VAT is a broad-based tax on consumption and the standard rate of 20 per cent applies to most goods and services, including most construction works. Exceptions to the standard rate have always been limited and balanced against affordability concerns.

To support the repair and maintenance of places of worship, the Department for Digital, Culture, Media and Sport administer the Places of Worship Renewal Fund which will allocate £92m over four years. The Fund provides upfront capital grants to enable essential capital works for buildings in greatest need.

The response is in the process of being finalised and will be provided shortly.

It is not possible to provide that information within the time available to answer this question. I will write to the hon. Member shortly with an update and place a copy of my letter in the Library of the House.

The Government greatly values the contribution of our serving military personnel. The Ministry of Defence has increased the funding allocated to the Continuity of Education Allowance (CEA) to account for the impact of any private school fee increases on the proportion of fees covered by the CEA in line with how the allowance normally operates. The changes mean that UK military families with a child at a mainstream boarding school can now claim over £30,000 per year.

US personnel do not receive funding from the UK Government for their school places. They can only claim back the VAT element of fees, under a scheme that entitles UK military personnel to reciprocal reliefs when visiting other NATO countries. The NATO Status of Forces Agreement (SOFA) means that visiting NATO personnel have access to Visiting Forces Relief (VFR), for example the VAT free purchase scheme which provides relief on goods and services to US personnel in the UK.

The Government does not have an estimate of the revenue from this measure specifically from the South Suffolk constituency.

At the Autumn Budget the Government published a detailed response to the consultation conducted between July and September. Annexed to this is the costing methodology used to calculate the total revenue generated by this policy. Included is a breakdown of the exchequer impact by year, including 2025/26. This was published online and can be found here: Government_Response_to_the_Technical_Note_on_Applying_VAT_to_Private_School_Fees_and_Removing_the_Business_Rates_Charitable_Rate_Relief.pdf

Since 1 January 2025, all education services and vocational training provided by private schools in the UK for a charge have been subject to VAT at the standard rate of 20 per cent.

Entitled individuals in US Forces have always been able to benefit from the VAT free purchase scheme, providing relief on goods and services in the UK. Private school fees fall into the category of services for these purposes.

The Government greatly values the contribution of our serving military personnel. The Ministry of Defence has increased the funding allocated to the Continuity of Education Allowance (CEA) to account for the impact of any private school fee increases on the proportion of fees covered by the CEA in line with how the allowance normally operates.

Since 1 January 2025, all education services and vocational training provided by private schools in the UK for a charge have been subject to VAT at the standard rate of 20 per cent. There is not an exemption for the children of EU nationals serving in the armed forces in the UK.

The Government greatly values the contribution of our serving military personnel. The Ministry of Defence has increased the funding allocated to the Continuity of Education Allowance (CEA) to account for the impact of any private school fee increases on the proportion of fees covered by the CEA in line with how the allowance normally operates.

The estimated cost of Continuity of Education Allowance (CEA) for Financial Year (FY) 2024-25 is £95 million. This includes a £4 million increase for spring term 2025 as a result of the re-rating exercise done for December 2024, a response to the addition of VAT on independent schools. CEA with the current rates would be estimated to cost £104.4 million for a full year; however, estimating actual spend for FY 2025-26 is not possible as rates will be reviewed before the next academic year starting September 2025.

The Ministry of Defence (MOD) provides Continuity of Education Allowance (CEA) to Service personnel to minimise the disruption to their children’s education caused by service commitments involving frequent moves of the family home. Their circumstances must fit within specific regulations as laid out in Joint Service Publication (JSP) 752 (Tri-Service Regulations for Expenses and Allowances), Chapter 14, especially around accompanied service and family mobility.

The single Services will monitor the impact on retention in service for those claiming CEA following the introduction of VAT on independent school fees. The Pay and Allowances Casework and Complaints Cell (PACCC) will monitor the impact on Service personnel changing schools and withdrawing from CEA. Where a Service person does not meet the eligibility criteria as laid out in JSP 752 and has made a personal choice to use a private school for their child’s education, the MOD is not involved.

