Reform has a paper out today abouthow to increase social mobility:
The UK’s dismal record in educating and motivating the poorest in society (whilst having some of the best elite education in the world) has been a central cause of low social mobility. The UK will not make progress until this problem is resolved. Strikingly, the countries with high social mobility – the Scandinavian countries – also contain some of the most reformed education systems. There is no barrier between state and independent schools since government funds pupils in both sectors according to parental choice.
That means vouchers I think, don\’t you?
Transfer payments have created a poverty trap both of finance (the UK has the highest marginal effective tax rates in the EU) and complexity. Public service performance is skewed towards the more affluent. An ever greater central grip on education (and major increases in spending) has not ended the massive disparity between elite and inner-city education. The rising burden of taxation, in particular on incomes, has “crowded out” individuals’ motivation to improve their own capability. For example, the higher rate tax rate now falls so close to average earnings that it acts as a “mobility block”.
The highest marginal effective tax rates in the EU? I knew we were bad on the tax/benefit withdrawal rates thing but the worst?
No wonder people don\’t bother.