Majority of the ESC Beneficiaries Come from Non-poor Households

A Closer Look at Equity in Education: The Philippine ESC Program Dilemma

In a recent revelation that has sparked widespread debate, Senator Win Gatchalian has called into question the fairness of the Educational Service Contracting (ESC) program’s beneficiary selection process. The ESC, a joint initiative with the Department of Education (DepEd), is designed to alleviate congestion in public junior high schools by subsidizing the education of students in private institutions. However, the senator’s scrutiny of the Annual Poverty Indicators Survey (APIS) data for 2020 and 2022 has uncovered a disconcerting trend: a significant majority of the beneficiaries come from non-poor households.

Majority of the ESC Beneficiaries Come from Non-poor Households.

The APIS data indicates that in the School Year 2020-2021, 68% of ESC recipients were from families whose income levels were at or above the per capita threshold. This figure was slightly lower, at 59%, for the previous school year. These statistics are alarming, especially when considering the program’s intent to serve as a lifeline for the underprivileged.

This issue is not new; it echoes the concerns raised by the Commission on Audit (COA) in 2018. The COA’s Performance Audit Report urged the DepEd to ensure that the Government Assistance to Students and Teachers in Private Education (GASTPE) program, under which the ESC operates, should give precedence to disadvantaged learners. Yet, the current allocation of slots suggests a deviation from this recommendation, with an estimated P8.6 billion in funds not reaching the intended poor beneficiaries.

Senator Gatchalian’s impassioned statement during a hearing on the ‘Expanded Government Assistance to Students and Teachers in Private Education Act’ (Republic Act No. 8545), also known as the e-GASTPE law, underscores the gravity of the situation. He argues that the misallocation of funds represents a profound injustice, with taxpayers inadvertently subsidizing the education of the non-poor.

The spirit of the e-GASTPE law is clear in its intent to prioritize the “poorest of the poor.” Yet, as Atty. Tara Rama from the DepEd’s Government Assistance and Subsidies Office (GASO) confirmed, the 2017 ESC guidelines do not strictly enforce this prioritization. The GASO is reportedly taking steps to revise these guidelines, which could lead to a more equitable distribution of educational opportunities.

As the debate continues, Senator Gatchalian’s call for prioritizing the poor in government subsidy programs and his consideration of amendments to the e-GASTPE law could be pivotal in reshaping the landscape of educational assistance in the Philippines. The hope is that such changes will ensure that the ESC program fulfills its promise of supporting those most in need, truly reflecting the spirit of the law and the values of social equity it is meant to uphold.