Those who go to private school will earn an average of £472,143 more by the age of 65. Photo: Getty
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£472,143: the value of a private education

Those who go to private school will earn an average of £472,143 more than state-educated pupils by the age of 65.

Private education: what a con. A new report from the Social Market Foundation finds that private education is worth an average of £57,653 to a person’s income later in life. Given that average annual fee for private day schools is £12,582, the temptation is to ask: why bother going private?

But hang on. The figure of £57,653 only takes into account the difference in earnings between private and state school pupils (discounting family background and social circumstances) between the ages of 26 and 42. For two people working to the age of 65, the benefit of private education would be worth £140,529 at a conservative estimate; and that’s before other benefits – higher pension plans; and the benefits of better paying jobs that they can they pass onto their children – are taken into account. That remains a good rate of return on the £85,000 it costs to send a child to an independent day school for seven years.

Most of the attention on the SMF’s report has focused on the value, or otherwise, of private education. But a more significant finding has been ignored.

In total, between the ages of 26 and 42, someone who attended an independent school will earn £193,700 more than someone who attended a state school. Strip away the benefits attributed to private education, and that still amounts to £136,047. Assume that the average benefits will continue to 65 (which amounts to a conservative estimate, as pay differentials increase later in life) and there is a £331,614 “dividend” for those attending private school that is attributable to family background and social circumstance.

Add it to the direct benefits of going to independent school, and those who go to private school will earn an average of £472,143 more than the state educated by the age of 65. This is what the New Statesman called the 7 per cent problem earlier this year.

Blaming it all on private schools is expedient, of course. But almost two-thirds of the earnings gap is down to wider advantages not related to what school you went to – wider social capital that is far more entrenched. The relationship between what parents and children earn is higher in Britain than anywhere else in the OECD. The reasons for this lack of social mobility go far deeper than where you went to school.

Tim Wigmore is a contributing writer to the New Statesman and the author of Second XI: Cricket In Its Outposts.

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New Digital Editor: Serena Kutchinsky

The New Statesman appoints Serena Kutchinsky as Digital Editor.

Serena Kutchinsky is to join the New Statesman as digital editor in September. She will lead the expansion of the New Statesman across a variety of digital platforms.

Serena has over a decade of experience working in digital media and is currently the digital editor of Newsweek Europe. Since she joined the title, traffic to the website has increased by almost 250 per cent. Previously, Serena was the digital editor of Prospect magazine and also the assistant digital editor of the Sunday Times - part of the team which launched the Sunday Times website and tablet editions.

Jason Cowley, New Statesman editor, said: “Serena joins us at a great time for the New Statesman, and, building on the excellent work of recent years, she has just the skills and experience we need to help lead the next stage of our expansion as a print-digital hybrid.”

Serena Kutchinsky said: “I am delighted to be joining the New Statesman team and to have the opportunity to drive forward its digital strategy. The website is already established as the home of free-thinking journalism online in the UK and I look forward to leading our expansion and growing the global readership of this historic title.

In June, the New Statesman website recorded record traffic figures when more than four million unique users read more than 27 million pages. The circulation of the weekly magazine is growing steadily and now stands at 33,400, the highest it has been since the early 1980s.