The disadvantage gap at GCSE between children eligible for free schools meals and other children has barely changed over the past 20 years, despite decades of policy attention.
[2/12]
There is a direct link between family household income and children’s educational attainment.
Only 25% of children from the poorest tenth of households got five good GCSEs including English and maths, compared to 71% of pupils from the richest tenth.
[3/12]
Differences in educational attainment translate into large differences in qualifications in adulthood.
Over 70% of private school students have graduated university by age 26, compared to just 17% of state school students from the most deprived fifth of families.
[4/12]
Those with lower levels of education see very slow earnings growth over their working lives.
The median 40-year-old graduate earns twice as much as someone qualified to GCSE level or below.
[5/12]
High earnings overwhelmingly go to those with the highest qualifications.
For those with at most GCSEs, the most common annual salary is the same for 25-30-year-olds as it is for 45-50-year-olds.
[6/12]
Education spending in England has become less progressive over time.
In 2010, primary school pupils in the most disadvantaged fifth of schools got around 35% more funding than the most affluent fifth of schools.
By 2019, this premium had fallen to just 23%.
[7/12]
The gap between private school and state school spending per pupil has more than doubled in the past decade.
By 2019–20, resources per pupil in the private sector were twice as high as in the state sector.
[8/12]
There is a lack of second chances in the UK for those who do not achieve well at age 16.
The removal of public funding from low-level classroom-based courses has made it more difficult for adults with few existing qualifications to access educational opportunities.
[9/12]
Unlike in many other countries, very few UK adults progress to advanced vocational qualifications.
Adults in the UK are almost half as likely as German adults, and a quarter as likely as American adults, to start an advanced vocational qualification.
[10/12]
Spending on adult education in 2019–20 was nearly two-thirds lower in real terms than in 2003–04, and about 50% lower than in 2009–10.
These large funding cuts in recent years have hampered access to adult education.
[11/12]
“If the government is to meet its mission to have 90% of pupils attaining the expected level at the end of primary school, it needs to prioritise the education system and especially the disadvantaged pupils within it.”
Watch back our event with @PJTheEconomist and @ckfarquharson presenting the findings from this chapter and commentaries from Simon Field and Diane Reay>
NEW: Sure Start generated widespread, long-lasting benefits for children in education, health, absences, and SEND.
Every £1 of up-front spending on Sure Start could generate around £2 in total benefits over the long run.
THREAD on our new @NuffieldFound-funded report:
[1/11]
@NuffieldFound This new report summarises our 10-year body of work on the effects of Sure Start, a network of ‘one-stop shops’ integrating services for families with children under 5. And the report provides a detailed cost-benefit analysis cutting across a range of child outcomes.
[2/11]
@NuffieldFound We find that access to a Sure Start centre from birth significantly improved the children’s educational attainment, with benefits lasting at least until GCSEs (age 16).
NEW: Reforms are needed to help people make good use of their pension wealth throughout their retirement and avoid exhausting their wealth too early.
New Pensions Review reports funded by @finan_fairness look at the rising numbers making complex, risky decisions in retirement:🧵
@finan_fairness People are increasingly saving for retirement in defined contribution (DC) pensions, which do not guarantee a regular income.
44% of those aged 55-64 had some DC pension wealth in 2006-07, rising to 59% in 2021-23. The average size of DC wealth at retirement is also growing.
@finan_fairness Median DC pension wealth at retirement (among those with some) is set to rise from £75k for those born in 1960-64 to £130k for those born in 1975-79.
Since 'pension freedoms' were introduced in 2015, over-55s have been able to access DC pensions any way they choose.
Established 25 years ago, Sure Start operated as a network of centres integrating services for families with young children under one roof, before being wound back since its peak in 2010.
Previous IFS work found it improved young people’s health and educational outcomes.
[2/9]
Access to a Sure Start centre during the early years reduced the probability of receiving a criminal conviction by 13%, and a custodial sentence in adolescence by 20%.
It did not have a major effect on less serious criminal outcomes: there was no effect on police cautions. [3/9]
NEW: Public sector pay has declined relative to the wider pay distribution, especially for higher earners.
@JCribbEcon @awmckendrick @m_dominguezp’s Green Budget chapter examines the pressures on public sector pay and the implications for recruitment & retention:
[THREAD: 1/11]
The new government has accepted in full the independent 2024 Pay Review Body recommendations, with average pay rises of 5.5%.
This is ahead of inflation, and close to private sector pay growth.
[2/11]
Pay in the public sector has evolved less favorably than in the private sector in recent years.
While private sector pay is 6% higher than it was in early 2019 in real terms, public sector pay is up by only 1%.
NEW: Health-related benefit claims have risen substantially across England and Wales, with increases in mental health claims across all ages.
There is little evidence of similar trends in other countries.
THREAD on our new report on health-related benefits:
[1/7]
There has been rapid growth in the health-related benefits caseload since 2019. 1 in 10 working-age people in England & Wales now claim a health-related benefit.
@OBR_UK projects further growth of 19% for incapacity benefits & 41% for disability benefits from 2023 to 2028. [2/7]
A higher caseload means higher spending. The UK now spends 1.7% of GDP on working-age health-related benefits.
This is up from 1.3% in 2019 but is still close to the OECD’s 2019 average of 1.6%. However, @OBR_UK forecasts that spending could rise to 2.1% of GDP by 2028.
NEW: Rising mortgage interest rates pushed 320,000 into poverty by December 2023, but only two-thirds of that will be captured by official statistics.
THREAD on Sam Ray-Chaudhuri, @TomWatersEcon & Tom Wernham’s @JRF_uk-funded living standards, poverty & inequality report:
[1/7]
Mortgage interest rates have risen rapidly since June 2022.
These increases have not impacted all mortgagors, but those whose fixed period ended recently have faced much higher interest rates, which can increase payments by thousands of pounds per year.
[2/7]
Higher mortgage interest rates have caused poverty among mortgagors to rise from 7.9% to 9.3%, equivalent to 320,000 more people.
Official statistics use average interest rates to calculate mortgage payments, and so will only capture two-thirds (230,000) of this rise.