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Deposited in DRO: 14 June 2021 Version of attached le: Published Version Peer-review status of attached le: Unknown Citation for published item: Gamsu, Sol (2021) 'Why are some children worth more than others? The private-state school funding gap in England.', Project Report. Common-Wealth Thinktank. Further information on publisher's website: https://www.common-wealth.co.uk/reports/why-are-some-children-worth-more-than-others

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Durham University Library, Stockton Road, Durham DH1 3LY, United Kingdom Tel : +44 (0)191 334 3042 | Fax : +44 (0)191 334 2971 https://dro.dur.ac.uk Why are some children worth more than others? The private-state school funding gap in England

Dr Sol Gamsu Design June 2021 Arby Hisenaj

The publication of this report was funded through Material Basis for Elite Education (April 2021), an ESRC Impact Accelerator Award at Durham students and staff in the HESI research group and University. Thanks to my co-presenters and the team at Common-Wealth for their comments, attendees at the BSA special session on The edits and thoughts on this project.

common-wealth.co.uk ii Dr Sol Gamsu Why are some children The private-state school worth more than others? funding gap in England Contents 5 Findings and analysis and methods 4 Data schools and private from? money the come does state 3 Where Economic inequalities between schools private of and finances role the of overview 2 Ahistorical 1 Introduction Summary Executive 7 Conclusion 6 Policy recommendations 5.2 5.1 state and private schools 3.2 3.1 Mapping the funding gap: the inequalities of the Southern shires school State funding: of adecade cutsand a‘levelling up’ agenda Independent day schools: Southern income inequality persists? inequality income Southern schools: Independent day The historical and context formation of the funding gap between

19 17 12 8 7 4 3 2 1 9 6 5 1 common-wealth.co.uk schools continue to exist to structural reforms that would the see full integration of private recommendations are scaled from more minor changes that could take place whilst private of endowment wealth and the integration of private schools into the state sector. These donationsvoluntary by private schools to the abolition of charitable full status, nationalisation in Merton). School College Upper in Hammersmithand Latymer and Fulham, Albans St School in and Hertfordshire, King's which was higher than their local state schools by £15,000 pupil per or more (St Paul's Girls' their local state day schools. The five schoolswith the highest incomeper pupil had an income Counties. Home the and found in London generally schools tend to follow asimilar with the pattern largest economic inequalities compared to state local state and privatebetween sector are at their extreme. most schools. It is across the rural counties of the South of England where economic inequality pupil higher that was at than least £30,000 their state local schools. subtracted from the income of these the schools, richest ten schools still had an income per local state However, schools. even if the equivalent of boarding cost in the state sector was in the and same authority local had an income 10 times higher. top of this list, Marlborough College had pupil aper income 12 times higher than state schools three schools had pupil per incomes seven times higher than their state local At schools. the private For schools. the elite most boarding this schools, figure was substantially higher. Twenty equivalent to what astate school would for receive 3.7 young people. the same figure was £6024. eachFor pupil in a private school, the schoolan received income mean income pupil per for private schools in the was study £21664, for the state-funded schools This refers to state schools in the areasame local authority as particular private The schools. sample had a mean per pupil income 3.7 times higher than their local state-funded schools. instate school their peers authority. local In 2017-18, on average the private schools in this system. education state ownership of the wealth held by private schools leading eventually to their integration into the state It schools. recommends that steps should taken be to redistribute and democratise the moresimply than quantifies worth This others. report theeconomic private gapbetween and andauthority academy/free schools are included here) mean that some children are quite The economic wealth of private schools compared to neighbouring state-funded schools (local Summary Executive Given these inequalities, we explore a range of policy recommendations, from recommendations, policy of range a explore we inequalities, these Given For these independent day schools 33 had pupil aper income £10,000 higher than Independent day which schools, have lower than fees and costs boarding schools, There are geographical inequalities the income between and wealth of different private The economic extreme most inequality boarding existed between schools and different and between the country across varied incomes gap in school economic The Private schools in England substantially receive more income pupil per than their local Private schools foster and create social inequality in education at large. and society 2 Dr Sol Gamsu Why are some children The private-state school worth more than others? funding gap in England private schools and school funding is provided. 19. Before delving into of the history, analysis, a brief overview policy and research involving than others and what this about says the causes of inequalities that have widened with Covid- inequalitiesThese serious pose questions about why some children somuch are more worth the wealthiest 10 percent of the private schools examined here, this figure reaches 7-12 times. way, one private school student the receives income of four nearly state school students. For per pupil income that is on average 3.7 times Put schools. that another of local state secondary analysedThe here data suggests that on this measure, private schools in this sample a receive middleand classes. 19th to protect century the financial and legal schoolsinterests by attended certain theof ruling Conference (HMC), a historical association of high-status private schools formed in the late and private schools These schools. are members of the Headmaster’s and Headmistresses schools in local authorities 89 to show the economic gap in school funding state between from the and DfE Charities Commission websites, we compare the finances of over 216 private by state andreceived private Using schools. publicly accessible financial data available online in reducing the economic inequalities private and state between schools. scale of inequalities with seen Covid-19. However, these sums will make even of less an impact England. in pupil school’ per orwould £80 estimate secondary own by its amount for a‘typical to just £80,000 state and private forbetween The schools. Department Education’s (DfE) ‘catch-up premium’ resources inin youngthe gaps people’s differences and the vast learning conditions home form overnight. It is economic inequality, which is both racialised and classed, that underpins disposal and the difference in home learning for middle and working-class families did not The gulf private and between state schools in the financial and cultural resources at their is central to the disparate futures our unequal education system offers to youngpeople. and online teaching have highlighted how economic families inequality between and schools In reality, Covid-19 has simply exacerbated existing educational inequalities. Home learning education makes it appear as itself was if responsible Covid for the widening of inequalities. re-opening of schools and the current emphasis of ‘catch-up’ policies, public discussion of with well-resourced private schools able to adapt faster to provide online teaching. series of lockdowns Spring 2020 between and 2021 have the seen widening of inequalities 1 cultural and resources. their of economic ownership democratic the and schools Introduction This report provides for theThis first time, report directcomparisons in theper pupil income Inequalities private and between state schools have exacerbated been by Covid-19. The 2 This small sum has already highlighted been as given modest the increased 3 Previous studies have estimated the resources gap to one be to three. 1 With the 4

