School Funding: Greater London

Karen Buck Excerpts

Tuesday 31st January 2017 Commons Chamber

[Ms Karen Buck (Westminster North) (Lab)]

I am grateful for the opportunity to have this short debate on the impact of funding changes on London’s schools. I apologise to the Minister for his drawing the short straw of having to respond to a debate at midnight, although I suspect that this will be the first of many such debates.

London Members of Parliament have some grave concerns, although I know that other parts of the country are affected by changes to the funding formula and by the wider squeeze on schools funding. In my constituency—this experience will be replicated widely, particularly in London—the story of school progress over recent years has been one of the great public policy successes. In the mid-1990s, our school estate was crumbling. We were teaching children in badly ventilated, overheated and old-fashioned buildings that had not received investment for decades. I remember when North Westminster community school, which was a sprawling three-centred school, achieved in the last year before its closure just 18% GCSE grades A to C, including English and maths. It was one of the worst results in the country. I remember when half our secondary schools and a number of primary schools were in special measures, despite some frankly heroic efforts by a number of teachers and heads. I remember when there was virtually no provision at all for pre-school education.

Over the course of the past 15 years, the situation was transformed by a number of measures, including the London challenge programme—a focused management and good practice sharing policy that, under the inspirational leadership of Tim Brighouse, was widely understood to be a key factor in driving change in London schools. The transformation was also brought about by the new infrastructure, with magnificent new buildings across the city. It was brought about by the investment that went into the Sure Start children’s centres and the early years programme. Critically, it was brought about by money. The additional funding that went into London schools was used particularly to invest in teaching and improved teacher pay; in support for schemes such as Teach First; and in generally giving headteachers the ability to marshal resources to support a better learning environment. We have seen the outcome of that investment —both human and resource investment—in the hugely improved outcomes in school performance across the capital.

In the days before the London Challenge, London was the worst performing region in the country at key stage 4 level. By the end of that programme and the additional investment that accompanied it, we were the best performing region. Yet we know that the job is not done. Despite the improvements, there are still too many children who are not going into secondary school having achieved the standard at primary that is our benchmark. Across the country as a whole, we are still not managing to close the gap in attainment with some of our competitor nations. That is, as the last few hours of debate have confirmed, more of a challenge to rise to than it was previously. More than ever, the country as a whole but London in particular requires an education system that will allow us to be a world leader creatively, technically and economically, with an education system to support that.

The pressures and challenges that face London education are as great as ever. We have problems of deprivation that are still acute, and problems of churn. I appreciate very much that the Government have, for the first time, introduced a churn or pupil mobility indicator into the funding formula. I remember having an Adjournment on this very topic 10 years ago, when I wanted a factor of mobility to be brought into the funding formula for policing, for health and for education. I welcome the introduction of the indicator, but none the less schools face enormous pressure in some cases. I know of primary schools where not a single child at key stage 2 was there at the completion of the key stage 1 process. This is a very real difficulty for schools. We know of the challenges of English as an additional language and, critically, of the higher salary, building and other operating costs that London schools have to face. Even my borough of Westminster—the hon. Member for Charnwood (Edward Argar), who was a Westminster councillor, will recognise this—despite its reputation as the glittering centre of the capital that people see with Oxford Street and, indeed, the Palace of Westminster and so forth, has the seventh highest child poverty in the whole country.

[Seema Malhotra (Feltham and Heston) (Lab/Co-op)]

My hon. Friend is making a very powerful speech. The impact of child poverty on educational attainment is very much the subject and the driver of the work we are doing in Hounslow with Hounslow’s promise. Does she agree that there is tremendous concern about comments I have heard from headteachers suggesting that schools may be reluctant to accept pupils with significant needs, who may also be quicker to be excluded, because those schools do not have the resources to deal with some of their in-depth needs? Will she, with me, congratulate Hounslow Council, which tonight, with Tory and Labour councillors together, has called on the Government to consider again the impact that these changes will have on Hounslow schools’ ability to maintain the highest standards in quality of provision?

[Ms Buck]

I am happy to congratulate Hounslow Council, and I completely endorse what my hon. Friend has said. I will come in a second to the comments of headteachers and councillors from across London who have expressed their dismay about the effect of the funding formula changes.

I want to finish what I was saying about the level of deprivation. I think that it is either not understood or glossed over by too many of the representatives from the shires, who want to negotiate a better funding settlement for their own schools—that is something that I completely understand and appreciate—but who do not always recognise the extent of the expense and the pressures faced by the capital city, which is experiencing a redistribution away of funding to meet those needs. Seven of the 10 local authorities with the highest levels of poverty in the UK are in London, so it is horrifying that the new Government formula for distributing schools funding hits London particularly hard. In briefing me for this debate, London Councils and the Mayor of London have made it clear that they are extremely concerned about that.

