The education watchdog Ofsted has admitted it was wrong to downgrade an Outstanding school to Inadequate over its single-sex education policy. In its report, the inspectorate accused The King David High School in Manchester of breaching the Equality Act by ‘unlawfully segregating pupils on the grounds of faith and belief and sex’. Ofsted backed down after the school threatened legal action and will have to pay the school’s estimated £80,000 legal costs. King David’s operates a mainstream school, but also offers more focussed modern Orthodox Jewish teaching in separate streams – Yavneh Girls and Yavneh Boys. Parents can choose for their children to attend either the mainstream school or to have more specialised single-sex Jewish education. Ofsted recognised the school was strong in pupil attainment, effective teaching, behaviour and curriculum, but accused it of direct discrimination and gave the school an Inadequate rating.