Schools Bill [HL]

(Limited Text - Ministerial Extracts only)

Committee stage & Lords Hansard - Part 2
Wednesday 15th June 2022 Lords Chamber

[Baroness Morris of Yardley (Lab)]

My Lords, I was not going to speak on this issue; I will do so very briefly. It is really important, and it is a shame that it is so late in the evening. I am in two minds about it: I can see where the Minister is coming from but my views, on the whole, accord with those of my noble friend Lord Liddle, who has just spoken.

The point I want to make, and I would ask for the Minister’s observations on it, is this. When I was doing her job, I remember when I learned that my decision on how the money should be allocated was not replicated in the local authority. I was a bit cross about it: here we are taking decisions about this, we send the money out to the local authorities and, blow me down, they change it around. I then realised that we just had to live with it—that was democracy, and that was making sure there was some local flexibility. However, I can remember feeling irritated by it. We lived with it because we were not as centralised as this Government intend to be.

My worry about this is not that it is trying to remedy the wrong that was referred to earlier on this evening—that 20 local authorities do not pass on the funding to small schools in rural areas when it leaves the department. It does not look like that to me, although I do not doubt that she is concerned. The way it looks to me is that this Bill is about giving power to the Secretary of State over every school and over everything. The minute the Government do that they have to control all the money. It seems to me that is the order: if the Government were not taking all the powers to control every school and everything they do, they would be able to be more flexible with the money, because that flexibility with the money would go with the flexibility given to the school. Because the Government are taking all the power to control all schools over all things, it looks as though they have thought, “The only way we can do that is to control every penny as well. We have to have that lever.” That is what worries me. If you put it together with what is happening in initial teacher training, it is the last brick in the wall of an absolute top-down, very heavily controlled nationalised school system. I would really like the Minister’s observations on that.

[The Parliamentary Under-Secretary of State, Department for Education (Baroness Barran) (Con)]

My Lords, I will start by setting out the principles of Clause 33, in response to the intention of the noble Lord, Lord Davies, to oppose the question that the clause stand part of the Bill. I am thankful for the opportunity to debate the role of Clause 33 and this part of the Bill more broadly. This measure implements the direct national funding formula and, as I said in response to the third group, delivers on our long-standing commitment to achieve fair funding for schools. We received wide-ranging support from the sector for this vision of how we fund schools in our consultation last year, and we heard your Lordships’ views on the importance of not only holding consultations but listening to them.

A single national funding formula, replacing the current 150 local arrangements, will make funding for schools simpler, fairer and more transparent. It will allow the sector, and your Lordships in this place, to hold the department to account for school funding. This measure outlines the framework of roles and responsibilities for the new funding system. The reforms set out in this part of the Bill have been developed carefully, in extensive consultation with stakeholders, to ensure we reflect the needs of pupils and schools in the fairest and most consistent way.

The noble Lord, Lord Davies, talked about how well the system had worked previously, but when I look at the data for funding per pupil from 2017—I think this was something the noble Baroness, Lady Chapman, also touched on earlier—for Brent and Lincolnshire, both of which had 12% of children on free school meals, the funding per pupil was £5,523 in Brent and £4,305 in Lincolnshire. Similarly, there were big differences in a number of other areas, not only London boroughs. For example, Blackpool and Manchester, at that time, had 25% of children on free school meals and there was about £800 higher funding per pupil in Manchester than there was in Blackpool. I hope the noble Lord will acknowledge that is hard to see as either transparent or apparently fair.

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[Lord Davies of Brixton (Lab)]

I think figures were quoted comparing Blackpool and Brent—

[Baroness Barran (Con)]

It was Blackpool and Manchester.

[Lord Davies of Brixton (Lab)]

Okay. Does this imply that the introduction of the new funding formula will see a significant reduction in the payments received by the school that had the higher figure? The Minister told us there was a difference but we do not know the reason for it. If she is saying that the reason is unjustified, it must lead to a reduction in funding for the school that had the higher amount previously.

