School and College Funding: The Midlands

(Limited Text - Ministerial Extracts only)

Tuesday 9th May 2023 Westminster Hall

[The Minister for Skills, Apprenticeships and Higher Education (Robert Halfon)]

It is an honour to serve under you today, Mr Pritchard. I congratulate the hon. Member for Coventry South (Zarah Sultana) on her impassioned speech, and I look forward to responding to her debate.

I will go through the details of what is going on, but it is important to talk not only about funding, but about how educational standards are improving. As of December last year, 88% of schools were rated good or outstanding by Ofsted, which is up from 68% in 2010. In the west midlands, 86% of schools are now rated good or outstanding, up from 60% in 2010. I am delighted to report that in Coventry, 86% of schools are rated good or outstanding, up from 55% in 2010. The hon. Lady will know Hereward College, which is not in her constituency but is in the Coventry local authority area and is rated good.

I was surprised that the hon. Lady did not mention that Coventry was an education investment area. She talked about encouraging more teachers, and 36 secondary schools in Coventry benefit from the levelling-up premium, which is available in maths, physics, chemistry and computing to teachers in the first five years of their career. Payments are worth up to £3,000 tax-free each year from academic year 2022-23 right up to 2025. Connect the Classroom has 17 schools upgrading their wi-fi access, and the trust capacity fund is helping trusts to develop their capacity to grow. Furthermore, the Thrive Education Partnership was awarded funding of more than £290,000 for Corley Academy.

The hon. Lady also mentioned Coventry College. Sadly, as she knows, it received an inadequate grade for apprenticeships, which is why it is no longer offering that provision. Apprentices accounted for 4% of its overall provision, and learners have been transferred to other local colleges and providers. I should, however, congratulate the principal and CEO, Carol Thomas, who has overseen the improvement of finances at her college from an inadequate health grade in July 2020 to a good health grade in July 2022. The college was also nominated by Barclays bank for a financial turnaround award, which is important news.

I will respond to the hon. Member for Coventry South further, but I just want to respond to some of the other hon. Members who spoke. My hon. Friend the Member for Stafford (Theo Clarke) made an impassioned speech. She is a champion for schools and education in her constituency—she is well known for it across the House. She mentioned the £28 million for Stafford College that she personally lobbied for. The Secretary of State recently visited the new site following her invitation, which is a credit to what she has achieved for her constituency. My hon. Friend will also know about the additional capital funding for schools in her constituency of over £800,000.

My hon. Friend the Member for Stoke-on-Trent North (Jonathan Gullis) made an impassioned speech. I absolutely agree with him that free school meals need to go to those who most need them. The hon. Member for Coventry South mentioned free school meals, and I understand her campaign, but we are spending over £1.6 billion on free school meals, and 1.9 million pupils, or 22.5%, are claiming them, which is more than in 2021. We introduced free school meals under the universal infant free school meals policy. That happened under a Conservative Government. When I was a Back Bencher in the last Parliament, I personally campaigned for free school meals for disadvantaged FE college pupils, which we introduced as a Conservative coalition Government. It is also important to mention the multimillion-pound package for breakfast clubs, especially in disadvantaged areas. My hon. Friend the Member for Stoke-on-Trent North is right about workload—I am absolutely convinced that my colleague the Minister for Schools will be getting a printer in his office to print out all the examples of bureaucracy that he talked about. I congratulate him on his speech.

My hon. Friend the Member for Mansfield (Ben Bradley) knows that he and I agree—I think there is a card separating us—about skills and FE. He knows that I am an honorary professor of Nottingham Trent University, and I am particularly impressed with its brilliant work with Mansfield College. He talked about West Notts College, which has also done impressive work in offering T-levels in business, construction, digital education, engineering and manufacturing. He made some wise points about schools and skills, and I thank him for his speech.

