UCL-led consortium wins bid to launch new education economics centre

The new Economics of Education Research Centre (EERC) will develop a robust evidence base on the benefits of education and skills to inform policymaking decisions, offering a new opportunity for policymakers and academics to collaborate closely. The centre comprises globally leading education economists at the UCL Centre for Education Policy and Equalising Opportunities (CEPEO); the Centre for Economic Performance (CEP) at the London School of Economics (LSE); and the Institute for Fiscal Studies (IFS). The centre’s Executive Board will include Professor Lindsey Macmillan (UCL CEPEO); Christine Farquharson (IFS); and Professor Sandra McNally (CEP LSE).

The centre will initially run until March 2028. During this time, the consortium will co-develop a work programme alongside DfE, focused on developing new evidence on and methodological tools for appraising the value of education and skills policies and the broader social and economic benefits they bring.

Strengthening the evidence base for education policy

With major new government strategies on areas including early years, special educational needs and disabilities (SEND), and post-16 education in the last two years, and ongoing issues such as meeting skills needs in the economy, and how AI will be used for learning, the new EERC will help the DfE make evidence-based decisions on which policies to pursue.

Education economics examines how resources, regulation, and policy decisions shape outcomes for learners, society, and the wider economy. It explores issues such as how education and skills affect earnings, productivity, and social mobility, as well as whether investment in areas such as early years and SEND can reduce long-term social and economic costs.

The centre will have the capability to demonstrate economic links between different aspects of education and skills, for example, understanding the drivers and consequences of having so many young people not in education, employment, or training (NEET). 

“We don’t currently have the evidence or tools to make a strong case for preventative action to stop young people from becoming NEET,” explained Professor Lindsey Macmillan, the centre director. 

As part of this work, the researchers will draw on major survey resources and data such as the Longitudinal Education Outcomes (LEO) dataset and Education and Child Health Insights from Linked Data (ECHILD), to strengthen expert knowledge and inform policymaker priorities. The EERC will also support decisions on how education and skills funding should be allocated and the level of investment required.

Research centres: a new approach

The EERC and a new UCL-led centre on educational neuroscience are both being launched as part of a wider government focus on the future of education.

Early Education Minister Olivia Bailey said: “Decisions should of course be rooted in what the evidence tells us actually works for children and young people.  

“These new centres will help us do exactly that – bringing together some of the best minds in the country to make sure our reforms on SEND, early years, and children’s mental health are built on solid foundations, and that we understand the long-term value of the choices we make.” 

Department for Education Chief Scientific Advisor Michael Thomas said: “To make the best decisions for children and young people, we need a clear understanding of how they learn, and rigorous evidence of what works.  

“These centres will give us both – bringing together the best of neuroscience and economics across two focused centres to put a stronger evidence base at the heart of education policy.” 

A robust future for education policymaking

Bringing academia and policymaking closer together through the EERC will advance our understanding of the wider benefits of education. 

Capacity-building is an important strand of the work, and the centre will work with DfE analysts to further develop their use of the department’s data resources. The consortium members will also develop education economists within each of their organisations, helping to grow the next generation of expertise in this field.

“This new centre represents exactly what we should be doing as academics,” said Professor Macmillan. “We should be working directly with the people who are designing policies and making decisions, to help them navigate that process based on rigorous evidence. Being closely engaged with government and policymakers means the research we design and deliver is as impactful as possible.”

UCL Consultants is a wholly-owned subsidiary of UCL and was selected as the preferred bidder following a competitive process that assessed against criteria such as the ability to develop high quality research, harness connections with experts across a range of subject specialisms, and enable capacity-building among analysts, policymakers, and education economists. This was supported by UCL Consultants’ rigorous project management capabilities and experience of delivering complex, multi-party projects.

Consortium members

The consortium includes the following institutions:

• UCL Centre for Education Policy and Equalising Opportunities, Institute of Education
• Centre for Economic Performance, London School of Economics and Political Science, represented by LSE Consulting
• Institute for Fiscal Studies

The Executive Board will include:

• Professor Lindsey Macmillan (UCL CEPO)
• Professor Sandra McNally (CEP LSE)
• Christine Farquharson (IFS)