Schools should make profit says thinktank

Released 22/02/2012

A report released by the Policy Exchange states that schools should be run as profitable organisations in a similar way to John Lewis

Thinktank Policy Exchange has released a report proposing that schools should be run as profitable organisations, with teachers buying shares

The report entitled Social Enterprise Schools outlines the following challenges that schools are facing at the moment:

-The shortage of good school places is particularly acute in areas such as London where the number of primary age pupils is rising fast.

-While there are surplus places overall in the system at present, half are in the worst-performing quarter of schools. Last year in England 17% of pupils did not get into their first preference school and 3.5% did not get any of their preferred schools. In London 34% did not get their first preference and 6% got no offer from any preferred school.

-The record deficit will constrain government spending for the foreseeable future.

The main principle behind the idea is to get teachers to take a stake in their school, allowing it to run as a John Lewis style enterprise and make profit. Policy Exchange believes that their model would allow schools to tap into the expertise and variety of services on offer within the private sector and give schools the additional capacity to create good new school places to counteract shortages.

Although this may sound rather similar to the academy school model, the report insists there is a difference, as there is a limit to how much autonomy a school has using the academy/free school system: "While on paper academies and free schools have freedoms to vary from national pay and staffing policies, their ability to fully use these freedoms in practice may be limited until they reach critical mass. Union opposition to variation from national pay bargaining is entrenched, and there may be ‘safety in numbers'. The expansion of independently-run schools might be quicker if private sector involvement was allowed."

A spokesman from the DfE said: "There are no plans to allow organisations to run schools for profit. The success of many academies in raising standards is built on philanthropic organisations using their expertise to turn around underperforming schools."

"We're more than doubling targeted investment at areas facing the greatest pressure on school places, to over £4billion in the next four years. Parents want to send their child to a good local school - that's we are building free schools, letting the most popular schools expand to meet demand from parents and driving up standards right across the system."

The National Association of Head Teachers (NAHT) has hit back at the proposals saying they have "grave concerns about the initiative" and claiming it will "jeopardise fair access to education for all and compromise the essential impartiality of schools."

Russell Hobby, general secretary of the NAHT said: "The idea of teachers making a profit from their schools is even more unpleasant than the idea of profit-making schools in general. It will compromise their integrity and impartiality and do huge damage to their relationship with parents if they are suspected of making decisions based on what's in it for them rather than what's best for the child.

"Often, teachers need to make difficult and unpopular choices, such as excluding a student. How will parents react if they suspect teachers of benefiting from it? It only works if they are seen to be above self-interest."

Hobby added: "Private enterprise works well where the pure and unrestrained profit motive leads to socially beneficial outcomes. This is not the situation in education. You can set up regulation after regulation to try to counter these distortions and deficiencies but you are left with the conclusion you'd be better off without the profit motive in the first place."

To view the report click here.

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Comments

Nazmiye

2012-03-18 07:33:47

Heidi,This is a truly beautiful and inrsipational piece. I can relate whole-heartedly to your message, both as a parent and a teacher. Yes .our children are so precious. I often watch my daughter go off to school with her heavy back pack, looking like she's carrying the cares of the world on her shoulders and wonder . How does she fit in? Do her teachers like her even a little? Will she feel successful, supported and encouraged by her teachers and peers?Then, as a teacher, yes . I try to create an environment that will nurture every child who comes into my room. There are times, however, when I feel I am inadequate for the huge task at hand. Sadly .no ..I don't always reach my students. As hard as I try, I cannot provide for them in a way a parent's interest in their well being, their education can do. There are many who experience so many obstacles to being happy and successful that come into our rooms .You have put an enormous challenge out to us all .parents and teachers alike. You have given us all something to think about in a unique and poignant way. Oh, if only all parents could express the same level of passion in their children's education as you have for your children's education. But while many parents are just trying to keep their lives afloat, at least they have you to be their spokesperson to speak up for their children. They are, after all, the whole reason behind what we do!Thank you, Heidi, for creating this and sharing it!

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