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Military Family VAT Crisis
VAT on private school fees for military families is causing a recruitment and retention crisis in the UK armed forces.
English
United Kingdom
MilitaryLabour MarketUkGovernmentFinanceMilitary TechnologyEducationPolicy
Ministry Of Defence (Mod)Army Families FederationSky News
Rachel ReevesJames CartlidgeJohn Healey
- What is the Shadow Defence Secretary's position on this matter?
- Shadow Defence Secretary James Cartlidge is urging the government to exempt military families from VAT on private school fees, citing numerous messages from affected families expressing their difficult choices.
- What is the main issue causing a crisis in the UK armed forces?
- The UK government's failure to exempt military families from VAT on private school fees is causing a recruitment and retention crisis in the armed forces. Families are considering leaving the military due to the added financial burden, impacting the UK's defense capabilities.
- How does the Ministry of Defence respond to the concerns of military families?
- While the MoD claims to value its personnel and provides CEA, the additional VAT burden remains a significant financial stressor for military families, particularly those who must frequently relocate due to postings.
- What percentage of families are considering leaving the military due to the VAT issue?
- The Army Families Federation reports that nearly 70% of families would consider leaving the service due to the VAT on private school fees. This highlights the significant impact of the policy and the potential for widespread personnel departures.
- How does the Continuity of Education Allowance (CEA) currently work, and what is the problem with it?
- The Continuity of Education Allowance (CEA) covers up to 90% of tuition fees, but families still bear a significant cost, exacerbated by the new VAT. This forces families to choose between their children's education and military service, leading to potential personnel loss.