A higher proportion of London schools—an estimated total of 1,536—will see a reduction in funding than in any other region. Seventy per cent. of London schools face a fall in funding, compared with 58% of schools in the north-west and 53% in the west midlands—and the figures for those areas are bad enough. Eight of the 10 local authorities that face the highest percentage losses in funding are in London. Worst affected are councils known for high levels of deprivation and challenge, such as Hackney, Camden, Lambeth, Lewisham, Haringey, Tower Hamlets and Hammersmith.

[Helen Hayes (Dulwich and West Norwood) (Lab)]

I am grateful to my hon. Friend for securing this important debate, even at this late hour. I have written to all the headteachers in my constituency over the last few weeks, and they tell me that the pressures of the increase in national insurance contributions and the cuts to their funding are already forcing them to make very difficult decisions about cuts to support staff, in particular, and to SEN provision and so on. Does she agree that those are precisely the kinds of resource that have enabled London schools to be so successful over the past 10 years?

[Ms Buck]

I absolutely agree with my hon. Friend, and I will reinforce that point in a minute. The modelling undertaken by London Councils indicates that at constituency level the national funding formula element of the changes alone will mean that 28 schools lose in Barking; 35 in Bermondsey; 42 in Bethnal Green; 41 in Poplar and Limehouse; 37 in Tottenham; and 48 in West Ham, to list just a few. Leyton will lose £4.5 million —equivalent to 6.8% of its funding; Deptford £6.1 million or 7.6%; Hammersmith £5 million or 7.6%; Brent North £9 million or 7.3%; and Hendon £5.5 million.

My council, I am happy to say, is not one of the worst affected. We are still waiting for some of the modelling data, but I think that that is to do with the churn factor that the Government have introduced. Even allowing for that, many individual schools still stand to lose. Westminster Academy, for example—last time I looked, it was the seventh highest on the free school meal indicator, making it one of the most deprived schools in the country—will potentially have its funding cut by a quarter of a million pounds. According to analysis undertaken by the council, all but two secondary schools are potential losers, including Westminster Academy, Paddington Academy, St George’s, St Augustine’s, Pimlico Academy, St Marylebone and Westminster City. Primaries that face losses include George Eliot, St Joseph’s, St Luke’s, Robinsfield and Barrow Hill. Many Westminster children attend schools across the borders in Kensington, Camden and Brent, which are hit even harder. A number of local parents will be affected by the impact of the cuts on schools outside the boundary.

[Dr Matthew Offord (Hendon) (Con)]

I congratulate the hon. Lady on securing the debate, which comes at an important time. She is talking about the indices of deprivation, which are important. In the London Borough of Barnet, we do not suffer to the same extent as other people, but we have a significant number of one-form entry schools. Yesterday, I visited Etz Chaim Primary School, where the staff explained to me that economies of scale mean that they will find themselves in a very difficult financial situation. Does she agree that the Government should be looking at that as part of their funding formula? It is not just the shires that suffer from that problem; so do some local authorities in inner London.

[Ms Buck]

I absolutely agree with the hon. Gentleman. The pattern of school development in London—not just inner London—means that we have a historically large number of smaller schools and one-form entry schools, which are taking a particular hit from this formula.

Our troubles do not of course end with the impact of the redistribution through the funding formula. We know that the changes will coincide with the wider spending shortfall identified by the Institute for Fiscal Studies and by last month’s National Audit Office report on the financial sustainability of schools. The report identified a £3 billion squeeze, reflecting the fact that education is protected in real terms, but not against inflation, the pressures arising from salary increases and national insurance contributions—my hon. Friend the Member for Dulwich and West Norwood (Helen Hayes) mentioned that—or pension contributions, the impact of the rates revaluation, the apprenticeship levy and other costs.

Taken together, the funding formula implications and the unfunded cost pressures hitting schools are turning what would already be a challenging situation into a nightmare. Schools spending next year will be reduced by £6.6 million in Westminster, £23.3 million in Newham, £13.5 million in Enfield and £11.1 million in Ealing. For some individual schools, such a scale of cuts is equivalent to £1,000 per pupil per year.

