Schools: Special Measures
Baroness Pinnock Excerpts(8 years, 10 months ago)
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Baroness Pinnock (LD)
My Lords, many local authorities across the country have demonstrated that effective local improvement can occur through strong local authority leadership in partnership with schools. An example is the oft-cited London Challenge. All the evidence, including the latest government statistics, shows that the maintained sector can turn around inadequate and failing schools better than the academy sector. Therefore, forcing all schools to become academies is not based on the need to improve school attainment. Does the Minister agree?
Lord Nash
I entirely agree that there are local authorities that are perfectly capable of turning schools around. The sad fact is, though, that quite a few—a depressingly large number—do not appear to have been prepared to use their intervention powers. Since 2006, 42 local authorities have never installed an IEB, and 49, nearly one-third, have never issued a warning notice since 2010.
Education and Adoption Bill
Baroness Pinnock Excerpts(8 years, 10 months ago)
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Lord Addington (LD)
My Lords, the fairly large group that we start with today covers a variety of different matters. The amendments in my name fall into three groups. I shall continue to explain this when the noise level is slightly lower. I do not know what the parliamentary equivalent of “Rhubarb, rhubarb” is, but hope that we can take that as read for a few moments.
Lord Addington
Yes, I hope that it will be reported in Hansard.
Amendments 8A, 8C, 8D, 9, 9A and 10A concern the new definition of a school in trouble—that it is “coasting”. If coasting is a bad thing, I suggest that all types of school should have it available to them. I also note that the Minister has tabled amendments in this group, so I will resist any further comment until after I have heard what he has to say, as I believe that he has made certain steps towards us.
Baroness Pinnock
My Lords, we have had a very interesting and compelling debate on this topic, but one element that has not been raised across your Lordships’ Chamber is that consultation provides a great opportunity for potential sponsors to sell their wares. If they are to take over a school, consultation provides them with a platform where they can show what they are going to offer and allow parents the opportunity to question them and understand what difference potential sponsors could make to their children’s school. That is a very valuable part of a consultation process.
In my head, consultation does not involve a plebiscite of parents, teachers, staff and governors, but it does involve an in-depth conversation, which is built into the process. That is why it is so important.
I must take exception with the noble Lord, Lord True, about why people who have overseen failure in their school should be part of the conversation. I will tell your Lordships why: because that is the moment at which they are called publicly to account. They have to present to parents the reason why their school is not fit to be continued under the current governorship and leadership and why it is important to pass it on.
Baroness Pinnock
Anyone involved in local government, as is the noble Lord, Lord True, knows that you can set a programme for consultation that can be as short as six weeks. That is a normal period for consultation in local government. If six weeks is what it takes, that to me is time well spent in having that in-depth conversation, an opportunity for people to get together to understand what has gone wrong and how it can be improved.
I will tell the noble Lord something from the part of the country I come from: you do not dictate to Yorkshire people, because if you do you will have them on the wrong side from the word go. I assume that other parts of the country can be that rebellious as well. We must have consultation, but we on this side of the House do not believe that that is a plebiscite, it is a discussion about how the school can be best improved by all parties coming together to make that difference to a child’s education, which is fundamentally what it is about.
The Lord Bishop of Ely
My Lords, I am very keen to support the idea of effective communication with our parents, not least about the ethos and character of schools, given that they have a deep effect. We see in the good key stage 2 results this last year the impact of character and ethos on effective academic results. Our parents are really keen to ensure that in any change of school, its ethos and character are maintained and that that is effectively communicated to them by any academy proprietor.
I had submitted my own amendment, which I have now withdrawn because I am content, following conversation with the Minister, that he agrees that ethos and character can be maintained and should be safeguarded effectively. I understand that parents around the country want, of course, to have even more say in what happens, but consider that church schools, in particular, have something significant to offer in relation not only to academic performance and ethos but future guarantees of religious literacy in the way in which our country is served.
One school deeply embedded in its community is the Saint Mary’s Church of England primary school in Moss Side in Manchester. This school was named primary school of the year in 2014, having previously been towards the bottom of the north-west league of schools. It is now in the top 2% of schools in progress in reading and 7% in maths. The judges said:
“This is a school with a determined attitude that not only achieves wonderful results for its pupils but also challenges stereotypes about its catchment and local area,”
In the service of religious literacy, we also have a school, St Luke’s primary school in Bury, where I am pleased to say that the head teacher is Jewish and the majority of the children are Muslim. Another school, St Chrysostom’s in Manchester, has an intake of about 40% Muslim students. This is to demonstrate that the Church of England is engaged in education because parishes and generations of citizens have provided land, buildings and teachers to ensure that Christian values could be shared with future generations and to give poor, disadvantaged children with no previous access to education the chance to receive that wonderful gift as a matter of right.
Church of England schools are deeply embedded in their local community, whether it is affluent or deprived. Schools such as Northern Saints in Sunderland and St Peter’s primary school in Wallsend have 49% of their students on free school meals. Both schools are doing excellent work to ensure that their children develop academically and personally. Stretton Church of England Academy, sponsored and managed by the Diocese of Coventry multi-academy trust, went from special measures to outstanding in less than three years. In the most recent Ofsted report, it was written:
“Disadvantaged pupils, disabled pupils and those who have special educational needs are making the same outstanding progress as that of their classmates”.
Our own diocesan multi-academy trust in Ely has outstanding rural schools such as St Martin at Shouldham, inclusive of a great cross-section of the community. The parents there are deeply engaged with the governors and the students themselves, proud of the school’s commitment to sustainable development and the preparation of the pupils to be responsible custodians of creation.
It is schools such as those which I have mentioned that are the norm for Church of England provision. That commitment to serving the common good and providing excellent education for all is the driving force of the Church of England’s involvement in education, and it is this ethos and vision that we, with our parents, seek to protect.
As I said, I have withdrawn my amendment on the safeguarding of the ethos of Church of England schools because the Minister has been helpful in offering us assurances that it will be protected, and because I am hopeful that amendments to come, including Amendment 20, will offer parents some confidence that in helping to improve failing or coasting schools they will not lose the values and ethos that they want from a school. The Church of England is keen that any change must always be for the benefit of the children and that it should happen in a turnaround fashion, as swiftly as possible. In support of that, I would still be grateful if the Minister could expand on the safeguards that exist to ensure that that much-valued ethos is secured, and if he will commit to ensuring that the Secretary of State will work with dioceses to ensure that those safeguards are enforced.
Schools: Faith Schools
Baroness Pinnock Excerpts(8 years, 10 months ago)
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Baroness Pinnock
To ask Her Majesty’s Government whether, if a faith school is rated inadequate and is required to become an academy, they will enforce the transfer of church land to the academy trust.
The Parliamentary Under-Secretary of State, Department for Education (Lord Nash)
The Education and Adoption Bill would require failing church schools to become academies, but land will not be removed from the church. Dioceses or their schools will sponsor the majority of failing church schools; where a non-church trust sponsors a church school, the religious character of the church school will be protected. The diocese would continue to own the land and make it available to the sponsor while it is a school, as happens with existing academies, solely for the purpose of a church school.
Baroness Pinnock (LD)
I thank the Minister for the clarity of his response. However, to provide reassurance to all faith groups, I ask that he add an amendment to the Education and Adoption Bill. In addition, what safeguards can he provide that the particular ethos of faith schools can be retained within a non-faith academy trust?
Lord Nash
The noble Baroness raises an extremely good point. We are very anxious to ensure that the faith ethos is maintained. We have gone further than the noble Baroness outlines, in that we have had extensive discussions with the churches and there is a revised memorandum of understanding with them, which I believe is now largely, if not entirely, agreed. These have much more extensive provisions as to precisely how a school’s religious character will be protected.
Education and Adoption Bill
Baroness Pinnock Excerpts(8 years, 11 months ago)
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Baroness Pinnock
“Scrutiny of education provision
(1) The Education and Inspections Act 2006 is amended as follows.
(2) After section 70C insert—
“70D Scrutiny of education provision
(1) This section applies where more than 10 per cent of schools in a local education authority area are eligible for intervention under section 60B as inserted by section 1 of the Education and Adoption Act 2015 (coasting schools).
(2) The relevant local authority may establish, under section 21(2) of the Local Government Act 2000 (overview and scrutiny committees), a committee of that authority to review and scrutinise matters relating to the provision of education in such schools in the authority’s area, and to make reports and recommendations on such matters in accordance with regulations under this section.
(3) Regulations shall make provision—
(a) as to the matters relating to the provision of education in such schools in the authority’s area which the committee may review and scrutinise;(b) as to matters relating to the provision of education in such schools in the authority’s area on which the committee may make reports and recommendations to local Academy sponsors;(c) as to information which local Academy sponsors must provide to the committee; and(d) requiring Regional Schools Commissioners to attend the committee to answer questions.””
Baroness Pinnock (LD)
My Lords, I apologise for missing the opening part of this discussion on Report. Amendment 1 in my name and that of my noble friend Lord Storey has a distinct purpose, which is one that I raised in Committee. Schools are a locally delivered service and that will not change, even with the implementation of the Government’s desire that all schools become academies. Consequently, once school-specific processes have been exhausted, parents tend to seek redress for their concerns about a particular school from a local body. Currently, parents see their local authority as that body. Already, in my experience as a local councillor, parents seeking to take a complaint about their local school to the next level turn to the council only to find, where it is an academy, that this is no longer within the remit of LAs.
The second reason for tabling this amendment is that schools are a major spender of public money. More than 50% of a local authority’s revenue spending is on schools. Where is the local accountability for that expenditure, especially as the number of academies increases and their diversity grows? Sadly, there have been a number of high-profile failures of financial governance in the academy sector, which includes some serious allegations of fraud, some of which have been proven; for instance, in schools in Bradford and County Durham. They are not the only ones. The Education Funding Agency has issued financial notices to improve on several academy chains, including the Academies Enterprise Trust, which was served with a notice only last year. Therefore there are already examples of the failure of local accountability to highlight issues of concern about public expenditure on something as important as education and schools.
Multi-academy trusts, which seem to be the current favoured way forward, are accountable only to the Education Funding Agency and the Secretary of State for their strategic and financial performance. Governance models in multi-academy trusts ensure that the sponsor or sponsoring body controls the trust. The strategic direction and decisions on the school’s budget are, crucially, in the hands of the directors of the trust and the trust members, who are self-appointed and accountable for their actions only via agreements signed with the Department for Education. In this model there is no accountability to the local community, which the academy and the academy trust serves, and no accountability to local parents for the investment in the education of their children. This amendment seeks to address some of those concerns.
In 2006, the Government established local authority health scrutiny committees. The scrutiny committees comprise both elected councillors and co-optees with relevant experience in the health sector. The purpose is to provide a public forum where local NHS bodies—hospital trusts or commissioning groups—can present policy changes which are discussed and are subject to questioning from the perspective of the local community. In other forums they are questioned as regards their financial position or their general direction—as regards trusts—from a clinical commissioning point of view. However, the local community has the opportunity through the scrutiny committee to raise issues of concern, such as access to the services that are going to be provided. In my experience, health scrutiny committees can add value by providing access to strategic leadership across the sector and by enabling generalised complaints and concerns about the service to be given a local and public hearing. I suggest that local education scrutiny committees would fill a vacuum by providing a process, based on this sort of model, to have a forum for discussing issues pertinent to the local community.
One of the keys to success in schools is harnessing the support of the local community they serve. The risk in the multi-academy trust model is that the schools become more remote from the communities they serve. I suggest that a successful multi-academy trust would welcome the opportunity of a public platform where it could demonstrate transparency in its decision-making and respond to questions from local people regarding performance. A scrutiny model would also enable the regional schools commissioner to report back via a local public forum. I hope that the Minister will be able to respond positively and constructively to this proposal. I beg to move.
The Parliamentary Under-Secretary of State, Department for Education (Lord Nash) (Con)
My Lords, responding to the original remarks of the noble Lord, Lord Hunt, I am glad that he used the word “dissembled” over the question of the future of the academy programme and local authorities. I think that it is a better word than “dishonest”, which he used in Committee. I have made it absolutely clear on a number of occasions that the default position for a coasting school is not to become an academy. However, the Prime Minister has been clear that our ambition is that, in time, every school will have the opportunity to become an academy. Given that ambition, it is right that we look at how we might reform the role of local authorities in education, although there is no intention of taking them out of education totally. Obviously their role in school improvement will reduce as regional schools commissioners take more responsibility.
Lord Nash
Perhaps the noble Lord will let me finish. In a situation at some stage in the future where all schools were academies, obviously local authorities would not be running schools. However, we certainly anticipate them continuing to have a role in the sufficiency duty, admissions, SEN and safeguarding. Perhaps I may make it absolutely clear that it is not about making every school an academy overnight at the stroke of a pen. That is not what we are after at all; we are about organising schools so that through academies and the multi-academy trust programme many more of them can, by working with each other, take advantage of the benefit of economies of scale efficiencies and deliver career enhancement, better CPD and leadership development. Given that ambition, it is right that we look at how we form the role of local authorities, as we have discussed.
The noble Baroness, Lady Pinnock, referred to financial irregularities in academies. I think that we have covered this before but I re-emphasise that academies are subject to far greater financial scrutiny than local authority maintained schools. They have to publish annual accounts which are audited by third-party accountants, something local authority maintained schools do not have to do. They are subject to the scrutiny of the EFA and the Charity Commission, and they are also subject to company law. I do not wish to make comparisons—
Lord Nash
Perhaps I may finish before the noble Baroness gets on her feet. I do not wish to make comparisons but a couple of years ago the Audit Commission found in, I believe, one year alone nearly 200 cases of financial irregularities in local authority maintained schools.
Baroness Pinnock
In response to the proposal that I made in Committee, the Minister said that academies’ accounts undergo greater audits than those of local authority maintained schools, but I suggest that that is probably not the case. I am the governor of a school in the local maintained sector. The school’s accounts are published as part of the local authority’s accounts, which are audited by a senior auditing company—KPMG in this case. Therefore, the internal and external audit of the accounts is carried out by the council’s own internal auditor and by external auditors. I am not suggesting that they are any better than the audited accounts of academies in terms of overall performance, and I think it is erroneous to suggest that one is better than the other.
Lord Nash
I am sure that anything the noble Baroness is involved in is very well scrutinised financially but, as a rule, all academies have their accounts audited but not all maintained schools do.
Turning to the subject that we are here today to discuss, I shall speak to Amendment 1 tabled by the noble Lord, Lord Storey, and the noble Baroness, Lady Pinnock. This proposed new clause would allow a local authority to establish a committee to review and scrutinise the provision of education in coasting schools where coasting schools make up more than 10% of the schools in the local area.
From our debate on a very similar amendment in Committee, I know that the noble Lords’ concerns are that, where a local authority has a number of coasting schools, the education provision in these schools is monitored and reviewed at a local level, with direct intervention happening where necessary.
