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Some academy schools are manipulating admissions rules to select pupils from privileged backgrounds, according to a major report.
The Academies Commission claims some schools are finding ways to "covertly" choose pupils by using extra information on families.
The report comes after research by the Financial Times found academy schools had been overpaid up to £1m this academic year.
Meanwhile, Michael Gove has told friends he has no problem with profit-making firms running academy schools, according to the Independent.
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