While there has been significant progress in access to and quality of education around the world over the past quarter-century, Unesco’s 2025 report warns that a combination of factors now threatens this progress.
For the first time in a decade, the number of out-of-school children is rising, reaching 272 million in 2023, which was one in six children globally.
And even those in school are often not equipped with the knowledge and skills required to participate meaningfully in society and the workforce.
The learning poverty gap
According to the 2022 report , 70 per cent of 10-year-olds in low- and middle-income countries are in “learning poverty”, meaning they are unable to read and understand a simple text.
It is estimated that this generation of students risks losing $21 trillion (£15.7 trillion) in potential lifetime earnings, equivalent to 17 per cent of today’s global GDP.
Conflict and climate change have created an unprecedented “education in emergencies” crisis. According to 2025 data from Unicef and the World Bank, one in seven children worldwide has had their education interrupted by climate-related events, with a similar proportion living in active conflict zones.
Furthermore, while AI transforms the world, 2.2 billion young people lack internet access at home.
Less funding for education
There is also enormous inequality in education funding. International aid has reduced, and low-income countries spend just $55 (£41) per student annually, compared with $8,543 (£6,370) in high-income countries.
Low levels of education spending are exacerbated by broader fiscal constraints; 58 per cent of low- and lower-middle-income countries are in debt distress or at risk of it, where debt servicing consumes a growing share of government revenue.
This pressure is felt globally. International benchmarks recommend allocating 4 per cent to 6 per cent of GDP and/or 15 per cent to 20 per cent of total public expenditure to education.
In the UK, for example, 4.1 per cent of GDP was spent on education in 2023-24, which was historically low, according to the Institute for Fiscal Studies. The total education budget was roughly equivalent to debt repayment costs.
This means that every pound spent repaying debt cannot be invested in education or other essential public services.
The foundational power of education
Yet education is the foundation for sustainable development and the eradication of poverty.
This is not solely an issue for the ; high-income countries have a vested interest in the state of education globally, not only for economic reasons but also for the preservation of democratic values and security.
Education fosters creative thinking and “active citizenship,” creating stable, democratic societies that resolve disputes through dialogue rather than violence.
It acts as a shield against authoritarianism and instability, empowering people to thrive in their homelands rather than being forced into displacement.
Education equips the future workforce. The West faces ageing populations, while the Global South is experiencing a “youth bulge”. By the mid-2050s, half of the world’s children will live in just 10 countries, primarily in Africa and Asia.
This demographic represents the future global workforce and consumer base; if they are denied quality education, the global economy will suffer. We must develop skills in these countries, particularly “green skills” to build the climate resilience that will protect us all, as climate change respects no borders.
We all live in the same building; if we do not ensure that the foundations are strong through education, the “Western penthouse” risks collapse.
An investment, not a cost
We must stop viewing education as a cost and recognise it as a highly lucrative investment.
According to the , each additional year of education increases a person’s annual earnings by around 9 per cent - a higher yield than most other investments.
Higher earnings lead to higher spending and tax revenues, which allow governments to reinvest, making education a self-financing asset.
This also creates ripple effects, reducing the costs of exclusion on welfare and the criminal justice system. Moreover, educated people tend to innovate more, creating new businesses and technologies that boost growth and employment.
Education equips individuals with the knowledge and skills necessary to adapt, innovate and thrive. Yet, despite its critical importance, millions of children and young people are being left behind.
Investing in inclusive education is not just a moral imperative; it is an economic and strategic necessity to ensure global stability and prosperity.
As we begin 2026 in a highly polarised world, this is a pivotal moment to invest in the transformative power of education. The stakes are too high to put the future on hold.
Benedicte Yue is chief financial officer at River Learning Trust and advocate in residence of the
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