To return to the hon. Member for Coventry South, she will know that in the autumn statement we announced £2 billion of additional investment for schools in 2023-24 and 2024-25, over and above the increases already announced for schools at the 2021 review. That means that total funding across mainstream schools and high needs will be £3.5 billion higher in 2023-24 than in 2022-23, and that is on top of the £4 billion year-on-year increase provided in 2022-23. Together, that is an increase of £7.5 billion, or over 15%, in just two years, and school funding will increase further next year, so that by 2024-25, funding per pupil will be higher than ever in real terms. The Institute for Fiscal Studies has been quoted, but its independent analysis shows that total school funding is growing faster than costs for schools nationally this year and next.

[Nadia Whittome (Nottingham East) (Lab)]

I thank the Minister for giving way; I recognise that he speaks on this topic with a great deal of experience. I also particularly thank my hon. Friend the Member for Coventry South (Zarah Sultana) for securing this important debate. In the midlands, four in five schools are set to have to cut their education provision to cover costs this coming year. In 2020 in Nottingham, secondary school teachers left schools at a rate of 33%, which was one of the highest in England. Does the Minister accept that the situation is completely unsustainable and is damaging children’s education? Will he look again at funding for schools and teachers’ pay?

[Robert Halfon]

I thank the hon. Lady, who has listened very carefully to the debate. I will be setting out the extra funding going into the midlands. She will know that schools in Nottingham East are attracting over £69.7 million through the schools national funding formula. On top of that, schools will see £2.3 million through the grant. Also, 90% of schools are rated good or outstanding, up from 77% in 2010. I should add that I was pleased to work with the hon. Lady as a Back Bencher on green skills in school, which I know she cares about deeply.

We are levelling up school funding and delivering resources where they are needed most. Nationally, per-pupil funding for mainstream schools is increasing by 5.6% in 2023-24 compared with last year, and the east midlands and west midlands are both attracting above-average increases of 5.7% per pupil. Alongside those increases to revenue funding, we are investing significantly in schools’ capital. We provide funding to support local authorities with their responsibility to provide enough school places in their area. We have announced £2 billion for the creation of places needed in the next four academic years. The east and west midlands regions are receiving over £500 million of that funding.

We are also investing £2.6 billion between 2022 and 2025 to support the delivery of new and improved high needs provision for children and young people with special educational needs. We have allocated over £15 billion since 2015, including £1.8 billion committed for financial year 2023-24, to improve the condition of the school estate. As part of that investment, Coventry City Council has been provisionally allocated £3.5 million for financial year 2023-24 to invest across its maintained schools. We expect to publish final allocations shortly.

The school rebuilding programme is transforming buildings at 500 schools, prioritising those in poor condition and with potential safety issues. We have announced 400 schools to date, including Bishop Ullathorne Catholic School in Coventry South, which is one of 91 schools in the programme across the east and west midlands. We also allocated £500 million of additional capital funding for schools and FE colleges to help improve buildings and facilities and so to help them with energy costs. Schools in Coventry South were allocated over £900,000 of that funding.

On post-16 education, the further education capital transformation programme is delivering the Government’s £1.5 billion commitment to upgrade and transform the FE college estate. The hon. Member for Chesterfield (Mr Perkins) obviously knows that his college in Chesterfield has had £18 million, which I am sure he is delighted with. The FE reclassification and energy efficiency allocations have committed over £200 million in new capital funding to the sector. That has meant a £2 million capital investment in the FE college estate in Coventry, with Coventry College and Hereward College benefiting from that investment.

We also want to ensure that every young person has access to an excellent post-16 education. The 2021 spending review made available an extra £1.6 billion for 16-to-19 education in 2024-25 compared with 2021-22. That is the biggest increase in a decade, and we have made significant increases in funding rates. The national funding rate, which was £4,000 in 2019-20, will rise to £4,642 in academic year 2023-24. Over £1.3 billion has been allocated for 16-to-19 education in the midlands area for the current academic year, and £43 million of that has been allocated to institutions in Coventry.

