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This paper discusses the effect of social background and ethnicity on educational performance in an area with traditionally poor levels of attainment. It begins by examining the variation in school performance for London and specifically east London. It shows how the disadvantaged nature of the area, as measured by such variables as Mosaic group and ethnic heritage, helps to explain the poor results at GCSE. The paper then changes the focus to schools within a seven-borough area of east London. Using the Pupil Level Annual School Census (PLASC) linked to the geodemographic Mosaic codes based on pupils' home postcode, the authors demonstrate that, although ethnicity accounts for some of the variation in performance, this is considerably less than that accounted for by pupil social background. In addition, they show that it is not simply the social background of the individual pupil that affects school performance at GCSE. The proportion of pupils from a given social background plays some role in boosting or diminishing the overall school performance and will influence the performance of individual pupils whatever their background. It is argued that these social background effects together with the school composition effects have a considerable impact on school performance. [ABSTRACT FROM AUTHOR]