The case against for-profit schools

There are no empirical grounds for handing state schools over to the private sector.

There are no empirical grounds for handing state schools over to the private sector.

In recent months we have seen a growing clamour from right-of-centre think tanks and conservative commentators for commercial providers to be able to set up and run schools for profit. The latest in a long line of think-tank reports putting the case for for-profit providers is to be published this week.

Proponents argue that commercial education providers will raise standards in our schools more rapidly and consistently than the existing mix of not-for profit academies, free schools or mainstream state schools. However, the evidence for this claim is weak.

What evidence exists is limited to a small number of cases: among developed countries only Sweden, some US states and Chile have experimented at scale with commercial providers of publicly funded schools. Among those cases, the performance of commercial providers is mixed. In some US states studies show for profits making little difference to pupil test scores compared to not for profits, while in others they do better. Analysis of the performance of free schools or their equivalents in Sweden and Chile show that not-for-profit free schools out perform for-profit free schools.

The OECD finds no evidence for the claim that private providers produce systematic improvements in school results. Rather, the OECD finds that the most important factors in raising educational standards are the quality of teaching, high levels of school autonomy coupled with robust accountability, and comprehensive strategies for narrowing attainment gaps between children from different class backgrounds.

It is sometimes alleged that only commercial education providers have an interest in expanding good schools, because they are driven by the profit motive to do so, whereas not-for-profit and state schools lack this incentive. Competition drives out weak providers and allows good ones to flourish and competition works best when private rewards are at stake.

Properly regulated competition can play a role in improving outcomes in public services. Managed competition in the NHS, of the kind pioneered by the former Labour government, has been shown to have improved productivity.

However, the evidence for the benefits of competition in education is not strong. The OECD's analysis of its 2009 PISA results is clear on this point, stating that 'countries that create a more competitive environment in which many schools compete for students do not systematically produce better results.'

A recent LSE study is often cited to prove that competition in education works. It found that the introduction of sponsored of academies in England by the last Labour government was accompanied by improvements in neighbouring schools. This was an important study, which showed Labour's sponsored academies improving at a faster rate than comparable schools. And contrary to recent claims, this held true even when GCSE equivalents were excluded from the data. The study offers good grounds for believing that allowing new providers into the school system can increase innovation and improve outcomes.

What the study does not show is that competition per se generated these improvements. It is just as likely that better results in schools near academies rose because of wider school improvement programme affecting all schools during that period.

There are good reasons why we should want a more diverse range of providers in our school system. They can bring new expertise, energy and innovation into state education. But they do not need either a competitive school environment to raise standards nor a profit motive to expand. England has a vibrant not for profit independent sector and there is no shortage of not for profit organisations willing to run academies and free schools. Many are expanding very successfully. There is therefore no strong case for introducing commercial providers on either innovation or competition grounds.

None of this is to say that there should be no role for the private sector in our schools system. Private companies already provide school support and careers services. In England we have seen the enormous growth in the use of private home tutors. A key challenge for policy makers is to ensure that this inevitable rise in parental spending on children's education does not lead to wider inequalities in educational attainment. For example, this could include allowing pupil premium funding to be used to pay for more one to one tuition for disadvantaged pupils provided by the private sector.

In all advanced economies, education systems are undergoing change and renewal, often at a rapid pace. Standing against reform is reactionary, not progressive. But we need the right reform. Schools themselves should not be run for profit. They are civic institutions at the heart of the public realm. Parents want to be able to trust that they always put the interests of their children first. There are no empirical, theoretical or normative grounds for handing them over to the private sector.

Rick Muir is Associate Director at IPPR

Rick Muir is director of the Police Foundation

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Who is the EU's chief Brexit negotiator Michel Barnier?

The former French foreign minister has shown signs that he will play hardball in negotiations.

The European Commission’s chief Brexit negotiator today set an October 2018 deadline for the terms of Britain’s divorce from the European Union to be agreed. Michel Barnier gave his first press conference since being appointed to head up what will be tough talks between the EU and UK.

Speaking in Brussels, he warned that UK-EU relations had entered “uncharted waters”. He used the conference to effectively shorten the time period for negotiations under Article 50 of the Lisbon Treaty, the legal process to take Britain out of the EU. The article sets out a two year period for a country to leave the bloc.

