Written questions by Hinds.

If she will make a comparative estimate of the average cost of (a) VAT, (b) employers' National Insurance contributions, (c) contributions to the Teachers' Pensions Scheme and (d) business rates for independent schools that are (i) liable for business rates for the first time and (ii) already liable for business rates (A) before and (B) after the Autumn Budget 2024.

The government publishes Tax Information and Impact Notes (TIINs) for tax policy changes when the policy is final or near final. TIINs give a clear explanation of the policy objective together with comprehensive assessment of the impacts on individuals and families, businesses and the wider economy, equalities impacts, and any other specific area of impact. TIINs look at the impacts of changes to the tax system separately for each measure. A TIIN assessing the impacts of applying VAT to private school fees has been published online and can be found here: Private school fees — VAT measure - GOV.UK (www.gov.uk). Details of the changes to business rates charitable rate relief and changes to employer National Insurance contributions (NICs) were outlined at Budget. Notes on the general impacts of these measures will be published in due course alongside the respective legislation when it is introduced to Parliament.

Whether her Department has made an assessment of the potential impact of increases in employers’ National Insurance contributions on (a) cost pressures for independent schools and (b) the number of children leaving the independent school sector; and whether the figures included in HM Revenue & Customs policy paper entitled, Applying VAT to private school fees, published on 30 October 2024, took account of proposed increases in employers’ National Insurance contributions.

The government publishes Tax Information and Impact Notes (TIINs) for tax policy changes when the policy is final or near final. TIINs give a clear explanation of the policy objective together with comprehensive assessment of the impacts on individuals and families, businesses and the wider economy, equalities impacts, and any other specific area of impact. TIINs look at the impacts of changes to the tax system separately for each measure. A TIIN assessing the impacts of applying VAT to private school fees has been published online and can be found here: Private school fees — VAT measure - GOV.UK (www.gov.uk). Details of the changes to business rates charitable rate relief and changes to employer National Insurance contributions (NICs) were outlined at Budget. Notes on the general impacts of these measures will be published in due course alongside the respective legislation when it is introduced to Parliament.

If she will make an estimate of the potential impact of the costs of (a) VAT, (b) employers' National Insurance contributions, (c) employer contributions to the Teachers' Pension Scheme and (d) business rates for independent schools on the number of children educated in the (i) independent and (ii) state sectors.

The government publishes Tax Information and Impact Notes (TIINs) for tax policy changes when the policy is final or near final. TIINs give a clear explanation of the policy objective together with comprehensive assessment of the impacts on individuals and families, businesses and the wider economy, equalities impacts, and any other specific area of impact. TIINs look at the impacts of changes to the tax system separately for each measure. A TIIN assessing the impacts of applying VAT to private school fees has been published online and can be found here: Private school fees — VAT measure - GOV.UK (www.gov.uk). Details of the changes to business rates charitable rate relief and changes to employer National Insurance contributions (NICs) were outlined at Budget. Notes on the general impacts of these measures will be published in due course alongside the respective legislation when it is introduced to Parliament.

With reference to HMRC's policy paper entitled Applying VAT to private school fees, published on 30 October 2024, whether she has had discussions with the Chancellor of the Exchequer on the potential range of the number of children leaving independent schools; and what estimate she has made of the maximum likely number.

