Supreme Court grants permission to appeal dismissal of legal challenge to imposition of VAT on private school fees

A panel comprising Lord Reed, Lord Hamblen and Lord Richards granted permission in R (on the application of BYL (by their litigation friend BAU)) and another (Appellants) v Chancellor of the Exchequer and others (Respondents), after the Divisional Court and the Court of Appeal dismissed the appellants’ claims.

In 2025, the Government introduced VAT on private school fees.

The Labour Party’s 2024 general election manifesto included a commitment to charge VAT on private school fees and invest the proceeds in state education. After winning the general election, the Labour government launched a consultation on how to implement its policy on private school fees.

As part of this process, the Government considered whether to exempt religious schools’ fees from VAT, however, it decided not to make any exceptions.

Several groups of claimants brought judicial review claims, arguing that the imposition of VAT on private school fees was incompatible with the European Convention on Human Rights.

The claimants included a pupil and a parent from the Charedi Jewish community, alongside four Evangelical Christian private schools, children who attended those schools and the children’s parents.

Outlining the key arguments, the Supreme Court said: “The vast majority of Charedi Jewish children attend independent faith schools. […] The Charedi Jewish community is primarily low-income, and Charedi families are often large. Therefore, the fees to attend Charedi Jewish schools are low (typically less than £100 a week). In consequence, many Charedi Jewish schools’ finances are precarious.

“It is said that charging VAT on school fees undermines many Charedi Jewish private schools’ financial viability and therefore risks depriving Charedi Jewish children of religiously appropriate education or forcing them to be home educated.”

Meanwhile, the four Evangelical Christian private schools outlined concerns that the imposition of VAT will undermine their financial viability, and parents outlined concerns that they will be unable to afford the increased school fees.

The Divisional Court and the Court of Appeal both dismissed the appellants’ claims.

On 6 May, the Supreme Court granted permission to appeal.

According to Rook Irwin Sweeney LLP, the hearing is expected to take place in December 2026.

Lottie Winson