But Barnier, 65, warned that the period of actual negotiations would be shorter than two years and there would be less than 18 months to agree Brexit.  If the terms were set in October 2018, there would be five months for the European Parliament, European Council and UK Parliament to approve the deal before a March 2019 Brexit.

But who is the urbane Frenchman who was handpicked by Commission President Jean-Claude Juncker to steer the talks?

A centre-right career politician, Barnier is a member of the pan-EU European People’s Party, like Juncker and German Chancellor Angela Merkel.

A committed European and architect of closer eurozone banking integration, Barnier rose to prominence after being elected aged just 27 to the French National Assembly.  He is notorious in Brussels for his repeated references to the 1992 Winter Olympics he organised in Albertville with triple Olympic ski champion Jean-Claude Killy.

He first joined the French cabinet in 1993 as minister of the environment. In 1995, Jacques Chirac made him Secretary of State for European Affairs, teeing up a long and close relationship with Brussels.

Barnier has twice served as France’s European Commissioner, under the administrations of Romano Prodi and José Manuel BarrosoMost recently he was serving as an unpaid special advisor on European Defence Policy to Juncker until the former prime minister of Luxembourg made him Brexit boss.“I wanted an experienced politician for this difficult job,” Juncker said at the time of Barnier, who has supported moves towards an EU army.

 

Barnier and the Brits

Barnier’s appointment was controversial. Under Barroso, he was Internal Market commissioner. Responsible for financial services legislation at the height of the crisis, he clashed with the City of London.

During this period he was memorably described as a man who, in a hall of mirrors, would stop and check his reflection in every one.

Although his battles with London’s bankers were often exaggerated, the choice of Barnier was described as an “act of war” by some British journalists and was greeted with undisguised glee by Brussels europhiles.

Barnier moved to calm those fears today. At the press conference, he said, “I was 20 years old, a very long time ago, when I voted for the first time and it was in the French referendum on the accession of the UK to the EU.

“That time I campaigned for a yes vote. And I still think today that I made right choice.”

But Barnier, seen by some as aloof and arrogant, also showed a mischievous side.  It was reported during Theresa May’s first visit to Brussels as prime minister that he was demanding that all the Brexit talks be conducted in French.

While Barnier does speak English, he is far more comfortable talking in his native French. But the story, since denied, was seen as a snub to the notoriously monolingual Brits.

The long lens photo of a British Brexit strategy note that warned the EU team was “very French” may also have been on his mind as he took the podium in Brussels today.

Barnier asked, “In French or in English?” to laughter from the press.

He switched between English and French in his opening remarks but only answered questions in French, using translation to ensure he understood the questions.

Since his appointment Barnier has posted a series of tweets which could be seen as poking fun at Brexit. On a tour of Croatia to discuss the negotiations, he posed outside Zagreb’s Museum of Broken Relationships asking, “Guess where we are today?”

 

 

He also tweeted a picture of himself drinking prosecco after Boris Johnson sparked ridicule by telling an Italian economics minister his country would have to offer the UK tariff-free trade to sell the drink in Britain.

But Barnier can also be tough. He forced through laws to regulate every financial sector, 40 pieces of legislation in four years, when he was internal market commissioner, in the face of sustained opposition from industry and some governments.

He warned today, "Being a member of the EU comes with rights and benefits. Third countries [the UK] can never have the same rights and benefits since they are not subject to same obligations.”

On the possibility of Britain curbing free movement of EU citizens and keeping access to the single market, he was unequivocal.

“The single market and four freedoms are indivisible. Cherry-picking is not an option,” he said.

He stressed that his priority in the Brexit negotiations would be the interests of the remaining 27 member states of the European Union, not Britain.

“Unity is the strength of the EU and President Juncker and I are determined to preserve the unity and interest of the EU-27 in the Brexit negotiations.”

In a thinly veiled swipe at the British, again greeted with laughter in the press room, he told reporters, “It is much better to show solidarity than stand alone. I repeat, it is much better to show solidarity than stand alone”.

Referring to the iconic British poster that urged Brits to "Keep Calm and Carry On” during World War Two, he today told reporters, “We are ready. Keep calm and negotiate.”

But Barnier’s calm in the face of the unprecedented challenge to the EU posed by Brexit masks a cold determination to defend the European project at any cost.

James Crisp is the news editor at EurActiv, an online EU news service.