3 common-wealth.co.uk Private schools have central been to the creation of elites in the long UK time. for From avery perverse reversal of their of founders' many intentions of their of benefactors.’ reversal hopes and the pious perverse thesereverse, great public for those could who endowments pay, were reserved in a often Schools Act of 1868, Colin Shrosbree, independent scholar, described it as: ‘a means test in the lost who right to education afree for boys. local communities local by raised were Objections class. middle the of upper and education the for used to be allowing the government endowments their with historical the state, by intervention Paul’s, Westminster, Charterhouse and Harrow). These schools were exempted from financial (Etonpublic schools Rugby, College, Merchant Taylor’s, College, Winchester Shrewsbury, St of nineboys’ position investigated leading the financial educational Clarendon Commission and These reforms largely exempted elite and middle-class schools from state interference. The education and laid out the basis for reforms to working, middle- and upper-class education. of thecurrent provision reviewed During 1860s, the commissions major government three resisted by members of the Anglican Tory elite in Parliament. upper Attempts classes. to address this situation during the half first of the were century 19th being or contributing embezzled to the of educating cost the sons of the wealthy middle and raised as unfair, as some of the endowments for educating left local poor scholars were either exclusively boys. 16th and 17th charitable foundations century for the education free of children, local almost Many of the schools that schools became for the elite and middle class had their in history the gradual formalization and legalization of aseries of economic advantages for these schools. and government. educators and vocabularies and creation history owes its to the 19th and aseries century of reforms by the common tropes of architecture, neo-gothic dining elite sports, halls, eccentric uniforms schools’ have not always existed in their current form. The model of the ‘public school’ with ‘independent the‘public frequently as more confusingly or schools’ known also schools, These and society. government across employment and professional leadership of positions it has long been shown been that those educated private in schools certain have dominated sociological research from the 1920s to recent research by the Social Mobility Commission, 2

of private schools private of finances and role the of overview A historical historical A

7 Already in the 19th early century, the issue of ‘charitable’ status was being 6 This social and cultural also has financial history its counterpart with 9 Commenting the legislation, on the Public 8

10 5

4 Dr Sol Gamsu Why are some children The private-state school worth more than others? funding gap in England again called for the abolition of the public schools but on both occasions found from little support 3 these schools test a good of a government’s commitment to ending inequality. makes on action their power reduce in legislating even or to end and resistance The persistent of these success schools in educating ruling elites and the difficulty of private action little schools, has taken been governments by Labour in power to achieve this. conference has in the 1970s ago years in and 2019 two called for the abolition and integration Labour governments for such a move. the 1880s through until 1920. intermittently by the Trades Union Congress (TUC) Liberal and and later certain MPs Labour from Nationally,failed. the ‘return’ for made the demand was endowments nationalisation or these of toresistance this use of endowed money for the education of the rising middle class largely and asschools, well Cambridge, as Oxford the ‘were rightful inheritance of the people’. remained. have they where process’ This legislation effectively placed these schools ‘beyond the reach of normal democratic ensured. was their underand their institutional remained control independence endowments and formulation of the group of schools that the became HMC. legislation was both resisted and heavily watered through down, in part the political pressure 1869. of Act under for Schools the Endowed legislated were This to the schools Clarendon A larger number of schools which either aspired to or had already asimilar attained status was that the Act had the effect of protecting and expanding the public school model: their private schools private and state between inequalities from? Economic come money Where does the the does Where In the decades afterwards, manyIn would on the the afterwards, decades left claim that the endowments of these 14 The issue returned during the 1940s and late 1960s when the TUC 12

