Ending school segregation is the key to social mobility

Half-baked reforms offering only an illusion of choice risk compounding the problem of wealthy paren

This week, the Deputy Prime Minister unveiled indicators the government will be using to measure the extent of social mobility in the UK – in other words, the degree to which labour market success is determined by the socio-economic status of your parents.

In today’s economy, now more than ever, high human capital is critical for future individual prosperity and health. So educational attainment is critical for social mobility. Just look at the premium from attending university: on average, £108,000 over a lifetime.

Parental background, particularly in countries such as the United Kingdom with high income inequality, is a key determinant of social and economic outcomes.  But, despair not, because our genes and our parents don’t have to determine our destiny: high-quality educational institutions - schools and especially nurseries - can mitigate the disadvantages associated with growing up poor.

Good schools have good teachers. A wealth of US literature shows that children who have effective teachers reap significant long-term rewards: in one study, pupils learning from an excellent teacher for just one year gained on average a quarter of a million dollars more in their lifetime earnings than similar students who didn’t.  For the British Government, fretting about the country’s decline in the international league tables for students’ reading, the key task is to drive up the quality of teaching.

We have financial incentives for high-quality graduates to join the profession, with discounts on the repayment of their tuition fee loans. And the House of Commons Education Select Committee has recently proposed performance-related pay for teachers. But the Secretary of State’s main mission is supply-side liberalisation to encourage more choice - through more free schools – and to increase competition – through greater autonomy for schools from local authorities and Whitehall to allow freedom to innovate.

Promoting choice and competition is the right direction of travel, but there are limits to how effective the current strategy will be. Many parents and community groups simply do not have the capital, especially when government won’t fork out, to set up new schools to facilitate greater choice. And government, wrongly, will not allow for-profit providers to set up schools. As Nick Clegg’s special adviser commented in the FT last year, “If nothing changes a few good schools will open, but not the hundreds needed for competition to have an impact on standards”.

In fact, a half-baked choice strategy can have damaging implications for the most disadvantaged pupils. When choice is limited, there is no competitive pressure on poor performing schools, which can fill their rolls regardless. Meanwhile parents with more resources monopolise the best schools, effectively buying a place by having the funds to move into the catchment area. This dynamic is confirmed by research from the Centre for the Economics of Education at the LSE, which showed that the modest expansion of choice for parents in some parts of England led to children from the same socio-economic background being more likely to be educated together.

Increased segregation then compounds the social mobility problem. Work by OECD in 2009 demonstrated that there is a significant advantage for poorer students to be educated in socially mixed schools, and this has no negative effect on overall performance. Without mixed school populations, the attainment gap between rich and poor children just widens.

So, how can we use parental choice without it resulting in damaging social segregation? A school-specific lottery for admissions would help. Here, parents could be free to apply to a school of their choice. Where schools are over-subscribed, places would be allocated in full or in part by a lottery, rather than by catchment areas, giving a greater chance to ambitious poorer parents who didn’t have the funds to move into the local area. Why not insist that schools do this if they want pupil premium funding or academy status?

Another mechanism would be to incentivise more affluent parents to hedge their bets on sending their children to a school which traditionally doesn’t do as well in the league tables. In the late 1990s, Texas introduced a rule where pupils who were in the top 10% for exam results in every school were automatically guaranteed a place at a state university. Recent research has shown that the policy led to greater social diversity in schools.  It would be possible to apply this scheme in the UK without undermining the independence of universities, by creating a pool of extra places universities could bid for which includes the top 10% of students from a select number of schools.

Parental choice is an important tool for driving up quality in schools. But we need to be realistic about its limits when public money is short. The challenge is to use choice to improve performance while avoiding the unintended consequences of entrenching disadvantage through social polarisation. Lotteries and an adaption of the Texas 10% plan are ways to square this circle.

Ryan Shorthouse is a researcher at the Social Market Foundation

Ryan Shorthouse is the Director of Bright Blue, a think tank for liberal conservativism 

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How a small tax rise exposed the SNP's anti-austerity talk for just that

The SNP refuse to use their extra powers to lessen austerity, says Kezia Dugdale.

"We will demand an alternative to slash and burn austerity."

With those few words, Nicola Sturgeon sought to reassure the people of England, Wales and Northern Ireland last year that the SNP were a party opposed to public spending cuts. We all remember the general election TV debates, where the First Minister built her celebrity as the leader of the anti-austerity cause.

Last week, though, she was found out. When faced with the choice between using the powers of the Scottish Parliament to invest in the future or imposing cuts to our schools, Nicola Sturgeon chose cuts. Incredible as it sounds the SNP stood shoulder to shoulder with the Tories to vote for hundreds of millions of pounds worth of cuts to schools and other vital public services, rather than asking people to pay a little bit more to invest. That's not the choice of an anti-austerity pin-up. It's a sell-out.

People living outside of Scotland may not be fully aware of the significant shift that has taken place in politics north of the border in the last week. The days of grievance and blaming someone else for decisions made in Scotland appear to be coming to an end.

The SNP's budget is currently making its way through the Scottish Parliament. It will impose hundreds of millions of pounds of cuts to local public services - including our schools. We don't know what cuts the SNP are planning for future years because they are only presenting a one year budget to get them through the election, but we know from the experts that the biggest cuts are likely to come in 2017/18 and 2018/19. For unprotected budgets like education that could mean cuts of 16 per cent.

It doesn't have to be this way, though. The Scottish Parliament has the power to stop these cuts, if only we have the political will to act. Last week I did just that.

I set out a plan, using the new powers we have today, to set a Scottish rate of income tax 1p higher than that set by George Osborne. This would raise an extra half a billion pounds, giving us the chance to stop the cuts to education and other services. Labour would protect education funding in real terms over the next five years in Scotland. Faced with the choice of asking people to pay a little bit more to invest or carrying on with the SNP's cuts, the choice was pretty simple for me - I won't support cuts to our nation’s future prosperity.

Being told by commentators across the political spectrum that my plan is bold should normally set alarm bells ringing. Bold is usually code for saying something unpopular. In reality, it's pretty simple - how can I say I am against cuts but refuse to use the powers we have to stop them?

Experts - including Professors David Bell and David Eiser of the University of Stirling; the Resolution Foundation; and IPPR Scotland - have said our plan is fair because the wealthiest few would pay the most. Trade unions have backed our proposal, because they recognise the damage hundreds of millions of pounds of cuts will do to our schools and the jobs it will cost.

Council leaders have said our plan to pay £100 cashback to low income taxpayers - including pensioners - to ensure they benefit from this plan is workable.

The silliest of all the SNP's objections is that they won't back our plan because the poorest shouldn't have to pay the price of Tory austerity. The idea that imposing hundreds of millions of pounds of spending cuts on our schools and public services won't make the poorest pay is risible. It's not just the poorest who will lose out from cuts to education. Every single family and business in Scotland would benefit from having a world class education system that gives our young the skills they need to make their way in the world.

The next time we hear Nicola Sturgeon talk up her anti-austerity credentials, people should remember how she did nothing when she had the chance to end austerity. Until now it may have been acceptable to say you are opposed to spending cuts but doing nothing to stop them. Those days are rapidly coming to a close. It makes for the most important, and most interesting, election we’ve had in Scotland.

Kezia Dugdale is leader of Scottish Labour.