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Retention Crisis in UK Armed Forces as Families Warn of Impact from VAT on Private Schools


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Concerns are escalating within the UK’s armed forces as military families, advocacy groups, and defense insiders warn that the government’s decision to apply VAT to private school fees could have a severe impact on personnel retention. This potential crisis comes amid concerns that military families will be faced with tough financial decisions, leading to further losses in experienced personnel unless exemptions are granted.

 

A source close to the military revealed to Sky News that frustration has been growing internally over what has been termed a “damaging” policy. The recent budget announcement by the Chancellor, Rachel Reeves, left many feeling the government had not done enough to shield military families from this additional financial burden.

 

Though a small increase in the Ministry of Defence’s (MoD) Continuity of Education Allowance (CEA) was proposed to help offset these costs, many families argue it falls far short of what’s needed. Without a substantial revision to the policy, military insiders warn that highly trained officers and enlisted personnel could leave in significant numbers. “I will have to leave military service, as I will not inflict another school move on my child,” said one soldier, speaking anonymously. He added, “On one side, the chancellor wore a poppy during her budget announcement, and then proceeded to deal a damaging blow to members of His Majesty's Armed Forces by not including a simple exemption.”

 

The strain is also felt deeply by military spouses, who often bear the weight of maintaining family stability amid the demands of mobile service life. One army spouse, who wished to remain anonymous to protect her husband’s service status, expressed her frustrations to Sky News: “This is people's children. This is people's money in their pocket.” She explained that with the added costs from VAT, even military families’ loyalty may waver if a civilian job becomes available: “If there is a nice job offer outside the military… that is going to look way, way more attractive than it did a few months ago. The army is in a recruitment and retention crisis, so why would you do something like this?”

 

The Army Families Federation, a UK charity advocating for service members and their families, also weighed in on the issue. The federation reported that nearly 70% of families who shared feedback expressed that without any protection from this VAT burden, they would seriously consider leaving the armed forces. 

 

Military life often necessitates frequent relocations within the UK and abroad, forcing service families to uproot and resettle every few years. To minimize the educational disruption for their children, many parents choose private or boarding schools to give their children a stable learning environment. Over 2,000 military personnel, most of whom are in the army, rely on the CEA provided by the MoD, which covers up to 90% of school tuition fees. However, even with the MoD’s help, families are responsible for a minimum of 10% of the cost—an amount that can still reach tens of thousands of pounds per year. With VAT added to this out-of-pocket expense, families could be facing even greater financial strain. For those serving abroad, pulling a child from school mid-year due to affordability issues could become an unavoidable yet devastating outcome.

 

Additionally, there are many military families who do not qualify for the MoD’s education allowance, which has strict eligibility requirements, but still decide to send their children to boarding schools. These families, too, will now have to bear the full cost of the VAT. Shadow Defence Secretary James Cartlidge has highlighted the extent of the issue after receiving numerous messages from impacted families. “The emails I've had are saying: I’ve got to choose between my child and serving my country,” Cartlidge said. “The government really needs to respond to this quickly.” 

 

A Ministry of Defence spokesperson responded, saying, “We greatly value the contribution of our serving personnel and we provide the Continuity of Education Allowance to ensure that the need for the mobility of service personnel does not interfere with the education of their children.” The MoD spokesperson added that despite the VAT changes, the MoD plans to maintain its commitment by continuing to cover up to 90% of private school fees through updated cap rates. 

 

As families and advocates await further action, the pressure on the government to address the unintended consequences of this policy continues to mount. Failure to provide a solution could mean that skilled personnel, pushed to their financial limits, may ultimately choose family stability over their military careers, impacting both retention rates and national security.

 

Based on a report by Sky News 2024-11-11

 

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Posted
3 hours ago, Thingamabob said:

I wonder if this is yet another oversight by Labour, or that they simply don't care about the armed forces personnel.

IMHO I think that it is more of a case of a person with no ideas and no experience trying to save money with no forethought of the side effects.

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Posted
3 hours ago, Red Forever said:

I was unaware of the C.E.A. Seems like we tax payers who send our kids to state schools have been subsidising the better off to a larger degree than first thought.

Good on ya Rachel Reeves.

Spare me the "we worked hard, didn't have holidays in order to send Tarquin to private school".

Pay your taxes and stop scrounging from we in the lower orders .

Mwah mwah......