15 This continues to the be and case whilst Labour Party 11 The result of this pressure 13 Local Local

5 common-wealth.co.uk years ofyears real-terms decline. 2009-10 Between and 2017-18, funding by the government in England, deprived areas in asomewhat controversial and complicated set of changes. government. This approach has led to sharper rises in funding for schools in less which determines how much money is given to mainstream state schools by the All state-funded schools are now funded through a National Funding Formula For private income schools, sources are quite different.form of The primary comesincome and local-authority schools but largely cover the same streams of income and expenditure. slightly academy disaggregated differently are for These income. numerous of other forms intois sorted income for ethnic minority pupils, pupil premium, grants for capital spending and This is an abbreviated list with school budgets being far more complex. The income received backgrounds. deprived from students or and Disabilities Educational Needs Special Language, improvement of school facilities, additional for students support with English as an Additional School funding the of covers teacher cost salaries and pensions, upgrades, maintenance and the incomes by private received schools which in also cases most has to cover capital spending. spending. buildings for income capital other and (now Education the Funding Skills and Agency). the Education by Funding buildingand funding new for provided Agency were and refurbishment amount for pupil per funding. In addition to this funding separate grants costs, from for everyday they wereLanguage obliged and to sparsity; account for deprivation and guarantee aset minimum authorities could take into account children in care, prior attainment, English as an Additional decided what factors should to used be allocate the centrally funding. provided DfE Local The year we are looking 2017-18, at, is the last year of the old model under which authorities local 4.1 ofcontext financing andstate for incomes, first schools and then for private schools. Before examining the in used data detail, further I first discuss the recent and historicalpolicy varies year on year with exceptional outlay for particular projects likely to influence the figures. likely covering anumber of other that costs state schools do not cover. Moreover, expenditure in state and income private between schools are explored here as private school expenditure (money income wills), Differences from legacy streams. other smaller few income a well as as income allocated to specific purposes), or investmentfinancial income investments),(property income. There are anumber of other income streams including endowment income (investment under accounts ‘charitable’ Commission Charities the in classified is which tuition fees, from of independent We schools. will examine the former and then the briefly here. latter policy context and framework for government school funding and the financialposition Before we examine the funding gap, itis useful to understand the immediate In 2017-18, the year our data refer to, government funding of state schooling had seen eight State school funding: adecade of cuts and a 17 18 In the analysis that follows below we include we below that follows In analysis the This allows an approximate equivalence to ‘levelling up’ agenda up’ ‘levelling 16 19

6 Dr Sol Gamsu Why are some children The private-state school worth more than others? funding gap in England Recent research has highlighted the persistent financialbenefits provided to private schools educational inequality caused by Covid-19, by caused inequality educational whether asked about to be questions are there might expected. Against be of acontext of adecade austerity, as well as the deepening of school funding do not appear to targeting be inequality and disadvantage in the way that school fees. Large legacies over £250,000 were legacies also over Large exempted £250,000 school fees. from what as is now known meant that grandparents or other relations relief on money could tax to used receive pay 1927 that protected their right to retain profits and avoidpaying on these tax profits. income financial interests of the public schoolscontinued. Boden, As James and Kenway long way.a very and the this protecting twentieth Over of century preserving pattern the through and taxation charities legislation and law. 4.2 long term. the over benefits the HMC specifically, advocating actively for the enhancement and protection of their financial schools relative to the state sector. This is a historical phenomenon with private schools, and accounting benefits that result in substantial financialadvantages to the income of private private Private schools. schools benefit from several different income streams andlegal and that have put in been place are unlikely to seriously affect the fundingstate andgap between 2017-18, since declining reversed for the trend pupilWhilst funding per been has the changes the solutions are posed adequate or fulfilling thecommitments and rhetoric of ‘levelling up’. are likely to have seen faster rises in their per pupil funding. with more affluent intakes(white, non-free meals,school with and Englishfirst asa language) pupil.per Whilst the focus on levelling up to appears frame this as redistributive, schools this the committed government to ensuring all an schools increased receive minimum spend of the ‘levelling-up part become agenda’ In promised Party. education by the Conservative funding is allocated on pupil aper Whilst basis. this the pre-dated 2019 election, ithas (NFF) began to apply. This formula will eventually fully centralise and standardise the way notedAs above, the 2017-18 year is also the last year before the National Funding Formula increase funding. Per pupil funding will increase to levels last seen in 2009-10 but only by 2022-23. changespre-date which 2017-18, came after which commitments saw from the government to fell by 8percent or approximately to £500 £5872 pupil. per payments were again beneficial to the private sector. government lobbying during lobbying the1910sgovernment in legislation and1920s. in successful resulted This and individual schools like College were involved in a series of legal and cases and protect andlegal to cases improve try their financial interests position.and The HMC shown, the HMC and individual private schools have consistently lobbied and brought

In the 1980s changes to the legislation over legacies and tax relief covenantedfor In the 1980s and tax legacies to the legislation over changes between state and private schools formation of the funding gap funding the gap of formation The historical context and and context historical The 23 This is historical pattern and back goes 26 Tax relief payments for covenanted 20 The we data are working with here, 22 Commitments to ‘level up’ ‘level to Commitments 24 have have 25 21

