OPINION: Charedi schools are counting the cost of Labour’s budget
Thousands of Orthodox Jewish and Muslim children face losing their schools due to new government action. Can a simple fix prevent this?
Imagine waking up to find your children’s school suddenly closed. Why? Because the government imposed crippling new taxes, forcing it to shut its doors. And the alternative? There isn’t one – other local schools have already collapsed.
Unthinkable, right?
This is the stark reality facing thousands of strictly Orthodox Jewish families in the UK. The government’s new tax policies threaten to shut down our children’s schools – institutions that shape their futures and safeguard their identity. Without these schools, families like mine will be left with no alternatives, and our community risks losing everything we’ve built in this country over the past 70 years since arriving as refugees fleeing persecution in Eastern Europe.
The government’s autumn budget introduced three devastating measures: VAT on school fees, the removal of business rates relief, and increased National Insurance contributions. For Charedi schools, which educate around 20,000 children across the UK, this is catastrophic.
These schools aren’t elite institutions with hefty fees; parents typically contribute less than £100 per week, a stark contrast to the £580 average at private schools elsewhere. Despite many parents being unable to contribute, schools ensure no child is turned away for financial reasons.
Charedi schools already operate on tight budgets, relying on donations to survive and often running deficits. Many Charedi families, like many in state schools, come from low-income families, making it impossible to raise additional funds from parents or donors.
Now, these new taxes, amounting to hundreds of thousands of pounds per school, force impossible choices: pay staff wages or meet new tax demands. For many, fulfilling both won’t be possible, leaving closure as the only option. Consequently, thousands of children in our community stand to lose access to the education that is fundamental to our way of life.
This is not just a fiscal issue – it’s an existential one.
The government acknowledges that faith children will be disproportionately affected but insists that all children are entitled to a state-funded school place, designed to be a welcoming environment for children of all faiths and none. However, for Charedi families, state schools simply aren’t a viable option.
Mainstream non-faith state schools cannot accommodate essential aspects of Charedi education, such as Torah learning, Jewish holidays, daily prayers, and kosher facilities. On top of this, the risk of antisemitic bullying for visibly Jewish children makes mainstream non-Jewish state schools impractical, and the few state-funded Charedi schools, established over a decade ago, cannot absorb an influx of thousands of displaced students.
Even if these challenges didn’t exist, the numbers make it unworkable. In Hackney, where my children are educated, approximately 10,000 Charedi children attend Charedi independent schools, yet there are fewer than 2,500 vacant state school places. There simply isn’t the capacity to absorb the children from schools that might close.
Creating new Charedi state schools is no quick fix. Current regulations make this unrealistic, and even if amended, establishing new schools would take years. Meanwhile, thousands of Jewish children could be left without suitable education. Furthermore, parents have the right to choose an independent school for their children – a right now being taken away by pricing them out of reach.
Ironically, if low cost independent schools close, tens of thousands of children will need places in state schools, costing taxpayers at least £415 million annually (£7,690 x 54k pupils) – far more than the £32 million they expect to raise in VAT from all low-fee schools. Is this policy truly about fiscal prudence, or is it driven by ideology? Clearly, the financial numbers don’t add up.
This isn’t just a financial issue – it’s a moral one and a clear breach of the Human Rights Act. The government’s policies disproportionately affect low-income families and minority communities, punishing those who can least afford it.
There’s a straightforward fix. Faith schools have proposed a VAT exemption for low-fee schools – similar to the system that already exists for small businesses. Schools charging less than the average cost of a state-funded school place (£7,690 per pupil) shouldn’t have to register for VAT. Publicly available Ofsted reports and financial accounts already ensure transparency, making this solution both simple and fair to implement.
This solution would protect 270 low-fee schools across the UK, serving 54,000 pupils. It’s a cost-neutral approach that keeps faith schools open, respects minority rights, and avoids unnecessary strain on the public purse.
The Treasury found room to accommodate military families, children with EHCPs, university fees and nurseries, all because they recognised these groups had no real alternative. Orthodox Jewish children are in exactly the same position – state schools cannot meet their needs. Yet, despite this clear parallel, we’ve been unjustifiably overlooked.
The government says these policies are about fairness – levelling the playing field between private and state schools. But instead, they’re destroying the very schools that serve working-class and low-income families. Wealthy private schools can offset the costs of VAT, while low-fee faith schools like ours face closure.
For me, as a parent, this isn’t just about the risk of losing a school for my children – it’s about preserving a vital thread in the rich tapestry of the UK. Our schools are more than classrooms; they are the heartbeat of our community, where children are educated in their traditions, values, and faith, profoundly contributing to the cultural and religious diversity that strengthens our society.
During the campaign, the Prime Minister promised to be more supportive of faith schools than his predecessor and assured the Jewish community that Labour was a changed party. Now it’s time to deliver. By exempting low-fee schools from these new taxes, the government can protect these vital institutions and uphold the values that make Britain a beacon of tolerance and diversity.
No family should be forced to choose between their faith and their children’s education. No community should have to fight to keep its lifeline alive. For over 70 years, these schools have been a cornerstone of our lives. Let’s hope this government will allow them to continue to thrive for generations to come.
- Motty Pinter is the Director of Communal Affairs at Chinuch UK, the organisation representing strictly Orthodox Jewish schools across the UK. Chinuch UK advocates for the rights of Jewish families to access affordable education in alignment with their religious beliefs and supports schools in driving high educational outcomes
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