Academies 'High-Risk' Investment

Tue, April 25, 2006

Source: Ananova

Tony Blair's controversial city academies represent a 'high-risk' investment for wealthy donors who want to support education, according to a new report.

Tony Blair's controversial city academies represent a "high-risk" investment for wealthy donors who want to support education, according to a new report.

There is not enough evidence to say whether the privately sponsored schools are the best way for donors to spend their money, the study found.

But mixed Ofsted reports and exam results did raise serious doubts over the "cost-effectiveness" of the scheme.

The report from think-tank New Philanthropy Capital concluded: "Academies are a risky investment: they can and do fail."

The study is the latest blow to the Prime Minister's flagship policy for transforming state education in England's inner cities.

It follows the damaging "cash for honours" row over claims that business figures were told they could get knighthoods or peerages in return for backing academies.

Several academy sponsors have received honours and two withdrew their names from the official list of individuals nominated for peerages amid the controversy.

NPC, a charity which advises donors on how to give money more effectively, said philanthropists should consider spending the £2 million which could go to an academy on other educational causes.

The report said of academy schools' results: "Whilst the proportion achieving five grade A* to C at GCSE compared to their predecessor schools is greater, some have been heavily criticised by Ofsted for failing to provide a satisfactory standard of education.

"Sponsorship of an academy is high risk, and success, if it comes, will not be immediate."

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