7 common-wealth.co.uk 4 poor’. ‘the to benefit a provide they how over greater discretion schools independent to give re-written Council, leading to being guidance the Independent the Schools brought by case a than the full of attending costs the school. rather percentage a cover generally which through is bursaries place takes this usually which werewho unable to pay from fees being able these to schools. access the Charities Commission, that a public benefitbe definedshould bypartly not excluding those considerably lower. The change in charitable status only involved guidance, published in by 2008 committed to removing charitable status or rates relief, the aims set in government were the in status of statute acharity for the first time.Whilst Labour previous manifestos had clarified 2006 of Act Charities The to thischange position. little done have governments Labour century. than seeking to redistribute or share the resources that were sequestered during the late 19th state has consistently legislated in ways that reinforce the advantages of these schools rather financial amongst these schools. diversity (v.3.0). Licence Government through Open providing data DfE on data student numbers and school type. numbersCharity were collected by hand and charities commission was data then merged with data. Commission using Charities possible number HMC of schools largest the provided subset of English private The schools. financial data hereanalysed is for the 2017-18 year,which fees andfees exemption from business rates to government local being largest. the two private schools enjoyed a long list of financial advantageswith exemption from VAT on tuition By the mid-2000s charities. to seconded were staff when relief employers for exemption tax for andinheritance exemptions further tax for charities included stamp duty, and transfer capital tax and Welsh private Irish schools, Northern grammar and private schools and one New Zealand Scottish English – included here only have I schools analysis, of ease and consistency For Whilst the sample represents the of the majority HMC, some schools have excluded. been manyschools, of which are not sowealthy, but these are not the focus of our comparison here. toimportant acknowledge that private schools include smaller faith schools and special as expensive, fee-paying schools that have affluent middle- and upper-class intakes. It is focus on private or independent schools as they are commonly thought of and perceived: the finances of private schools stateto local The schools. use of the HMC allows us to a significant form sixth (students age 16-18), attainment and financialstabilitybut there is schools who are members of the HMC. The criteria of membership now emphasise size, Data and methods and Data We analyse publicly available financial for data 216 institutions of the now 296 This state schools comparison and private between school funding pupil per a uses

29 This guidance was ultimately found to illegal be after 34 33 It thus areasonable provides subset to compare 32 All these are datasets available 28 The primary means by The primary 27 The The 30 31

8 Dr Sol Gamsu Why are some children The private-state school worth more than others? funding gap in England the Academies Accounting Returnsthe Academies (AAR). merging of 2017-18 from data the Consistent Financial Reporting (CFR) schools for LA cleaning and all-through and extensive are included. involved This schools secondary (LA) schools withinby the secondary these small groups or pairs of schools. school, this toopposed preparatory probably has the effect of underestimating income received calculating per pupil incomes. Given the higher school as fees associated with secondary included when have been schools prep populations for the associated the school school, have separate schools funded preparatory through as the their same charity main secondary schools and, in shared somesecondary prep cases, and/or 35schools forms. Afurther sixth counts across the differentOf the schools. institutions two or more have fifteen analysed, single charity. Where possible Ihave included these smaller school groups, aggregating pupil forms. institutionsThese schools andpreparatory sixth are grouped under the accounts of a involve anumber of usually schools, local agirls’ and boys’ school with shared, co-educational do not disaggregate the finances between of individualSome schools. smaller school groups Corporation) or gender (Girls’ Public Day School Trust). The charities that fund these schools includeThese groups of schools on faith based (e.g., United Church Schools Trust, Woodard private school are thus excluded. Several HMC of larger members are school groups. part included HMC school. high with or an low incomes, asample schools this in of 2302 the left LAs state 89 secondary schools that had just opened or were about to close as well as schools with anomalously figures to make sure these were reasonable. Removal of outliers also involvedstripping out across both datasets where possible, it also involved checking pupil numbers and income their surrounding area. authority local and their funding relative to the median funding and for all-through state secondary schools in compared to state day schools. Across these examples we will refer to individual private schools the median funding all gap between private and all state schools and then private day schools spatial variation in income inequalities across different looking areas, local at authority first are included material as supplementary hosted online. For simplicity and space, we look at the BoardingState and Day) State and for both income and expenditure variables. figures These of (Independent standard statistics for summary all school types Boarding, Independent Day, statistics for area each with authority local an included HMC school. We calculated afull range 5 private schools and state local schools authorities. local across 89 The map shows how analysis Findings and Findings and For the financial DfE data on Englishstate both schools, academies and local authority To explore the funding gap over different geographical we produced areas, descriptive Figure 1draws on the average (median) funding all gap included between HMC 36 Cleaning involved merging schools with entries entries with merging Cleaning schools involved 35 and and 9 common-wealth.co.uk their intake is from, these schools remain substantially wealthier than their local state schools. incomes in their local region, indicating they likely recruit from afield. further However,wherever way that boarding school are fees not. recent paper shows how day school are fees correlated with regional household incomes in a Whilst we cannot where exactly for know boarding certain schools recruit their students, a boarding schools included in these averages will recruit beyond often their areas. authority local of both boarding and day schools (15 in Surrey, 9 in Oxfordshire). noting It is worth that the these figures,whereas rural counties certain in in theSouth-East there are larger numbers (Sedbergh School in Cumbria, Giggleswick and College Ampleforth Yorks.) in North that drive Cumbria Yorkshire and North In out. stand these rural counties it is single boarding schools the top statelocal Of schools. 20 authorities, local all but one is in the South of England. Only what can only described be income as extreme disparities some HMC between schools and counties in southern England where many of the famous boarding schools are located have Figure 1. shows that income inequalities are in extreme most the South of England. Rural 6.1 geography of private schooling in England, income HMC inequality The schools. uneven schools between and local state secondary school neighbours. provide These data ageneralsecondary outline of the geography of much additional income pupil per included HMC schools had compared to their state variation in private economic and inequality state between schools across England. will discussed be below. these allow data Nevertheless, us to show the geographical and limitations caveats school, independent one just pupil of income torefer the per

inequalities of the Southern shires Southern the of inequalities 38 Mapping the funding gap: the fundingMapping the the gap: This suggests that boarding schools may not reflect 37 means that in some areas these figures

