Difficult on the racism thing because I can't say I have seen it.
Reality is that poverty and parental culture are the biggest factors. Asian and particularly Indian parents tend to be extremely ambitious for their children, which leads to ambitious and ridiculously hard working students, even where they come from very deprived backgrounds.
That is simply something you rarely see amongst both black and white families from deprived backgrounds. Far too often (not a majority by any means, but too often) the parent's concerns are more about them and their own chaotic lives and problems.
This idea has been floating around for a while and in my experience I honestly don't think it will make a damned difference to BME students. I can think of only one BME students that I have under predicted; their results were a real surprise to everyone, including themselves, and they got a better uni through adjustment.
I would be interested to see how it's supposed to work for schools. Currently our involvement is very high; we orchestrate the process from start to finish and provide detailed references. You are now talking about either schools having little or no involvement, or us having to do this after the students have left the school and are off roll.
The first scenario I would be extremely sad about. Running UCAS is one of my favourite aspects of my job; as hard work as it is, I would be gutted to not go through that with the students anymore.
If it's the second one, it's going to be problematic. References would have to be written in a busy term for students no longer with us, who we kind of shouldn't be talking to anymore from a safeguarding point of view. The timescale for us completing this would be much shorter and you are going to have far more cases where staff who taught them have left. No one reads school references anyway to be fair, but you can't expect to get as much out if schools if they do it after. For a start, a lot of the process I need to actually do with the student in front of me as a conversation; if they have left I can't do that.