As both my hon. Friend and my hon. Friend the Member for Feltham and Heston (Seema Malhotra) have said in respect of their own local schools, heads and schools are also contacting me to describe their fears about the consequences of this reduction in funding. Many are anxious not to be individually identified at this stage, as in many cases they are not absolutely certain which of the many unpalatable decisions they may have to make to balance the books they will have to make, but they are keen to stress their concerns.

Heads point out that many of them are struggling to recruit at current pay grades, and trying to retain more experienced staff is of course more expensive. For others, the cuts mean the loss of teaching staff, and particularly of support staff, and some very worrying cases of special educational needs support being under threat are emerging. The early intervention services relating to mental health, speech and language, and SEN support are in some cases being targeted as areas where cuts are more possible to make than they are in the number of teaching staff. In many of those cases, schools are already grappling with the consequences of the loss of funding through child and adolescent mental health services.

One of my long-standing concerns, which I know is shared by my hon. Friend the Member for Dulwich and West Norwood, is the issue of gangs and serious youth violence. That issue has a crossover with child protection, and it is having an impact even down to primary schools, not just secondary schools. Early intervention and support in schools is absolutely vital if we are to turn what is, unfortunately, once again a rising tide in London. At the extreme end, two teenagers have already lost their lives in the past fortnight. I know that this is a particular concern for the Mayor, who is being briefed on the impact of school budget cuts with particular reference to early intervention.

Our outstanding nursery schools are also coping with pressures because of unrelated and already extant changes to their funding. One told me yesterday that the payment for the 30 hours provision for early years that they expected to begin in September is exactly half of what they were getting per child two years ago.

Why are we putting the quality of our children’s education at risk when, facing so much uncertainty, we need skills and creativity more than ever? Why would we risk undermining London’s crucial role as an economic driver for the whole country? The Government must think again, not choose this moment to inflict damage where it will hurt most—in the foundations of our future.

I want to end my speech by asking the Minister a few specific questions. I hope he will be able to answer them now, but, if not, that he will be kind enough to write to me after the debate. Although I appreciate that some parts of the country have historical spending patterns that are perceived as unjustly low, is it fair that the deepest cuts are being proposed for schools in the poorest local authorities in the country, most of which have to cope with the impact of very high staffing and other operating costs? What specific recommendations are the Government making to heads in respect of efficiency savings, which are cited as a way in which schools could accommodate both the funding formula changes and the £3 billion spending squeeze identified by the NAO? Will the Minister tell us what efficiency savings are being recommended to schools to achieve these savings?

What guidance will be given to ensure schools do not seek to meet shortfalls by seeking additional contributions from parents, as is increasingly being flagged up by schools across the capital? What action will the Minister take to ensure that special needs and pupil support are protected within school budgets, and what protection is available to schools hit by the combined impact of reductions under the funding formula and cost pressures? I know that a cap is being applied to school funding changes through the funding formula, but not to the additional cost pressures, which actually have a larger total impact. I hope that the Minister will be able to address some of those comments, and I look forward to what he has to say.

School Funding

Karen Buck Excerpts

Wednesday 25th January 2017 Commons Chamber

[Andy Slaughter (Hammersmith) (Lab)]

I make no apology for talking about schools in my constituency, which is the eighth worst affected in the country, while the neighbouring constituency, Chelsea and Fulham, which makes up the rest of the borough, is the seventh worst affected. All 48 schools will lose significant sums, and the borough loses £2.8 million. According to the excellent work done by the National Union of Teachers and the other teaching unions, that represents £796 per pupil per year, or 15%.

When I look at where the money is going from, I find it particularly objectionable. Wormholt Park is the highest-losing primary school with £65,000 gone; while Burlington Danes Academy is the highest-losing secondary school. Both are excellent schools with excellent staff, but they are in two of the most deprived wards not just in my constituency and London but in the country: College Park and Old Oak, and Wormholt and White City. What do we expect? What sort of message does this send out to the pupils, parents and teachers of those schools, who are working hard to try to ensure that the excellent standard of education continues against the odds?

[Ms Karen Buck (Westminster North) (Lab)]

Westminster’s is a mixed story, but a number of schools, including those that are among the 3% most deprived in the country, stand to lose substantially. Does my hon. Friend share my concern about the fact that the Government are finding resources for a number of free schools that have been unable to fill places? When the Government talk about efficiency, could they not question the efficiency of that?

[Andy Slaughter]

My hon. Friend is right. It constitutes a triumph of ideology over practicality.

Let me quote what has been said by two of the people in my borough who know what they are talking about. The head of the borough’s schools forum, who is also the principal of one of our excellent local secondary schools, has said:

“If schools’ budgets are cut, at a time when costs are increasingly significantly, it can only have a negative effect on the education that we are able to deliver.