10 Dr Sol Gamsu Why are some children The private-state school worth more than others? funding gap in England The geography of income inequality reflected in the map is underpinned by the geography of in income with huge implications for the facilities and resources that provided. can be £39947pp –for state local schools the median figureThese was are £5808. giant differences income inequality, had an income of £47056pp, Roedean School received (£5447pp). In , one in of only threethe top urban quantile LAs for per pupil had an income of overover £40,000pp, seven times the median income for local state schools local state secondaries In was £5540pp. larger rural counties like Kent, three boarding schools agirls’ Ascot, Mary’s St boarding school had £41878pp;school in the LA, the median income for pupilper (pp) of £55712, ten times the median income of The state other local schools. HMC with astronomical levels of wealth. In Windsor and Maidenhead, Eton College had an income the boarding richest, schools in the country. For state local schools this means neighbours the elite most fee-paying schools in England. Map showing median income gap (all independent and all state schools, boarding and day) and boarding schools, state all and (all independent gap income median showing 1Map Figure

39 These LAs include the These LAs expensive, most and also 11 common-wealth.co.uk the presence of elite private boarding schools. Nonetheless, this example shows us the scale of economic inequality in education caused by more lavish facilities and standards mean that this money is likely not for used that purpose. of runningcosts amore expensive model of education with higher salaries for teachers and of an additionalsalary teacher pupil per with the additional income they The additional receive. could state simply that the wealthiest private schools in the could country afford payto for the of the main pay range. schools. This is the equivalent of astate school teacher’s on of most the spine salary points these ten schools, all ten with would higher an income left be at than least £30,000 local state 18 would £11161. be state boarding schools included here in 2020-21 was £12441, an estimate for that figure in 2017- state boarding school place the differences in funding are enormous. in the education and that account Even provided. be can for if we try the equivalent of a cost these rural mostly areas, boarding schools with levels extreme of wealth create vast differences the top ten schools with the highest income difference relative to their daylocal state schools. In income private inequalities and state local schools certain are Table largest. between 1shows these inequalities. These schools aside, it is the rural counties of southern England where Giggleswick School, £22098pp) are the exceptions to this, with large boarding schools driving (Sedbergh School £25410pp income) Yorkshire and North College, (Ampleforth £41078pp and Per pupil income inequalityis acute most in the South of England. In Cumbria the North, State boardingState schools charge fees for boarding only, 41 Even if we subtracted this figure from theper pupil income difference for 42 As arough As estimate of what these financial inequalities mean – we 40 the annual median fee for the 12 Dr Sol Gamsu Why are some children The private-state school worth more than others? funding gap in England schools shifts but only slightlyschools shifts (Figure 2). It is of course notable that the income inequalities 6.2 we will now examine the geography of income inequality looking at day schools only. the South. Having examined these which broad patterns include boarding schools, and the private school system. The wealthiest private schools are concentrated in inequalities and underlines within HMC the hierarchies the which cities in northern income inequalities. It is notable that there are lower inequalities, by national standards, Bury, Newcastle, Manchester, and Leeds Bristol), Sheffield, lower we see Stockport, In contrast, the provincial cities with an included HMC school (Coventry, Southampton, (Harrow and Hammersmith and Fulham) are also in the top quantile for income inequality. Table 1 Table Oxfordshire Maidenhead and Windsor Harrow Warwickshire Dorset Hampshire Bracknell Forest Bracknell West Maidenhead and Windsor Wiltshire Top ten schools with the largest income inequalities with local state schools 2017-18 schools state local with (£) inequalities income largest the with Top schools ten Away from these rural areas the of London map Brighton parts and certain If we exclude boarding schools from our analysis, the map of income inequality between Local Authority Radley College Ascot School Mary's St Lyon Schools John & Harrow Sherborne College Winchester Wellington College Wellington Christ's Hospital Christ's Eton College College Marlborough Independent day schools: Southern Southern schools: day Independent School 28624000 16165000 63286000 35590283 25218000 32971000 69859000 41703000 73150000 59788000 income inequality persists?

Total Income 41726 41878 44411 44322 46102 47646 49405 49765 55712 64427 Income per pupil 5489 5540 6396 5650 5443 5771 5819 5331 5540 5527 Median income pp 36237 36338 38016 38671 40659 41874 43586 44434 50172 58900

Ind-St. Difference 7.6 7.6 6.9 7.8 8.5 8.3 8.5 9.3 10.1 11.7 Income pp

as multiple 13 common-wealth.co.uk out if we look at the top ten largest income differences relative (Tablestateto local schools 2). schoolswe see with the largest economic advantage relative to their This is borne state peers. aside, it is the London boroughs and particularly those in the affluentWest of the city, where higher (St Alban’s School) than local state schools (median income of £5924). These exceptions additional income £8111 per pupil between varying higher (St Columba’s College) to £15737 more representative picture of private schooling in the area. Here these schools five have an figure statefor schools).local five has day schoolsHertfordshire in the HMC allowing us a figures:withSchool Norfolk an income of £17604per pupil (£12142pp more than the median day schools beyond the HMC would our further analysis but that is not possible here. independent of consideration detailed more A apiece. six with included HMCof schools day areas here refer to just a handful of schools – Surrey and Hertfordshire have the largest number institutions included here are day Most of schools. these figures shown for the local authority caveat Theschools. first here is that we have much smaller numbers, only 82 of the 216 relative to local state schools decreases substantially showing the additional of boardingcost South-East with Norfolk the exception. asingle For Norfolk, wealthy school explains these authorities with the largest median income gaps are primarily focused on London and the Nevertheless, we can stillNevertheless, some see notable geographical variation. The 20 local