The government predicts that there will be 37,000 fewer pupils in the private education sector in the UK as a result of the VAT on private schools fees policy, which takes effect from January 2025. This represents around 6% of the current private school population. It is anticipated that 35,000 of these pupils will move into UK state schools in the long-term steady state, with the remainder composed of international pupils who do not move into the UK state system, and domestic pupils moving into homeschooling.This increase in the state sector represents less than 0.5% of total UK state school pupils, of which there are over 9 million. The number expected to move before the end of the 2024/25 academic year is around 3,000. The government’s estimate of the number of pupils leaving private schools is within the Institute for Fiscal Studies’ estimated range of 20,000 to 40,000 and is also significantly lower than some other public estimates.The government expects many of these moves to take place at natural transition points, such as from primary to secondary school, or at the beginning of exam courses. The impact on the state education system as a whole is therefore expected to be very small. The government expects the associated revenue costs of pupils entering the state sector to steadily increase to a peak of around £0.3 billion after several years.Differences in local circumstances will mean that the impacts of this policy will vary between parts of the UK. The number of pupils that would have attended private schools seeking state-funded places will vary and this will interact with other local place pressures. Local authorities and schools already have processes in place to support pupils moving between schools, and children move between the private sector and the state-funded sector every year. Local authorities will consider pressures following the removal of the VAT exemption on school fees alongside other pressures as part of the normal place planning cycle. This is business as usual. The department will be monitoring demand and capacity using our normal processes and working with local authorities to meet any pressures.Although the department does not hold information for private schools, data on the numbers of pupils in private schools is collected through the annual school census. The latest data can be found here: https://explore-education-statistics.service.gov.uk/find-statistics/school-pupils-and-their-characteristics#dataBlock-53cdc8f7-fc56-4c64-a79d-ccf5047b7616-tables.

With reference to the policy paper entitled Applying VAT to private school fees, published on 30 October 2024, if she will make an estimate of potential increases in the number of pupils in secondary state education in each of the next five financial years, broken down by each local authority; and if she will make an assessment of the potential impact of those increases on levels of available state secondary school education places in those local authority areas.

The government predicts that there will be 37,000 fewer pupils in the private education sector in the UK as a result of the VAT on private schools fees policy, which takes effect from January 2025. This represents around 6% of the current private school population. It is anticipated that 35,000 of these pupils will move into UK state schools in the long-term steady state, with the remainder composed of international pupils who do not move into the UK state system, and domestic pupils moving into homeschooling.This increase in the state sector represents less than 0.5% of total UK state school pupils, of which there are over 9 million. The number expected to move before the end of the 2024/25 academic year is around 3,000. The government’s estimate of the number of pupils leaving private schools is within the Institute for Fiscal Studies’ estimated range of 20,000 to 40,000 and is also significantly lower than some other public estimates.The government expects many of these moves to take place at natural transition points, such as from primary to secondary school, or at the beginning of exam courses. The impact on the state education system as a whole is therefore expected to be very small. The government expects the associated revenue costs of pupils entering the state sector to steadily increase to a peak of around £0.3 billion after several years.Differences in local circumstances will mean that the impacts of this policy will vary between parts of the UK. The number of pupils that would have attended private schools seeking state-funded places will vary and this will interact with other local place pressures. Local authorities and schools already have processes in place to support pupils moving between schools, and children move between the private sector and the state-funded sector every year. Local authorities will consider pressures following the removal of the VAT exemption on school fees alongside other pressures as part of the normal place planning cycle. This is business as usual. The department will be monitoring demand and capacity using our normal processes and working with local authorities to meet any pressures.Although the department does not hold information for private schools, data on the numbers of pupils in private schools is collected through the annual school census. The latest data can be found here: https://explore-education-statistics.service.gov.uk/find-statistics/school-pupils-and-their-characteristics#dataBlock-53cdc8f7-fc56-4c64-a79d-ccf5047b7616-tables.

What the change in the core schools budget will be for (a) 2025-6, (b) 2026-7 and (c) 2027-8 (i) in total and (ii) per pupil.

Funding for schools and young people with high needs is set to increase by £2.3 billion in 2025/26 compared to 2024/25, bringing the total core schools budget to almost £63.9 billion in 2025/26. The department will confirm per pupil increases for schools and high needs once the national funding formulae for 2025/26 have been calculated. The Budget on 30 October sets out the government’s plans for the upcoming 2025/26 financial year. Core schools budgets beyond 2025/26 have not been set.

With reference to HMRC's policy paper entitled Applying VAT to private school fees, published on 30 October 2024, if she will publish detail of the analysis that produced an estimate of 37,000 fewer pupils in independent schools and 35,000 more pupils in the state sector.

