By David Williams
10 September 2009
The Organisation for Economic Co-operation and Development has challenged governments to invest in education to ensure an effective recovery from the global recession.
The recommendations were welcomed by teachers, but economists suggested it was unlikely that any government could avoid cutting their education budgets.
Writing in the OECD’s Education at a glance report on September 8, education director Barbara Ischinger said the net public return from investing in a higher education student was more than £30,000 – almost double the average amount spent in OECD countries.
Ischinger predicted that demand for education would increase as labour markets continue to be weak and explained how better-educated people were less likely to be unemployed.
‘Education can be a powerful lever to moderate the social consequences [of the downturn] too,’ she added, highlighting the relationship between lower levels of education, poor health and social exclusion.
The study also called for ‘sustained policy responses’ from education and employment authorities to ensure firms under pressure to make savings were still able to offer vocational training and traineeships.
Christine Blower, general secretary of the National Union of Teachers, said: ‘If any government considers reversing the hard-won spending gains in education, it will return the UK to being massively disadvantaged when it comes to the level of skills and knowledge needed to compete at a global level.’
But Gemma Tetlow, senior research economist at the Institute for Fiscal Studies, pointed out that real-terms spending on education has increased by an average of 4.3% per year since 1997.
‘It is probably one of the areas that parties will try and treat relatively more generously. But it’s hard when it looks like spending will be cut by 2.3% per year on average in real terms across all departments,’ she said.
She added that the Conservatives had already pledged to safeguard NHS spending and overseas aid.
‘If you were to attempt to protect NHS spending and schools spending, you would have to reduce other budgets by 4.4% per year in real terms on average over the next Spending Review period, which is a significant cut.’
Ministers have yet to make specific commitments on education spending. But, in his James Callaghan lecture on September 8, Chancellor Alistair Darling spoke of a ‘test of character’ and ‘tough choices’.
See Stephen Court's blog on education spending overseas
10 September 2009
The Organisation for Economic Co-operation and Development has challenged governments to invest in education to ensure an effective recovery from the global recession.
The recommendations were welcomed by teachers, but economists suggested it was unlikely that any government could avoid cutting their education budgets.
Writing in the OECD’s Education at a glance report on September 8, education director Barbara Ischinger said the net public return from investing in a higher education student was more than £30,000 – almost double the average amount spent in OECD countries.
Ischinger predicted that demand for education would increase as labour markets continue to be weak and explained how better-educated people were less likely to be unemployed.
‘Education can be a powerful lever to moderate the social consequences [of the downturn] too,’ she added, highlighting the relationship between lower levels of education, poor health and social exclusion.
The study also called for ‘sustained policy responses’ from education and employment authorities to ensure firms under pressure to make savings were still able to offer vocational training and traineeships.
Christine Blower, general secretary of the National Union of Teachers, said: ‘If any government considers reversing the hard-won spending gains in education, it will return the UK to being massively disadvantaged when it comes to the level of skills and knowledge needed to compete at a global level.’
But Gemma Tetlow, senior research economist at the Institute for Fiscal Studies, pointed out that real-terms spending on education has increased by an average of 4.3% per year since 1997.
‘It is probably one of the areas that parties will try and treat relatively more generously. But it’s hard when it looks like spending will be cut by 2.3% per year on average in real terms across all departments,’ she said.
She added that the Conservatives had already pledged to safeguard NHS spending and overseas aid.
‘If you were to attempt to protect NHS spending and schools spending, you would have to reduce other budgets by 4.4% per year in real terms on average over the next Spending Review period, which is a significant cut.’
Ministers have yet to make specific commitments on education spending. But, in his James Callaghan lecture on September 8, Chancellor Alistair Darling spoke of a ‘test of character’ and ‘tough choices’.
See Stephen Court's blog on education spending overseas