14 Dr Sol Gamsu Why are some children The private-state school worth more than others? funding gap in England Figure 2Map showing median independent income and gapFigure (day state schools between only) schools 15 common-wealth.co.uk economic inequalities state and private between day schools. Fulham included here. London, alongside some of the south-eastern shires, has the largest than the total income of eight of the ten neighbouring schools in Hammersmith secondary and Upper more in received means donations that Latymer and other forms of income voluntary highest income voluntary from donations and other over sources, receiving £8m in 2017-18. This the third had Upper sums Latymer to fundraising and donate campaigns. considerable fees London day schools cantake advantage of the presence of wealthy elites can afford who higher Table 2 Table and Fulham and Hammersmith and Fulham and Hammersmith Hertfordshire Merton Oxfordshire upon Thames Richmond and Fulham and Hammersmith Camden Thames upon Kingston Hertfordshire Top ten-day schools with the largest income inequalities with local state schools 2017-18 schools state local with (£) inequalities income largest the with schools Top ten-day West London day schools have the largest economic advantage over local state schools. Local Authority School Paul'sSt Girls' School Upper Latymer School Albans St School King's College College School College Magdalen Holles School Eleanor Lady School and Latymer Godolphin The College School College University School Grammar Kingston College Immanuel

School 20846000 34727678 18368000 34077000 18593377 18817454 17863855 25156000 16411000 13502849

Total Income 27721 25002 21660 21788 20728 20908 21679 22223 19796 19683

Income per pupil 7365 7365 5924 6522 5489 6190 7365 7923 5808 5924

Median income pp (local state schools) 20355 17637 15737 15267 15240 14718 14314 14300 13988 13760

Ind-St. Difference 3.8 3.4 3.7 3.3 3.8 3.4 2.9 2.8 3.4 3.3 Income pp as multiple of local state Inc. pp 16 Dr Sol Gamsu Why are some children The private-state school worth more than others? funding gap in England fragile state of private schooling outside the South-East of England. do suggest aregional in divide private schooling which reflects the smaller, sometimes more allow some degree of financial advantage relative stateto local schools. However, these data schools, this is not the or Hull. in case Coventry economic These gaps are still significant and and Cheshire West also have more affluent schools with larger gaps relativestate tolocal is the exception to this. Whilst in Cambridgeshire, Bristol and to alesser extent Manchester are primarily found in towns and cities in of the England North and the Midlands. Bristol Only private schools with lower incomes and smaller economic advantages over local state schools statelocal schools is just afew thousand pounds, the geographical skew The is reversed. Conversely if we look at the of the bottom list, at schools where the income advantage over Table 3 'Bottom' ten-day schools with the lowest income inequalities with local state schools 2017-18 schools state local with (£) inequalities income lowest the with schools ten-day Table 3'Bottom' and Chester Cheshire West Wirral Bristol City of City Bristol Cambridgeshire Wakefield Oldham Sefton Manchester Hull City of City Hull Upon Kingston Coventry

Local Authority School Grange The Birkenhead School Colston's School School Wisbech Grammar Foundation School Grammar Wakefield Grammar Hulme Oldham St Mary's College Mary's St St Bede'sSt College Hymers College Hymers Coventry VIII Henry King & Bablake

School 12178275 8583165 8004402 5339075 21086952 8337074 5832286 7923814 9937967 22652677

Total Income 10462 10948 10673 10287 10317 10567 9561 10840 10450 9672

Income per pupil 5459 6169 6116 5871 5943 6245 5691 7233 7045 6308 Median income pp 43 (local state schools) 5004 4779 4557 4416 4374 4322 3870 3607 3406 3364

Ind-St. Difference 1.9 1.8 1.7 1.8 1.7 1.7 1.7 1.5 1.5 1.5 Income pp as multiple of local state Inc. pp 17 common-wealth.co.uk suggests is amuch more polarized system of of the education South of across parts stateof and inequality private between sector across the country. What the analysis here legislation. This has in already passed Scotland been though implementation its is currently advantages enjoyed by these schools. private and state schools, but it would acknowledge the differences and highlight the financial momentum. This would unlikely be to seriously reduce the economic inequalities between political has context changed with Covid-19 which may schemes give voluntary like this more most recentlymost by Private Education Policy Forum (PEPF) I draw longer whose on here. report before, suggested have been proposals these of Some policies. to include radical the more schools? Iwill begin with amore feasible and low risk set of gradually proposals, building up 6 socially, and economically elite fee-paying schools and the elites can who afford them. the South-East than itis elsewhere. This is driven by the presence of the established, most economic polarisation state and private between schools; the gap is wider in London and to the patterning regional a is there but distinction, exceptions to this geographical shown, of thelarge South parts and particularly the South-East of England. There are as we have wealthy day results schools, in far greater state and private inequity between sector across England. The presence wealthy of extremely boarding schools as well as alarger number of local areas authority there may greater be for this opportunity to happen. Moreover, the their business rate relief to acommunity fund. councillors suggested that the council invite private schools to contribute 10 percent of Removal business of charitable rate relief inequalities in education in inequalities Voluntary donation funds to private schools by local local aimed at reducing recommendations Policy Policy Removing the right of independent schools to local business rates relief would require These geographical differences differences geographical These This practical in has proposal alreadyTaunton put forward been where some local How could we begin to these resolve economic inequalities state and private between within the private sector, affect the relative degree 45 This motion was not carried but in other 44