I share the noble Lords’ desire to ensure that coasting schools are subject to robust oversight and intervention but, in the past, too many local authorities have made little use of their intervention powers, as we have discussed in earlier debates. The Bill now gives regional schools commissioners working on behalf of the Secretary of State the powers to work with and intervene in any school that is coasting. The Bill provides RSCs with additional intervention powers for maintained schools so that they can tackle schools directly that have been allowed to fail, or indeed coast, under the local authority’s watch. This means that all coasting schools will come under the scrutiny of the RSCs.
The revised Schools Causing Concern guidance, which is currently out for consultation, will set out what steps RSCs will take when schools in their area have been identified as coasting. Initially, the RSC will make contact with coasting schools in their area to identify whether the school has the capacity to improve sufficiently by itself. If the RSC deems that additional support or intervention is needed, there are a variety of intervention options, such as bringing in additional support from a national leader of education, temporary support from a local school or becoming a sponsored academy.
I emphasise that, throughout this process, no coasting school will go unchecked. RSCs will not wait until more than 10% of schools in a local authority have been notified that they are coasting before they start reviewing the education provision in these schools. The work of RSCs in relation to coasting schools will be continuous and thorough, with the aim of intervening swiftly where necessary. It is just not fair on the pupils in a coasting school to have to wait for an extraneous event, such as more than 10% of schools in their LA to be coasting, for support to take place.
RSCs are based in the regions that they serve, which means that they will make decisions on coasting schools based on their knowledge of the local area and with the input from their head teacher board. Head teacher board members are recruited from across the region and so bring local intelligence to RSC decision-making. I welcome the positive comments made today in Ofsted’s annual report about the appointment of RSCs as overseers of school performance.
RSCs are already successfully scrutinising academies in their region when they have concerns, and intervening where necessary. The proposed powers for them to do the same for maintained schools are an extension of this and they will be resourced up to enable them to do so.
RSCs are already working closely with local authorities, meeting them regularly to discuss schools of concern. Since their appointment, RSCs have been proactive in using their intervention powers in relation to academies and encouraging local authorities to do the same for maintained schools. We know that some local authorities have been positive about the introduction of RSCs, and have found that this partnership working can result in a joint understanding of local priorities, a new energy and an effective approach to tackling underperformance in their areas. In some areas we have seen a marked increase in local authorities issuing warning notices to their poorly performing schools.
Noble Lords will be aware that the Chancellor’s spending review speech restated the Government’s position on reforming the role of local authorities, as we have discussed. They will remain responsible for the maintained schools for which they are accountable, but the local authority role will, as I said, have to change in the light of the growing number of schools becoming academies. I therefore do not consider this amendment, which proposes additional responsibilities for local authorities in respect of non-maintained schools in their area, appropriate in that context.
I hope I have been able to reassure noble Lords that RSCs will be actively monitoring and reviewing all coasting schools, not just ones in areas where they are in bad company, and intervening when appropriate. I therefore urge the noble Lords to withdraw their amendment.
Baroness Pinnock
I would like to add my support to what has been said about the amendments relating to establishing regional bodies for adoption. Just to give some local examples, in Yorkshire they have already set up a pilot for regional adoption, involving a hub for the whole of the region and then three spokes: one for the north and east of the country, one for the south and one for the west. Each of those hubs includes all the voluntary agencies currently operating in the Yorkshire and Humber region.
Baroness Pinnock
“( ) A statutory instrument under subsection (2) may not be made until the Secretary of State has laid before Parliament a report on the funding of the costs of conversions under this Act.”
Baroness Pinnock
My Lords, I am a relative newcomer to your Lordships’ House, and just one of the features of the legislative process that has amazed me is that substantial changes can be made without there being any publicly stated budgetary provision. Therefore, here we are again today, legislating for an increase in the number of academy conversions without any stated provision for funding the changes.
Every school that seeks or is forced to become an academy is given a grant of £25,000, so if 1,000 schools are converted into academies, as the Minister stated in Committee, the Government will need to set aside £25 million. I accept that this is small change in the Government’s big budgetary process; nevertheless, £25 million can go a long way in other sectors of the education service.
This is just the upfront, visible funding. A report by the National Audit Office in November 2012, Managing the Expansion of the Academies Programme, stated that the additional cost of the academy programme to the Department for Education was £1 billion. The programme had by this stage involved just over 1,000 schools. Although there have been reductions in the costs of conversions since then, as reported by the NAO, there are undeniably costs in addition to the upfront £25,000 per school grant.
In response to the amendment tabled in Committee, the Minister said:
“I will be delighted to comment more on the DfE’s total settlement on Report”.—[Official Report, 17/11/15; col. GC 51.]
I look forward to hearing the specific details from the Minister. If no budget is identified, I, for one, will have to conclude that the funding is being top-sliced from other areas of the schools budget. If so, I will be very disappointed, because schools’ budgets are already being squeezed and further cuts would put some of them in considerable financial difficulty.
Therefore, the amendment is tabled with a purpose, which is to try to discover how much the Bill is going to cost the education sector and where the money is coming from. If, as I hope, the Minister is able to clarify all those points, I will indeed be very satisfied.
Lord Hunt of Kings Heath
My Lords, I am sure that we will all be interested to hear from the noble Lord the answers to the noble Baroness’s questions, particularly his response to her suggestion that the money for the implementation of the education parts of the Bill will be top-sliced, presumably from money that would have gone through local authorities to maintained schools. I would be very interested to know the answer to that.
I am going to tempt fate by asking the Minister the same question again, referring to what the Chancellor of the Exchequer said about the education budget in the Autumn Statement and his announcement that all schools in the secondary sector will become academies. He said:
“We will make local authorities running schools a thing of the past, which will help us save around £600 million on the education services grant”.—[Official Report, Commons, 25/11/15; col. 1370.]
I would like to know how on earth that £600 million is going to be saved. Does he think that the £600 million used by local authorities is simply a waste of money? All those central services provided by local authorities are to be destroyed but presumably most maintained schools think they are pretty helpful. I assume that, when they all become academies, the schools will be given some element of the budget to make up for the services they would have received from local authorities.
Understanding education finances these days is a conundrum but I certainly hope that the Minister will clarify what exactly his right honourable friend the Chancellor of the Exchequer meant by what he said last week. Perhaps the answer to the noble Baroness’s question is that the finances are going to come directly from the money that would have gone to local authorities, which may be what she meant by top-slicing.
Baroness Pinnock
I thank the Minister very much for his response. Two things occur to me. He stated that education spending in the Autumn Statement was going to rise over the four-year period from £60 billion to £65 billion, which is an 8% increase over the period or 2% per annum. That will barely cover the cost of inflation in the education area, let alone the increasing numbers of children in the sector. Although any increase is to be welcomed in these times, we should not over-egg the sums involved. The second interesting thing is that the Government intend to recoup costs from the maintained schools for the loss of the ESG at local authority level. That clearly reduces even further the amount of money the maintained sector has to invest in the learning of the children in its care.
Departmental budgets have yet to be determined, so it is understandable that we have not had an answer but could the Minister write to me in response to the questions I have raised once the internal budget has been determined so that there is transparency in the process and we all know how money is to be allocated for this particular part of the Bill? I am delighted that the Minister is nodding to show that he will be able to do that.
With that in mind, I beg leave to withdraw the amendment.
Education and Adoption Bill
Baroness Pinnock Excerpts(8 years, 11 months ago)
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Baroness Pinnock
“Scrutiny of education provision
(1) The Education and Inspections Act 2006 is amended as follows.
(2) After section 70C insert—
“70D Scrutiny of education provisions
(1) This section applies where more than 10 per cent of schools in a local education authority is eligible for intervention under section 60B.
(2) The relevant local authority may establish, under section 21(2) of the Local Government Act 2000 (overview and scrutiny committees), a committee of that authority to review and scrutinise matters relating to the provision of education in such schools in the authority’s area, and to make reports and recommendations on such matters in accordance with regulations under this section.
(3) Regulations shall make provision—
(a) as to the matters relating to the provision of education in such schools in the authority’s area which the committee may review and scrutinise;(b) as to matters relating to the provision of education in such schools in the authority’s area on which the committee may make reports and recommendations to local Academy sponsors;(c) as to information which local Academy sponsors must provide to the committee;(d) requiring Regional Schools Commissioners to attend before the committee to answer questions.””
Baroness Pinnock (LD)
First, I apologise to the Committee for not being able to attend the Second Reading of the Bill because of diary clashes.
My noble friends Lord Storey, Lady Sharp of Guildford and I have tabled this amendment to improve the local and democratic accountability of schools in a local community for a number of reasons. The first reason is that school funding accounts for around 50% of local authority spending for councils that have responsibility for education. The second reason is that, by their very nature, schools reflect the communities they serve and parents expect there to be a local process of oversight and a local means of expressing any concerns. The third reason is that there have been a number of high-profile failures of financial governance in the academy sector. For example, there have been allegations relating to fraud in a number of schools in Bradford and County Durham. The Education Funding Agency has issued financial notices to improve to several academy chains, including the Academies Enterprise Trust in 2014. The fourth reason for tabling this amendment is that multi-academy trusts currently seem to be the favoured way forward, but they are accountable for their strategic and financial performance only to the Education Funding Agency and the Secretary of State. The fifth reason is that governance models in multi-academy trusts ensure that the sponsor or sponsoring body controls the trust. I am sure the Minister will have seen the publication by the New Schools Network.
Multi-academy trusts are governed by a trust body and by so-called directors of the trust who take the strategic and financial decisions for the schools under their control. On the whole, multi-academy trusts set up local governing bodies to do the day-to-day running and there is no parental or staff involvement until this lower level of governance. The document recommends that there should be one member of staff and two parents on those bodies and that they should not have any oversight of the financial controls of the trust and therefore of the school in which they serve. The crucial thing in this model is that decisions on school budgets are in the hands of the directors of the trust and that the trust members are self-appointed and accountable for their actions only via agreements signed with the Department for Education and the Education Funding Agency.
In this model there is no accountability to the local community and to parents. This amendment seeks to address those serious concerns. There is currently a vacuum of democratic accountability regarding the attainment and achievement of schools and, even more importantly, for the attainment and achievement of the children in those schools. Those matters are no longer within the remit of the local authority. As a serving local councillor I can say that when parents approach me with concerns about their children’s academy school’s ability to achieve realistic opportunities for them, it is difficult to address those concerns other than by going through the very processes that created them in the first place—that is, the school’s governing body or trust.
In this amendment we propose to put matters right. In 2006 the Government established local authority health scrutiny committees. The government guidance for those committees, which is on the GOV.UK website, is very clear about their purpose. I think that the purposes for which health scrutiny committees were established could serve in establishing parallel scrutiny committees for schools within the local authority area. The government guidance for local authority health scrutiny committees, available on the GOV.UK website, states:
“The primary aim of health scrutiny is to act as a lever to improve the health of local people, ensuring their needs are considered as an integral part of the commissioning, delivery and development of health services … Health scrutiny is a fundamental way by which democratically elected local councillors are able to voice the views of their constituents, and hold relevant NHS bodies and relevant health service providers to account”.
It seems to me that by substituting “schools and education” within that guidance we have a prime way of letting local communities call to account all schools, particularly academies because there is a big vacuum in accountability for local academies. In the nearly 10 years since the committees were introduced they have been extraordinarily effective in bringing together local democratically elected representatives, health commissioners and CCGs, representatives of the acute trusts in the district and the public health people to scrutinise health issues. Together they have been able to resolve some of the difficult challenges of providing health services in the community. I would attest that this same model could work really well for local education.
The guidance goes on very helpfully to demonstrate how scrutiny committees can add value by bringing together partners providing, in this case, health services. I suggest that it could also be done for education in a district. It says:
“A greater emphasis on involving patients”,
and for education that could be parents,
“and the public from an early stage in proposals to improve services”.
Engaging people has got to be a positive. It continues:
“The work of health and wellbeing boards”,
in this case we could bring in the education scrutiny committee,
“bringing together representatives of the whole … system”.
This will therefore add value to the decisions made. It will provide an opportunity for a public, open, transparent and democratic hearing of a local community’s concerns about local schools.
One key to success in a school is harnessing the support of the local community that it serves. Anyone who has ever been involved in education, as I have, knows that good schools are supported very well by their local community. One indicator that a school is beginning to fail is when the local community starts taking support away from it.
The risk with the multi-academy trust model is that schools will become more remote from the communities they serve. I suggest that a successful multi-academy trust would welcome the opportunity of a public platform where it could demonstrate transparency in its decision-making and respond to questions about its performance from local people. With that in mind, I hope that the Minister will be able to respond positively to this proposal. I beg to move.
Lord Hunt of Kings Heath (Lab)
My Lords, I very much welcome the amendment of the noble Baroness, Lady Pinnock. I am not sure whether her suggestion is exactly right but the principles that she raises are very important. They concern local democratic accountability and they also concern what she described as flaws in the governance structure of academies, particularly multi-academies. I share her view on both points.
The noble Baroness suggested that we look at the health model and I think that she is right. One thing that puzzles me about academy trusts is that they do not seem to allow for a direct relationship between the governance and the parents, except in the circumstances that she has described. I suggest that we look at NHS foundation trusts, which after all were developed at around the same time.
I know that the education department is very isolated in Whitehall and this is yet another example of that, but the ownership of an NHS foundation trust is rooted in patients, staff and members of the public, because they become members without paying any cost and it is the members who elect the governing council. The governing council, in turn, appoints the non-executives and the chairman to the board and approves the appointment of the chief executive. The board of directors is a statutory body. It is the board that you sue and harangue if things go wrong, but it is accountable locally through a very well-ordered structure and it carries with it a much better sense of accountability. There is a clear line of responsibility with a proper board of directors. There is no problem about its legal responsibilities and it is accountable. When I chaired a foundation trust, the fact that I had to appear before the governors’ council every month or so to explain the trust’s problems and what we were doing about them was a very good discipline. It was not a very easy discipline—I confess that I did not enjoy doing it—but it was an immeasurably strengthening exercise, and I think that the noble Baroness is trying to get at that in part of her amendment.
The noble Baroness also raises the whole question of the local authority’s role in the education policy that the Government are developing. I refer back to a point raised by my noble friend Lord Knight during our first day in Committee. He basically said that if the Government want all schools to be academies, why do they not just say so and bring in legislation? Why do we have to have this rather obscure, backwards way of academising all schools? That is basically dishonest. I hope that the Minister might just praise a maintained school—he has four hours in which to do so but I have yet to hear him ever praise a maintained school. Clearly, he has an ideological problem with maintained schools. That is why we remain suspicious of the Bill and some of the motivations behind it.
Lord Sutherland of Houndwood (CB)
My Lords, I apologise for not being here in the Committee’s session last week. It was for medical reasons—and my experience has not filled me with either enthusiasm or confidence that importing wholesale from the health service will solve all our problems. However, there are some very good individual doctors in the system, which is why it works.
To go to the challenge put to the Minister about maintained schools from the noble Lord, Lord Hunt, I spent this morning with seven head teachers from maintained primary schools in the most difficult areas of inner London. I have no doubt that they are doing a terrific job. I agree that there are some excellent maintained schools doing an excellent job. Some of them even refer to the good partnerships with local academies which they hope will develop. That is the other side of the picture.