We will not be able to employ the number of high quality teachers and leaders that we need to be able to maintain standards.”

The council cabinet member responsible for these matters has said:

“It’s clear that the government is trying to redistribute a pot of funding that is just too small. Cutting funding hardest in London, rather than giving all schools the money they need for teachers, buildings and equipment, is divisive and just plain wrong.”

That is absolutely right. According to the National Audit Office, there are extra cost pressures amounting to £2 billion across the country, but London is far and away the worst affected region. It contains eight of the 10 biggest losers in the country, which are in most boroughs and most constituencies—although not in every one: I know that the constituency of the Minister for London is the 12th biggest gainer. I find that particularly objectionable because London is a success story, and success is being punished.

From the London Challenge to the London Schools Excellence Fund, ever since the days of the Inner London Education Authority, we have prized education, particularly for people from deprived parts of London. We see it as an opportunity. It is a shame that a London Member, the Secretary of State, is overseeing this denuding of resources from London schools.

--- Later in debate ---

[Simon Hoare (North Dorset) (Con)]

It is a pleasure to follow the hon. Member for Burnley (Julie Cooper).

The Secretary of State and her team are to be congratulated. To many Conservative Members, and probably to some Opposition Members, this problem seems almost too large and intractable to wrestle with. However, we are in a consultation process. Of course there will be one or two anomalies and a few little creases will have to be ironed out. There will be unforeseen circumstances that need to be attended to. The scary thing is that those Opposition Members who have spoken so far have been either unable or unwilling to see the inherent unfairness of a system that they not only promoted but fed, either because it was to their advantage to do so or because they had no interest in rural areas.

The Government have been trying to counterbalance the differentials in funding for 2016-17, but when House of Commons Library research shows that Manchester has a per-pupil figure of £4,619 and Doncaster has a figure of £5,281, but the figure for Dorset is £4,240, we know that something has gone wrong. This tells us quite clearly that it is thought that taxpayers in Dorset and their children’s needs are less important than taxpayers and their children in other areas. There was nothing fair in the funding formula that Labour bequeathed to us. We could have had a knee-jerk reaction, which really would have put the cat among the pigeons, but my right hon. Friend the Secretary of State and her predecessor have adopted an incremental approach to try to address and arrest the problem, and they are to be congratulated on that.

I concur with many of the comments made by my hon. Friend the Member for Louth and Horncastle (Victoria Atkins), among others. When we go into our village primary schools, we see the enthusiasm of the teachers, parents, governors and staff in general. We see their enthusiasm for education, but we know that they have been trying to do their work with one hand tied behind their back because they have been penalised for living and working in a rural area.

[Ms Buck]

There is great passion among the teachers in schools such as the Westminster Academy, which has one of the highest proportions of children on free school dinners anywhere in Britain, but that school stands to lose at least £250,000. How is that fair?

[Simon Hoare]

I took over from the hon. Lady as chairman of the governors of Wilberforce primary school many years ago, so I am familiar with the problems facing schools in her constituency, as well as those elsewhere. Perhaps I need to make the point to Opposition Members quite baldly that just because schools that have done very well under an unfair system start to see some rebalancing while the cake is being re-divided, that is not necessarily an argument for saying that there should be no change for those schools that have disproportionately enjoyed funding while those in rural areas have not.

National Funding Formula: Schools/High Needs

Karen Buck Excerpts

Wednesday 14th December 2016 Commons Chamber

[Justine Greening]

In the transition year, some schools that are so far behind as to be eligible will get 3%; those schools that are even further behind under the fair formula will get a further 2.5% the following year, when the formula operates in full and properly. My hon. Friend is right to flag up the issue. It is important that the schools that have been underfunded see those gains coming through. That is what we are proposing.

[Ms Karen Buck (Westminster North) (Lab)]

Schools in areas such as Westminster have a combination of exceptionally high costs—not least recruitment and retention—and very high deprivation, and they are already making staff redundant. The Secretary of State partially blamed policies such as the introduction of the national living wage. Why are the Government introducing policies impacting on schools that they are not prepared to fund?

[Justine Greening]

I am not sure whether the hon. Lady supports the living wage, but the Government think that it is important. We also think a further two things, however: first, it is important to introduce this national funding formula—I hope that MPs can support it as a mechanism to make sure that the funding flowing into schools is delivered fairly—and secondly, it will ensure that children growing up in deprived areas see additional funding. I hope that she will reflect on that. In addition, wherever they grow up—whether or not in a deprived community—children who need to catch up will receive additional funding through this formula.

