Labour to raise Ofsted inspection fees for private schools in latest independent-sector move

Education Secretary Bridget Phillipson is set to announce plans to raise the price private schools pay for Ofsted inspections, potentially tripling fees as part of Labour's broader effort to curb the influence of the independent sector. The move comes as Labour tightens its stance on private education and seeks to redirect resources toward state schools.

Under the plan, Ofsted would end the subsidy that currently covers about two-thirds of inspection costs. Ofsted visits around half of England's 2,496 registered private schools each year, with private institutions bearing a portion of the inspection costs under the current arrangement.

Allies of Phillipson told The Telegraph that the government aims to maximise money going into the state sector and channel it toward priorities that raise standards nationwide. They stressed that inspection is crucial for driving up standards and safeguarding pupils, and argued private schools should contribute their fair share while remaining accountable.

The announcement comes amid Labour's VAT changes on private schools last year, which prompted closures and led more than 50 institutions to signal they could shut. Officials and supporters say shifting inspection costs away from taxpayers will help fund public services and, in the party's view, improve outcomes for students in state schools. Labour contends that raising revenue from private schools will bolster accountability and standards across the education system.

Official data show a dip in private school enrolment: 582,477 pupils in January 2025, down from 593,486 in January 2024. The 1.9% decline outpaced the state sector’s drop of 0.7% in the same period. The government has argued that private-school tax changes are lifting the overall education system, while critics warn of potential higher fees for families and reduced access to independent schooling.

Ofsted inspections at private schools cost £6.5 million in 2024/25, with only £2.2 million recovered in inspection fees. The government notes that the aim is to ensure inspections are self-financed by those inspected, rather than subsidised by public money. The broader policy framework includes a government estimate that ending tax breaks for private schools would raise about £1.8 billion a year by 2029/30 to help fund public services and support the 94% of children in state schools.

The proposal also intersects with Labour's leadership considerations, with Phillipson seen as a potential candidate to succeed Angela Rayner as deputy leader. Powell, a former cabinet minister, has been cited as an early favourite by some observers, and the private-school message could be used to appeal to left-leaning members within the party.

Industry observers note that, if enacted, private schools would face higher inspection costs and a shift in funding responsibility, prompting questions about how fees might rise for families and whether the policy could influence private-school enrollment in the medium term. Proponents argue the change strengthens accountability and prioritizes investment in the state sector, while opponents warn of unintended consequences for pupil access and educational choice.

In 2018, analysts estimated that an average inspection cost just over £7,000, with private schools contributing as much as £2,750 in some cases. The current plan signals a continued rebalancing of educational funding in England, with the government framing the move as part of a broader strategy to secure high standards across all schools while directing public resources to state provision.