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Why was VAT added to private school fees and what difference has it made?

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Vanessa Clarke

Education correspondent

Getty Images Two pupils wearing navy blue blazers face away from the camera as they write algebra on a whiteboard. The student on the left has her brown curly hair in a bun, and her classmate on the right has long light brown hair, half tied up.Getty Images

Average private school fees were 22% higher in January 2025 than in January 2024, according to the Independent Schools Council (ISC), which represents most independent schools in the UK.

The government introduced VAT on school fees in January to pay for more state school teachers in England.

But the ISC and a number of families have taken the government to the High Court over claims the policy is discriminatory and breaches human rights laws.

What is VAT and when was it added to private school fees?

Value added tax (VAT) is one of the government’s main sources of income. It is payable on top of the purchase price of many goods and services. The standard rate of VAT is 20%.

Previously, private schools did not have to charge VAT on their fees because of an exemption for organisations providing education. That exemption was removed on 1 January.

About half of England’s private schools are charities, which means that they also received an 80% reduction on business rates (taxes on properties used for commercial purposes).

The government removed that tax relief in April, but dropped earlier plans to scrap private schools’ charitable status entirely.

How will the government spend the extra VAT raised?

The removal of the VAT exemption is UK-wide, but each nation will decide how to spend the additional money received.

The government estimates that the policy will raise an extra £460m in the 2024/25 financial year, rising to £1.7bn by 2029/30.

Chancellor Rachel Reeves said “every single penny” will go to state schools – including funding the recruitment of 6,500 new teachers in England.

Schools have been struggling to attract and retain qualified teachers for many years, especially in subject areas like maths and science.

The government also said there will be funding to address other issues in schools, such as crumbling buildings and delays in the system for children with special educational needs and disabilities (Send).

How much do private schools cost?

Private schools – sometimes called independent schools – charge fees for most students.

While some famous schools, like Eton and Harrow, charge about £50,000 a year, the average is about £15,000.

There are about 2,500 private schools in the UK, educating about 7% of all pupils, including about 570,000 in England.

Private schools have more freedom than government-funded state schools, and do not have to follow the national curriculum.

Some local authorities pay for children with special educational needs and disabilities (Send) to attend private schools.

Those that have a local authority education, health and care plan (EHCP) which names a specific private school that can meet their needs do not have to pay VAT.

The government also said a grant to help cover the boarding school fees for children of military families was increased to take account of the VAT increase.

Have private school fees gone up?

The ISC represents more than 1,400 private schools. It said its annual census showed average school fees were 22.6% higher in January 2025 than they had been in January 2024.

It blamed the “triple whammy” of higher national insurance contributions, an end to charitable business rates relief and the introduction of VAT.

The government had previously said it expected fees to rise by an average of around 10%.

In response to the ISC figures, a Treasury spokesperson said the increase was “not only down to VAT”, and that private school fees had risen significantly in recent decades.

According to the the Institute for Fiscal Studies (IFS) think tank, average fees rose by 55% (after inflation) between 2003 and 2023.

However, the proportion of children being privately educated over the period did not fall.

Will the VAT changes mean the number of private pupils will fall?

When it announced the VAT increase, the government said it did not expect there to be a significant impact on the number of pupils attending private schools.

According to a Treasury memo seen by the BBC, initial estimates suggested that 54,000 pupils would be displaced, with most moving to state schools within the first two years.

However, the government now predicts that around 35,000 students will move to the state sector over a longer time period, and that class sizes will not increase.

It points to research by the IFS which said that state system could “easily accommodate extra pupils” because overall student numbers are set to fall by 700,000 by 2030.

That drop is larger than the total number of children currently attending private schools.

However, pupil numbers are not falling by the same amount everywhere, so some individual state schools could face pressure on class sizes.

The ISC says some of its members reported a 4.6% fall in the number of Year 7 pupils starting school in September 2024.

It believes the government has underestimated the level of pupil displacement that will be caused.

Why was the VAT policy challenged in court?

The legal challenge was brought by the ISC, a smaller group of Christian faith schools, and parent-led group Education not Discrimination.

They argue that the policy goes against the legal right to an education, and claim it is discriminatory because it affects families attending low-paying faith schools.

The group also cites the effect on children with Send. Those who attend private school because their needs “cannot be adequately met in the state sector” but who do not have an EHCP have to pay VAT.

