The impact of independent schools on the UK economy
Independent schools support £13.7 billion of UK GDP annually, associated with over 300,000 jobs and £4.1 billion of yearly tax revenues. They help the exchequer further by providing an alternative to state-funded education, and boost the economy's long-term productive potential by improving educational outcomes.
In total, around 620,000 school pupils - some six percent of the national total - attend independent as opposed to state schools in the UK. Taking into account associated 'indirect' (supply chain) and 'induced' (wage-funded spending) impacts, these schools' activities support £13.7 billion of GDP, 300,000 jobs, and £4.1 billion of taxation, via their impact on demand. The also save the UK taxpayer £3.5 billion per annum, as 530,000 of these pupils would otherwise be eligible for a state-funded school place. The schools also make a positive contribution to the economy's supply-side.
As the sector's educational outcomes are above-average, we estimate that they could boost the UK's long-term growth rate by around 0.07% per annum, taking into account OECD research. As this growth shortfall is compounded year-on-year, the impact on annual GDP could be quite marked after several decades.
Our economic consulting team are world leaders in quantitative economic analysis, working with clients around the globe and across sectors to build models, forecast markets and evaluate interventions using state-of-the art techniques. Lead consultants on this project were: