British independent schools have suffered a fall in international pupils and boarders since the introduction of VAT on fees, an annual census has found.
Overall numbers fell 3.5 per cent to 526,611 compared with 2025 at 1,455 schools belonging to the Independent Schools Council.
Prime Minister Keir Starmer's Labour government introduced VAT of 20 per cent on private school fees from January 1 last year.
It led to warnings that if the tax was passed on to parents, they would pull their children out of private schools, or more probably choose state schools from the outset.
Average fees increased by 4.4 per cent between January 2025 and January 2026 even before VAT was added.
There were also concerns that some schools would fold, although the ISC said it had seen a “modest” increase of 32 schools among its members.
Among pupils, most age groups saw declines of 3-5 per cent, but the key intake years at reception, year 7 and sixth form were hardest hit, it found. The number of new pupils fell 5.6 per cent to 96,828.
The number of pupils boarding fell even more sharply, decreasing by 8.2 per cent to 57,836. That represents 11 per cent of all pupils.
The number of international pupils declined compared with 2025, particularly among those whose parents live overseas. The ISC said this may also be down to changing government policy such as tighter restrictions on study visas.
There are currently 22,941 non-UK pupils whose parents live overseas, representing 4.4 per cent of the total pupils, a fall of 4.7 per cent. The number of non-UK pupils with parents living in the UK also fell.
In its census report, the ISC said: “These figures reflect a sector operating in a markedly different environment from that of recent years. Schools continue to adapt to a range of financial, demographic and policy pressures, including the ongoing effects of the introduction of VAT on school fees.”
It added: “While it is not possible to attribute changes in pupil numbers to specific causes, these factors are likely to have contributed to the recent downward trend.”
Recent years have seen the expansion of UK schools operating international campuses. These now stand at 138, with China, the UAE and Thailand accounting for almost half of the campuses and 57.2 per cent of pupils.
ISC chairman Mark Taylor said: “These figures reflect a sector operating in a markedly different environment from that of recent years. Schools continue to adapt to a range of financial, demographic and policy pressures.
“Behind every percentage point are families making difficult decisions and schools working hard to maintain the breadth and quality of education. Independent schools remain an important and distinctive part of the UK’s educational ecosystem.
“More than four in 10 pupils are from minority ethnic backgrounds, and ISC schools continue to attract families from across the world.
“Although international pupil numbers in the UK have declined this year, overseas campuses still educate tens of thousands of pupils. The global outlook of our schools remains a defining characteristic; it underlines the important role that independent schools play in strengthening the UK’s educational, cultural and economic connections across borders.”