However, I would make two or three quick comments. When I hear the expression “democratic accountability”, the philosopher in me wants to write three articles to try to clarify what that means. The Committee should not worry, for I am not going to try to do that now, but it is a shibboleth at times. At other times it is an important use of language, just as talk of human rights is, but sometimes it covers a multitude of uncertainties and unclarities. I do not deny that it is important but here, for example, we have to distinguish between accountability for financial systems and governance—one kind of accountability that is not necessarily for a public committee; I would rather have a high-powered team from PricewaterhouseCoopers or some such going in to inspect them and report back—and the separate form of accountability which is necessary for educational practice. Parents and teachers no doubt have important things to say but it must never be forgotten that at least half of those, possibly both, are interested parties.
I come to the nub of what I want to say. The problem that the Bill is facing up to is essentially a question of dealing with what has arisen in schools that are currently maintained under the local authority system. If that is so, just recreating it without modification will not do the job. We need more subtlety and sophistication in trying to face that problem, when it is there that the difficulties have arisen. The Committee may have dealt, as I gather it did at some length last week, with the definition of coasting. But if there are coasting schools, a number of them have arisen within a local authority and within the maintained system. So there are good, bad and coasting schools, all of them within the maintained sector. That is why I find it difficult simply to pick up a proposal that all you have to do is to spread the responsibility by having ways of taking on board an additional set of views, without a means of sharpening them.
To go back to my speech at Second Reading, there is a danger that we will simply bring in delaying tactics, which are the curse of the current system. I am still worried about the Bill having delays built into it in a way that I find unacceptable. That is why I am not—
Baroness Pinnock
Perhaps I may help out a bit. What I have proposed in the amendment has nothing to do with delaying anything. What it seeks to do is to find a way for local people to have a local voice about the schools that serve their community, be they maintained schools, schools in a multi-academy trust or single trust academies. All the amendment is about is creating an opportunity for an oversight of what goes on in a local community. It is not about decision-making, as the noble Lord, Lord Sutherland, may have thought. If we follow the parallel of the local authority health scrutiny committees, it is not only about membership by local elected councillors. Those committees have a membership that is drawn widely from both those who are elected to serve their communities and those who have an interest or past professional experience in the health sector. Those people are drawn together to look at the health services in their area and come to some conclusions about them, as well as enabling local people to come forward with their concerns. So this is nothing to do with delaying or only having a committee. It is about enabling some sort of platform for local people to voice their concerns, or perhaps even their delight, at what is going on. I hope that that has clarified it a bit.
Baroness Evans of Bowes Park (Con)
My Lords, this new clause would allow a local authority to establish a committee to review and scrutinise the provision of education in coasting schools, where such schools make up more than 10% of schools in the local area.
First, I shall touch on the points made by the noble Lord, Lord Hunt, and the noble Baroness, Lady Pinnock, about the accountability of academies. Our view is in fact that the accountability structure for academies is stronger because it reflects their status as both charitable companies and public bodies. This means that when it comes to matters of good governance and financial management, which, as the noble Lord, Lord Sutherland, noted, are very important, they not only have statutory responsibilities under company law but explicit accountabilities to Parliament. Because of this dual layer of accountabilities, academies have a stronger financial framework and are held up to greater scrutiny than most other types of schools.
Baroness Pinnock
I wonder whether we are at risk of thinking that accountability for children’s education—their one chance to get a good education—is all about balance sheets, audits and professionals coming to some conclusion having looked at attainment levels. At their heart, parents are concerned about whether their children are happy in school, whether bullying is dealt with and whether they get opportunities outside school for extensive education—creative, artistic or sporting. Those are the sorts of things that they take into account as well as their child’s academic progress. That is the accountability that I am talking about, not some dry, dusty PwC audit report that parents may not be able to understand. They do understand what happens to their children’s experience in schools. Where can they ask the questions?
Baroness Evans of Bowes Park
I mentioned that because the noble Baroness specifically talked about academies suffering financial failures, so I was addressing that point. I will come on in due course to talk about some of the other issues that she has raised.
We believe that the amendment is not necessary as the Bill gives regional schools commissioners, working on behalf of the Secretary of State, the powers to work with, and intervene in, any school that is coasting. Both the noble Lord, Lord Hunt, and the noble Baroness, Lady Pinnock, mentioned health scrutiny committees as a potential way of looking at this issue. The structure that we believe will work best is that of regional schools commissioners, and I will go on to explain why. I am sure that we will come back to this matter time and again this afternoon but I will attempt to put down the first marker as to why we believe that the Bill has devolution at its heart.
First, the Bill is concerned with improving schools that have failed. Decisions will be taken by regional schools commissioners, who are immersed in their local context—a point highlighted by the noble Earl, Lord Listowel, from the conversations that he has had and from what he has seen. They are also advised by outstanding local heads. So there is local accountability and I will come on to talk a little more about that in due course.
Secondly, one of the main measures in the Bill gives greater power and responsibility to education professionals. The thrust of the Government’s agenda is to devolve power down to the very local level, trusting head teachers to know what is best and to do all the things that we want to see in good schools, as mentioned by the noble Baroness, Lady Pinnock. I am sure that we will return to this in later amendments.
As I said, the Bill provides RSCs with additional intervention powers for maintained schools so that RSCs can directly tackle schools that have been allowed to fail, or indeed coast, under the local authority’s watch. This means that all coasting schools will come under the scrutiny of regional schools commissioners. The RSC will work with each coasting school in their area to identify whether the school has the capacity to improve sufficiently by itself, which is one option, or whether additional support, including potential intervention, is needed. Such additional support could come from a national leader of education. Alternatively, the RSC may consider that the school should become a sponsored academy, or, as the noble Lord, Lord Sutherland, mentioned, there might be a partnership between the existing school and other local maintained schools or local academies.
The work of RSCs will go beyond what is suggested in the amendment. RSCs will not wait until 10% of schools in an area have been notified that they are coasting before reviewing the education provision in those schools. Their work in relation to coasting schools needs to be continuous and thorough, with the aim of intervening swiftly where necessary. RSCs are strategically placed around the country to make decisions about coasting schools while, as I said, being immersed in the local context.
The noble Lord, Lord Hunt, asked about the role of local authorities. They will work very closely with RSCs, and I will come on to that. However, in terms of provision, local authorities can run competitions to set up new schools in areas where there is such a need. So there is still a role for local authorities, and many around the country have been active, although perhaps not enough due to the places issue that we are facing.
As I said, we expect RSCs to work closely with local authorities, and we have already seen evidence of effective partnerships. For instance, in Suffolk, the regional schools commissioner, Dr Tim Coulson, meets the local authority every month to discuss schools of concern. The RSC has strongly encouraged the authority to use its existing statutory intervention powers, and over the last 12 months Suffolk has issued 22 warning notices to poorly performing schools. The RSC has brought into Suffolk a number of new academy sponsors with proven track records of success. Overall, 17 underperforming Suffolk schools have become sponsored academies since September 2014 and a further five are in the process of converting. Also, this month the RSC is meeting the leader of the council to discuss establishing a school improvement board with the aim that every school inspected by Ofsted over the next two years will improve by at least one grade.
As to accountability and parents, the Schools Causing Concern guidance which is currently out for consultation makes it clear that local authorities should already alert the relevant RSC when they have concerns about standards, leadership or governance in an academy or a free school. Parents can, and already do, write to RSCs when they have concerns. As I have said, RSCs are very clear about the need for community and parental engagement.
The Earl of Listowel
If I may respond to the noble Baroness, Lady Perry, one listens to the noble Lord, Lord Harris of Peckham, talk about his schools and the transformation that they have wrought, and indeed one listens to the Minister talk about our local school here, and it is clearly a huge and most important change that is very much to be welcomed.
I suppose that I need to be careful not to strain at gnats when we are talking about bigger issues. I recognise that expectations about the educational attainment of young people in care have been too low in the past. We have said that they have had too difficult a time, it is tragic and we cannot push them. However, we need to be careful not to move from one extreme to another. Ultimately, the best thing is what the Government are trying to do: to recruit and retain the best professionals closest to the child who are in the position to make a judgment on just how hard to push that child forward and at the same time how gentle to be with that child—a nuanced, sensitive approach. The children who visited us yesterday—what to say? I agree with these measures and I am sorry that I have not expressed myself more clearly. I certainly agree that we should not let children down by having too low an expectation.
Baroness Pinnock
I thank noble Lords for the interesting debate that we have had around accountability. I particularly thank the noble Lord, Lord Hunt, for the general support that he has given for the idea of trying to establish a greater degree of accountability within the system. I also thank him for reminding us that this is in fact a very nationalising, centralising approach to education, notwithstanding the remarks made by the Minister. In essence, all academies have to report to the Secretary of State, with one layer in between, which is the regional schools commissioner who is appointed by the Secretary of State. If that is not a centralising, nationalising approach to schools, I do not know what is. That is one of my problems with the creation of academies without any local accountability built in to the system.
Moving on to the regional schools commissioners, they are not regional in the accepted, geographic sense of the word. In my part of West Yorkshire, our regional schools commissioner is in—dare I say the word?—Lancashire. I have to tell you that it does not go down particularly well to be described as being part of the Lancashire—and a little bit of West Yorkshire—schools commissioner. I jest, in a sense, to make the point: because of the way that the regional schools commissioners are set up, they do not understand and know the regions. Most of the north-west is made up of very different communities from the old textile and engineering communities that I serve in West Yorkshire. For one man—it is a man—to try to understand and have that soft information, rather than always relying on the hard data, to make decisions about accountability is much to be regretted.
Finally, the noble Lord, Lord Sutherland, raised the shibboleth that is democratic accountability. We need to understand both those words. We are in danger, I think, of creating an education service in this country that has no, or very little, democratic input. For a service that is for every child, regardless of background, community or place, to have no democratically elected person to whom they can call on for help and guidance, and for those elected people to have no means by which to address those concerns, is a route down which we should not be going. Where else will those people turn? There is no point saying, as the Minister did, that parents are already writing to the reginal schools commissioners. No doubt they are—but they will not be some of the parents in the communities that I serve, for whom English is a second language and whose own literacy skills are not very good. They will not have those skills, so who does it fall on? Who in this chain will stand up for parents and their children who are not perhaps getting a fair deal locally? That is what I want to know and that is why this amendment was tabled. I have yet to hear the answers.
Those are my concerns about the words “democratic” and “accountability”. It is about having a local voice; someone who knows and who can be trusted and relied on to stand up for local people. I have yet to hear that. That is a huge shame and one that I think we will live to regret unless we create some means of achieving this outcome. Having made those remarks, I beg leave to withdraw the amendment.
Baroness Evans of Bowes Park
I think it would be best if I wrote to the noble Baroness as I do not have the figures directly to hand.
The academy trust structure also brings greater autonomy with a strong accountability framework. International evidence has shown this drives up standards. Academies operate under a robust accountability framework under which we are able to hold the trust directly to account for their school improvement and we have clear routes to intervene should concerns arise. We would not have the same robust accountability if a maintained school or a local authority took over responsibility for a failing school.
It is also not just about the freedoms and stronger accountability, though; it is also about some of the substantial advantages of operating in a multi-academy trust, which the noble Baroness, Lady Sharp, identified. It is acknowledged that the best way to improve schools is through local school-to-school support, and the best, most rigorous, efficient and accountable way to do that is through such a multi-academy trust. People who run multi-academy trusts talk about the advantages of the freedoms, the sense of being in control of one’s own destiny, the career opportunities as people are employed across a group of schools, the ability to retain good staff and, crucially, the ability to share best practice. They talk about leadership development, the enhanced CPD and, on the operational side, the economies of scale and purchasing power of being in a MAT. They talk about the ability to have common school improvement, behaviour management systems, a common curriculum, common teaching pedagogy and systems and the limitless benefits of pupils moving from primary to secondary when a MAT has both types of school in its family.
Baroness Pinnock
What I am concerned about in what I am hearing is that the Minister is suggesting that that does not occur in the maintained sector. There is sharing. The schools forum, which all local authorities have to have, brings head teachers together to discuss the very things that she has just described: a common approach to training, personal development for teachers, the sharing of best practice and being able to determine the “destiny” of schools, as she puts it—I hope that in fact we are talking about the destiny of children within them; it always worries me when people talk about the schools rather than the children. None of the factors that she listed there is relevant only to academies. They apply also to maintained schools, and we ought to recognise that.
Baroness Evans of Bowes Park
I did not say that they did not, but we are talking here about multi-academy trusts and why for failing schools it is a good option for them to be involved. Local school forums do indeed have a role but I think that many head teachers would talk about the positive benefits that they have found in setting up a multi-academy trust. That is all I am saying. I am not saying that local maintained groups of schools are not able to form good partnerships themselves.
Baroness Pinnock
Would the Minister therefore support outstanding local maintained schools becoming a sponsor for these schools? As she has just said that they can also behave in the same way, there does not seem to be any argument against a local maintained school becoming a sponsor for a failing school.
Baroness Evans of Bowes Park
They could certainly become an academy and do that, but they would have to have the same legal structure. I shall come on to that in a second.
Given that 65% of our secondary schools are now academies, it is increasingly sponsors for primary schools that we are seeking to source and develop. In small primary schools the MAT structure is even more critical, again making it necessary for sponsoring schools to be academies themselves that are able to form such a MAT rather than leaving small sponsored primary schools standing alone. We would certainly hope that any maintained school with the expertise, capacity and enthusiasm to support a struggling school would consider converting to academy status in order to do this, in the process unlocking all the benefits and opportunities that I have described.
We also anticipate that as more schools become academies and local authorities have fewer maintained schools left, as many already do, we will see members of local authority teams who are skilled at school improvement spinning out to set up their own MATs, and this development would be most welcome.
In conclusion, I shall quote Maura Regan, CEO of Carmel Education Trust, who attended our sponsor event last week. She said:
“We have to accept that what has happened historically in many local authorities has not worked. We are about revolution—we need to take a break from the past and embrace a new model whereby school leaders are increasingly in charge of their own destinies”.
In light of that, as well as my explanations, I urge the noble Baroness to withdraw her amendment.
Lord Sutherland of Houndwood
My Lords, I cannot but respond to the kind remarks of my noble friend. They were very generous. I could see the word “but” coming and it came. I want to say now, to retain what scintilla of reputation I have in Scotland, that I do not want the Scotsman tomorrow morning to report me as being against democracy. I believe in democracy. It is the least worst system but it works to the best possible effect. It is in Hansard so it must be true.
If there is a need for this tidying-up, I think the amendment proposed by my noble friend Lord Addington does it well. However, I will be interested to hear whether it is necessary. If it is, let us do it and get on with it. One of the things said quite a bit in this discussion is that by implication the government proposal is that there is only one way of changing schools, whereas local authorities have myriad wisdom. I am not sure that is true. I suspect that local authorities are more likely to be monolithic in their response to the need for change than the academy system which, if well regulated—I underline that—encourages variety and different forms of change. These different forms of change and development may well be necessary for the variety of schools in questions.
