The party said the move would raise £1.7 billion. Photo: Getty Images
Education unions have privately warned Labor that the party's plan to introduce VAT on private schools could cost teachers their jobs, The Telegraph reports.
Trade unions also expressed concern that the policy could have the unintended consequence of schools cutting their pension offers for staff.
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The Labor Party has said that if it wins the general election it will add 20 per cent VAT to independent school fees and remove benefits that they receive business rates.
The party said the move would raise £1.7 billion, which could be used to hire 6,500 teachers for state schools and fund mental health counseling in every school.
However, The Telegraph understands that education unions held private meetings with Labor in which they raised concerns about what the policy could mean for their members working in independent schools.
One union source said: “What are we? We are telling Labor that the extent to which these policies begin to affect people's jobs and may or may not cause redundancies is something we will have to respond to as soon as we know the consequences.»
“This is a job security issue. We are not going to get into a philosophical debate [about private schools], but our members' jobs could potentially be at risk and we will seek to protect them.»
Another problem involves private schools remaining in the teachers' pension system. TPS is the government's defined benefit pension scheme for public school teachers, but independent schools are also allowed to participate in the scheme.
However, since 2018, more than 300 private schools have left TPS. and more schools are considering their future in the scheme amid expectations of an increase in employer contributions in April next year.
A second union source said: «Some independent school employers are scanning the horizons, looking at the changing pensions picture, looking at the uncertainty around employers' costs there, looking at the cost of living crisis and how that impacts their profits, looking at potential opportunities.» change of government.
“We have a number of independent school employers who are already trying to anticipate where this might all lead, by significantly trying to change the working conditions of teachers, scrapping the teachers' pension scheme, for example.”
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“We have, of course, conveyed to Labor our concerns about the implications of this. Labor must make decisions about its policy position, but it must be aware of the consequences of those policies, which of course may result in some schools no longer being viable.”
Warnings are very important. because although none of the major education unions are politically affiliated, their leadership and activists often lean left.
But with Labor leading in the polls and favorite to form the next government, only the Association of School and College Leaders has so far publicly criticized the VAT policy.
Geoff Barton, general secretary of ASCL, said «most independent schools will fail «automatically absorb» the fee rise.
«The combination of pension pressures and the VAT problem means that, no doubt, some independent schools will simply close,» he said.
«We say to Labor: can you just show us how you're working on this and whether you've done the proper risk assessment process to make sure there are enough places in the public sector if this happens?»
Other unions have vowed to fight any job losses or changes to members' pay and working conditions as a result of the move. Patrick Roach, general secretary of the NASUWT, said: «There is a debate about a fairer tax system and we think that is the right thing to do.»
«But we also believe it is important that no school is forced to close, and that we don't want to see more teachers leaving the profession at a time when we already have a teacher shortage.»
» There is no guarantee that these teachers will move into the public sector if their schools are forced to close.”
He added: “We will fight hard on behalf of our members. We don't want any of our members to be left without a job, and we don't want any of our members to be forced into worse conditions of service.»
Daniel Kebede, General Secretary of the National Education Union, which has 32,000 members in independent schools, said: «My number one priority as leader of the NEU is protecting members' jobs.»
Mr Kebede also warned schools considering leaving TPS reports that they threatens a strike.
“If I hear that any school is trying to fire teachers from TPS, I will seek a dispute with those employers,” he said.
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Labor has been contacted for comment.
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