18 Dr Sol Gamsu Why are some children The private-state school worth more than others? funding gap in England bring in an estimated annual income of £5m in Scotland, delayed until April 2022 due to the impact of coronavirus on independent schools. education. education. of system owned and publicly union single, for a movement trades democratic, the of early an estimated a year £2.3bn according to This PSPR. change would make on good the demands and would either face closure or integration into the state system. Full integration would cost £81,196,607 least at of income received here endowments. and investments from projects which would then put to be avote across the In area. 2017-18, the schools analysed educational different debate could residents local of assemblies Participatory adult education. and standardthe funding statutory and running of colleges schools, costs and community/ 5-10every This would years. cover additional or experimental programmes or projects would areas. Areas local authority a small receive amount, perhaps up to £5 million once Endowment. The endowment interest could rotate geographically on an annual basis to different of local children. The endowment could held be in anational fund, the People’s Educational without the resources which were in many originally cases intended for the education free elite schools Areform the would of most. this allow sort private schooling to continue but held by the wealthiest private schoolsproperty would areform be that would affect the most this change. vulnerable of to reform; this sort the more established schools would likely able be to weather and would require major legislation. The wealthy least and socially elite schools would most be donationstax, onbenefitsaffect received income legacies, andcapital gains stamp and duty of thiscosts to parents. in student numbers that would likely result as many schools would forced be to on pass the 2019. PEPF calculate this would bring in an estimated £1.75bn accounting for the reduction entirely reliant on fee income. Many private schools would to cease economically be viable schools have lobbied to and extend protect for well over acentury. Integration of all privateinto schools system the state Nationalisation of endowments and creation of aPeople’s Educational Endowment Charging VAT fees on school Removal in status full of charitable If charitable status were removed and endowments nationalised, schools would be Nationalising and redistributing endowment wealth in the form of investments and This would go beyond business rates and affect financialadvantages that private explicitly inThis 2017 its by was the proposed Party Labour manifesto and again in 49

47 or £104.4m in England and Wales. 50 This would potentially would This 46 This would would This beyond beyond 48

19 common-wealth.co.uk are still justifiable. after, itis time the we Covid-era, asked whether vast economic inequalities schools between would also face resistance and possible legal challenges They would in all court. also require schools included here. Per pupil funding is set to rise to £5,987 in England by 2022-23, 7 can afford pay’.to was unfair that ‘some people can get education better for their children, just because they it agreed respondents of percent 53 specifically, that in education suggest surveys Recent and public opinion may favour the reduction of deep inequalities that Covid-19 has exacerbated. economy. the and society reform that would involve and progressive redistributive taxation further measures across policy options outlined here (5. and 6.), itis hard to imagine this would happen without broader and expensive radical tothe more organise schooling. For structures democratic participatory, argumenta good that this would of a progressive reconstruction to need part be of local thus is There purposes. educational for money to redistribute structures democratic local begin to account for the differences students’in backgrounds class and familial resources. and resourced to able be to with moving cope to online teaching. This is before we even the income pupil per compared to their state local schools were much prepared better inequality. We should not surprised be that schools that on average have nearly four times created new inequalities, ithas only highlighted and dramatically exacerbated pre-existing vast economic resourcespossess relative to their state local schools; Covid-19 has not should make us pause and consider the findings report of this peers, backgroundsclass fallen have privileged behind their more acceptable. are inequality economic of levels what about discussion larger a from separated be cannot inequality In educational game. the end at the ‘bottom’ we ignore the fact that it is those at the ‘top’ who are setting the rules of the If we talk about educational inequality as aproblem that by ‘improving’ resolved can be those some and schools, the families use who them, have far too much wealth and others too little. funding but of at the the inequalities heart that has Covid exacerbated is the simple fact that far greater deserve would schools spending. involve an in unprecedented increase school State many private Increasing schools. state school incomes to match those in seen private schools this ‘levelling up’ not does remotely begin to close the economic inequality that exists with per pupilper income for these HMC schools £18,648 was, compared to £5782pp for the state government would to need roughly quadruple current levels of funding. In 2017-18, median Conclusion Excluding the first option, these proposals would all is require likelyIt legislation. they proposals these option, first the Excluding To ‘level-up’ state school funding to levels within seen the private the schools, context the current reforms, these difficultiesproposing in and political the legal Despite With much emphasis now on ‘catch-up’ on now emphasis much highlighting and With working- from students how 51 As we begin As to consider what education should look like in and, hopefully why why this has happened. In many private schools cases, 52 yet yet

