These figures include both public and private education spending, apart from Italy, which only includes public education spending for primary and secondary levels. Please support our work and help us to improve public debate and government policy by becoming a member. Making the adjustment for national average income levels does not have much effect on the ranking of tertiary education spending per head – the US spends so much more on this that, even after adjusting for its higher income, it still spends 22% more than the UK per student. International comparisons of education spending. ... shows, the level of UK education spending has also risen significantly in real terms over time. Relative spending per head may be driven both by the size of the economy (a country with higher income per capita can afford to spend more per pupil) and by the relative prioritisation of education. For example, our estimates of resources per student have gone up from around £6,000 per student in 1990 to about £8,000 per student. Spending on primary and secondary education, for example, is a function of the number of school-age children. Public spending on education then began to stagnate in the 1970s, at the same time as the number of school children began to decline. Long-Run Comparisons of Spending per Pupil across Different Stages of Education, FE and sixth forms to suffer from 30 years without additional funding. These questions are a vital component of the education policy debate and we seek to answer them in this report. This rationalisation is long overdue but it is happening at a time when funding is tighter than at any time over the last 30 years. In 2010, the government announced a nominal freeze of per-pupil funding, combined with a new ‘pupil premium’ targeted at disadvantaged pupils, as well as a reform to the school funding formula, which would simplify the method of allocating funds between schools (see this briefing note for more information). [2] The underlying figures are in US dollars, adjusted for purchasing power parity differences. Education spending as a share of national income (%), 1953–54 to 2014–15 [Download the data]. Figure 1.1. How is spending spread across different stages of education and how has this shifted over time? Note: ‘Other’ category includes subsidiary services to education, research and development in education, and education not definable by level (equivalent to training). Education spending is the second-largest element of public service spending in the UK behind health, representing about 4.5% of national income in 2015–16. Previous editions of PESA. Growth was particularly fast from the late 1990s through to the late 2000s, with real-terms growth averaging about 5% per year between 1998–99 and 2010–11. Table 1 shows how the UK’s education spending in 2010 compared with that of four other major economies. Office for National Statistics, United Kingdom National Accounts, The Blue Book 1997. Figure 1b. [2] They show that, as well as spending a higher proportion of its national income on education, the US spends more per pupil at all stages of education than any other country shown. By contrast, spending on higher education depends not only on the student-age population but also on how large a proportion of that population chooses to go to college or university and on what fraction of this service is publicly funded. The number of pupils in England rose from 6.8 million in 1990–91 to 7.5 million in 1998–99, but spending on education as a proportion of national income fell by 0.2 percentage points over the same period.[1]. Education spending in real terms (£ billion, 2015–16 prices), 1953–54 to 2014–15 [Download the data]. Please note: This report was corrected in August 2018 and some of the numbers relating to higher education spending have changed (all other numbers remain completely unaltered). Table 1. education spending. This presentation was given by Luke Sibieta and Chris Belfield at the event "Education spending across the life cycle in England" on 27 February 2017. The share of spending devoted to education has risen over time; it almost doubled between 1953–54 and 1973–74, from 6.9% to 12.5% of total spending. Source: Historical series from Department for Education and Skills, Statistics of Education: Class Sizes and Pupil Teacher Ratios in England, February 2003. Relative to the UK, the US spends 20% more per pupil at primary and secondary school level, and just over 60% more on tertiary education per head. Note: The minimum school-leaving age was increased from 14 to 15 in April 1947 and from 15 to 16 in September 1972. Source: OECD, Education at a Glance 2013: OECD Indicators. How does the government spend your money? Italy’s figures on primary and secondary education include only spending on public institutions. The rise in the school-age population from the 1950s until the mid 1970s accompanied increases in education spending. Growth was particularly fast from the late 1990s through to the late 2000s, with real- Please support our work and help us to improve public debate and government policy by becoming a member. We are grateful to the Office for Students for helping us correct this error. At 6.5%, the UK spent a higher share of national income on education than Italy, Japan and France, and a lower share than the US at 7.3%. We had incorrectly assumed that the introduction of tuition fees in 1998 represented additional resources for teaching. However, the composition of education spending changes over time. Projections are for full-time equivalents in state-funded schools; projections for secondary school pupils include only those aged 15 and under. Whilst important, trends in this headline measure of education spending beg further key questions. Previous editions of PESA. These series of day-to-day spending per pupil allow us to understand how policy decisions have affected the resources available to students in different stages of education over the long run. Full details below. Our second annual report on education spending in England provides measures of spending per student in the early years, schools, further education and higher education back to the early 1990s. Public spending on education has risen over time and over the past 40 years has consistently been around 4–6% of national income. In order to adjust for relative income and show an indicator of public spending priorities, the final three columns of Table 1 show spending per head per unit of average income, or spending per pupil taking into account different income levels. Figures 1a and 1b show the alternating periods of flat and rising real education spending over the second half of the twentieth century, as well as education spending rising as a share of national income over time.
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