The government published its response to the VAT on private school fees technical note at the Autumn Budget. This can be found online here: Government_Response_to_the_Technical_Note_on_Applying_VAT_to_Private_School_Fees_and_Removing_the_Business_Rates_Charitable_Rate_Relief.pdf Annexed to the consultation response is a detailed explanation of the costing methodology used, including the estimation of pupil movements. Where movement occurs, the government expects many of these moves to take place over a number of years at natural transition points, such as when a child moves from primary to secondary school, or at the beginning of their GCSE or A-Level years. Furthermore, some of this movement will result from parents opting not to send their child to private school when they otherwise might have done, rather than removing their child from a private school. In the same document the government has set out its estimate of the effect of the Capital Goods Scheme on input tax recovery. This adjusts input tax recovery on certain (mainly property) assets acquired over the previous 10 years over the remainder of the 10-year period since their acquisition, aligning it with the business’s current input tax recovery status. This adds £60 million to input tax recovery in the first year, reducing to around £30 million by 2029/30.

Pursuant to the Answer of 28 October 2024 to Question 10422 on Private Education: VAT, if she make an estimate of the cost to the public purse of VAT reclaimed by independent schools for capital spending for items under ten years old.

The government published its response to the VAT on private school fees technical note at the Autumn Budget. This can be found online here: Government_Response_to_the_Technical_Note_on_Applying_VAT_to_Private_School_Fees_and_Removing_the_Business_Rates_Charitable_Rate_Relief.pdf Annexed to the consultation response is a detailed explanation of the costing methodology used, including the estimation of pupil movements. Where movement occurs, the government expects many of these moves to take place over a number of years at natural transition points, such as when a child moves from primary to secondary school, or at the beginning of their GCSE or A-Level years. Furthermore, some of this movement will result from parents opting not to send their child to private school when they otherwise might have done, rather than removing their child from a private school. In the same document the government has set out its estimate of the effect of the Capital Goods Scheme on input tax recovery. This adjusts input tax recovery on certain (mainly property) assets acquired over the previous 10 years over the remainder of the 10-year period since their acquisition, aligning it with the business’s current input tax recovery status. This adds £60 million to input tax recovery in the first year, reducing to around £30 million by 2029/30.

What assessment she has made of the potential impact of changes to employer national insurance contributions on SEND cost pressures.

At Budget, HM Treasury confirmed that all public sector organisations will be funded for the increase in employer contributions to national insurance in 2025/26. This will include funding for schools. The department anticipates providing this funding to schools, including with regard to special educational needs and disabilities, funding for special schools, and alternative provision. This will be through an additional grant in 2025/26. The department will provide more information on this, including funding rates and allocations, as soon as practicable.

If she will adjust childcare hourly funding rates to reflect changes to employer NICs.

As announced at Budget, the department expects to provide £8.1 billion for early years entitlements in 2025/26, which is around a 30% increase compared to 2024/25, as we continue to rollout the expansion of the entitlements to eligible working parents of children aged from nine months. The department is looking at what changes announced in the Budget will mean for the early years sector and will announce more details as soon as possible. The Employment Allowance will be worth up to £10,500 for eligible providers, meaning smaller providers may pay no National Insurance at all in 2025/26. We are working at pace to publish funding rates for 2025/26, as we know how important this is for local authorities and providers.

With reference to paragraph 4.10 of the Autumn Budget 2024, published on 30 October 2024, HC 295, what the fiscal effect is of revised launch date of the Lifelong Learning Entitlement.

The Government is committed to delivering the Lifelong Learning Entitlement, which will transform the post-18 student finance system to create a single funding system, to a revised launch date of September 2026 for courses starting in January 2027. The launch has been postponed by a year to ensure that policy and design fully align with this government’s ambitious vision for the future of our skills landscape, as well as to give providers the necessary time to prepare. The student finance impacts of the revised launch date were scored by the OBR at the Autumn Budget. The Public Sector Net Borrowing impacts of the delay can be found in the policy costings document on page 81:Policy_Costing_Document_-_Autumn_Budget_2024.pdf The delay will have a negligible fiscal impact in 2025-26 and 2026-27 and will generate savings of around £10m a year, measured by Public Sector Net Borrowing, for the rest of the scorecard period. This includes the impact of the previous government’s decision to postpone the launch from February to September 2025.