The court was told that the government had considered introducing the policy in September 2025, rather than in January.

But it rejected this idea because the main objective of the VAT change was to raise additional tax revenue to support the 94% of children who attend state schools, and any delay would have undermined that.

Government lawyers argued that families who wished to opt out of “the system of universally accessible, state-funded education” were free to send their children to private school or to educate them at home.

If the legal challenge is successful, the government could consider amending the policy, but would be under no obligation to do so.



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Education

Back 2 School: Local districts experimenting with AI learning tools in the classroom – WGRZ

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Back 2 School: Local districts experimenting with AI learning tools in the classroom  WGRZ



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The Need for AI Literacy in Indian Legal Education

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Artificial Intelligence (AI) is revolutionizing the contemporary landscape, harnessing the power of vast datasets to automate complex tasks and deliver tailored solutions. This transformative technology is reshaping our approach to longstanding challenges. India is at the leading edge of this AI evolution, ready to use the rapid technological progress to achieve remarkable growth in technology.

Legal education serves as the cornerstone for promoting social justice, equity, and a robust democracy, providing individuals with the expertise to navigate a society regulated by law. To accomplish this objective, society must cultivate proficient lawyers who serve essential functions within their communities. This necessitates a comprehensive framework that enables legal practitioners to address the changing demands of Indian society.

The obstacles presented by globalization, rising expenses, and ongoing judicial delays highlight the urgent necessity for technological advancement in the legal field. India’s dedication to Sustainable Development Goal 4 (SDG4) established in 2015, which prioritizes accessible and equitable quality education, corresponds with the National Education Policy 2020s objective to modernize legal education. By embracing global norms and new methodologies, the legal industry may markedly improve access to justice, safeguarding it as a fundamental right for all individuals.

After India’s independence in 1947, education was vital in fulfilling the moral needs of the newly liberated population. And, the main goal of the legal system was to realize the Constitution’s objectives, leading to the enactment of various laws for social reform, such as the Dowry Prohibition Act (1961) and the Hindu Marriage Act (1955). Today, India’s educational aim is to create a fair and just society. The Indian court system is struggling with a backlog of cases, corruption, and slow resolution times. The Supreme Court highlighted the importance of improving legal education to tackle these challenges and adapt to new global trends, advocating for the use of AI in the courts.

India’s current legal education and research framework is based on the common law tradition, and emphasizes upon critical thinking, teaching using Socratic methods, legal writing skills, oral advocacy, risk aversion, issue identification, and legal ethics. Although, these strategies have shaped generations of competent lawyers, yet they are now regarded as insufficient. Because, it places greater importance on theoretical understanding rather than on the practical abilities that are essential for contemporary legal practice. Lawyers are now anticipated to possess strong analytical skills and be proficient in utilizing legal technologies such as document automation and predictive analytics.

The expectations for newly graduated lawyers have changed considerably. They are now required to have robust technological skills, adaptability, and the capability to work alongside professionals from different fields, in addition to their conventional responsibilities in legal research and advocacy. Clients today look for legal professionals who can serve as strategic partners, grasping the connections between law, technology, and business. In this context, it is crucial for legal educators to integrate frameworks that align technical comprehension of AI with ethical and practical training. This method guarantees that students are prepared not just to use AI tools, but also to evaluate their results critically.

Consequently, the traditional method of legal education requires the implementation of more flexible and tailored curricula to tackle the growing complexities of legal matters in a rapidly globalizing and digital environment.

There is a notable trend towards incorporating AI literacy in various legal fields, prompting many law schools worldwide to either introduce or revise their AI courses introducing new courses centred around AI, such as Programming for Lawyers, AI Ethics and Privacy, AI and Experiential Learning etc. The National Law University of India in Bengaluru, OP Jindal University in Sonipat, and the Rajiv Gandhi School of Intellectual Property Rights in IIT Kharagpur have incorporated AI-focused courses into their curriculum. This initiative aims to equip students with the skills to utilize AI tools, addressing the technological needs of the profession, also understanding AI technologies can improve their job security and enhance their competitiveness in an ever evolving industry. Legal firms and experienced lawyers may expect younger associates to leverage generative AI technologies, given their familiarity with the changing tech landscape. AI will not replace lawyers; instead, those who adopt AI will likely excel over those who do not. An AI-focused curriculum can help cultivate lawyers who are less susceptible to being replaced. It is essential for students to not only learn how to use AI tools effectively but also to receive guidance on their optimal application.