Following the Continuity of Education Allowance (CEA) in year re-rating exercise, the cost of the allowance for Financial Year 2024-25 is £95 million. The cost for Financial Year 2025-2026 is estimated at £104.4 million (based on current rates and cost). Due to the way the Ministry of Defence carries out its annual CEA rate calculation each summer, ready for the new Academic Year in September, estimates for Financial Years 2026-27, 2027-28 and 2028-29 cannot be provided at this time.

The Ministry of Defence (MOD) provides Continuity of Education Allowance to Service Personnel to minimise the disruption to their children’s education caused by Service commitments involving frequent moves of the family home. Their circumstances must fit within specific regulations as laid out in Joint Service Publication (JSP) 752, Chapter 14, especially around accompanied Service and family mobility. Where a Service Person does not meet the eligibility criteria as laid out in JSP 752 and has made a personal choice to use a private school for their child’s education, the MOD is not involved.

The Continuity of Education (CEA) scheme recognises the enormous sacrifices our military families make and aims to minimise the disruption to their children’s education caused by Service commitments involving frequent moves of the family home.

The Government remains committed to improving Service life and renewing the nation’s contract with those who serve and their families. Whilst the new VAT policy does not offer any exemptions, the Government is committed to monitoring how these changes affect military families, with any potential adjustments to the scheme being considered during the next Spending Review.

To protect the integrity of the allowance the Secretary of State has directed that the cap on the current rates is uprated, and CEA rates are recalculated to take into account the addition of VAT. This will ensure the Ministry of Defence continues to pay up to 90% of private school fees following the taxation changes.

The Continuity of Education (CEA) scheme recognises the enormous sacrifices our military families make and aims to minimise the disruption to their children’s education caused by Service commitments involving frequent moves of the family home.

The Government remains committed to improving Service life and renewing the nation’s contract with those who serve and their families. Whilst the new VAT policy does not offer any exemptions, the Government is committed to monitoring how these changes affect military families, with any potential adjustments to the scheme being considered during the next Spending Review.

To protect the integrity of the allowance the Secretary of State has directed that the cap on the current rates is uprated, and CEA rates are recalculated to take into account the addition of VAT. This will ensure the Ministry of Defence continues to pay up to 90% of private school fees following the taxation changes.

In line with how the Continuity of Education Allowance normally operates, the Ministry of Defence will continue to pay up to 90% of private school fees following the VAT changes on 1 January.

We recognise the extraordinary strain that is sometimes placed on the family of armed forces personnel, including their children. That is why the continuity of education allowance—an important part of the package that reflects and respects the service—is in place, and it is why we are looking very closely at options to ensure we continue with that.

On 29 July, the Government announced that, as of 1 January 2025, all education services and vocational training provided by a private school in the UK for a charge will be subject to VAT at the standard rate of 20 per cent. This will also apply to boarding services provided by private schools.

Specialist Post-16 Institutions (SPIs) offer a unique mix of education, health, and social care services. The Treasury is working with the Department for Education and the SPI sector to establish the future VAT treatment of these institutions. This will be communicated when the Government confirms the introduction of this policy at Budget.

Following scrutiny of the Government’s costing by the independent Office for Budget Responsibility, details of the Government’s assessment of the expected impacts of these policy changes will be published at the Budget in the usual way.

On 29 July, the Government announced that, as of 1 January 2025, all education services and vocational training provided by a private school in the UK for a charge will be subject to VAT at the standard rate of 20 per cent. This will also apply to boarding services provided by private schools.

Specialist Post-16 Institutions (SPIs) offer a unique mix of education, health, and social care services. The Treasury is working with the Department for Education and the SPI sector to establish the future VAT treatment of these institutions. This will be communicated when the Government confirms the introduction of this policy at Budget.

Following scrutiny of the Government’s costing by the independent Office for Budget Responsibility, details of the Government’s assessment of the expected impacts of these policy changes will be published at the Budget in the usual way.

The Government is committed to access to high quality education for children of service families, and all children across the UK. The policy for Continuity of Education Allowance (CEA) remains extant. The Ministry of Defence will monitor the development of legislation to deliver a VAT increase policy.

The Government is committed to access to high quality education for children of service families, and all children across the UK. The policy for Continuity of Education Allowance (CEA) remains extant. The Ministry of Defence will monitor the development of legislation to deliver a VAT increase policy.