The hon. Member for Coventry South rightly always champions social justice. In 2023-24, we have targeted a greater proportion of the schools national funding formula towards deprived pupils than ever before: 9.8%—over £4 billion—of the formula has been allocated according to deprivation. That means that over the coming year of 2023-24, schools with the highest level of deprivation have, on average, attracted the largest per-pupil funding increases. That is not even including the pupil premium funding, which has increased by 5% in 2023-24, a £180 million increase that takes total pupil premium funding to £2.9 billion. High needs funding for children with special educational needs and disabilities is rising to £10.1 billion nationally in this financial year, an increase of over 50% from the 2019-20 allocations. This year, Coventry is receiving an 11.5% per-head increase in its high needs funding compared with 2022-23.

[Nadia Whittome]

The Minister is being very generous with his time. On SEN funding, local authorities in England are facing a £2.4 billion black hole in special educational needs. I had the pleasure of visiting a SEN school recently, Rosehill School in my constituency, which had the same story to tell. What will the Minister do to improve that situation?

[Robert Halfon]

As the hon. Lady knows, we are spending many millions more on special educational needs funding. She will have heard the statement by the Under-Secretary of State for Education, my hon. Friend the Member for East Surrey (Claire Coutinho); that will help significantly in dealing with special educational needs.

In 16-to-19 funding, we include factors in the funding formula to help institutions recruit, retain and support disadvantaged students. That includes an uplift for those from disadvantaged localities and those with low prior attainment. The 16-to-19 bursary fund targets financial support at disadvantaged young people. In the academic year 2022-23, £152 million in bursary funding was allocated to institutions. That includes £33 million for the east and west midlands, of which just under £1 million has been allocated to institutions in Coventry. The amount has been further increased for the academic year 2023-24, with a 10% rise in the rates per instance of travel, disadvantage and industry placements compared to the 2022-23 academic year, to help with rising costs.

We briefly discussed T-levels. We are currently working with the FE sector and others to roll out T-levels. There are 42 colleges, schools and independent training providers across the west midlands that are planning to deliver T-levels in the next academic year. Coventry College will offer T-levels in digital and education, and the WMG Academy for Young Engineers will offer T-levels in engineering and manufacturing. I also mention Mansfield College for my hon. Friend the Member for Mansfield.

We have invested over £500,000 for providers in Coventry South to purchase industry-standard equipment for teaching T-levels. We have also funded nine T-level projects in the west midlands to help create state-of-the-art buildings and facilities. Overall, T-levels are backed by revenue funding of up to £500 million a year, and we have also announced a 10% uplift in T-level funding rates over the coming year to support providers as they scale up delivery.

We are backing institutes of technology, with over £300 million in capital funding going to 21 institutes across the country, including £9 million to the Greater Birmingham and Solihull Institute of Technology and £18 million on the Black Country & Marches Institute of Technology. We plan to spend £13 million on the East Midlands Institute of Technology.

We talked about apprenticeships. It is brilliant to see that there have been 9,000 apprenticeship starts in Coventry South since 2010, and over 1 million starts in the east and west midlands in that time. We want to support even more apprentices and employers to benefit from high-quality apprenticeships, which is why we are increasing funding for apprenticeships to £2.7 billion by 2024-25.

We have also removed the limit on the number of apprenticeships that small and medium-sized enterprises and small businesses can take on, making it easier for them to grow their businesses with skilled apprentices. That will benefit the small businesses and apprentices in Coventry South. We continue to provide a £1,000 payment to employers when they take on apprentices aged 16 to 18, and we are increasing the care leavers’ bursary from £1,000 to £3,000, so that they have the chance to do an apprenticeship.

I am enormously grateful for the opportunity to discuss these important issues. Despite the narrative set out by the hon. Member for Coventry South, we are investing huge sums of money in her constituency and across the midlands for school funding, which will be at its highest ever level by 2024-25. Funding for 16 to 19-year-olds will see the biggest increase for a decade, and we are investing in capital funding for schools and colleges. I have carefully highlighted the huge investment we are making in the hon. Member’s constituency and across the midlands so that we have high-quality places, and I believe that the investment we are putting into schools and skills will have a transformative effect for children and young people in the hon. Lady’s constituency, the midlands and across the country.