Military families will face higher tuition fees at private schools despite VAT exemption

The benefit is intended to provide stability for children whose parents often work, and can cover up to 90 percent of boarding school fees.

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

The 15 per cent increase means military families will receive an extra £1,362 per term, equivalent to £4,086 a year, with the benefit increasing from £27,240 to £31,236.

If a child receiving CEA is currently attending a boarding school, which costs £30,000 a year, the family pays £3,000 in tuition fees, with the benefit covering the remaining £27,000. If this school raises commission by 20% The tax raid will see collections rise to £36,000 a year.

Assuming the CEA increases by 15 per cent, military families would be able to claim the new maximum benefit of £31,236, but would have to cover the difference of £4,764, meaning their fees would rise by 56 per cent.

A spokesman for the Army Families Federation said: “While it is good to finally know 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 school fees next term. .

“And as the 10 per cent parental contribution will continue to be affected by the VAT rise, there may be families who will not be able to afford it.”

Labor estimates tuition fees will rise by only 10% on average. Under this assumption, a military family would be £300 worse off as school fees would rise to £33,000 a year and families would have to pay at least 10% of the cost themselves.