You may not realise it, but schools run a bit like businesses. Aside from the task of teaching children, instilling key values and ensuring that children are knowledgeable and rule-abiding adults by the time they leave at 18 years of age, schools have to balance the books. It costs a lot of money to run our nation’s schools, and while the aim isn’t to make a profit, it certainly pays to not overspend. Here’s a little bit of insight into the economics of education in the UK…
What is the average school spend per pupil?
The average spend per pupil in a local authority maintained school for 2014-2015 was £5,212. This figure accounts for spending on school supplies, staff, support staff, other employees and running expenses. Sadly, many teachers feel that it’s becoming more and more challenging to deliver the kind of teaching and results they want to after recent cuts to the budget by the government.
And what about unforeseen spends?
The BBC recently reported that schools in England are having to spend £1.3 billion per year on supply teachers because of chronic shortages. The average school spends a little under £60,000 a year on supply agencies, which of course is a high cost to be factored into already tight budgets.
Where does the funding for schools come from, and is it apportioned equally?
Well, the short answer is that, for the most part, funding comes from the government. And no – funding is not equal across the country. In fact, last year the Telegraph reported that there is a serious discrepancy in the amount of funding that schools receive across the country.
The Association of School and College Leaders carried out an analysis, and found that the ten best funded areas of the country received grants of £6,297 per pupil in 2015-2016.
However, in the ten most poorly funded areas, grants were only £4,208 per pupil. Ultimately, it’s a ‘post-code lottery’ (according to the Association of School and College Leaders), meaning that it’s really a question of luck whether or not children will get to benefit from the maximum grant available.
This is concerning when you think about the fact that more funding tends to equate to higher chances of success – especially for children from poorer backgrounds.
So what about the top private schools? How do they spend their money?
Well, prestigious private schools such as Eton face some of the same spending issues that state schools do (such as staff costs), as well as some that are unique to them (such as the cost of boarding children and safeguarding boarders’ welfare).
In 2014, the Guardian reported on this, explaining how private schools spend their money. Here is an excerpt for Eton’s accounts in the year to 31st August 2014:
Total income: £62m (£56m – 2013)
Expenditure: £59m (£55m)
Gross school fees: £44m (£42m)
Fee remission: £5.8m (£5.2m)
Fee reductions: 21% of pupils (20%)
Number of pupils: 1,300+ (aged 13-18)
Overall, it’s clear to see that whether pupils are attending state schools, private schools, academies or grammars, educating children is an expensive business.
By Patrick Vernon.