What assessment she has made of the potential impact of changes to employer national insurance contributions on each sector for which her Department has responsibility.

My right hon. Friend, the Chancellor of the Exchequer, made an announcement at Budget on 30 October 2024 setting out changes to Employer National Insurance Contributions policy. Alongside this, she has decided to provide funding to the public sector to support them with the additional associated cost. Given the impacts of this policy change will need to be worked through in further detail, this additional support is not reflected in departmental spending review settlements immediately. HM Treasury will confirm funding allocations by department as part of setting baselines and planning assumptions for phase 2 of the spending review.

With reference to paragraph 4.10 of the Autumn Budget 2024, for what reason the launch date of the Lifelong Learning Entitlement has been revised.

The government is committed to delivering the Lifelong Learning Entitlement (LLE), expanding access to high quality, flexible education and training for adults throughout their working lives, helping businesses to fill skills gaps and kickstart economic growth.The LLE will now launch in the 2026/27 academic year for learners studying courses starting on or after 1 January 2027, including full courses, modules and Higher Technical Qualifications.This is in order to:Improve the impact and effectiveness of the LLE by ensuring that policy and design fully align with this government’s ambitious vision for the future of our skills landscape.Refine the department’s delivery and implementation plans through collaboration with Skills England to help support this government’s industrial strategy.Give education providers the necessary time to prepare for the launch of this new and transformational student-finance system.

With reference to paragraph 4.8 of the Autumn Budget 2024, how she plans to allocate the additional (a) SEND and (b) Alternative Provision funding.

The high needs national funding formula (NFF) will be used to allocate high needs funding to local authorities for the 2025/26 financial year. The department is taking more time to consider what changes to the NFF are needed, both to make sure that we establish a fair education funding system that directs funding to where it is needed, and to support any special educational needs and disabilities reforms that will be taken forward. The department is now in the process of calculating the high needs NFF allocations, which will provide local authorities with indicative amounts for 2025/26. We expect to publish those allocations by the end of November 2024.

With reference to paragraph 4.10 of the Autumn Budget 2024, published on 30 August 2024, HC 295, how new foundation and shorter apprenticeships are different to the model of traineeships in operation until July 2023.

This government has a driving mission to break down barriers to opportunity and to grow the economy. Too many young people are struggling to access high quality opportunities after leaving school and this government wants to ensure that more young people can undertake apprenticeships.The department is beginning work to develop new foundation apprenticeships, which will provide high quality entry pathways for young people.Apprentices are employed, and so as jobs with training, the department’s new foundation apprenticeship offer will start with the needs of employers as well as young people. Foundation apprenticeships will focus on ensuring that training is directed towards skills and staff shortage areas and offer young people a broad training offer with clear, seamless, progression into other apprenticeships.The department will set out more detail on foundation apprenticeships, including the sectors they will be available in, in due course.

With reference to paragraph 4.10 of the Autumn Budget 2024, published on 30 October 2024, HC 295, in which key sectors there will be new foundation and shorter apprenticeships.

This government has a driving mission to break down barriers to opportunity and to grow the economy. Too many young people are struggling to access high quality opportunities after leaving school and this government wants to ensure that more young people can undertake apprenticeships.The department is beginning work to develop new foundation apprenticeships, which will provide high quality entry pathways for young people.Apprentices are employed, and so as jobs with training, the department’s new foundation apprenticeship offer will start with the needs of employers as well as young people. Foundation apprenticeships will focus on ensuring that training is directed towards skills and staff shortage areas and offer young people a broad training offer with clear, seamless, progression into other apprenticeships.The department will set out more detail on foundation apprenticeships, including the sectors they will be available in, in due course.

With reference to paragraph 4.10 of the Autumn Budget 2024, published on 30 October 2024, HC 295, when she plans to announce details of new foundation and shorter apprenticeships.

