Education plays a vital role is determining the productivity and living standards for future generations, as well as providing a mechanism for social mobility and equality of opportunity. As a result, how much public money is spent on education and how this money is allocated across the different stages of education is a question of crucial policy relevance and a hotly contested area of political debate. Currently, education spending is the second-largest area of public service spending in the UK, representing about 4.5% of national income in 2015–16 (slightly above the OECD average). The level of real terms spending on education has increased considerably over the last 30 years; however, due to budget cuts and large-scale reforms to the system, there are resource pressures across all areas of education in England.
In our research in this area, we set out the long-run trends of government spending on education, describe how this money is spent across different stages of education and analyze the impacts of these policies on the students who pass through the education system. We also explore the progressivity of the education system, describing how funding is distributed across students from different backgrounds.
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