Education, under the neoliberal doctrine, has undoubtedly undergone multiple reforms that have led to its economisation. They have also turned education into a mechanism that intensifies the reproduction of inequalities and suppresses diversity, which only helps to perpetuate social exclusion. Despite radical criticism of neoliberalism's effect on education, neoliberal educational strategies have emerged stronger in the aftermath of the 2008 financial crisis. The goal of this paper is to review the effect of the neoliberal paradox on diversity and equity in education and to consider a new socio-economic paradigm that would foster more progressive educational practices. Such practices are advocated by Kalantzis and Cope's New Learning model, which points to the relationship between senses of belonging and academic achievement in education. To achieve this, this paper adopts a polemical, critical approach to analysing the selected literature. It highlights the paradoxes and contradictions of neoliberalism on diversity and equity and analyses how inequity is perpetuated through neoliberal education. Then, it discusses neoliberal education and considers the reasons criticism of neoliberalism has been rather ineffective. The paper concludes by exploring alternative pedagogical models and contemplating whether education can be recalibrated in the interest of an inclusive and just society.