This government has a driving mission to break down barriers to opportunity and to grow the economy. Too many young people are struggling to access high quality opportunities after leaving school and this government wants to ensure that more young people can undertake apprenticeships.The department is beginning work to develop new foundation apprenticeships, which will provide high quality entry pathways for young people.Apprentices are employed, and so as jobs with training, the department’s new foundation apprenticeship offer will start with the needs of employers as well as young people. Foundation apprenticeships will focus on ensuring that training is directed towards skills and staff shortage areas and offer young people a broad training offer with clear, seamless, progression into other apprenticeships.The department will set out more detail on foundation apprenticeships, including the sectors they will be available in, in due course.

With reference to paragraph 4.11 of the Autumn Budget 2024, how she plans to allocate the funding for free breakfast clubs between (a) mainstream primary schools, (b) mainstream secondary schools, (c) special schools and (d) other settings.

The government confirmed it will triple its investment in breakfast clubs to over £30 million in the 2025/26 financial year to help ensure children are ready to learn at the start of the school day and help drive improvements to behaviour, attendance and attainment. This will also support parents, supporting them to work the jobs and hours they choose.This funding will support up to 750 early adopters of the new breakfast clubs starting as early as April 2025 to March 2026, as well as enabling continued support for around 2,700 schools currently on the national schools breakfast programme. All state-funded schools in England with primary-aged pupils are eligible to be an early adopter.Once rolled out nationally, breakfast clubs will be available to every school with primary-aged children.

With reference to paragraph 4.11 of the Autumn Budget 2024, whether she plans to fund breakfasts in all primary schools.

The government confirmed it will triple its investment in breakfast clubs to over £30 million in the 2025/26 financial year to help ensure children are ready to learn at the start of the school day and help drive improvements to behaviour, attendance and attainment. This will also support parents, supporting them to work the jobs and hours they choose.This funding will support up to 750 early adopters of the new breakfast clubs starting as early as April 2025 to March 2026, as well as enabling continued support for around 2,700 schools currently on the national schools breakfast programme. All state-funded schools in England with primary-aged pupils are eligible to be an early adopter.Once rolled out nationally, breakfast clubs will be available to every school with primary-aged children.

What steps she is taking to monitor the potential impact of VAT on independent schools on pupil numbers in those schools.

The government predicts that there will be 37,000 fewer pupils in the private education sector in the UK as a result of the VAT on private schools fees policy, which takes effect from January 2025. This represents around 6% of the current private school population. It is anticipated that 35,000 of these pupils will move into UK state schools in the long-term steady state, with the remainder composed of international pupils who do not move into the UK state system, and domestic pupils moving into homeschooling.This increase in the state sector represents less than 0.5% of total UK state school pupils, of which there are over 9 million. The number expected to move before the end of the 2024/25 academic year is around 3,000. The government’s estimate of the number of pupils leaving private schools is within the Institute for Fiscal Studies’ estimated range of 20,000 to 40,000 and is also significantly lower than some other public estimates.The government expects many of these moves to take place at natural transition points, such as from primary to secondary school, or at the beginning of exam courses. The impact on the state education system as a whole is therefore expected to be very small. The government expects the associated revenue costs of pupils entering the state sector to steadily increase to a peak of around £0.3 billion after several years.Differences in local circumstances will mean that the impacts of this policy will vary between parts of the UK. The number of pupils that would have attended private schools seeking state-funded places will vary and this will interact with other local place pressures. Local authorities and schools already have processes in place to support pupils moving between schools, and children move between the private sector and the state-funded sector every year. Local authorities will consider pressures following the removal of the VAT exemption on school fees alongside other pressures as part of the normal place planning cycle. This is business as usual. The department will be monitoring demand and capacity using our normal processes and working with local authorities to meet any pressures.Although the department does not hold information for private schools, data on the numbers of pupils in private schools is collected through the annual school census. The latest data can be found here: https://explore-education-statistics.service.gov.uk/find-statistics/school-pupils-and-their-characteristics#dataBlock-53cdc8f7-fc56-4c64-a79d-ccf5047b7616-tables.