In terms of democratic accountability, if we say that academies are not the single way, we run the risk of returning to the local authority being the single way. What were they doing when schools started coasting? It is not an immediate process; it is slow progress. What were all these democratic institutions that we have—the local education authority, the director of education or equivalent and local councillors—doing? You ask who they can go to. They can go to the local councillor or to their MP.
Baroness Pinnock
I feel that I have to put the case for local councillors and their involvement in local education, since it is being not painted in the best possible light by my noble friend Lord Sutherland. I think that local management of schools came in about 25 years ago; I am looking around for some people who know better than I do. I have been chair of a large comprehensive secondary school in the maintained sector for a lot of that period. It is regarded as good by Ofsted, I am pleased to say, its value added is well over 1,000 and I hope we will continue to do well on the other scores of Progress 8 and all the rest. Its intake is below average nationally and locally. This is a local maintained school with local involvement where things can go right. I worry that our mindset seems to be that only local authorities can create good schools. I do not support that argument because it is plainly not supported by the facts. Equally, I do not support the argument that only academisation can do the same. That is not supported by the facts either.
The facts are that neither the structures of local authorities nor the structures of academies produce good schools. What produces good schools is something much more difficult than waving a magic wand and having a different structure. What creates good schools is good, outstanding leadership; a good cohort of leadership teams supporting the head teacher; a governing body that works well in supporting and challenging the school; and a local authority, or whatever the structure, that does the additional support improvement and provides professional training and development and all the rest of it. We know that that is what creates good schools and good opportunities for children in education, yet we insist on changing structures. But changing education structures does not achieve good schools—we know that.
A school in my own area—a leafy suburb school, as it happens—decided that it would become an academy. Within a year, it was in special measures and required improvement; that is the worst and the lowest possible rating. The school was good when it started, but in a year it went from being up here to being down there. Why? Because of the lack of the very factors that I have just described: failure of the head teacher; failure of the governing body; and no group to support it because it was outside local authority control. That is what we have to look at.
I am passionate about education and passionate about children getting a fair deal. Nowhere else are they going to get a fair deal, except through this route. Yet we insist on talking about structures. For goodness’ sake, let us talk about how we are going to deal with the national shortage of head teachers of any calibre, let alone outstanding ones. That would be a start.
Lord Sutherland of Houndwood
I agree with the noble Baroness’s diagnosis of what makes a good school. That is true. Children, and the way that they are dealt with in the education process, are the focus of this—they have one education. I absolutely share the passion of the noble Baroness.
Structures will not fix it all, but structures have made a difference. The academy system has made differences that are very important and have improved the lot of many children. When the current chief inspector of Ofsted was put in place to be head of a failing school, my goodness, he turned it around. That was a structural point. Unless the powers are there to do that, that opportunity will be missing, and that is what we are talking about today.
In view of the passion expressed, I have to share again, as I did in my Second Reading speech, that I was involved in declaring the first failing school. It would have been useless to go to the parents, the governing body, the local authority or the local community; they all hated what was said truthfully. That is the other side of the coin.
Where I am still, if you like, swinging a bit in the breeze—this relates to a point made by the noble Lord, Lord Watson—is on the use of the word “must” in Clause 7(2). That does cause me some reservations and worry. Whether it will persist to Report that the Secretary of State “must” make an academy order, I do not know. Sometimes, and the point has been made, drafting in the right leadership and head teacher can help, especially in an emergency situation. My worry about the word “must” is that it may exclude the immediate action that has been taken in the past and could be taken now. Making an academy order and setting up sponsorship will take time, and sometimes the school in question has not got time. So I have that worry and am very interested to hear what will be said from the Government side on this. I will reserve my position on that one until Report.
Baroness Pinnock
I am happy to respond. I am still a school governor and many noble Lords will be aware that the governance of maintained schools has had to change, and rightly so, for the reasons that have been given. By September of this year, school governing bodies had been completely overhauled. Many school governors are now co-opted for their specific expertise or experience. On my governing body we have two people who work in local businesses, an IT expert, someone from the finance sector to help with that side of things, as well as a couple of parent governors, staff governors, and by choice, a local authority governor. School governance has been substantially strengthened by these regulations and, where it is done well, they will inject two important elements. One is expertise and understanding, along with keeping the involvement of staff members and parents, and the other is that it is locally based. At the school where I remain on the governing body, it is local business people who are involved. That would be true across the piece, which is to everyone’s enormous advantage.
Childcare Bill [HL]
Baroness Pinnock Excerpts(9 years ago)
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The Parliamentary Under-Secretary of State, Department for Education (Lord Nash) (Con)
My Lords, it might first be of benefit to the House if I make a few points. I would like to thank noble Lords for their support during the passage of the Bill so far. I would particularly like to thank noble Lords whom I have met since Committee. I have found these conversations extremely helpful and I hope they have, too.
The Government are committed to supporting working families. That is what the Bill is about. It enshrines that commitment in law, with a new duty on the Secretary of State to secure 30 hours’ childcare for working parents of three and four year-olds. As the Secretary of State set out last week, the Department for Education’s focus should not be stakeholders or vested interests; our focus is unashamedly on children and their parents. The Bill makes that clear.
I have listened carefully and with great interest to the concerns noble Lords have raised throughout the passage of the Bill. As the noble Baroness said, I undertook in Committee to confirm a number of details ahead of Report. I hope that the package of support published earlier this month, the policy statement and the government amendments I have tabled, deliver on those commitments. I have had feedback from noble Lords across the House that this was helpful. I have listened to the debate on ensuring that Parliament has the opportunity to provide appropriate scrutiny on the detail of secondary legislation. We listened and tabled amendments in response.
Subject to the debate today, the first set of regulations made under the Bill will be subject to affirmative procedure. The amendment in question was informed by the first report of the Delegated Powers Committee and I thank the committee for meeting again on Monday to consider our proposed changes to the Bill. I am pleased that it welcomes the Government’s efforts to respond to early criticisms. The noble Baroness rather overstated the case by saying these were scathing, though I note that there are areas where the committee would like us to be clearer in our intentions. I will address these points at the appropriate time during today’s debate.
Noble Lords raised concerns about the detail and breadth of the Bill. We listened to and consulted parents and providers over the summer. On 2 October, we published a policy statement setting out the key milestones up to implementation in 2017, the delivery model and details of who will be eligible for the extended entitlements. Our amendments reflect those new details.
In Committee, noble Lords also understandably asked for reassurance on the quality of the childcare that children will receive under the Bill, and in our policy statement we have made clear that the quality of early education and childcare and the welfare of children remain paramount. I believe that the further things that I will say today in response to amendments on, for example, staff to child ratios, will provide even more reassurance.
Turning particularly to matters relating to this group of amendments, in Committee many noble Lords raised a number of questions about the funding review, which is the most comprehensive national review of the funding of childcare ever conducted. I will respond fully to the debate on this shortly. However, I take this opportunity to make clear that we have listened. In response, we published the terms of reference for the funding review, the findings of the first part of the review and the call for evidence, which received more than 2,000 responses. Yesterday, I was pleased to host a very informative meeting for Peers to meet the Minister for Childcare and Education and the department’s chief analyst. I would be very happy to host another such meeting following the spending review. We have no interest whatever in producing a funding regime which does not work for providers. We have substantially increased the amount of childcare over the last five years successfully, and we are confident that we will do so this time.
This Government are spending considerably more than any other on childcare, and we want to give more working parents choice and flexibility about the childcare they access. We have already heard from working parents, employers, representatives from the childcare sector and unions, and received nearly 20,000 responses to our public survey over the summer, which showed that parents strongly welcomed the new entitlement. Further support for the entitlement has been demonstrated by the poll of parents carried out by Netmums, which showed that the Government’s offer of more childcare is wanted, needed and eagerly anticipated. The survey also suggests that the reform will encourage more parents to work more hours.
I urge the House not to seek to delay this entitlement for working parents. Parents are demanding of us, and in response we should move quickly to put the new entitlement in place. During the election, we committed to 30 hours of free childcare, and we were the only party to commit to a review of childcare funding. We are now challenged on moving too quickly with some aspects and too slowly with others. Providers are keen for legislation. More than 1,000 providers have already come forward to ask to be involved in early implementation.
As many will understand, it is important that we give providers, local authorities and parents time to prepare for this substantial change. We want to move the Bill forward and take the next steps with regulations, consultation and, very importantly, early information. As the shadow Secretary of State for Education said recently, we now need those policies to be turned into reality. I completely agree.
Baroness Pinnock (LD)
My Lords, I thank the Minister for the statement he has just made, for the policy statement which he provided us with over the summer and for the briefing yesterday, which demonstrated that detailed work is being undertaken to understand the different business models of providing for childcare.
However, one element fundamental to ensuring that 15 hours of free extra childcare per week can be delivered at high quality is funding. In Committee, we were assured that that information would be available prior to Report to enable a full understanding of the Government’s commitment in terms of the amount of funding. At that stage, the Minister gave a commitment that the Government would announce by Report the findings from their call for evidence as part of the funding review, so that we could have details of the delivery model based on the principles laid out. Unfortunately, that is not available.
Waiting for that information will not cause a delay. The background analysis of the information has been carried out. We heard about it yesterday, and very good it is too. But the figures have not been put into the crunching machine, so we do not know how much will be available to fund this important element of improved childcare—increased hours—that we all welcome. I do not see how, as Members of this House, the role of which is to scrutinise legislation to try to improve it, we can fulfil our responsibilities unless we have that information. We support the Bill, but the funding is fundamental.
All through the progress of the Bill, on all sides of the House, we have made the point about the lack of information—both on the regulations and on the amount of funding that would be available. We have tabled an amendment about cross-subsidisation, which has already been raised in relation to funding. I will speak more about it when we come to the amendment.
The only commitment we have from the Government, as expressed in their policy statement, is that there will be an increase in the hourly funding rate for childcare. What we do not know is how much that will be. It could be 5p an hour. It could be £5 an hour; I hope it is but we do not know. Without knowing, I do not see how the other elements of the Bill can stand up to scrutiny. How can we assure ourselves of the quality of childcare that will be provided if the amount of funding that is available is not declared? How can we be sure that training for staff in childcare can be made available if the funding is not there? How can we be sure that the number of places will be available if the amount of funding does not support an increase in the number of places that will be required? It is fundamental to the success of this Bill—and we all want it to be a success. I urged the Minister to tell us how much money will be available. Unfortunately his hands are tied, and I appreciate that. That is why we ought to delay discussing this Bill, until we know how much will be available, because everything else depends on it.
At the moment, it is the equivalent of being told that we can buy a car when we do not know whether we can afford a second-hand Mini or a brand new BMW. Young children need and deserve better than that.
Baroness Andrews (Lab)
My Lords, I listened very closely to what the Minister said about the progress that has been made since Committee. Clearly there has been some progress, but I want to press him on certain points and to reiterate the points of colleagues across the House. The Select Committee said that it was surprised and disappointed at the Government’s response. It was surprised because it is unusual—very unusual indeed—for a government department not to respond more positively to a report of the committee. I will come back to that in more detail. Certainly I am less surprised than the committee, but I am equally disappointed. I understood, like many of us across the House, that what we were to expect, before the start of Report, was a full analysis of the impact that these changes would make, based on the information obtained about the costs borne by the sector and the distribution of those costs, so that the House, to quote the noble Lord, will,
“be able to say a lot more about the delivery model”—[Official Report, 1 July 2015; col. 2093.]
Frankly, that promise has not been fulfilled. We do not know more about the delivery model, we cannot comment on it and we cannot make more sense of it.
Lord Touhig (Lab)
My Lords, Amendment 2 continues the debate we have just had over the funding review and what it means for the delivery of the additional entitlement. It seeks to end the ambiguity in the Bill as to whether responsibility for delivering the additional 15-hour entitlement will be the duty of the Secretary of State—as currently worded in the Bill—or of local authorities. We were unable to secure a firm answer at Committee; in fact, the Minister stated:
“The Government think that it is right for the primary legislation to put the duty to secure the extra 15 hours on the Secretary of State in the first instance, to demonstrate to parents the importance we attach to providing free childcare provision and to give them confidence that the Government will deliver on their manifesto commitment”.—[Official Report, 1/7/15; col. 2114.]
We tabled Amendment 2 to gain further clarity. However, the Government have since tabled Amendment 18, which confirms that the duty falls on local authorities. If this is the case, local councils must be given the appropriate level of support to fulfil their duty. The Government have said:
“We will … look at how we can support local authorities in drawing up agreements between themselves and childcare providers (perhaps by publishing a national model agreement). In addition, we are considering what can be done to smooth out issues around payment arrangements between local authorities and providers.
A full economic impact assessment and new burdens assessment will be carried out in due course”.
The Local Government Association has said that the duty will create further cost pressures on local government and will involve the risks associated with placing additional costs on an already underfunded system. Will the Minister provide an update on what is being done to ensure that local councils will not be out of pocket as a result of being responsible for delivering the entire 30-hour package of free childcare? Again, without seeing the detail of the funding review it is impossible to see how councils fit into the delivery model. I noted from the summary of evidence submitted to the funding review that only 3% of local authorities responded. The Government have committed to an uplift in the average rate that providers receive for the entitlement. The current proposal is for this to be delivered by councils through the dedicated schools grant. The Department for Education has confirmed that decisions about the size of this rate uplift and the consequent additional funding will be made at the forthcoming spending review, which the Minister referred to in the earlier debate.
On 15 June the Government announced that they are conducting a review of the cost of providing childcare. This follows warnings from providers across the spectrum that the current system is underfunded. I know that the Minister does not agree with that, but it is what the sector tells us. It is vital the Government ensure that the funding rate covers the cost of delivering 30 hours of free childcare to a standard likely to improve children’s outcomes and deliver broader policy objectives on employment progression and social mobility—a point well made in the earlier debate.
An initial look at the government amendments in the group might suggest a concession, as expressed in Amendment 12, but, having removed subsections (4) to (7) with Amendment 12, in Amendment 18 the Government seek to recover ground by giving the Secretary of State a power, as opposed to a duty, to make regulations on how local authorities should discharge their duties. The Government could have made Amendment 18 more palatable if they had used “must” rather than “may”. The “may” in line 2 gives the Secretary of State discretion as to whether to make regulations, although it is difficult to see how the scheme can operate without the use of regulation-making powers.
So it goes on. I am sure many noble Lords will have seen the eighth report of the Delegated Powers and Regulatory Reform Committee published yesterday, already referred to by my noble friend Lady Jones of Whitchurch. It says,
“we are surprised and disappointed that many of our recommendations have not been acted upon. It appears to us that the amendments add very little of substance to the face of the Bill: for the most part they adjust the existing delegated powers by removing some, varying others and adding more, while re-parading many in a new clause”.
It sounds a bit like moving the deckchairs on the “Titanic”. The report also says:
“Although the changes to some delegated powers may give the House a clearer idea of how the powers could be exercised, it remains unclear how they will be exercised”.
What an indictment of a very important Bill which is welcomed all around the House.
