Yes, corporal punishment in British state schools was not abolished until July 1986, three years after the setting of the film.
According to the commentary Combo's background wasnt as plesant as Milkly's thats why Combo says "youve got the pefect package" Also Milky's Smiling Triggered/sparqled Combo's Boiling Point.
Milky's accent got more Jamaican as he spoke enthusiastically about his family. This made Combo feel even more isolated.
The movie ends with Milky still in the hospital, as far as I can tell. The only reference afterwards is when Thomas is sitting on his bed and his mum says Milky will be alright.
Also, in the televison series sequel This is England 86' Milky is shown to be alive and is one of the main characters.
