40% of schools in South Africa, namely the poorest two-fifths as determined by poverty indicators, were declared to be no fee schools as of 2007. These schools receive larger state allocations per learner than other schools, as well as a higher allocation for non-personnel, non-capital expenditure. In other schools parents may continue to apply for fee exemptions. The implications and extent of these efforts to promote equity and redress in education continue to generate much debate, among which are concerns that, while school fees may not keep children out of school, they do help to sustain a class-differentiated two tier education system. [This policy brief is based on: Sayed, Y. and Motala, S. (2009) "Finance, Fee-free Schools and Access to Education in South Africa" (forthcoming).]