While coding skills aren’t a requirement for lawyers but familiarize themselves with tools and platforms that are beneficial in the legal sector. Legal professionals can utilize these tools to streamline contract automation, conduct legal research, and monitor compliance effectively. This not only makes it easier to do analyses of vast datasets, automating complex tasks, providing customized solutions and uncover different interpretations of laws across jurisdictions, and can also assist judges with routine tasks which will allow them to focus on more complex issues.

The incorporation of AI into legal education is essential to meet the growing need for faster, more accurate, and accessible legal services. AI’s ability to perform tasks in seconds that traditionally take much longer necessitates a thorough overhaul of the legal curriculum to embrace digital advancements. Law schools in India are grappling with a pressing challenge such as outdated curriculum, many teachers are not well-versed in data science, machine learning, and artificial intelligence. This gap in knowledge, coupled with a resistance to shift from traditional teaching methods, hampers the integration of these technologies into legal education. Furthermore, the current infrastructure is inadequate for overseeing AI usage, as there are no clear guidelines for its proper application.

The Bar Council of India (BCI) is responsible for regulating legal education in India, established under the Advocates Act of 1961. The BCI’s primary role is to supervise the legal profession, ensuring lawyers adhere to professional conduct standards and safeguard the profession’s interests. Over time, the BCI’s mandate has expanded to include establishing standards for law colleges, including curriculum, infrastructure, faculty qualifications, and student admissions. This standardization ensures quality but limits the capacity of law schools to innovate and experiment with new approaches. Many law programs follow a strict curriculum, limiting opportunities for integrating innovative interdisciplinary subjects. The BCI has released a directive promoting the incorporation of subjects like blockchains, electronic discovery, cyber-security, robotics, artificial intelligence, and bio-ethics into curricula. However, law schools in India have neglected to integrate AI into their curricula, as the existing curriculum is extensive. Educators often shy away from integrating new technology in their classrooms due to the extra workload it entails. Even with access to labs and advanced tools, many schools struggle to deliver up-to-date, AI-enhanced learning materials. This gap arises from a lack of staff expertise in utilizing AI effectively, leaving students without the benefits of modern educational resources.

Ensuring digital inclusion is crucial for the sustainable integration of AI, as it ensures fair access to digital tools and resources for all students, regardless of their socioeconomic status or geographic location. Students enrolled in law colleges located in rural or semi-urban regions may experience a disadvantage in accessing technology and education in artificial intelligence relative to their metropolitan counterparts. Elite educational institutions and communities often have sophisticated digital infrastructures, such as high-speed internet, modern gadgets, and cloud computing resources, allowing them to adopt cutting-edge EdTech solutions.

Law schools in economically disadvantaged or rural regions encounter difficulties stemming from obsolete gear, unreliable internet connectivity, or a total absence of access to AI resources. The prevalence of AI materials and technologies in English constitutes a substantial obstacle to accessibility for non-English speaking students.

In addition to revising the curriculum to incorporate AI subjects, it is equally crucial to train the faculty and staff. This ensures that students are well-informed about the effective use of AI, fostering a sense of comfort and confidence. Such an approach is vital for achieving optimal outcomes in education and beyond.



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First lady calls AI training a national responsibility for US students

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First Lady Melania Trump has urged the nation’s business and technology leaders to back artificial intelligence (AI) education in schools, framing it as essential for preparing children for future jobs, reported India Today

White House Task Force on AI education

Speaking at the inaugural meeting of the Artificial Intelligence Education Task Force, which she chairs, Trump balanced optimism with caution. “As leaders and parents, we must manage AI’s growth responsibly. During this primitive stage, it is our duty to treat AI as we would our own children — empowering, but with watchful guidance,” she said.

Education Secretary Linda McMahon joined the event, alongside Cabinet officials and industry leaders. Trump pressed the group to invest in AI training for schoolchildren, describing it as a national responsibility. “AI can be a powerful tool, but only if we teach our young people how to use it with wisdom,” she noted.

National contest and call for leadership

The First Lady also highlighted her recently launched nationwide contest for students in grades K–12, encouraging them to apply AI to projects or community challenges. She said the initiative is aimed at showcasing both the opportunities and limitations of the technology.

“America must lead in this field,” Trump told the gathering. “And leadership starts in our classrooms.”



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