 

Perhaps you'd be happier in North Korea, Comrade? no scrounging there.

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Posted

So some people send their kids to private sector schools, and these schools charge a lot of money. and now we're seeing the charges or fees being bumped up because of VAT.

Do people really feel sorry for those who send their children to such fee-paying schools ?  The vast majority (over 90%) of all children in Britain go to government state schools. Why on earth feel sorry for the elite, who send their children to such schools ?

Oh, rich people want to send their children to such places, give their kids a better start in life ? And now they're having to pay more money because of VAT, we're suppose to feel sorry for them ?

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Posted
2 hours ago, JonnyF said:

Well now many of them will have to use the state school system instead, so you'll be paying for "Tarquin's" education instead of the parents.

 

Surely he'll be paying for Tarquin to go to a state school rather than a private school, therefore saving money?

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Posted
Just now, transam said:

Just another slap in the face for the folk of the UK by the Party for the 'working man'...........🙄

Lot's more from that lot, lied their way to govern...😬

 

So you like the Dems in the US and the Tories in the UK?  Do you simply like backing the bad guys regardless of policy?

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Posted
1 minute ago, transam said:

Just another slap in the face for the folk of the UK by the Party for the 'working man'...........🙄

Lot's more from that lot, lied their way to govern...😬

 

 


The budget allocated £Billions of additional funds to the state school sector, where the vast majority of UK children are educated.

 

So not a slap in the face for majority of the folk in the UK.

 

Just a bit more to pay for those wishing to buy privilege.

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Posted
Just now, BangkokReady said:

 

So you like the Dems in the US and the Tories in the UK?  Do you simply like backing the bad guys regardless of policy?

Who said I like either of those, but I do dislike the Labour Party, lying numpties........😬

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Posted
Just now, Chomper Higgot said:


The budget allocated £Billions of additional funds to the state school sector, where the vast majority of UK children are educated.

 

So not a slap in the face for majority of the folk in the UK.

 

Just a bit more to pay for those wishing to buy privilege.

Buying privilege, is that a UK lefty thing.....?

First pensioners, now education, the voters were lied to......

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Posted
Just now, transam said:

Buying privilege, is that a UK lefty thing.....?

First pensioners, now education, the voters were lied to......

Are you denying private education in the UK is a means to access privilege?

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Posted
Just now, Chomper Higgot said:

Are you denying private education in the UK is a means to access privilege?

Paying for a better education is just that, better, if you have a Lefty view on it, up to you....🙄

 

Those who do go to private school pay for it, they save the Gov money from using state schools, now they want to charge them for using their own money for education...LABOUR stuff......😬

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Posted
1 minute ago, transam said:

Paying for a better education is just that, better, if you have a Lefty view on it, up to you....🙄

 

Those who do go to private school pay for it, they save the Gov money from using state schools, now they want to charge them for using their own money for education...LABOUR stuff......😬

Better?

 

I you sure no Government money is being spent in private schools?

 

https://amp.theguardian.com/education/2019/feb/05/critics-take-aim-at-subsidies-given-to-private-schools

Posted
1 minute ago, Chomper Higgot said:

Better?

 

I you sure no Government money is being spent in private schools?

 

https://amp.theguardian.com/education/2019/feb/05/critics-take-aim-at-subsidies-given-to-private-schools

"Am I sure", of course not, folk who pay for private school also pay towards their local schools, don't they.....?

Has the UK ever charged VAT on school fees, do private schools pay tax on profits, I don't know, but I am sure you can fill us in on those details....😉

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Posted

too many privilege's of too many people...army is evil, only kill people in countries they had no business to be in the first place... and cost a lot that could be used for society...

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Posted
9 minutes ago, transam said:

"Am I sure", of course not, folk who pay for private school also pay towards their local schools, don't they.....?

Has the UK ever charged VAT on school fees, do private schools pay tax on profits, I don't know, but I am sure you can fill us in on those details....😉

Like when did I agree to waste time looking up stuff on your behalf?

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Posted
Just now, Chomper Higgot said:

Like when did I agree to waste time looking up stuff on your behalf?

Oh, bailing out................:guitar:

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Posted
46 minutes ago, Chomper Higgot said:

I think Reaves should have gone further and removed ‘Charity Status’ from these ‘for profit’ organizations. 
 

 

You really think Labour are different from the Tories doncha?

 

Do you know who this guy is with your Deputy dog 'leader'?

 

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