Everyone has aspirations. We should focus on helping people achieve them

The idea that there is an "aspiration gap" isn't true: and that myth helps people ignore the real problems with our education system, writes Loic Menzies.

It can be rather convenient to put low social mobility down to poor people’s low aspirations but in reality, disadvantaged families start off with ‘high’ aspirations which they struggle to translate into reality.

The media and politicians love telling us that if poor people stay poor, it’s because they don’t want to succeed enough - they just need to be a bit more ambitious. Writing in the Daily Mail, Michael Hanlon tells us that “poverty of aspirations cannot be cured with more welfare handouts.” Janet Daley in the Telegraph explains that “poverty of aspirations is what keeps people poor”. When he was shadow secretary of state for education, Andy Burnham called for “aspiration, aspiration, aspiration” and Cameron has pledged to turn us into an “aspiration nation”.

With aspirations declared to be the problem, raising them has become a national policy priority. The 2010 Education White Paper mentions “aspiration” ten times and announces the introduction of an “aspirational national curriculum”. Meanwhile the 2011 Social Mobility Strategy goes further, managing twenty-nine references. In fact, it seems everyone’s getting involved: the strategy goes on to report that “the entire cabinet has signed up to the ‘Speakers for Schools’ program to demonstrate our commitment to raising aspirations”.

However, the 2010 Millennium Cohort Study revealed that when their children are born, 97 per cent of mothers want them to go to university - exactly the type of aspiration that politicians are referring to. The big difference between rich and poor families’ aspirations is only revealed when you ask parents how likely they think it is that their children will make it there. At this point a huge gap opens up with only 53 per cent of the poorest families thinking their child will attend higher education by the age of 14 compared to 81 per cent amongst the richest. Pupils have high aspirations too: Kintrea studied thirteen year olds in three deprived communities and found that 85 per cent of them aspired to university but only half that many expected to achieve university qualifications. So, the problem is not lack of aspirations but the difficulty of achieving them.

The revelation that aiming high is not the problem has profound implications for how we support children and young people which I explore in my new report for the Joseph Rowntree Foundation – “Educational Aspirations: how English schools can work with parents to keep them on track”. The report explores how best to kindle the glowing ember of aspiration before it goes out, rather than simply ‘being inspirational.’

Given that The Sutton Trust’s new Pupil Premium Toolkit (a guide to how schools can best spend the extra money they receive for disadvantaged pupils) shows that “aspiration raising programs” have “zero months’” impact on learning, a better focus would be what Kintrea describes as helping pupils “navigate the paths to their goals”. Parents often struggle to help their children achieve aspirations which they themselves never experienced. Schools therefore need to engage with parents to give them practical ways of doing so. Paul Shanks, head of Gaywood primary school in Kings Lynn explains that this involves constant communication and “gradually chipping away at the fear of school which comes from some parents’ bad experiences of education.” High quality careers advice at an early stage can also help children understand the implications of their educational choices so it’s a pity the government has swept away support for careers advice and removed the requirement that schools provide ‘Work Related Learning’. Although the quality of provision in the past was patchy, these decisions are unlikely to help.

Schools should treat well-intentioned visiting speakers and mentors with caution - Cabinet Ministers included. The Sutton Trust actually suggests mentors can do more harm than good since they often lack the skills to give pupils the support they need. They can also come and go in a way that is destabilising to pupils. Nonetheless, they can be useful when well trained and their support is focused on learning. Businesses therefore need to design their programs carefully and schools need to be selective.

Above all, we need to stand up to those who use the myth of low aspirations as a convenient but flawed way of explaining-away poverty. Instead, we should focus on the real issue: our terrifyingly-large educational attainment gap.

Photograph: Getty Images

Loic Menzies is Director of the education and youth "Think-and-Action Tank" LKMco. He was previously a teacher and is an ex-youth-worker as well as Associate Tutor in Canterbury Christ Church University’s Faculty of Education. You can follow him on twitter: @LKMco.

Getty
Show Hide image

Let's turn RBS into a bank for the public interest

A tarnished symbol of global finance could be remade as a network of local banks. 

The Royal Bank of Scotland has now been losing money for nine consecutive years. Today’s announcement of a further £7bn yearly loss at the publicly-owned bank is just the latest evidence that RBS is essentially unsellable. The difference this time is that the Government seems finally to have accepted that fact.

Up until now, the government had been reluctant to intervene in the running of the business, instead insisting that it will be sold back to the private sector when the time is right. But these losses come just a week after the government announced that it is abandoning plans to sell Williams & Glynn – an RBS subsidiary which has over 300 branches and £22bn of customer deposits.

After a series of expensive delays and a lack of buyer interest, the government now plans to retain Williams & Glynn within the RBS group and instead attempt to boost competition in the business lending market by granting smaller "challenger banks" access to RBS’s branch infrastructure. It also plans to provide funding to encourage small businesses to switch their accounts away from RBS.

As a major public asset, RBS should be used to help achieve wider objectives. Improving how the banking sector serves small businesses should be the top priority, and it is good to see the government start to move in this direction. But to make the most of RBS, they should be going much further.

The public stake in RBS gives us a unique opportunity to create new banking institutions that will genuinely put the interests of the UK’s small businesses first. The New Economics Foundation has proposed turning RBS into a network of local banks with a public interest mandate to serve their local area, lend to small businesses and provide universal access to banking services. If the government is serious about rebalancing the economy and meeting the needs of those who feel left behind, this is the path they should take with RBS.

Small and medium sized enterprises are the lifeblood of the UK economy, and they depend on banking services to fund investment and provide a safe place to store money. For centuries a healthy relationship between businesses and banks has been a cornerstone of UK prosperity.

However, in recent decades this relationship has broken down. Small businesses have repeatedly fallen victim to exploitative practice by the big banks, including the the mis-selling of loans and instances of deliberate asset stripping. Affected business owners have not only lost their livelihoods due to the stress of their treatment at the hands of these banks, but have also experienced family break-ups and deteriorating physical and mental health. Others have been made homeless or bankrupt.

Meanwhile, many businesses struggle to get access to the finance they need to grow and expand. Small firms have always had trouble accessing finance, but in recent decades this problem has intensified as the UK banking sector has come to be dominated by a handful of large, universal, shareholder-owned banks.

Without a focus on specific geographical areas or social objectives, these banks choose to lend to the most profitable activities, and lending to local businesses tends to be less profitable than other activities such as mortgage lending and lending to other financial institutions.

The result is that since the mid-1980s the share of lending going to non-financial businesses has been falling rapidly. Today, lending to small and medium sized businesses accounts for just 4 per cent of bank lending.

Of the relatively small amount of business lending that does occur in the UK, most is heavily concentrated in London and surrounding areas. The UK’s homogenous and highly concentrated banking sector is therefore hampering economic development, starving communities of investment and making regional imbalances worse.

The government’s plans to encourage business customers to switch away from RBS to another bank will not do much to solve this problem. With the market dominated by a small number of large shareholder-owned banks who all behave in similar ways (and who have been hit by repeated scandals), businesses do not have any real choice.

If the government were to go further and turn RBS into a network of local banks, it would be a vital first step in regenerating disenfranchised communities, rebalancing the UK’s economy and staving off any economic downturn that may be on the horizon. Evidence shows that geographically limited stakeholder banks direct a much greater proportion of their capital towards lending in the real economy. By only investing in their local area, these banks help create and retain wealth regionally rather than making existing geographic imbalances worce.

Big, deep challenges require big, deep solutions. It’s time for the government to make banking work for small businesses once again.

Laurie Macfarlane is an economist at the New Economics Foundation