This paper examines the effects of public funding for religious and private schools in the Netherlands and England over the last century or more. These two countries are chosen because both have religious schools which are fully funded by the state and the Netherlands, in particular, is often seen as providing an ideal environment in which private religious schools can ¯ourish. The paper shows that state funding brings disadvantages as well as advantages, for funding has been associated with considerable, yet variable, state control and regulation over such aspects as curriculum, staf® ng, admissions criteria, inspection and governance. At various points in the past both governments have effected powerful shocks to the religious schools that have received funding, and there has also been a gradual increase in regulation ± especially in the last decade. This increase in state regulation and control is such that there are now some religious schools in both countries which do not seek state funding but prefer to remain dependent upon fees. The bene® ts of state funding are seen as being outweighed by the decrease in autonomy that the schools would undergo. A ® nal twist, however, is that private schools not in receipt of state funding have also experienced increased state regulation at both the country and European levels. Furthermore, all schools have also been in¯uenced by the growing public rhetoric of standards' and `league tables' which has brought with it a growing pressure to conform to a narrow version of schooling. Diversity is being replaced by conformity.