One in six independent schools has left the Teachers’ Pension Scheme (TPS) since the VAT on fees policy was confirmed, according to a Freedom of Information request by The Telegraph.

The data shows a total of 1,066 independent schools were members of the TPS on 29 July 2024, the day Labour confirmed it would introduce the tax. By January this year, however, the number had dropped to just 880, a fall of 17%.

David Woodgate, chief executive of the Independent Schools’ Bursars Association, said schools’ departures from the scheme are not solely attributable to VAT on fees: “It’s been a trend over seven years since employer contributions increased from 16% to 23% in 2019 and then to 28.68% in 2024,” he said, adding: “However, the pressures of VAT on school fees, abolition of business rates relief and the National Insurance increases have stimulated a new wave of consultations and potential withdrawals.”

Woodgate concluded: “Schools that might have stayed in the TPS will be looking at consultations with staff in a materially-changed financial situation.”