Recent Release | 14 Feb 2023

The Impact of HMC Schools on the UK Economy

Doug Godden

Lead Economist, Economic Footprint & Sustainability

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

Airbnb’s Economic Contribution to APAC in 2024: GDP, Jobs, and Regional Impact

Airbnb's platform connects hosts across Asia Pacific (APAC) with travellers from around the world. Oxford Economics was commissioned by Airbnb to quantify its economic footprint in 10 APAC markets in 2024.

Find Out More

Unlocking Economic Growth in Regional Australia Through Digital Delivery

Oxford Economics Australia delivered an independent economic impact assessment for Uber Eats, quantifying additional revenue for restaurants, GDP contribution, and consumer wellbeing benefits across 67 new regional markets.

Find Out More

Demonstrating Babcock’s Value to Australia’s Economy and National Resilience

Oxford Economics Australia provided Babcock with a comprehensive, independent analysis quantifying its total GDP, employment, tax, and socio-economic contributions across Defence and Civil sectors, SME engagement, and state-specific impact modelling.

Find Out More

New Rules of Engagement: The Strategic Rise of Government Affairs in Asia

What’s behind Asia’s new era of policy assertiveness? What does it mean for international firms?

Find Out More