Opinion Fee caps in private schools: Not the cure we need

Indian Express

01-05-2025

The Delhi cabinet has recently approved the Delhi School Education Transparency in Fixation and Regulation of Fees Bill, 2025, to provide guidelines to all aided and unaided private schools in Delhi on the capping of fees. The move came as a response to the protests by parents against fee hikes in Delhi Public School, Dwarka, where students were allegedly mistreated for failing to submit their school fees. This initiative by the Delhi government apparently looks like a welcome move to enhance the accessibility of students to private schools. However, it has many implications.
The affordability of education has been a concern since Independence. The Kothari Commission recommended free and compulsory school education up to age 14. Similarly, the National Policy on Education, 1986, also focused on free and compulsory education, while the Programme of Action, 1992, addressed the issue of affordability and accessibility of education. The National Education Policy 2020 (NEP) emphasised transparency, accountability, and encouraged private philanthropic efforts in school education. The increasing acceptance of the presence of private players in school education is also visible from the shifting position in the policy documents over the last three decades. The latest Delhi Bill, applicable to 1,677 aided and unaided schools, however, intervenes in the domain of private schools to restrain any exorbitant hike in fees.
This move may have adverse outcomes. In a mixed school system where both government and private players should compete freely, any arbitrary control on the functioning of the private sector would disturb the mechanism. Government and private schools function on different principles. The fee in private schools is based on the principles of supply and demand. Any arbitrary control by the government would not address the concern of equity. One must understand the logic of rising prices. Fees don't only just focus on profit; it is the source of teachers' salaries, quality infrastructure and other expenses.
There is no doubt that private schools, particularly the unaided ones, are expensive. My analysis based on the national sample survey data on social consumption of education (2017-18) shows that the average household expenditure per student in an academic year is Rs 21,683 at the elementary level (I-VIII) and Rs 32,003 at secondary and higher secondary level (IX-XII) in Delhi. It is remarkably higher than the all-India average, which is Rs 6,319 and Rs 11,026 at elementary and secondary and higher secondary levels, respectively. This difference can be attributed to the dominance of elite schools in Delhi.
Private unaided schools compete with the low-cost private and government schools over quality. The National Achievement Survey (2021) shows that at secondary and higher secondary levels, students in private schools perform better in languages, Mathematics, Social Sciences and the Sciences than the students of government schools. Any control on fees without taking into consideration the operational costs of private schools may push them to compromise on crucial quality indicators such as pupil-teacher ratio and infrastructure.
On the other hand, government schools function on the principles of welfare. It is the last resort for those who cannot afford an expensive private school. Notably, the enrolment in government schools is much higher than private schools in Delhi. My analysis from the UDISE, 2023-24 data shows government schools comprise 57.1 per cent of the total enrolment, while the corresponding shares for government-aided private and unaided/self-financed schools are 3.1 per cent and 39.8 per cent, respectively.
Between 2015-16 to 2021-22, the enrolment in private schools in Delhi has dropped from 43.1 per cent to 38.8 per cent, while the share of private schools among the total number of schools has remained roughly the same. The bulk of private schools are unaided. This reduction in enrolment in private schools might be attributed to the reforms in government schools. The average fee in government schools is also far lower than in private schools.
The most pressing challenge for government schools and low-cost private schools is to impart quality education at a low cost. Improving the learning outcomes in these schools, along with better infrastructure, would be an important step in this direction. Facilitating access to online/digital resources may also contribute to improving the quality of education. Against this backdrop, the role of the government concerning the private sector should be that of facilitator. A free competition between the government and private schools over quality may be more beneficial than controlling the functioning of the private schools.