Business
Parents face potential £3,800 bill increase to support children with special educational needs under Labor government
As the general election approaches, parents of children with special educational needs and disabilities (SEND) could find themselves under financial pressure if Labour’s proposed policies take effect.
HCB lawyersEducation law experts are urging families to apply for an education, health and care plan (EHCP) as soon as possible to protect their children’s education and avoid potential costs.
The Labor manifesto includes plans to abolish VAT exemptions for private schools, impacting families, especially those who rely on private education for SEND children. If this policy is implemented, private schools could add a 20% VAT rate to current rates, potentially costing families an additional £3,800 per year. However, Labor has made it clear that apprentices with an EHCP will be exempt from this VAT increase, so their costs will remain unaffected.
Labor has also recently indicated that private schools should try to avoid passing this VAT increase on to parents, although it is unclear how this can be achieved as many smaller schools make minimal to no profits and some more specialist independent placements have a have charitable status.
Many parents choose private schools for their SEND children because of their smaller learning environment. Without an EHCP, families could face higher costs, risking disrupting their child’s education.
There is a widespread perception that it is ‘impossible’ to obtain an EHCP, which has further encouraged families to simply pay for school, rather than attempting to access support through the EHCP route. This perception is often the result of misinformation shared by local authority SEN teams and referred to mainstream schools.
According to the Independent Schools Council (ISC), 111,154 SEND pupils are in private schools, while only 7,646 have EHCPs. EHCPs provide local government support to fund private schools and exempt families from the additional VAT charges.
Potential VAT changes could increase EHCP applications, putting pressure on the already overwhelmed SEND Tribunal. HCB Solicitors is calling for immediate action for those who need EHCPs to ease the financial impact and protect their child’s educational future.
Ed Duff, education attorney and director at HCB lawyers said: “This change in the education system could have huge implications for families of children with special educational needs. Many have made the decision to attend smaller, independent schools because their children could not cope with mainstream education. It is very likely that this increase in costs will impact these children and families.