[Baroness Barran (Con)]

I see the noble Baroness, Lady Chapman, is tempted to answer the question. The figures I referred to were from 2017. I am happy to set out in a letter to the noble Lord more of the reasons for the differences, but I suspect, being familiar with the subject, he knows what some of them are. To date, no area has seen a reduction in nominal terms in its funding. One reason why we intend to implement this over a longer period is to avoid any disruption to local funding. As I am sure the Front Bench opposite would say on my behalf, it will depend on the total quantum of funding committed to our schools.

I thank the noble Baronesses, Lady Chapman and Lady Wilcox, for Amendment 87 and for their unerring focus on ensuring that all children have a fair chance to realise their potential. The introduction of the national funding formula in 2018 was a historic reform to school funding, replacing what we believe to have been an unfair and out of date system.

The national funding formula already calculates funding allocations for each school, which, as I mentioned in the earlier group, are publicly available and, with these, the calculations used to determine funding allocations for local authorities. In the current system, individual schools’ final allocations are then determined through 150 different local formulae. The direct national funding formula will mean that every school is funded through the same national formula, with only specific, local adjustments. That will achieve this Government’s long-standing ambition that funding is distributed fairly, and means that parents, school leaders and governors will have assurance that their school is funded on the basis of the needs and characteristics of their pupils, rather than where the school happens to be located. The intentions of the reforms are not to lead to changes in the distribution between geographical areas, but within them.

Similarly, this change should not impact how much funding the formula directs overall towards socioeconomic disadvantage. Instead, it should ensure that each school, in each local authority, receives a consistent amount of deprivation funding based on their pupil cohorts.

I want to reassure noble Lords that we are committed to levelling up opportunity to make sure that all children have a fair chance in life, wherever they live and whatever their circumstances. We are specifically targeting funding towards disadvantage. Through the national funding formula, we are allocating £6.7 billion towards additional needs, including deprivation, which is a sixth of available funding. In addition, we are directing other funding sources towards disadvantaged pupils, including the pupil premium which is rising to over £2.6 billion this year, and the school supplementary grant which includes a further £200 million targeted towards deprivation. We are also allocating over £200 million to support disadvantaged pupils as part of the holiday activities and food programme. This means that, altogether this year, we are allocating £9.7 billion towards pupils with additional needs, including deprivation.

For the 2022-23 academic year, the Government have committed around £500 million through the recovery premium and £350 million through the national tutoring programme, through which 1.5 million courses have been started so far to support the children whose education has been most impacted by the pandemic, with a particular focus on disadvantaged pupils.

By introducing the national funding formula and replacing the previous postcode lottery, we have a funding system that is much more responsive to changes on the ground. School funding is allocated based on current patterns of deprivation and additional needs across the country. It means that pupil intakes that have similar levels of deprivation, such as Liverpool and Wolverhampton, or Calderdale and Coventry, are now receiving similar levels of funding per pupil. The redistribution of funding seen since the introduction of the national funding formula reflects that the funding system has been catching up with changes in patterns of relative deprivation.

As we have discussed at length, the principle of transparency has underpinned our reforms to the school funding system. As I have said, we publish information annually on the national funding formula. We are committed to publishing the impact of transition on individual schools and on different types of school every year. I would also like to reassure the noble Lord, Lord Hunt, who is not in his place, that this does include the factor weightings which he questioned in the last group. Based on this, it is already possible to see the geographical distribution of funding and how that changes year on year, and what support the national funding formula offers for deprivation. We will continue to review the impact of the national funding formula in terms of meeting policy objectives, such as supporting schools to close attainment gaps. In addition, we want to ensure the information we publish is as helpful as possible and we are currently consulting with schools and the wider sector on what published information would be most useful for them.

I hope this has persuaded your Lordships that the national funding formula will continue to distribute funding ever more fairly, based on the needs of schools and their pupil cohorts. I therefore ask the noble Baroness opposite to withdraw her Amendment 87.

