British Boarding Schools Face Potential 28% Decline in International Students Amid New VAT Policy
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International student enrollment in British boarding schools could drop by up to 28% in September 2025, due to a new 20% VAT policy on independent schools, according to a survey by the British Boarding Schools’ Network (BBSN). The decline would mean 7,335 fewer students, resulting in a potential loss of £293 million in annual fee income.
This significant drop could particularly impact key source markets like Thailand, France, and Hong Kong, where decreases of up to 52%, 43%, and 38% respectively are predicted. With an average annual boarding fee of £40,000, such losses pose a serious threat to the financial stability of many UK schools.
The VAT policy, set to take effect next year, has left many international families reconsidering their choice to send children to the UK. Some families are already looking at other destinations like Australia and Singapore, citing the increased costs and uncertainty around the policy.
Suzanne Rowse, Director of the BBSN, highlighted that this change could alter buying behaviors and impact international student recruitment in the UK for years to come. Many schools are being urged to maintain open communication with agents and families to manage the potential fallout of this policy shift.
Source: THE PIE NEWS
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