London, United Kingdom (PRWEB) July 20, 2012
The General Secondary Education industry is undergoing major changes, with government reforms underway to convert publicly funded schools (both primary and secondary) into academies. The coalition government hopes to raise education standards by granting schools increased autonomy to set their own curriculum and manage their affairs independent of local education authorities. The government has successfully implemented this, doubling the number of academies by 2012. Besides this, the compulsory education age will be raised gradually beginning 2013, from 16 years to 18 years by 2015.
According to IBISWorld industry analyst Ee Jen Lee, “as the industry relies heavily on government funding for secondary education provision, and funding is tied to the number of student enrolments, the older age for compulsory education will offset the decline in the secondary school-age population of 11-year-olds to 18-year-olds”. In the near term, however, industry revenue is forecast to decline 0.4% over the five years through 2012-13 to £21.3 billion. This is primarily due to the sharp budget cuts the UK government has introduced in response to the recent global financial crisis. The cuts to capital funding will be most severe in 2012-13. This is expected to cause industry revenue to decline 2.3% in 2012-13.
There are about 4,687 secondary schools spread across the United Kingdom, in a similar pattern to that of population distribution. Publicly funded schools enrol about 93.5% of school pupils in the United Kingdom, and privately funded (independent schools) enrol the remaining 6.5% of pupils. The proportion of domestic students enrolled in private schools has declined since the global financial crisis, suggesting a correlation between disposal income growth and private expenditure on education. However, international student enrolments have slightly offset this.
Lee adds “over the five years through 2017-18, a declining school-aged population, coupled with a smaller education budget, will limit growth prospects for the industry”. Consequently, revenue growth is projected to rise modestly.
The General Secondary Education industry has a low level of market share concentration due to the nature of school-level education, which serves all people falling within the age bracket of compulsory school attendance (5 years to 16 years). There are about 4,640 secondary schools spread across the UK, which follows a similar pattern to that of population distribution. Schools in any given location are limited by the size of the resident school-age population.
For more information on the General Secondary Education industry, including latest industry trends, statistics, analysis and market share information, purchase the full report from IBISWorld, the nation’s largest publisher of industry research.
IBISWorld industry Report Key Topics
The industry covers education at the secondary level. Secondary schools typically include the years 7 to 11 and may also include years 12 and 13, or the sixth form as it is commonly known. The majority of secondary schools are publicly funded and do not charge tuition. The industry also includes privately funded independent schools or public schools as they are known in England and Wales.
Key External Drivers
Industry Life Cycle
Products & Markets
Products & Services
Globalisation & Trade
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Barriers to Entry
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