[Baroness Wilcox of Newport (Lab)]

I thank the Minister for her reply. Nevertheless, our concerns remain, and much of what my noble friend Lord Davies has discussed is worthy of support. But in terms of our specific amendment, our call for a robust analysis still stands, together with detailed democratic scrutiny of the funding formula, and concerns around the removal of local authorities in allocations of funding still apply. However, I beg leave to withdraw my amendment.

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[Baroness Wilcox of Newport (Lab)]

My Lords, the 7p increase to infant school meals announced yesterday by the Government has generally been received as inadequate. Labour’s amendment compels the Secretary of State to review food standards every three years and to consider quality, nutritional value and value for money. As noted, the Government rejected Henry Dimbleby’s advice to extend free school meals to 1 million more children in need and to raise the grant schools get in line with rocketing inflation. Schools are already reducing meal sizes to afford their obligations. Will the Minister say what the Government’s plans are to help avoid children going hungry? Have they done any analysis of what inflation is doing to the amount of food schools are able to provide and the adverse effects when this gets smaller and smaller?

I shall give the UK Government some good ideas and positive direction on what the Welsh Government are doing on these matters. From September, some of the youngest children in primary schools in Wales will begin receiving free school meals. Our First Minister said:

“no child in Wales should go hungry and … every child in our primary schools will be able to have a free school meal.

We are facing an unprecedented cost-of-living crisis. We know younger children are more likely to be living in relative income poverty, which is why the youngest of our learners will be the first to benefit.


This cost-of-living crisis is being felt by families all over Wales, extending free school meals is one of a number of measures we are taking to support families through this difficult time.”


I sincerely urge the Minister to reflect on these proposals and see whether there is the political will to do something similar for English children.

In terms of what we can practically do in the meantime, our amendment would ensure that food standards are reviewed regularly and would weigh up value for money with quality and nutritional value. All the evidence suggests that children cannot learn when there are hungry. Acting on this fundamental principle is surely an all-round win for the Government.

We know that governmental focus has drifted from children in care too. In March, it was revealed that the National Tutoring Programme, referred to earlier, no longer had to ensure it was reaching two-thirds of the most deprived pupils. The requirement that two-thirds of pupils in the programme must be from disadvantaged backgrounds was in place for a reason: there is strong research evidence that poorer pupils have been the biggest losers from the pandemic, seeing greater attainment losses than their peers.

For the purposes of political balance, as I have quoted my First Minister, I shall now quote what the Conservative MP Robert Halfon, who chairs the Education Committee, said about the National Tutoring Programme:

“The Government must ensure Randstad shapes up, or boot them out. The catch-up programme must be shown to be reaching disadvantaged pupils and this data must be published.”


So there is cross-party agreement that we must ensure that disadvantaged pupils are at the front and centre of our thinking in all aspects of educational provision, especially in the critical area of school admissions. As was debated on Monday, we cannot exclude pupils and operate a soft selection policy as it is unfair and frankly immoral.

[Baroness Barran (Con)]

My Lords, I turn first to Amendment 89 in the names of the noble Lord, Lord Storey, and the noble Baroness, Lady Humphreys. As the noble Baroness said very eloquently, providing free school meals to eligible children is very important to this Government. We spend around £600 million per year making sure that 1.25 million infants enjoy a free meal under the universal policy. The per-meal rate was increased last year and the Secretary of State recently announced a further £18 million, increasing the rate to £2.41 per meal, which has been backdated to April this year. The noble Lord, Lord Young of Norwood Green, stressed the importance of supporting children in the early years, particularly post the pandemic. He is absolutely right.

Under the benefits-related criteria, the Government provide a free meal to around 1.9 million more children. For 2022-23, funding through the free school meal factor in the national funding formula is increasing to £470 per eligible pupil. In recognition of cost pressures, after the national funding formula rates were set the department provided extra for core schools funding for 2022-23. Core schools funding for mainstream schools, which includes benefits-related free school meals, is therefore increasing by £2.5 billion, compared with last year.