Amendments 14 and 16 remove from the Bill the ability of the Secretary of State to criminalise parents. In new subsection (2)(h) proposed in Amendment 18, the Government use their proposed new clause to replace the power in what was Clause 1(5)(k) to create criminal offences. I agree with the eighth report of the Delegated Powers and Regulatory Reform Committee that this is welcome and that the new power is focused only on unauthorised disclosure of official information. But the committee points out that the power is not insignificant,
“as it would enable the creation of an offence sufficiently serious to be punishable by imprisonment for up to two years”.
On Monday, the Times revealed that Facebook, a company worth billions, paid just £4,000 in taxes to the British Crown last year—around £1,000 less than the average British worker pays in taxes and national insurance. It is tax avoiders such as this that should be criminalised, not working parents, who might get a criminal record and face a jail sentence, perhaps for completing a form incorrectly when seeking free childcare.
We will come to the issue of affirmative versus negative procedures for the making of regulations later in the debate, but I believe that this is a matter that we will have to look at in much more detail. In fact, the Delegated Powers and Regulatory Reform Committee said yesterday in paragraph 10 of its report:
“We draw subsection (2)(h) to the attention of the House, so that it may consider whether the requirement for affirmative procedure only on first exercise of the power affords an adequate level of Parliamentary scrutiny for regulations which create, or alter the statutory ingredients of, criminal offences”.
I hope that the Minister will note those wise words.
Also in this group is Amendment 20A, which will be spoken to by the Liberal Democrats. We strongly support it because we believe that parents on low levels of income and those with multiple jobs need the kind of flexibility that it will engender. I do not wish in any way to take away from the comments that representatives of the Liberal Democrats will make, but I want to make clear that that amendment certainly has the strong support of this side of the House. With those few words, I beg to move.
Baroness Pinnock
My Lords, for greater clarity in the debate we withdrew our Amendment 15 and retabled it as an amendment to the new clause in government Amendment 18. Our amendment relates particularly to subsection (2)(b) of the new clause, which is about making,
“provision about how much childcare is to be so made available for each child, and about the times at which, and periods over which, that childcare is to be made available”.
Over the course of the debate on this Bill—on Second Reading, in Committee and again today—we have consistently argued for greater flexibility in the periods of time over which the 15 hours’ additional free childcare can be offered. We have done so for a number of reasons.
Many parents, particularly women, take on two or three jobs in a week to try to make ends meet. In my role as a local councillor I had the difficult task of trying to find new accommodation for a grandmother so that she could move from her council housing to a flat nearer her daughter as the daughter got up at five o’clock in the morning to take on a cleaning job at six and at that time no other childcare was available. I know at first hand what it means for many mothers who are trying to do, for instance, a cleaning job before the school day, something for school-lunch duties in the middle of the day and then another cleaning job at the end of the day. With this Bill we have an enormous opportunity to support those mothers and help them continue in work. That is why I have made what I hope is a strong case for defining more explicitly the flexibility that we are asking for in the Bill, rather than leaving it to vague definitions.
Not only is there the difficulty in the working week for the parents I have described; for all parents school holidays can be a nightmare. This is not just because the children are at home but because these parents are trying to juggle finding childcare for their children at home in the holidays while continuing in their work. Many parents find relatives, but not all are able to find them. The definitions of flexibility that we are proposing to include in the Bill would enable that to happen and would be of great advantage to many parents. Questions from those in the sector have indicated that one facet of the Bill they would particularly like to see is what they call a stretch of the hours over a longer period, not only during a week but also over the school holidays. That would be a tremendous help to many working families. I hope that we will not lose that opportunity.
I shall listen carefully to what the Minister says when he responds to the proposals that we have made. I feel strongly, as do my colleagues, that the Bill should contain a clear definition. It currently does not. If it is not included in the Bill today, we will have to think again about how we can move forward to ensure that it does.
Baroness Jones of Whitchurch
My Lords, I rise to speak to Amendment 9. Our amendment builds on the Minister’s own previous admission that a more detailed criterion was needed and his pledge to consider the issues again, taking into account what he described as our helpful contributions at Committee stage.
In this spirit, we are again trying to be helpful. Although the Government have made some concessions, we do not believe they have gone far enough, or are clear enough about which parents would qualify for the free hours. Again, we share the concerns of the most recent report of the Delegated Powers and Regulatory Reform Committee, which criticises the Government for relying on the detail of the eligibility criteria being spelled out in regulation rather than on the face of the Bill. It went as far as to say it was “mystified” by this omission.
This is particularly important given that the Government seem to be rushing this Bill through because they want to send an early message to parents that the new entitlement is on its way. However, unless parents are clear on whether or not they will qualify, I rather think that that message will be lost on them. Of course, the current 15 hours of free entitlement applies to all parents, but the additional hours envisaged in this Bill will apply only to parents working a minimum of eight hours a week. I have to say that I do not think that that will go down well among parents with different circumstances sharing the facilities in nurseries. For example, nursery providers and parents will find themselves grappling with definitions and calculations. Some weeks parents will qualify, and other weeks they will not.
As the noble Lord, Lord True, pointed out in Committee:
“At the moment we have a beautifully simple system”.—[Official Report, 1/7/15; col. GC 2099.]
It is easy to administer, and there is a strong case for maintaining the additional free hours as a universal benefit.
However, if we accept the Government’s focus on just helping working parents with the cost of childcare, helping them return to work or to work more hours, then it is important that those new eligibility rules deliver that objective. That is what our amendment seeks to do. The first part of our amendment reflects the Government’s plan that there should be a minimum eight hours worked each week. The second part of our amendment identifies the exceptions to this rule for parents who are in the job market, training for work or unable to work through no fault of their own.
I submit that the categories we have identified are the very people whom the Government are most likely to help back into work by providing additional free childcare. These are the hard-working parents on the bottom rung of the jobs ladder, who will genuinely struggle with childcare costs. If the Government want to encourage work and extend working hours, these are the very people we need to help. Putting an artificial bar of a minimum of eight hours a week does not really address those concerns.
When the Minister addressed these issues in Committee he argued that there were some discretionary payments that might help parents who study or who were carers. The Minister has repeated those assurances today. However, that is very different from an automatic entitlement to free childcare and, as I have said, there is a strong case for keeping it simple. The Minister also made it clear that parents on flexible contracts, zero-hours contracts or who lose their job unexpectedly should not be disadvantaged. We welcome this commitment and our amendment seeks to enshrine it on the face of the Bill. Our amendment would provide a simple entitlement to categories of parents for whom the Minister has already expressed some sympathy. On that basis, I hope that the Government will feel able to support our amendment.
Baroness Pinnock
Throughout the debate, we have grappled with eligibility criteria. I recognise the fact that the Minister has listened and defined much more clearly the working parents who will qualify under the scheme. However, as the noble Baroness, Lady Jones, has just described, it will be a very complex scheme, as set out in the Bill.
I want to speak to Amendment 10, which we tabled, by first of all thanking the noble Baroness, Lady Evans, for reminding everybody that it was a Liberal Democrat initiative to ensure that 40% of two year-olds from the most deprived and disadvantaged families were for the first time given 20 hours of free childcare a week.
What concerns us here is the huge gap in childcare provision for the majority of parents and their children between the end of paternity or maternity leave and access to free childcare at age three. We want to keep reminding the House and the Government that this gap must be bridged. Despite what the Minister said, it will cost most parents who are in work around £400 a week, which is a significant sum of money, for their one and two year-olds to access full-time childcare. This is somewhat addressed by the tax-free childcare allowance of £1,000-plus a year, but that comes nowhere near addressing the substance of the bills that parents face.
The other issue that I want addressed and have consistently raised is that people who are out of work for more than a year find it increasingly difficult to get back into work. If we can reduce those barriers by providing free childcare, we will be helping them, their families and the state in the long term. That is why I continually raise this point whenever we debate childcare. For those reasons, I want to stress this amendment today. I know that it will not be supported across the House, but I want to keep reminding people about this issue. I shall keep coming back to it, because it is very important for many parents—and for social mobility, which the noble Earl, Lord Listowel, for instance, is concerned about. I hope that in the longer term the Minister will be able to address this gap in childcare provision.
Baroness Pinnock
“( ) Regulations as described in subsection (2)(b) must ensure that the times at which childcare is to be made available provide sufficient flexibility—
(a) for parents who work outside the hours of 9am to 5pm, Monday to Friday; and(b) to ensure that childcare is available during school holidays within the local authority area of the relevant childcare provider.”
Baroness Pinnock
I thank the Minister for his very general but principled commitment to greater flexibility and for his willingness to explore the possibilities. However, at this stage I would have hoped for a much clearer definition of expectations in the flexibility that we are going to allow when providing childcare. For those reasons, I would like to test the opinion of the House.
Baroness Pinnock
“Funding of childcare
For the purposes of discharging the duty imposed by section 1, the Secretary of State must ensure that—(a) the level of payment made to any childcare provider by the Secretary of State for the provision of childcare is paid at a rate which ensures that the provider does not have to subsidise the cost of providing free of charge childcare by placing additional charges on other childcare which they provide; and(b) particular provision is made for children living in deprived areas.”
Baroness Pinnock
In moving Amendment 24, I will speak also to Amendment 25. I have three things to say, as there are three areas that these amendments cover.
First, we know that capital funding is a big issue for the National Association of Head Teachers in particular. The association is concerned that, with growing numbers in the primary phase and the early years phase per se, there will be inadequate buildings expansion to address the additional 15 hours’ free childcare. Local government associations are also pressing the Government to commit to a capital fund for the expansion of buildings to ensure that the childcare can be accommodated. That is one reason why we tabled the amendment: to ensure that the Minister considers this issue when he makes these decisions.
Baroness Evans of Bowes Park
My Lords, I would like to speak to Amendments 24 and 25, tabled by the noble Baronesses, Lady Pinnock and Lady Tyler, to which the noble Baroness, Lady Jones, has just referred, and to which the noble Baronesses, Lady Andrews and Lady Howarth, referred earlier in relation to cross-subsidy.
On Amendment 24, I thank the noble Baronesses for highlighting the need for the rate paid to be sufficient for providers delivering the extended entitlement, and for bringing to my attention the need to secure provision for children in deprived areas. I understand the concerns they are seeking to address through these amendments, and the Minister mentioned earlier that we share the aim of getting the funding for the entitlement right. We are clear that this funding must be sufficient to ensure that providers are funded adequately to be able to deliver the additional requirements set out in the Bill.
We have listened to providers’ concerns that increasing government-funded hours will limit their ability to cross-subsidise from parent-funded hours and that delivering at current rates may not be sustainable. That is why the Prime Minister has committed to increase the average hourly funded rate paid to providers. As was mentioned earlier, we are the only party to have made this commitment. We have already committed £840 million of new funding to deliver the extended entitlement, and that is before we deliver on our pledge to increase the hourly funding rate.
My noble friend Lord Nash has spoken at length about the review of the cost of providing childcare, the purpose of which is to provide a robust analytical underpinning for a funding rate that is fair and sustainable for providers and delivers value for money to the taxpayer. I confirm that the review will include in its consideration the needs of children in deprived areas. I also assure noble Lords that the Government understand the importance of early years education for children from disadvantaged households.
We know that high-quality early education can lead to higher attainment later but there is a persistent gap between children eligible for free school meals and their peers in the proportion achieving a good level of development in the early years foundation stage profile. This is why we introduced the early years pupil premium in April this year, which provides extra funding to early years settings for each three or four year-old child from a disadvantaged household. We have estimated that there will be around 170,000 children eligible for this extra support in 2015-16. We expect to receive the first data on take-up of the early years pupil premium by the end of this year and will consider these very carefully and take them into account when we develop future policy.
Turning to Amendment 25, the Government aim to deliver a quality free childcare entitlement, with capacity created cost-effectively without driving up costs to parents. The majority of working families with three and four year-olds already use more than 15 hours of childcare. This means that many children will already be in a childcare place and will not require a new one. Rather, the new extended entitlement will pay for the additional hours parents are already purchasing from an early years setting themselves, helping working families with the cost of childcare.
There is natural growth in the childcare system but we can, and should, encourage new providers to enter the market or existing providers to expand. Collaborative arrangements across different types of providers and increased flexibility for providers are important elements of this. That is why, for example, under the Small Business, Enterprise and Employment Act, childminders will be able to provide childcare on non-domestic premises.
The Government have already made a £100 million investment of capital in early years to support the expansion of provision for two year-olds. We believe there is existing capacity in the system to help deliver the new entitlement, and we are continuing to talk to local authorities to increase our understanding and evidence of where this is. The Government are committed to funding the extension of the entitlement at a level that ensures choice and flexibility for parents, is sustainable for providers, and is fair to the taxpayer. Decisions on the level of funding, including any capital, will be made in the forthcoming spending review. I therefore urge the noble Baroness to withdraw her amendment.
Baroness Pinnock
I thank the Minister for her commitment to the capital element and to focusing on areas of deprivation and disadvantaged families in future deliberations. With that in mind, I beg leave to withdraw the amendment.
Education: Initial Teacher Training
Baroness Pinnock Excerpts(9 years ago)
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Baroness Pinnock (LD)
My Lords, with a YouGov poll showing that 50% of current teachers are considering leaving the profession within the next two years, when we are 8,000 teacher training places short of what we need and with rising school numbers, would the Minister not agree that, however good the quality of teacher training, the fact is we will not have enough trained teachers in our classrooms? What is he going to do about it?
Lord Nash
If I may say so, this is slightly a case of creating a crisis out of a challenge. We actually have more teachers than ever before. We have a higher quality of teachers than ever before. We are improving behaviour management and workload to reduce the risk of teachers leaving the system. Many more teachers are returning to the workforce and the vacancy rate has remained at around 1% or below over the last 15 years. Indeed, frankly, over the last 15 years it has on several occasions, including under the last Government, been higher than it is at the moment.
Childcare Bill [HL]
Baroness Pinnock Excerpts(9 years, 4 months ago)
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Baroness Pinnock
“( ) Regulations as described in subsection (5)(c) must ensure that the times available provide sufficient flexibility—
(a) to parents who work outside the hours of 9 am to 5 pm, Monday to Friday; and(b) to ensure that childcare is available during school holidays within the local authority area of the relevant childcare provider.”
Baroness Pinnock (LD)
My Lords, we are recommencing our discussions on this very important and much welcomed Bill to extend free childcare by 15 hours per week. The purpose of this amendment is to require more explicit flexibility in the provision as outlined. I welcome the Minister’s assurances that there will be flexibility within the provision, but, sadly, that is not entirely clear in the Bill.
What do we mean by flexibility and why is it so important that we have put down an amendment? The Bill would be much improved if it stated that the Government intend to provide 1,140 hours of free childcare per year rather than, as stated in the Bill, 15 hours for each of the 38 weeks of the school year. It would encourage providers to think about the needs of families and their young children. Many parents have non-standard hours of work, often in low-paid work such as cleaning, hotel work or caring for older people, and some parents work shifts, particularly in the nursing profession. All those people would benefit from greater flexibility in the provision. In our view, this will not happen unless there is encouragement and incentive from the Government to do so.
