, the independent sector could shrink much faster than originally thought. This could leave taxpayers with an ever-increasing bill for educating more children and young people in state schools, which would undermine the government’s calculations about how much money this policy will raise both now and in future.”

A government spokesperson said: “More private schools opened than closed in 2025, and our data shows that private school pupil numbers remain firmly within historical patterns seen for over the last 20 years.

“Ending tax breaks for private schools will raise £1.8 billion a year by 2029-30 to help fund public services and a better education for the 94 per cent of children who go to state schools.”