Single mother sues Treasury over ‘discrimination’ of private schools VAT raid

School child
School child

A single mother has become the latest to launch legal action against the Government’s VAT raid on private schools.

The woman, being represented by Sinclairs Law, argues the tax change will “disproportionately impact” single mothers who will be less likely to afford fee hikes.

The parent, who remains anonymous in legal documents, has two children with severe educational needs who receive taxpayer-funded support through Education, Health and Care Plans.

She also has a third child who does not have special educational needs and attends a private school.

Lawyers claim the daughter’s school offers her a safe haven following a traumatic former home life with her father and “respite” from her current family responsibilities, which include caring for her two siblings.

The girl currently receives a £3,000 bursary at her £14,000-a-year private school, which has announced it intends to increase fees by 20 per cent under Labour’s VAT raid.

The parent argues this would translate to a £280 monthly increase in fees from January, making her daughter’s school unaffordable.

The mother also alleges her ex-husband is now on benefits having given up work and does not pay child maintenance, making it “impossible” for her to cover the increased costs alone.

Sinclairs Law will seek to argue that the Government’s VAT policy is discriminatory against single mothers who could be forced to take their children out of private schools that are meeting their needs.

The law firm claims this would breach their right to education under the European Convention on Human Rights and the Human Rights Act 1998.

In a pre-action letter sent to Rachel Reeves, the Chancellor, on Friday, lawyers said single mothers would be hit especially hard by the policy owing to the “well-established gender pay gap”.

Women in full-time employment earned around 7 per cent less than men in April this year, according to the latest figures from the Office for National Statistics.

The legal bid on behalf of the mother joins a host of other cases against the Government’s VAT raid, which will see private schools charged an extra 20 per cent tax from Jan 1 2025.

The Independent Schools Council (ISC), which represents more than half of private schools in the UK, announced earlier this week it would also sue the Government over the policy.

The group will similarly argue that Labour’s flagship education policy undermines some families’ human rights. It will focus on children’s “right to education” and allege the policy amounts to a discriminatory practice against independent schools.

The ISC has hired Lord Pannick KC, the leading human rights barrister, to spearhead the legal challenge.

The organisation, which is acting on behalf of 1,400 private schools, is preparing to send a letter-before-action in the coming weeks and must bring the High Court challenge within three months.

It could link up with other legal bids, including a separate challenge launched by three independent faith schools.

Emmanuel School in Derby, the Branch Christian School in Yorkshire, and the King’s School in Hampshire announced last month they will pursue a judicial review against the tax raid, with support from the Christian Legal Centre.

None of the legal challenges will be able to stop the VAT policy coming into force. Claimants hope that the courts might deem it “incompatible” with human rights laws, which could pressure the Government into considering further exemptions.

It would ultimately be up to ministers what they choose to do with this, and the Government could ignore any ruling.

The Treasury’s internal forecast suggested the VAT raid, plus Labour’s plans to remove business rates relief for private schools in England with charitable status, would raise more than £1.8 billion each year by the end of the decade.

Labour has pledged to spend the money it hopes to raise on 6,500 new state school teachers and 3,000 extra nurseries in primary schools, alongside other measures to improve state education.

The Treasury said it does not comment on potential litigation matters.