In addition to trying to meet the working hours of parents, there is the additional challenge of providing free childcare during the school holidays: the 14 weeks of the year in which schools are not working. That is a not insignificant problem for many families. In those 14 weeks, they have to try to juggle grandparents, neighbours and other people who willingly give up time to help them manage their working lives and the need to provide childcare—or they have to pay for additional childcare, often, as we discussed earlier in Committee, at a very much increased hourly rate, sometimes as much as twice the rate that is paid by the Government for the so-called free hours. That is a huge challenge for many families. Flexibility during holiday times and enabling families to get out to work in times other than the traditional nine to five, which is the basic provision in the Bill, would be greatly welcomed by many families, particularly those on low pay, on whom I hope this Bill is particularly focused. I beg to move.
Lord Touhig (Lab)
My Lords, I shall speak to Amendments 23 and 24. They would place in the Bill the current permitted staff to child ratios for childminders and nurseries. One of the central themes running through the Second Reading debate was concern about the capacity of the early years sector to provide the extra free hours. For example, the right reverend Prelate the Bishop of Durham spoke of the strains on providers not in purpose-built facilities who cannot extend their opening hours. My noble friend Lord Sawyer and the noble Earl, Lord Listowel, talked of low pay and staff shortages. Many noble Lords spoke of the underfunding crisis in the sector and the limitations of cross-subsidy options. As we know, this point will be part of the Government’s review of the finances of the extension.
The Minister and this side have a difference of view about the health of the sector and its capacity to expand and take on new duties. I sincerely hope that we are proved wrong, but in the mean time, there is concern that the Government will look again at increasing the staff to child ratio as a quick fix to deal with the capacity issues. We believe that these amendments are necessary because of this Government’s public statements and attempts in the past to increase the ratios.
This would be all too easy in the future as the current ratios are in regulations which can be changed by the Secretary of State. We are therefore keen to provide the necessary reassurance and guarantees to parents and professionals alike that the current ratios are safeguarded. Noble Lords will recall that there was a massive outcry across the sector when it was proposed to change the ratios. It was felt that this move would compromise quality and put children’s lives at risk and, as a result, the Government had second thoughts and backed down.
However, there is real concern that with the drive to increase the supply of early years places the Government might revisit the original plan. We believe that the current ratios have stood the test of time in balancing the quality of provision with the cost to providers and therefore parents. Professor Nutbrown, who has advised the Government on early years provision, has made it clear that she would oppose any change in the ratio. She quite rightly makes it clear that good-quality provision is directly related to the qualifications and training of the staff involved, as well as their capacity to relate to the children on an individual basis. This is crucial to the well-being and development of young children.
Our proposals would ensure that a single childminder can care for up to six children under the age of eight, including a maximum of one baby under 12 months and another two children under five. By anyone’s imagination it would be quite a workload and a challenge to provide appropriate care across the age group. I looked after one of my granddaughters, aged 22 months, for part of the weekend and can certainly testify that it was challenging indeed.
There must be one member of staff at a nursery for every four children aged two and three and one for every eight children over the age of three. We would also set out the minimum qualifications for these staff members in regulations. Again, the ratios as they stand sound fairly challenging. But they are necessary not just to support the crucial period of early years development but to provide safeguarding and protection for vulnerable children. Nursery staff already work under considerable pressure and we should not be tempted to add to it. So we believe that it is necessary to protect the current ratios and putting them in the Bill would guarantee that if any changes are proposed in the future they would have to come to Parliament and be subject to extensive parliamentary scrutiny and debate. We believe that that would be the right way forward.
Lord True
My Lords, I can be relatively brief, since some of this follows earlier discussions. I have yet to be persuaded that the ranks of providers and settings that we are told are required will spring into being. I was interested in what my noble friend said in response to the previous amendment: new settings will emerge that will enable flexibility. When I think of the struggles that I have as a local authority leader to find settings for primary schools, let alone nursery schools, I do not think it will necessarily be quite as easy as that. Furthermore, I urge that, when we read through this debate, the point that I made about flexibility as it applies to part-time workers and the people providing the service is understood. We ask a lot of our nursery teachers at the moment and many of them have busy family lives.
My main point with regard to this amendment is that, at the moment, the voluntary, private, independent sector is relatively small. However, the Bill envisages an economy in which we move to an expectation that any setting that is participating in this scheme will actually provide 30 hours of care for 38 weeks a year. As I tried to illustrate on an earlier amendment, there are a very large number of settings in rented premises such as church halls and parish halls, or providers whose teachers want to follow the school term because they themselves have children at school; it suits many such employees to have school holidays. For various reasons, many providers will simply not be able to provide the 30 hours for 38 weeks on any method. Some will not be willing to do so because they place greater emphasis on educational purpose than on occupying the crease. There is a dashing element to education and there is a Geoff Boycott mode of being there for 1,140 hours to fulfil the commitment. I do not expect a formal answer from my noble friend. All I am asking on this amendment is to consider those extremely valuable settings in villages and small places where the parish hall may be required for other purposes. Socially, they are extremely important and they should not be hyper-regulated to whatever extent the Treasury says we have to regulate this new sector to protect public money—so that for the 30 hours and 38 weeks we have to comply with 65 pages of new regulations to ensure that the state’s money is protected.
All I am asking is that it is understood, just as we understand with independent education, academies and free schools, that there may be some variety. There may be places where good-quality education is provided where it is not necessary to conform to every regulation that the state puts forward for this 30-hour, 38-week scheme. This is a plea to my noble friend as he reflects on this. This informal sector should not be snuffed out by being crowded out by state-supported provision and commercial ventures that are allowed to borrow against the certain stream of the 30-hour, 38-week commitment from the taxpayer. If it is to be nurtured, can we give those settings the same degree of latitude with regulations, while obviously making the same demands about inspection, that we give to the excellent educators in academies, free schools and the independent sector in maintained education, where we do not necessarily expect everything to be the same? That is the thought behind Amendment 28. It is not necessarily a perfect amendment, but just a thought that I place.
Amendment 38 is simply a rider to that. Ofsted does important work, and every setting needs a “good” or “outstanding” Ofsted finding to succeed. When Ofsted is assessing educational quality—not just Geoff Boycott occupying the crease—can we be sure that in no circumstances will it include in any report that the setting is not open for 1,140 hours and is therefore not conforming to the standards that are expected? It is very easy to slip into that sort of position.
I am not expecting an answer now because Report and later stages of the Bill will follow, but I fear that the independent informal sector may grow simply because it physically cannot conform to the requirements of 30 hours and 38 weeks. We should not resent that or compete with it. We should nurture it and that should be understood in the policy approach to regulation and inspection. I beg to move.
Baroness Pinnock
I want to comment on two aspects of what the noble Lord, Lord True, has proposed. He raised the issue of capacity, which we raised on the first day in Committee. We received assurances from the Minister that capacity would be much less of an issue than some of us feared. I trust that the Minister believes that to be the case. If so, perhaps the noble Lord, Lord True, is overstating the issues that he has raised today.
The second matter is more important and concerns the continuity of care provided if we go for this 30 hours a week. Almost inevitably, as we said on the first day in Committee, many children will take part in different settings, so 15 hours may be in a school nursery setting and the other 15 in a private nursery, with a childminder or a combination of all three—childminder, private sector day nursery and state nursery. We should think very carefully about that. I hope that the Minister will be able to come back with some thoughts about this. Very young children may be moving between those three different settings during the course of a day. How does that benefit them? How can we overcome some of those changes that the noble Lord, Lord True, has raised in the discussion around his amendment this afternoon?
Lord Northbourne
My Lords, I make a very brief intervention and I have to declare an interest. Is there not some scope for grandparents in this pattern? Will it be possible, for example, for some of those hours to be taken up formally by grandparents or other relations of the child?
Baroness Pinnock
“Duty to report: child poverty target
(1) The Secretary of State must, in each financial year, starting with the date 12 months after the commencement of this Act, report on the impact of the free entitlement to childcare on meeting child poverty targets.
(2) For the purposes of this section, “child poverty targets” means the targets set out in sections 3 to 6 of the Child Poverty Act 2010.”
Baroness Pinnock
My Lords, this is a timely amendment, given the Government’s Statement of last week. When we were considering the Bill’s impact, it seemed to us that it would be a progressive move to relate the benefits of the additional free hours of childcare to improvement or otherwise in measures of child poverty, hence the amendment tabled in my name.
When considering the impact of the Bill, we became concerned that the financial benefits claimed by the Government could be completely undermined by changes they are going to make elsewhere. We were right to be concerned, given their announcement last week that they aim to abolish the measures of child poverty that were instituted in the Child Poverty Act 2010. In particular, we are concerned that the combination of those changes and the changes to working families’ benefits will have an adverse impact on child poverty.
There was cross-party support for the Government’s attempt in the 2010 Act to set out targets to reduce child poverty. Therefore, I am disappointed—to put it mildly—that the Government are now intent on removing the income-related figures for child poverty and replacing them with measures of worklessness and educational attainment. If you are a child living in a family on low income or benefits, it matters little whether that is the consequence of your parents’ worklessness or educational attainment, and there is little you can do about it. It is really important that we get to grips with this and use the Childcare Bill to lift more children out of poverty. I am sure there is a commitment to doing that across this House; it is the way we do it that will be a matter of debate.
The Government will want to use the undoubted benefits of the Bill to achieve that by agreeing to amendments that would extend the definition of working parents to those seeking to improve their education and skills. That would marry very neatly with what the Government said in the other place last week about educational attainment being a measure of poverty. If that is to be one of their measures, using the Bill to help parents who are seeking to improve their skills by going into education or training would combine the wishes of the Government with the Childcare Bill. That is something we could perhaps all agree to.
When I raised this issue last week, the Minister said that there were other ways for young parents who were in education to access some form of childcare, and he is right. But, having asked people over the weekend how this works, I can assure him that it is not that easy for young parents going into college, university or training to access really good free childcare. Aligning the Bill with the requirements of people going into education and training would be an enormously progressive move towards helping low-income families and therefore tackling child poverty.
If there is something we can do to lift more children out of poverty—which would have long-term benefits not just for them but for the country as a whole—and if we can do it fairly simply by linking parents’ educational needs with the Bill, we should all try to do it. I would be very pleased indeed if the Minister rethought the answer he gave me last week, in the light of the Government’s announcement, and I urge him to do so. I beg to move.
The Earl of Listowel (CB)
I am grateful to the noble Baroness for moving this amendment. The Child Poverty Action Group has told us that it welcomes this legislation because of the positive impact that it is likely to have on child poverty. I hope that it may be helpful to remind the House of concerns about other current factors in play which might impact on child poverty.
I am grateful to the Minister for agreeing to a meeting on the issue of homeless families. I am reminded of a couple of times recently where, due to a combination of policy factors, many poor families have had to move out of London because they can no longer afford to live here. That is causing concern to employers, as their workforce is leaving London, and one must be concerned that those families are going to areas where they will have difficulty finding employment. While I know that this is an extremely difficult issue, it is helpful when we are talking about policies which will raise children out of poverty to keep in mind other things that might be pushing children into poverty and to think carefully about what we can do to hit that on the head as well.
Baroness Pinnock
“Impact of childcare entitlement on low income working parents
(1) Within 24 months of the commencement of section 1 of this Act, the Secretary of State must publish a report on the benefits of free childcare provided under section 1 for low income working parents.
(2) A report under subsection (1) must include an assessment of—
(a) the monetary value of the free childcare entitlement to low income working parents;(b) the educational value of the free childcare entitlement for children of low income working parents;(c) the number of low income working parents taking up provision of the free childcare entitlement.(3) An assessment under subsection (2)(a) must include an assessment of the extent to which any monetary benefit to low income working parents from the free childcare entitlement is offset by any changes to—
(a) working tax credits;(b) child tax credits;(c) universal credit;(d) child benefit,that have occurred since the coming into force of this Act.(4) An assessment under subsection (2)(c) must include an assessment of the impact on the number of working parents of any changes to working tax credits that have occurred since the coming into force of this Act.
(5) For the purpose of this section “free childcare entitlement” means any childcare provided free of charge under the duty set out in section 1 of this Act.”
Baroness Pinnock
My Lords, Amendment 39 is in my name and that of my noble friend Lord German and the noble Baroness, Lady Jones of Whitchurch. The amendment is an extension of our discussion on Amendment 34 on the links between this Bill and child poverty. As we know, the Government have a way of encouraging people out of poverty by encouraging them into work, and to make work pay. One of the ways of making work pay is by providing additional free childcare. Those who have relatives with young families will know the huge cost of paying for childcare in order to go out to work. We know that some working parents currently pass over most of their income to childcare costs, so this Bill is to be greatly welcomed.
However, I would like to explore through this amendment the link between the Bill and the incomes that families will have, and the changes to those incomes that we know are on the cards later this week in an announcement from the Chancellor of the Exchequer. The Government have claimed, no doubt accurately, that the provisions in the Bill will see an additional benefit to families of around £2,500 a year. That would be a huge and significant saving to parents. However, the simple fact is that for those on low incomes and who most need the benefits of free childcare, all that good work could be wiped out by government cuts to tax credits of various kinds and perhaps to housing benefit.
I know that the Minister will be unable to tell us exactly what cuts to tax credits we are set to see in the Budget this week. Indeed, the Government have been singularly unwilling to spell out where their £12 billion of welfare savings will come from, but I think all sides of the House can agree that these cuts are likely to come at the expense of lower-income working families. The Prime Minister has already trailed that we will see cuts in tax credits, with some people suggesting that there might be up to £5 billion of projected savings. If that is the case, it would result in families with two children losing up to £1,700 a year, seriously diminishing the very welcome impact of the free additional childcare.
Despite what the Prime Minister suggested about companies paying more to workers to offset the impact of any cuts to tax credits, without real action on the minimum and living wage that is frankly rather more hope than expectation. We cannot assume that employers will be either able or willing to pick up the slack by paying a living wage to make up for the loss, for instance, of working tax credits. The decision about tax credits will make a huge difference to people, whether in employment or not. Cuts will mean that it is no longer financially possible for someone with high childcare costs to go out to work. That means that they will lose not only their tax credits but potentially the entitlement of free childcare, a double whammy that will do what none of us wants and punish the children of those families.
However, as much of this detail is still to be discussed and we may not know the Government’s intentions until Wednesday, we propose in this amendment to have a review two years hence of the financial impact on lower-income working families of the combination of the free childcare offer and any reductions in working tax credits, child tax credits and housing benefit. I made the case earlier today about the important link between this Bill, child poverty and the impact on low-income families. If the Government want to be progressive—I am sure they do—they will see that link and try to make work pay by ensuring that childcare is of benefit to low-income families. Ultimately, that is the purpose of this amendment: to consider the link between the two. I beg to move.
The Earl of Listowel
My Lords, the noble Baroness referred to the national living wage. I believe that two former advisers to the Prime Minister recently endorsed a move towards the living wage. Clearly, this Bill would be that much more effective and there would be much more incentive for people to take what is offered in it if we moved to a national living wage. What current position do the Government take towards the gradual introduction of a national living wage?
