Investing in UK school technology could unlock £8.7 billion economic boost, report finds
A report by Pearson, produced with the Centre for Economics and Business Research (Cebr), has outlined how investing in digital transformation within UK state-funded schools could yield significant economic and educational benefits.
The analysis estimates that an annual investment of £130 million in technology over the next decade could provide up to £8.7 billion in economic returns.
The study suggests that for every £1 invested in technology, the return could reach £7.90, contributing to better educational outcomes, enhanced teacher efficiency, and broader economic growth.
Key findings from the report
The report highlights specific benefits from targeted investments in EdTech:
Teacher time savings: Technology could save teachers approximately £900 million in the first year alone, equivalent to nearly five additional working weeks per teacher.
Improved earnings potential: New labor market entrants could collectively earn an additional £200 million by year 10 due to improved skills driven by EdTech.
Economic productivity gains: Workforce productivity benefits could rise from £6 million in the first year to £180 million by year 10.
Environmental impact: Digital technology could save nearly two million kilograms of CO2E by year 10, enough to power hundreds of households annually.
Areas for investment
The report identifies key areas where investment is needed:
Devices: Only 34% of secondary schools and 31% of primary schools have adequate device availability.
Broadband infrastructure: Slow internet speeds are reported in 27% of secondary schools and 36% of primary schools.
Teacher training: A minimum of 20 hours of training per teacher is recommended to address the 24% of educators who report a lack of confidence in their digital skills.
Curriculum and assessment modernization: Incorporating digital skills into the curriculum and introducing additional exam formats beyond traditional pen-and-paper approaches.
Sharon Hague, Managing Director of Pearson School Qualifications, emphasized the importance of technology in shaping the future of education and the economy. She stated:
"Investing in digital transformation within our schools is an investment in our future. The benefits of technology extend far beyond the classroom – helping underpin student outcomes, freeing up teacher time, and driving economic growth too.
"With discussions ongoing about the future of curriculum and assessment, we believe it's crucial to look at the benefits that technology can unlock for schools, students, and the economy. Our goal with this work is to progress these conversations and identify practical suggestions. Strategic investment in both infrastructure and teacher training will support UK state-funded schools to make better use of technology, better prepare students for future life and work, and ultimately help to build a more productive workforce."
Elizabeth Anderson, Chief Executive of the Digital Poverty Alliance, pointed to the potential for technology to address inequities in education:
“Children learning today are entering a digital world tomorrow, with the pace of digitization and tech growth at an unprecedented level. This report shows the power of giving young learners access to tech in the classroom – which we feel is especially important for those living in lower income families without a laptop at home on which to learn or complete education.”
Looking ahead
Pearson has called for a national strategy to ensure technology is effectively deployed in schools. The company plans to launch its Digital in Schools project in 2025, which will provide further research and actionable recommendations to support the integration of EdTech.
Sam Miley, Managing Economist at Cebr, highlighted the long-term benefits of EdTech investment:
“Our report highlights the benefits that could be accrued through increased investment in EdTech. These benefits grow over time and begin to outweigh the costs by several multiples. At a time when productivity growth in the UK is feeble, particularly in the public sector, this presents an attainable approach to improving skills and both educational and labor market outcomes.”
