As of January 1, private school fees in the UK are now subject to a 20% Value Added Tax (VAT), a shift aimed at funding state education by raising an estimated £460 million in 2024/25. The government plans to allocate the additional revenue towards hiring new teachers for state schools, amid concerns over teacher shortages. The policy has raised concerns among private schools, which may see fee increases and potential declines in student enrollment as families respond to the new costs.