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Working class ‘blinded by class war’ as plans force some parents to pay VAT on nursery fees

With The Riddle of Faithpolitical reporter

A leading Conservative Party figure has accused the government of being “blind by class warfare” over plans to force some parents to pay VAT on nursery fees.

From January, parents who send their children to nurseries affiliated with private schools will have to pay VAT if classes do not consist “wholly or almost entirely” of children under compulsory school age.

This is the period after the child’s fifth birthday, but children born between 1 April and 31 August can wait up to five months to start primary schools the following September.

‘Inevitable’ parents will pay more

Shadow education secretary Laura Trott accused Labor of being “blind by class warfare” after a government source revealed 90 per cent of children in these grades must be under five to avoid paying VAT.

He said: “With a number of nurseries now facing higher tax bills, parents are bound to pay the price with higher fees.”

However, the government emphasized that “the vast majority of kindergarten classes will not be subject to VAT, as children generally enter the first year of primary school by the time they reach compulsory school age.”

A Treasury source explained that “independent kindergartens that are not affiliated with a private school will remain exempt from VAT, regardless of the age of their pupils”.

However, the extent of the problem is unclear; Because it is ultimately up to the parents whether they will send their children born in the summer to primary school in the year before they turn five or in the following academic year.

‘Big impact’

Purnima Tanuku, chief executive of the National Day Nurses Association, told Sky News school entry deferrals were much more likely in Scotland, especially for children with additional needs.

This is because the Scottish government can provide extra early funding for those delaying the start of school.

Ms Tanuku said: “Although we are talking about a small number of children being affected in pre-schools in private schools, this change could have a huge impact on parents of pre-school children.

“There are many reasons why a family might think delaying starting school is right for their child, from the age of children born in the summer to those with additional needs or long periods of absence.

“We have lobbied to understand how important the opportunity to postpone starting school is for the children who will benefit from it.

“These decisions need to be made with the best interests of individual children in mind and not be influenced by financial considerations or how it may impact other families in the pre-school setting.”

‘The vast majority’ of classes unaffected

A Treasury source said that “the number of children of compulsory education age in a nursery class attached to a private school will be very low.”

However, they explained that private kindergartens must have a “relatively high proportion (about 90%) of children under the age of compulsory education in order to remain exempt from VAT.”

A spokesman added: “The vast majority of nursery classes will not be subject to VAT as children are generally in their first year of primary school by the time they reach compulsory school age.

“We want to ensure that all children have the best chance of succeeding in life. Ending tax breaks on private schools will help raise the revenue needed to fund our education priorities for next year.”