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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Why isn't Labour putting forward Corbynite candidates?

Despite his successes as a candidate, the organisational victories have gone the way of Corbyn's opponents. 

The contest changes, but the result remains the same: Jeremy Corbyn’s preferred candidate defeated in a parliamentary selection. Afzhal Khan is Labour’s candidate in the Manchester Gorton by-election and the overwhelming favourite to be the seat’s next MP.

Although Khan, an MEP, was one of  the minority of Labour’s European MPs to dissent from a letter from the European parliamentary Labour party calling for Jeremy Corbyn to go in the summer of 2016, he backed Andy Burnham and Tom Watson in 2015, and it is widely believed, fairly or unfairly, that Khan had, as one local activist put it, “the brains to know which way the wind was blowing” rather than being a pukka Corbynite.

For the leader’s office, it was a double defeat;  their preferred candidate, Sam Wheeler, was kept off the longlist, when the party’s Corbynsceptics allied with the party’s BAME leadership to draw up an all ethnic minority shortlist, and Yasmine Dar, their back-up option, was narrowly defeated by Khan among members in Manchester Gorton.

But even when the leadership has got its preferred candidate to the contest, they have been defeated. That even happened in Copeland, where the shortlist was drawn up by Corbynites and designed to advantage Rachel Holliday, the leader’s office preferred candidate.

Why does the Labour left keep losing? Supporters combination of bad luck and bad decisions for the defeat.

In Oldham West, where Michael Meacher, a committed supporter of Jeremy Corbyn’s, was succeeded by Jim McMahon, who voted for Liz Kendall, McMahon was seen to be so far ahead that they had no credible chance of stopping him. Rosena Allin-Khan was a near-perfect candidate to hold the seat of Tooting: a doctor at the local hospital, the seat’s largest employer, with links to both the Polish and Pakistani communities that make up the seat’s biggest minority blocs.  Gillian Troughton, who won the Copeland selection, is a respected local councillor.

But the leadership has also made bad decisions, some claim.  The failure to get a candidate in Manchester Gorton was particularly egregious, as one trade unionist puts it: “We all knew that Gerald was not going to make it [until 2020], they had a local boy with good connections to the trade unions, that contest should have been theirs for the taking”. Instead, they lost control of the selection panel because Jeremy Corbyn missed an NEC meeting – the NEC is hung at present as the Corbynsceptics sacrificed their majority of one to retain the chair – and with it their best chance of taking the seat.

Others close to the leadership point out that for the first year of Corbyn’s leadership, the leader’s office was more preoccupied with the struggle for survival than it was with getting more of its people in. Decisions in by-elections were taken on the hop and often in a way that led to problems later down the line. It made sense to keep Mo Azam, from the party’s left, off the shortlist in Oldham West when Labour MPs were worried for their own seats and about the Ukip effect if Labour selected a minority candidate. But that enraged the party’s minority politicians and led directly to the all-ethnic-minority shortlist in Manchester Gorton.

They also point out that the party's councillor base, from where many candidates are drawn, is still largely Corbynsceptic, though they hope that this will change in the next round of local government selections. (Councillors must go through a reselection process at every election.)

But the biggest shift has very little to do with the Labour leadership. The big victories for the Labour left in internal battles under Ed Miliband were the result of Unite and the GMB working together. Now they are, for various reasons, at odds and the GMB has proven significantly better at working shortlists and campaigning for its members to become MPs.  That helps Corbynsceptics. “The reason why so many of the unions supported Jeremy the first time,” one senior Corbynite argues, “Is they wanted to move the Labour party a little bit to the left. They didn’t want a socialist transformation of the Labour party. And actually if you look at the people getting selected they are not Corbynites, but they are not Blairites either, and that’s what the unions wanted.”

Regardless of why, it means that, two years into Corbyn’s leadership, the Labour left finds itself smaller in parliament than it was at the beginning.  

Stephen Bush is special correspondent at the New Statesman. His daily briefing, Morning Call, provides a quick and essential guide to British politics.