Recent Release | 14 Feb 2023
The Impact of HMC Schools on the UK Economy
Doug Godden
Lead Economist, Economic Impact
Oxford Economics undertook a study for HMC, the professional association of school heads, assessing the impact of their schools on the UK economy in 2021, and on the environment in recent years.
Taking direct, supply chain (‘indirect’), and wage-funded expenditure (‘induced’) impacts into account, HMC schools were found to have contributed £7.3 billion to the ‘gross value added’ measure of UK production (GVA) in that year. This was associated with 142,000 jobs, and £2.2 billion in UK tax revenues of all kinds. Within those totals, the direct GVA of HMC schools themselves amounted to £3.6 billion, associated with 76,000 jobs, and £1.0 billion in taxes. All of these figures would have been even higher had it not been for the restrictions on activity caused by the Covid pandemic, which resulted in fee discounts and reduced school spending.
In addition to the tax revenues generated, HMC schools are estimated to have saved the UK taxpayer £1.8 billion in 2021, as a result of educating some 227,000 pupils who would otherwise have been eligible for a UK state school place.
In terms of environmental impacts, HMC schools and their global supply chain were found to be responsible for 437,000 tonnes of greenhouse gas emissions in 2021, in terms of the standard ‘carbon dioxide equivalent’ or ‘CO2e’ measure. Some 294,000 tonnes of that occurred in the UK, accounting for 0.07% of national emissions in that year. As HMC schools and their UK supply chain accounted for 0.21% of UK GVA in the same year, their “emissions intensity”—emissions per pound of GVA—was just one third of the national average. The study also found the schools’ emissions intensity to have fallen by 28% since 2015.
The experts behind the research
Doug and Evie, members of the Economic Consulting, are world leaders in quantitative economic analysis, working with clients around the globe and across sectors to build models, forecast markets and evaluate interventions using state-of-the art techniques. Lead consultants on this project were:
Doug Godden
Lead Economist, Economic Impact
Evie Johnson
Economist, Economic Impact
You might be interested in
Zalando’s Economic Impact on the European Economy
Oxford Economics was commissioned by Zalando to produce an assessment of the company’s economic impact. The report, “The Economic Impact of Zalando in Europe” highlights Zalando's significant contributions to the European economy in 2023.
Find Out More
The Economic Impact of the British Army
This study, commissioned by the British Army, assesses both the long-term contribution the organisation makes to the UK's productive capacity and its UK economic footprint in 2023/24.
Find Out More
Economic Impact of Virgin River Season Five in British Columbia
This study, commissioned by the Motion Picture Association (MPA) – Canada, focuses on the production of the fifth season of the show "Virgin River", and analyzes its total economic impact in British Columbia in 2022. The study also considers the wider impact of the show by boosting film-induced tourism and promoting the local film industry.
Find Out More
The rise of experiences in APAC travel: an assessment of Klook’s socio-economic impact
This study highlights how Klook's innovative travel booking platform is contributing to the tourism economy in Asia Pacific.
Find Out More