Lord Nash
In Amendment 39, the noble Baroness, Lady Pinnock, seeks assurance that the Government will monitor and report on the impact of the entitlement. She spoke with passion about the importance of supporting low-income working families with the cost of childcare, which is the subject of today’s debate, and I will confine my remarks to the subject of today’s discussion. I agree that it is extremely important and must be kept in mind at all stages of policy development in the early years.
The Government have ably and amply demonstrated their commitment to supporting low-income working families with the cost of childcare and to improving the educational outcomes of all children, particularly those from disadvantaged backgrounds. As my noble friend and I have set out in this debate and in previous discussions, the Government have committed to increasing childcare support within universal credit by around £350 million to provide 85% of childcare costs from 2016 where the lone parent or both parents in a couple are in work. The Government have introduced an entitlement to free early education for the most disadvantaged two year-olds, while the early years pupil premium will provide more support to improve outcomes for disadvantaged three and four year-olds.
The Government have demonstrated their commitment to understanding the impact of the provision of free childcare through previous projects such as the Effective Pre-School, Primary and Secondary Education project and the new longitudinal study of early education and development, as my noble friend and I mentioned previously. The Government also collect a range of data on the take-up of the existing entitlements, including the number of children taking up a place. The most recent data were published on 25 June. They reflect the position in January of this year and are extremely encouraging. As detail of the new entitlement is developed further, we will consider what further data should be collected to enable effective monitoring of the new entitlement.
The Government recognise the benefits and importance of evaluating the impact of significant policies such as this but do not believe that it is necessary or appropriate to legislate for the production of a report or to define the timeline and content of such a report. I therefore urge the noble Baroness, Lady Pinnock, to withdraw her amendment.
Childcare Bill [HL]
Baroness Pinnock Excerpts(9 years, 4 months ago)
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Baroness Howarth of Breckland (CB)
My Lords, I just want to speak briefly about baselines. As we are talking about quality, I wonder whether the Minister has seen the report of the Family and Childcare Trust, Access Denied, which does not talk about quality but about 38 English local authorities which failed to carry out and publish assessments of local childcare since 2012. Therefore, a large number of working families have no access at all to childcare. The report gave an example of a mother who said:
“I was so happy when my boy turned three and we got free nursery education. I decided to try and move him from the childminder to a nursery, where he could get the free hours. But I could not find a place with any vacancies. The local nursery and the school were both full, so I’m still with the childminder, so no free hours for him and a big bill for me”.
Would the Government like to comment on this problem of access to basic childcare, never mind quality?
Baroness Pinnock (LD)
My Lords, I do not want to expand on what has already been said most ably by the mover of the amendment, the noble Baroness, Lady—oh dear.
Baroness Pinnock
It is, yes. I have been concentrating hard. I support everything that the noble Baroness said because it follows on from the earlier debate about quality. You cannot deliver quality unless you have a well-trained staff working in the childcare sector. I wanted to make it clear that there is support on our side. We have no critical comment to make but welcome the amendments that have been moved.
Baroness Evans of Bowes Park (Con)
My Lords, I shall also speak to Amendments 13, 17 and 36, on the early years workforce. I thank the noble Earl, Lord Listowel, and the noble Baroness, Lady Jones of Whitchurch, for bringing forward these amendments. They are wide-ranging and cover a review of the workforce and workforce strategy, together with specific issues such as training, qualifications and pay.
I am sure we would all wish to pay tribute to the commitment and dedication of the early years workforce. Their hard work and devotion does not go unnoticed, and the support they give to children in the most important years of their lives is critical to ensuring that every child gets the best start in life. The Government are committed to ensuring that childcare hours are of high quality and, of course, the workforce is key to that.
The noble Earl, Lord Listowel, has moved an amendment requiring the Secretary of State to,
“lay a report before both Houses of Parliament setting out her strategy for developing the early years workforce”.
We covered this issue in an earlier group of amendments. I set out that strategy and some of the initiatives that the Government have introduced, so I do not propose to repeat those.
The noble Earl also moved an amendment to make explicit requirements for the use of graduates in early years settings. We are committed to continuing to raise the quality of the early years workforce. We have already set the bar high for the qualifications of people working in childcare, including early years teachers, who must meet the same training course entry requirements as primary teachers. Since 2007, 15,422 early years teachers have been trained. I also assure the noble Earl that we will continue to support expansion of the graduate workforce through the provision of early years initial teacher training routes and through providing funding support for trainees.
Regarding the noble Earl’s amendment to develop a strategy to increase the number of maintained nursery schools, we recognise that they have been shown to deliver high-quality early years education. However, we must of course also recognise that many private, voluntary and independent providers also deliver quality. At 31 December 2014, the proportion of all providers on the early years register rated good or outstanding by Ofsted was 83%.
While we agree that many nursery schools offer high quality, we also think that the diversity of the childcare sector is one of its strengths as it offers choice and flexibility to parents. We want maintained nursery schools to play their part in a diverse early years sector in years to come, delivering high-quality, sustainable provision that is responsive to the needs of parents in their local area.
I say to the noble Baroness, Lady Howarth, that I have indeed read the report to which she referred and we will certainly reflect on some of the findings laid out in it.
The noble Earl, Lord Listowel, has also tabled an amendment which would require early years settings to provide a specified number of training hours per year to each member of staff. While I entirely understand the intention behind this amendment, to support staff training and development, we think this is a matter for individual employers and the sector to lead on. We will continue to support the sector in doing so, but do not believe that specifying a one-size-fits-all model would be helpful. Given these reassurances, I hope the noble Earl will withdraw his amendment.
The noble Baroness, Lady Jones, has tabled an amendment which would require a review of the qualifications and pay of staff. It specifically addresses the assessment of progress of level 3 qualification standards, the assessment of progress in introducing early years career paths, recruitment and retention, pay levels and the number of black and minority ethnic staff at different levels of the profession. I will take each of these briefly in turn.
We have a robust set of standards for level 3 early years educator qualifications. The quality of the workforce is increasing year on year. We know that the proportion of paid staff with at least a level 3 qualification increased between 2011 and 2013. The sector shares the Government’s ambition to see staff in key positions holding good GCSEs in English and Maths, as this can only be to the benefit of the children with whom they work and the status of the profession.
We recognise the importance of clear progression routes within the sector to attract and retain good-quality staff, and will be looking further at how to ensure that the current and prospective early years workforce can take advantage of the varied and rewarding careers that are available to them. I know that the Minister for Childcare and Education is looking closely at the qualification frameworks and rules to ensure that they are enabling the development of a high-quality workforce.
The noble Baroness, Lady Jones, and the noble Earl, Lord Listowel, also raised the important issue of recruitment and retention. It is important that experienced and skilled early years professionals want to stay in the profession, a point made by the noble Baroness. The Government recognise that settings, the majority of which are private businesses, manage this themselves in the context of their staff employment and deployment responsibilities.
There are many reasons why staff turnover may increase, including local economic factors which are beyond the control of providers. Making staff turnover information available at a local level to parents could lead to the information being misinterpreted and lead a parent to dismiss out of hand a good-quality setting that is doing good work to support staff. That is not what anyone would want.
The noble Earl, Lord Listowel, tabled an amendment on local authorities publishing turnover rates of early years staff. We already collect and publish information on staff turnover through the Childcare and Early Years Providers Survey, which was last published in 2013 and is publicly available on GOV.UK. We think this is the right level of information about turnover, and that it is not appropriate or necessary for local authorities to publish further information.
As regards the amendment of the noble Baroness, Lady Jones, on reviewing pay, all private, voluntary and independent providers are free to set their own pay scales. This means that those working in the sector can be paid as their employer sees fit. Only those defined as “school teachers” under Section 122(3) of the Education Act 2002 are legally entitled to the pay and conditions specified in the School Teachers’ Pay and Conditions Document. With respect to the noble Baroness’s amendment to assess the numbers and qualifications of black and minority ethnic staff, it is the responsibility of early years training providers and employers to ensure that they do not discriminate when recruiting trainees and employees, and they must comply with the requirements of the Equality Act 2010. Information published on the representation of ethnic minorities reveals that school-based providers in nursery schools have the highest level of BME staffing, at 17%.
In conclusion, while we sympathise with the intention behind these amendments, we do not think they are necessary. Work is already under way to look at how to support the continued improvement of the early years workforce. I therefore urge the noble Earl, Lord Listowel, and the noble Baroness, Lady Jones, to withdraw their amendments.
Baroness Pinnock
“( ) Regulations under subsection (2)(c) must ensure that the description of “qualifying child of working parents” includes children between the ages of 1 and 2 years.”
Baroness Pinnock
My Lords, Amendment 10 is in my name and that of my noble friend Lady Tyler of Enfield. It seeks to ensure that the new free entitlement provided under the Bill is also available to parents with a child aged between one and two. The Government’s announcements on this Bill have made it clear that they intend to target their support at three and four year-olds, who already receive 15 hours of free childcare a week. While I welcome this, it means that a significant gap in childcare arrangements will remain. At the moment, a parent with a newborn baby will receive support during parental leave, which—thanks to the work of Liberal Democrats in the previous Government —can be shared between mothers and fathers, helping them to share child-raising duties. However, once their statutory pay expires, they must make ends meet on their own. It can therefore be of little surprise that many parents see the end of their statutory parental pay as the point at which they need to return to work. It is a luxury that few can afford to go on for many months, especially due to the high cost of housing.
Lord True (Con)
My Lords, surely, as the noble Baroness has acknowledged, there is a key question of affordability here. There is a great danger of good intentions running away with us on this legislation. I ask the noble Baroness for clarification. She speaks from the Front Bench of her party; is she making a commitment that the Liberal Democrats believe that that money should be spent?
Baroness Pinnock
My Lords, as the noble Lord, Lord True, and I said earlier, election manifesto promises are important. The Liberal Democrat manifesto gave a commitment to providing childcare in this gap for one to two year-olds. In the end, it is a question of priorities. Either you spend money on things such as Trident or you spend it on children from one to two years old. It is a question, as always, of priorities.
The Parliamentary Under-Secretary of State, Department for Education (Lord Nash) (Con)
My Lords, I shall speak to Amendment 10. While I understand the noble Baronesses, Lady Pinnock and Lady Tyler, would like working parents of children between ages one and two to be entitled to additional childcare, the elected Government’s manifesto commitment is to increase the hours of free childcare to working parents of three and four-year-olds.
There is already support for childcare put in place by the last Government. We have increased the child tax credit entitlement to £2,780 per year for families with one child, £480 more per year than in 2010. We have legislated for tax-free childcare, which will save about 1.8 million working families with children under the age of 12 up to £2,000 per child a year.
The Government are also committed to increasing childcare support within universal credit by about £350 million to provide 85% of childcare costs from 2016 when a lone parent or both parents in a couple are in work. This is up from 70% in the current working tax credit system and current universal credit system.
This package of support for childcare as a whole provides help for parents with children between ages one and two and represents significant public investment. These are, however, difficult economic times, and the Government have to make hard choices. We know that more parents use childcare as children move towards school age. We are, therefore, focusing on where there is the greatest demand for childcare. Alongside this, two year-olds in low-income families also receive 15 hours a week, offering both high-quality early education and the opportunity for their parents to move into work.
I hope, for these reasons, that the noble Baroness is persuaded to withdraw the amendment.
Baroness Pinnock
The response from the Minister is predictable because of the cost to the public purse of providing free childcare in this gap year. I refer, however, to the comment I made earlier about the motif on the door of the Minister’s office, which says, “closing the gaps”. Here is a big gap that I would like closed. If we can edge towards this by saying, “What we would really like to achieve for early years care and education is a planned approach which includes provision from age one to four,” I would welcome that. At the moment, we have a more or less ad hoc approach to extensions; first it was to everyone—the universal offer—now to only those with working parents, and to some two year-olds from disadvantaged families. It seems that we ought to be able to extend this to one and two year-olds, especially to those from disadvantaged families who would qualify at age two. As I and many of the Members of this House have said, if we can help the most vulnerable children in the most disadvantaged homes, it helps not only those children but also the rest of society as they grow into adulthood.
I hope that, at some point, perhaps on Report, there could be an approach to help bridge that gap. I beg leave to withdraw the amendment.
Baroness Jones of Whitchurch
My Lords, this amendment seeks to explore in more detail the purpose of the funding review announced by the Government, the extent to which real evidence will inform its findings, and the need to find a fully sustainable solution to the funding crisis.
At Second Reading there was a general recognition that the funding of the existing 15 hours of free childcare was unsustainable and would not survive an extension to 30 hours. There was also considerable evidence given to the Affordable Childcare Select Committee on this matter. This was subsequently echoed by the Pre-School Learning Alliance and others, which made a persuasive case to show that the hourly rate was so low that nurseries were able to provide the free hours only if they did so at a loss and cross-subsidised the payments from additional hours elsewhere. To be fair, the Government were quick to identify that this was a problem and announced the funding review soon after, and, of course, this is to be welcomed. However, serious questions remain about the conduct of the review, and this amendment seeks to explore these issues further.
First, the call for evidence asked parents and providers to send in any information that they wished to provide to inform the review, such as existing studies on the cost of childcare and the factors that make up the cost. That is okay as far as it goes, but where is the analytical research that needs to underpin a review of this nature? What we do not want is a whole series of anecdotal stories, important though they are. Surely what we need is a proper, independent study to investigate and evaluate the cost of provision across the different providers, how much the current shortfall is estimated to be and what the full cost of providing a fully funded, sustainable system would be. For example, it would be helpful to know how the Government will calculate the number of parents they expect to be eligible for these payments. Will any capital funding be included to allow for the expansion of premises or the creation of new premises? Will the calculations allow for any increase in staff pay, which providers say is necessary to recruit and retain staff? Will the assessment end the historic disparities in payments between the different local authorities? I could go on, but the point is that to do this properly requires a major piece of research, and I am not convinced that this is what the Government have in mind.
The Minister said in the policy statement:
“Between now and September 2015 the Government will be considering the simplest and most effective way to deliver the additional 15 hours of free childcare to working families. This process will be led by the Minister for Childcare and Education and the Government Task force on Childcare. The Government will provide a full update on this at Report Stage in the House of Lords”.
Again today, the Minister has confirmed that the funding review will be completed by September. This hardly allows time for a proper inquiry to be carried out.
There is then a question about how any increase in the payments to parents will be funded. The Pre-School Learning Alliance estimated that it would cost at least 20% more than the original estimate of £350 million; and, as we know, the Children’s Minister was at one stage talking about a figure over £1 billion. So there is an urgent need to clarify where any additional money will come from. Will the Minister confirm that it will be new money, not money drawn from existing budgets, and will arrangements be made to increase these sums year on year?
This amendment seeks to tease out more information about the nature and scope of the review, who will be consulted, what the timetable will be and how the outcome will be financed. It goes without saying that we welcome the Minister’s reassurance that this House will have an opportunity to consider the outcome of the review and its impact on regulations as proposed by the Delegated Powers Committee, and we look forward to further debate on this in that context. In the mean time, I beg to move.
