Over 140,000 children could be looking for state school places by the end of the academic year because of Labours private school tax, a survey of parents has found.
Up to a quarter of parents (23 per cent) say they could pull their children out of private schools ahead of the VAT on fees levy in January or next summer.
One in ten said they would get only struggle through the year by asking family and friends for money, while one in eight (13 per cent) - as reported in last weekends Mail on Sunday - said their only choice will be take their children out of their school in the middle of the school year.
Around 620,000 children, just under 7 per cent of the UK school population are currently educated in private schools, a figure which could plummet to under half a million.
The survey of private school parents last month as part of the prestigious Saltus Wealth Index Report released today (Tuesday) says more than half (55 per cent) now believe their childrens education will be disrupted because of the 20 per cent tax hike.
Over 140,000 children could be looking for state school places by the end of the academic year because of Labours private school tax, a survey of parents has found. Pictured: Keir Starmer speaks with pupils at Holy Cross Catholic Primary School on Monday
Around 620,000 children, just under 7 per cent of the UK school population are currently educated in private schools, a figure which could plummet to under half a million. Pictured: Keir Starmer rehearses his keynote speech which he will deliver to the Labour Party Conference in Liverpool on Tuesday
With schools and parents expecting the controversial tax would not be imposed until at least the start of the next school year, the report shows Labours plan to bring it in mid-year has caused deep concern.
Nearly all of the parents (96 per cent) said rising school fees were already causing them to tighten their belts and 15 per cent said they could no longer afford to enrol their children.
In total, nearly a fifth (18 per cent) admitted they had already turned or would have to appeal to family and friends for help with the fees.
A further one in five (21 per cent) say they will try and keep their children in a private school but switch to a cheaper establishment because of the new tax and a fifth (22 per cent), who said they were already struggling, say they would even move house to find a cheaper school.
Another 11 per cent say they will try and save money by switching children from boarding to day at the same school and one in ten (10 per cent) say they might even have to move abroad.
Saltus surveyed 993 private school parents as part of a wider study of 2,000 people with assets of £250,000 or more for its 6th twice-yearly report.
Nearly all of the parents (96 per cent) said rising school fees were already causing them to tighten their belts and 15 per cent said they could no longer afford to enrol their children (stock image)
Keir Starmer meets with children in a reception class on the first daytime of school for Perry Hall Primary school in Orpington, September 2
Rising school fees have now accelerated to become the biggest anxiety for more than one in 20 (6 per cent) of parents surveyed.
Only 15 per cent of parents now surveyed said the decision to add VAT to school fees will not impact their children.
The wider report also found that nearly nine in ten (87 per cent) were already turning to the so-called Bank of Mum and Dad to support them and their grandchildren financially, including with fees.
The wealth index is seen as a useful barometer of the high net worth individuals confidence in the economy and their own personal finances.
Overall, Saltus says the index has shown some growth but is falling short of its post Covid peak in 2022 when confidence was higher.
Saltus partner Mike Stimpson said the governments decision to impose VAT had understandably been an unpopular one with HNWIs especially because of its mid-year timing.
This decision, as we can see from our research, will impact more than half of families with children at private school, with 13 per cent of children possibly removed from their existing school and moved into state education in the next year.
Even before the VAT announcement, our study shows that price rises over the past few years were already having a significant impact on parents ability to pay, with many forced to borrow to keep their children in their current schools.
The Government claims only 3-7 per cent of pupils, between 18,000 and 40,000 maximum, will be forced to leave their current school - while the public purse will net an extra £1.5billion to spend on new teachers. Higher numbers in the state school sector would erode such a figure and even reverse it, critics say.