Coalition urges £150 million raised through adding VAT to fees to go to pupils in Scotland with support needs

• Use funding from adding VAT to private school fees to support pupils with additional support needs (ASN) in state schools
• Concerns raised over impact of adding VAT for those with ASN, with increased movement of pupils into an under-resourced state sector
• Near doubling in the number of pupils in state schools with additional support needs since 2013

The Scottish Children’s Services Coalition (SCSC), an alliance of leading providers of specialist care and education to vulnerable children and young people, has called on the Scottish Government to use funding from adding VAT onto private school fees to increase support to those with ASN in state schools.

The UK Labour Government reiterated its manifesto commitment to increase VAT on school fees – at the standard rate of 20 per cent – in the recent King’s Speech. This could potentially boost Scottish Government education spend by £150 million (although it should be noted that this figure does not take account of pupils leaving the independent sector and thereby not contributing).

In addition, the SCSC has raised concerns over the impact that potential displacement of those with ASN from private schools into the state sector will have.

A high percentage of children in private education, estimated at around 9,000, have ASN, and many will have their learning disrupted, by being forced to leave their school, causing them significant problems.

Local authorities will also have to accommodate more pupils in already under-resourced schools and be required to increase funding to support these.

There has been a near doubling (96.8 per cent) between 2013 and 2023 in the number of pupils identified with ASN in state schools, from 131,593 to 259,036, amounting to 123,628 individuals. This includes those with mental health problems, learning disability, autism and dyslexia, and currentlyrepresents more than a third of all pupils (36.7 per cent).

However, this comes against a background of spending cuts and reductions in specialist support.

The Scottish Government’s annual teacher census, for example, indicates that between 2013 and 2023 the number of ASN teachers (publicly funded primary, secondary, special and centrally employed) has fallen from 3,290 to 2,898, a decrease of 392 teachers, representing a cut of 11.9 per cent.¹

A spokesperson for the SCSC commented: “We would urge that any additional funding that comes through adding VAT to private school fees is used to support those with ASN in our state schools, giving those who need it the care and support that they need, and supporting closing the educational attainment gap.

“However, we would urge caution when it comes to adding VAT on fees for those with ASN, as this will have a potential major impact.

“Many of these will be forced to leave school, with their learning disrupted and further exacerbating pressures on an already over-stretched state sector, which is having difficulty coping, and brings further costs to local authorities.

“Clarification is needed from the Scottish Government as to how it intends to address the issue of adding VAT to fees for those with pupils with ASN.”

¹ Scottish Government, Pupil Census 2023 supplementary statistics, 19^th March 2024, table 1.5.

Available at: https://www.gov.scot/publications/pupil-census-supplementary-statistics/ (accessed 12^th December 2023).

² Scottish Government, Teacher census 2023 supplementary statistics, 19^th March 2024, table 6.7. Available at: https://www.gov.scot/publications/teacher-census-supplementary-statistics/ (accessed 19^th March 2024).