Baroness Pinnock
I shall speak to Amendment 30 in this group which is tabled in my name and that of my noble friend Lady Tyler of Enfield. For a serious new investment by the Government, it is disappointing that there is no indication in the Bill of the funding package that will be available for its implementation, because the funding is critical to the nature and quality of the childcare that will be provided. I welcome the funding review that has been opened, and I am delighted that the Minister has already received more than 500 responses to the request for information, but that simply shows the nervousness of the sector over the funding package that may be available.
I know from comments that have been sent to me by various childcare providers that they are very worried that if the funding is not of the right size, the implementation of what is otherwise an excellent proposal will be seriously damaged. There are several reasons for this. We do not know the quantum figure. We know that two figures have been bandied about. One is £350 million, which was mentioned in the Government’s manifesto, and the other is more than £1 billion, which was mentioned prior to the election period. The figure surely must be more than £350 million in order to fund an additional 15 hours of childcare for three and four year-olds. I hope the Minister will be able to explain where the money will come from, even if he is not able, at this stage, to tell us the total figure that will be available.
The other significant issue is that providers will not know the hourly rate that they will get for providing this childcare in the different settings. We know the rate is determined through local authority school forums and that they get the grant via the early years element of the direct schools grant. We also know that that is a flawed system. It is not necessarily a fair distribution of funding to local authorities across the country. We end up with different hourly rates for different childcare providers in different parts of the country which may not be sufficient to meet the costs of provision in those areas. I hope the Minister will be able to throw some light on this area.
There is going to be a significant demand for capital expenditure. For instance, providers in the state sector in nurseries attached to primary schools currently provide 15 hours through a morning session and an afternoon session. If there is going to be only one session of 30 hours, there will need to be a 50% increase in the amount provided. Capital funding will be necessary to do that, and it would be good to know whether any capital money is going to be available for either the voluntary or the state sector to do that.
The last point I want to make is one I raised at Second Reading, on the question of cross-subsidisation. Currently, parents who are working full-time may have to have childcare from eight in the morning to six in the evening. It is obviously quite proper that they have to pay for some of those hours, but people have been telling me that in the hours outside the free entitlement, they might be paying up to twice as much as the hourly rate in order for the private provider to meet the full costs. If, therefore, a private provider or voluntary sector provider is providing not 15 hours but 30 hours free, where is the cross-subsidisation going to come from? I am confident that the Minister, through his request for comments on the funding review, is receiving in his inbox many expressions of concern about the hourly rate that will be necessary to ensure these childcare providers are viable. For those reasons I have tabled the amendment in my name and that of the noble Baroness, Lady Tyler, and support the comments that have been made by the noble Baroness, Lady Jones.
Lord True
My Lords, I also have an amendment in this group. Part of it follows from what the noble Baroness was saying. Cross-subsidy—or top-up fees, as it would be more honest to call them, although we pretend that they do not exist—is a problem. As has been established in this Bill so far, that will be a problem if 30 hours becomes the limit and you cannot charge below that for the settings in question.
I am actually really interested in another thing, which is not just money. I do not believe all the problems in the world are solved by money. One of my objections when I saw this Bill published arose when somebody said, “Here’s a great idea. We’ll throw an unspecified amount of money at it and the world will be a better place”. It is not quite as easy as that and what matters are real people, real places and things that actually happen on the ground. This is a fantastically diverse sector, as both my noble friends on the Front Bench have rightly recognised. Of course, I am biased, because over the last 30 years I have come to know hundreds of people who work in the informal education sector, in nursery care, for whom I have huge affection and admiration. They are good educators; women with vocations; people who are passionate about children; but maybe those settings do not all live up to the standards you might want if our country had been erased and you were rebuilding it—they would not be like that. But they are there—in the little church halls, the village halls and parish halls up and down the land—and they are small settings. It may be nine or 10 people who work hard, and the skilled and dedicated principal and manager does not have all the time in the world to fill in forms.
What this amendment is getting at is something that I think is so important. I know my noble friend says that he wants to address this issue—I appreciate what he said both inside and outside the Chamber—and does not want to cause problems for this sector, but a huge number of providers simply could not provide 30 hours of childcare a week, because the constraints of where they provide it do not allow for it. We really should understand, as I ask in this amendment, how many nursery and childcare providers operate in rented premises or private places. These are the people who are under threat. What proportion of nursery and childcare providers could not offer this wonderful 30 hours a week that we talk about in this House and which we would all love to see?
Childcare Bill [HL]
Baroness Pinnock Excerpts(9 years, 4 months ago)
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Baroness Jones of Whitchurch (Lab)
My Lords, these are crucial amendments that seek to take forward our concerns, which have just been set out by my noble friend Lady Smith. As we have just discussed, they echo the concerns identified around the House at Second Reading, which have been endorsed by the damning report of the Delegated Powers and Regulatory Reform Committee, and further endorsed today by the Lords Constitution Committee.
Noble Lords will recall that at Second Reading there was broad consensus that we supported the principles behind the Bill but were concerned about whether it was workable and affordable. More fundamentally, there was a concern that we were being prevented from carrying out our essential scrutiny role effectively. I could cite a number of quotations from noble Lords around the House to endorse that argument, but I know that we all recall the frustration that we felt at the time. The Minister was not able to provide any reassurance because, as he said, the plan was to carry out the reviews and then publish the regulations in light of their conclusions—in other words, a long time after the Bill had left this House. We have since received a letter and a policy statement from the Minister, as well as his helpful statement today, but I would still like further clarification on what we will have before us on Report. This is what our amendments are attempting to tease out.
I gathered from the policy statement that it was proposed to consult parents, providers and employers, beginning in the summer, as well as to have a public consultation that would not take place until 2016, and that outcomes from both would feed into the draft regulations, which would be published after that. I am just checking the timescale that the noble Lord is now proposing, in light of what I read in the policy statement. Then, in September 2016, the pilot schemes will take place, so there will also be conclusions from these. I gathered from the noble Lord today that on Report we would have details of what the pilot schemes would do, but not their conclusions.
The policy statement also said, and the noble Lord echoed this today, that in the autumn the Government will produce their response to the affordable childcare report. As my noble friend Lady Massey has said, it would be helpful to have the Government’s response to that before Report. I am not sure that the Minister clarified that that would be the case. He said that there would be discussions with the noble Lord, Lord Sutherland, and others, but a thought-through response to that report would be very helpful.
We then have the government task force on childcare, which I think we are also calling the funding review, to which my noble friend Lady Smith referred. As she said, the whole Bill will stand or fall on whether we get the funding right. Is the noble Lord saying that all the work on that review will be completed by September, in time for Report? It seems a very big piece of work to get it right—not only to consult all the providers but to look at the financial implications and at where the money will be drawn from to pay for any additional places. I am impressed if that is the case, but it would be helpful if the Minister could clarify that.
We also have the Minister for Employment chairing a childcare implementation task force—which I think is different, but the noble Lord will be able to clarify this—to look at the options for extending entitlement. However, as we discussed last night, it seems from the 10 Downing Street website that that task force’s report is not to be made public. Perhaps the noble Lord could clarify whether we will ever see it.
There is then a full economic impact assessment, which we will not see until 2016. Then, as we talked about, there are the final regulations and guidance. I am just trying to tease out in a little more detail which of these we will see on Report, because I would have thought—and this is what the Delegated Powers Committee report said—that most of them would be very helpful before we get into the detail of the Bill.
In essence, this is a topsy-turvy Bill. We are doing everything in the wrong order. As the noble Baroness, Lady Fookes, said, it would have been sensible to have reviews and pilot schemes and publish a more detailed Bill after that. Amendment 1, is, in effect, a sunrise clause: it puts a logical process of consultation and review into the Bill and enables both Houses to play a proper role in scrutiny before the Bill is enacted.
At Second Reading, the Minister argued that it was important for the Bill to be published early so that parents could plan for 2017. Crucially, our amendment would not alter that start date, but would give an opportunity to address the many concerns that parents and providers are raising about who will be entitled to the free childcare and how it will be funded, so that, by 2017, parents will have a much clearer picture of what is on offer to them. I hope that noble Lords will see the sense of the amendment. It is very much in keeping with the recommendations of the Delegated Powers Committee and it would underpin our right to scrutinise the intent and detail of the Bill more rigorously.
Amendment 27 is quite straightforward and essential, and again builds on the recommendations of the Delegated Powers Committee. As it stands, Clause 2(2)(d) is a Henry VIII power that gives widespread powers to the Secretary of State to amend, repeal or revoke any regulations made under the Bill. By removing subsections (4) and (5) and replacing them with our amendment, all the regulations in the Bill would need to come to each House for approval, so there would need to be an affirmative, rather than a negative, process. We believe that this safeguard is necessary because of the lack of clarity in many of the regulations proposed.
In their policy statement, the Government sought to make a virtue of the lack of detail in the regulations proposed, arguing that the reviews and the consultation should take place first. We of course agree that consultation, evidence-collecting and analysis should take place before the legislation is finalised, but we are not prepared to hand over so much detail of the legislation, both primary and secondary, to the Secretary of State when so much is yet to be decided. We believe that that is bad policy and bad scrutiny.
The Delegated Powers Committee’s report was clear on this. It said:
“In our view, the Government’s stated approach to delegation is flawed. While the Bill may contain a legislative framework, it contains virtually nothing of substance beyond the vague ‘mission statement’ in clause 1(1)”.
It went on to recommend that the affirmative process,
“should apply on the exercise of all powers conferred by clause 1”.
We agree with this recommendation and our amendment would give effect to it. I am not sure whether the Minister’s statement today confirmed that. Again, I would be grateful if he could clarify that. Amendments 40, 41 and 42 are then consequential on Amendment 21.
Given the lack of detail, on which all noble Lords commented at Second Reading and again this afternoon, I hope that these amendments will provide some reassurance and a vehicle for taking the Bill forward. I hope they will receive widespread support. I beg to move.
Baroness Pinnock (LD)
My Lords, I am very new to this process of scrutinising legislation. All the detailed procedures and processes that more experienced Members of this House know about, and the intricacies of how a decision is made, are a bit new to me. What I do know, though, is this: there is in front of us, for a very important change to legislation, a Bill that comes to just over three pages. The amendments that have been tabled across your Lordships’ House come to 13 pages, which is a very telling ratio.
What we have in the initial case is something that is extremely lacking in detail and substance, when we need detail and substance. The Bill is not about a Conservative manifesto commitment; I am concerned not about the Government’s manifesto commitments but about the impact of the final legislation on children and their families. So much is lacking in the Bill that we have no idea what the impact will be and whether it will be affordable or accessible for all young people. Which families will be able to take advantage of the 15 hours of additional free childcare that is on offer? We know none of these things. We do not know whether there is sufficient capacity in the sector to provide these additional 15 free hours.
In my other capacity, as a local councillor, representing families and their children, I would have to say, looking at this, that I do not know what is on offer, and whether I would be able to access and use it. We have before us a lost opportunity of immense proportions. Everybody across this Committee can agree that an additional 15 hours’ free childcare is very important to families and to children of preschool age, but we cannot get it right in the first instance. It is shameful that we are at this stage.
Baroness Pinnock
My Lords, I support what the noble Lord, Lord Sutherland, has said. As the noble Baroness, Lady Massey, said, the focus of this Bill must be on the quality of provision for the child. I made that point on Second Reading. It is most important that we keep our focus on the quality of the provision for the children whom the Government are going to spend money on by providing additional hours of childcare.
The one word that I noticed was missing from the Bill was the word “quality”. When you are dealing with the very youngest members of our society, you would think that any additional provision made for them would have the word “quality” attached to it. When I read the Bill, it struck me that the focus or driving force behind it was not the needs of the child but the needs of the parent. That is why I passionately support these amendments. We need to shift the focus back on to what is done for the child. It would be wonderful if we could rename this Childcare Bill, which has all the connotations of care rather than anything else, the “Early Years Care and Education Bill”. Within the additional 15 hours for which the Government are paying we want to see not just aspects of care, but aspects of early years education as well. That would bring with it the qualities proposed by both the noble Baroness, Lady Massey, and my noble friend Lady Tyler. I hope the Minister will take those two points on board.
Baroness Pinnock (LD)
I shall speak to Amendment 31 in my name. Before I do so, I declare my interest—since it is pertinent to local authorities—both as a councillor and as a newly elected vice-president of the Local Government Association. I concur entirely with the noble Baroness, Lady Jones, about the confusion in implementing free childcare provision if local authorities are responsible for the first 15 hours and the Secretary of State is responsible for the next 15 hours.
However, our amendment focuses on a different aspect. We are asking for a new clause to be inserted into this Bill, to enable local authorities to be a provider of last resort. We do so for a number of important reasons. When I visited the Minister this morning, I noticed a big sign on his door that included the phrase “closing the gaps”. We all know, from our own research and from references already cited by many noble Lords this afternoon, that early years are extremely important in ensuring that children start school on a level playing field. We as a society must do our best to ensure that children who come from less advantaged homes have that gap closed before they start their formal education.
We are concerned that where children are less advantaged, either in homes where they are vulnerable or in areas where there is considerable deprivation, it is much less likely for vibrant private sector provision to be established, particularly when there will be 30 hours of free childcare. We already know, from evidence provided at Second Reading, that many private providers rely on additional funding, outside those free hours, in order to make their businesses financially viable. We need to give special focus to those areas of the country and those families that many Members of the House are already most concerned about, to ensure that children in those areas and families have the same opportunities and access as children from more advantaged areas. In those places where there are no viable providers from either the private or the voluntary sector, the local authority should be given the opportunity to close that gap to enable children to take advantage of the 30 hours that would be on offer. One of the reasons for doing this is because, sadly, many Sure Start children’s centres are either closing their doors or decreasing the number of hours that they are open for children from these very families. In many cases the buildings are there and could be used by local authorities by commissioning from the voluntary or private sector, but certainly provision should be made for children from less advantaged backgrounds.
As we have heard from the noble Baroness, Lady Jones, local authorities already have a duty of sufficiency. Enabling local authorities to bridge that gap would give them the opportunity to ensure that there is a sufficiency of places for all children in our country to take advantage of the additional 15 hours of free childcare—or “early years care and education” as I am going to start calling it. As we heard in the debate on the previous group of amendments, that is probably the most important thing we can do: to focus on children who come from less advantaged areas and vulnerable families and give them the right start in life. Let us really do what it says on the Minister’s door and do our best to close that gap.
Baroness Pinnock
At Second Reading, I raised considerable concerns about the lack of a definition of working parents. I welcome the contributions so far, which have tried to expand the definition of working parents that the Minister gave at Second Reading, which is now written in the policy statement he provided at the end of last week. If the Government’s aim is to enable more people to go out to work by providing additional free childcare, I think we need a wider definition than that the Minister provided.
I am particularly concerned about people who go into education and training. They, too, ought to qualify for the additional 15 hours’ free childcare. We know two things. One is that many young parents have missed out, somewhere along their route through life, on accessing further education or training, either by choice or not. We also know that skill levels in this country are not as high as we would like them to be. One of the best ways back into the workforce is by gaining extra skills or qualifications through further or higher education. The Government ought to be enabling and encouraging this to happen by including parents in education or training in their definition of working parents. I urge the Minister to consider that addition seriously.