20 Dr Sol Gamsu Why are some children The private-state school worth more than others? funding gap in England help reproduce. This is long overdue, and Covid-19 and overdue, long is This help reproduce. this for stronger. case the made only has and would contribute to undermining the elitism and the unequal class structure that they held by these schools would help bring about the slow erosion and integration of private schools Nationalising wealth the democratising and settlement. educational new a for basis the create Bringing the wealth of these institutions into common, public ownership, would allow us to deeper questions about how and where social inequality is created simply cannot asked. be of private schools in creating educational inequality creates a policy in context which the deeper reckoning with the structure of society. The long-term refusal to examine the role the scale of inequality that exists within the English educational system requires amuch to consider redistributive politics in education in any deep or meaningful sense. To resolve At of both the approaches heart to ‘levelling up’ and Covid-19 ‘catch-up’ policies is a failure economic for success creates a minority inequality the more polarised social and economic structure of the South-East of England where the affluent most of the country. parts economic These inequalities schools reflect between schools across the South of England creates ahighly uneven playing fieldwithin many of a simple notion of regional ‘levelling-up’. In the wealthy fact, presence of extremely private greater economic polarisation in the rural of South London complicates and further in parts the state and between Moreover, privatereal sectors. parity the picture presented here of more dramatic increases in state funding would have to if there proposed be was ever to be The level of economic the state inequality and between private sector is such that much funding come nowhere near closing the state and economic private gaps schools. between Similarly, the levelling up agenda and government commitments to gradually increase school within just as much as between between regions.

21 common-wealth.co.uk 23 22 21 20 19 18 17 16 15 14 13 2 1 Endnotes 12 11 10 9 8 7 6 5 4 3

English private schools keep fees high, scholarships low and luxury pervasive. luxury and low scholarships high, fees keep schools English private 1-16. How in Education. Studies Kenway J(Forthcoming) Rand Critical Boden M, durée. James longue Wales—the and in England advantage tax and schools M(2020) Private James Kenway J and R, Boden Institute. 2021-22. Policy Education allocations London: funding School J(2020) Analysis: Andrews Op. Cit. Roberts (2019).. Roberts Cit. Op. London: Institute for Studies.. Fiscal L. (2018) in England. , Spending on Sibieta, Education 2018C., Report Annual Farquharson, C., Belfield streams. expenditure and income of range same the cover to appear which Returns Accounting Academies in the contained variables the terms in simple explains London: Education authorities. and local Fundingschools is There no similar Agency; document that 2017framework: to 2018 Funding (2017) Agency, for reporting Education Guidance financial Consistent schools. Academy LA and for datasets financial the from Total the Iuse variable Income proposals for ‘fairer school funding’. school for ‘fairer proposals 06702., BriefingLondon: Paper House CommonsLibrary. of P. Bolton, N., and (2017) system –Current Roberts in England funding School Library; Commons 08419., CBP of (2019)Paper N. House FAQs.London: Briefing in England: funding School Roberts, London: Education Policy Institute. P., Sellen, J., schools. for (2017). Funding Formula Andrews, National the N., of Perera, implications The Private Schools: Research on Policy and Practice. London: Woburn, pp.29-53. Woburn, London: Practice. and Policy on Research Schools: Private 1870–1970. Schools Public the and Trades The C(2003) Congress Union Griggs G(ed) In: British Walford Press. Griggs C (1983) Trades The Union & the Congress for Struggle Education, 1868-1925. Falmer Lewes: Press. University 1939. Manchester power, and knowledge 1855– for fight the and Adams Bridges J. (2018). Mary Martin, socialists: Making Op Cit. Simon B(1965). Simon Cit. Op catch-up-premium-coronavirus-covid-19/catch-up-premium (2021) https://www.gov.uk/government/publications/ at: DfE Available up premium. Catch Guidance: Trust. Sutton The London: Brief. Impact COVID-19 Shutdown: Mobility (2020) School Social and R. CM, Cullinane Simon B (1965) Education and the Labour Movement 1870-1920. B(1965) Movement Simon &Wishart. Labour the and Education Lawrence (1988). Shrosbree Cit. Op 140-141. pp. Press, University Manchester Acts. 1861-64, Schools Public the and Commission, Clarendon the (1955: Baron education: C(1988) Cit. Op private and 228); Shrosbree schools Public 49(1):Education 4-17. of History scandal. anational of origins the schools: elite of status charitable R(2020) The Lowe Macmillan. Basingstoke: England. H(1998) Jewell Modern in Early Education London: Millington. 19th in the J(1977) century. school Honey public the of development Tom The universe: Brown's backgrounds of Britain's London: leading SMC/ST. people. Trust (2019) Sutton the and 2019: Commission Britain educational Elitist The Mobility Social 0003122417735742. Review. 1897 Elite Recruitment to 2016. and Sociological Schools American Private 22(01): Boy: Old the of 12-31. (2017) al. et C, Rahal S, Persistence and Friedman Decline The A, Reeves 1801–1924. (1928) HJ Cabinet, English the of Laski Review Personnel The Science Political American Publishing. Bloomsbury London: problem. school F(2019) private Britain's Green Dand Kynaston Privilege: of Engines 7(3):Review 223-234. 1869‐1914. Conference, Master's Head the of G(1955) history Educational Baron early and origins The (accessed 20/02/2021). (accessed 22 Dr Sol Gamsu Why are some children The private-state school worth more than others? funding gap in England 48 47 46 45 44 43 42 41 40 36 35 34 33 39 38 37 32 31 30 29 28 27 26 25 24

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Op. Cit. Andrews (2020: 4). (2020: Andrews Cit. Op. London: KCL. Covid-19. after to inequality A (2021)R. and Wager Attitudes RB, Hesketh Britain: K., Unequal BH, Duffy Publishing. Bloomsbury London: problem. school F(2019) private Britain's Green Dand Kynaston Privilege: of Engines (2019) PSPR Cit. Op.