Military families are hit by higher private school costs despite sales tax exemptions

The allowance is intended to provide stability for children whose parents often work outside the home, and can cover up to 90% of boarding school fees.

About 4,700 children from military and diplomatic families receive the support. Senior defense sources told The Telegraph that the CEA is expected to be between 12 and 15%.

A 15% increase means military families would receive an additional £1,362 each term, amounting to £4,086 per year, with the allowance rising from £27,240 to £31,236.

If a child receiving CEA currently attends a boarding school costing £30,000 a year, the family will pay £3,000 in school fees, with the grant covering the remaining £27,000. Like that school increases its rates by 20% As a result of the tax raid, fees will rise to £36,000 per year.

Assuming a 15% increase in CEA, military families would be able to claim the new maximum allowance of £31,236, but would have to pay the difference of £4,764, meaning their fees would increase by 56%.

A spokesperson for the Army Families Federation said: “While it is helpful to finally hear that the CEA will be increased, they need to know how much and when they will receive it as they plan how they will pay for next school year. pay. .

“And as the 10% parental contribution will still be affected by VAT increases, there may be families who will find this unaffordable.”

According to Labour’s analysis, school fees will only rise by an average of 10%. Under this assumption, a military family would be £300 worse off, as school fees would rise to £33,000 per year and families would have to pay at least 10% of the school fees themselves.