Oral Answers to Questions

Karen Buck Excerpts

Monday 14th November 2016 Commons Chamber

[Justine Greening]

As I have said, we have protected the core schools budget and, in addition, we are bringing forward a new national funding formula that will ensure that the funding is spread fairly across schools in England.

[Ms Karen Buck (Westminster North) (Lab)]

Parents and children at the Minerva free school in Westminster were horrified to discover that the temporary lease on their building will expire at Easter next year, and that their new building will not be ready until the autumn of 2018. That means that the children will have to be educated in three separate school buildings over the course of 15 months. Is that acceptable?

[Justine Greening]

The hon. Lady has set out those challenges and I would be very happy to meet her directly to see what we can do to ensure that they will be dealt with effectively.

EBacc: Expressive Arts Subjects

Karen Buck Excerpts

Monday 4th July 2016 Westminster Hall

[Several hon. Members rose—]

[Ms Karen Buck (in the Chair)]

We should be able comfortably to accommodate everyone who wants to speak if they speak for a maximum of 10 minutes.

Education Funding in London

Karen Buck Excerpts

Wednesday 4th May 2016 Commons Chamber

[Rushanara Ali (Bethnal Green and Bow) (Lab)]

I thank the hon. Member for Bromley and Chislehurst (Robert Neill) for securing this debate on such an important issue, and I pay tribute to him for his work with the all-party group on London.

As the hon. Gentleman said, there are concerns that changes to the national funding formula will have a massive negative impact on London schools and their pupils. Despite the Government’s hollow promises of ring-fenced education funding, the Institute for Fiscal Studies reports that London schools already face an 8% real-terms reduction in funding over the next five years. Now it looks likely that they will face a further cut of £260 million a year due to the changes to the national funding formula. The Minister has said in the past that that is not the case, and I hope he will take the opportunity to clarify today whether he accepts that figure. Perhaps he can confirm to Members that London schools will not face that cut.

[Ms Karen Buck (Westminster North) (Lab)]

Does not the funding formula also drives perverse outcomes as between schools within the same local authority? Westminster Council has advised me that 20 schools will lose up to 14% of their grant because of how the funding formula works. Perversely, some of the schools with the highest levels of deprivation will lose the most and some of the schools with the least deprivation will be gainers. The problem with how the funding formula works is not just between local authorities but between schools.

[Rushanara Ali]

I thank my hon. Friend, and I hope the Minister listened carefully to her powerful insights about what will happen both within and across local authorities. It will be schoolchildren who suffer, and the improvements in performance in London schools will be put at risk. That improvement is the envy of the world, with many studies showing how London has progressed. It has taken a generation to achieve that, and I hope the Minister will recognise the concerns being expressed today and the dangers of the changes, which risk having a negative effect on the performance of London schools.

I want to highlight some of the challenges that exist and the backdrop against which London has transformed its schools. As I said, that has taken a generation, and the danger is that the change will set us back in a very short time. London faces some of the highest child poverty levels in the country, and, as the hon. Member for Bromley and Chislehurst pointed out, the highest inequality. The extremely high cost of living, and especially of housing, has a detrimental effect on teachers’ ability to find accommodation.

Despite those challenges, local education authorities across parties—Labour councils as well as Conservative councils—have worked tirelessly to improve education in London. As a result, nine out of 10 schools are good or outstanding. I hope the Minister will think carefully about the impact of the reforms on that progress. If we are not careful, we will set schools in London back.

Other regions see London as an exemplar. People point to the London Challenge, which the last Labour Government introduced, and which was supported by people across parties and recognised for its achievements. Other regions have tried to emulate it. It is really important that we build on the successes of our regions rather than pit them against one other, which I fear will happen as a result of the changes. It is wrong to put educationists in competition with each other for the wrong reasons. We should be looking at how to improve the achievement of all our children, across the country.

Schools White Paper

Karen Buck Excerpts

Wednesday 13th April 2016 Commons Chamber

[Nicky Morgan]

I am going to make some progress.

The truth, as the Government amendment makes clear, is that there is no silver bullet to improve standards in education. Instead, concerted effort and innovation are required on every front. That is what we have done over the past six years. Since 2010, we have seen 1.4 million more pupils in good and outstanding schools as a result of our reforms, translated into reality by an outstanding teaching profession, to raise standards, restore rigour and free heads and teachers to run their schools in a way that works for their students. For all that we have unlocked excellence, we do not, as I have said many times before, yet have that excellence everywhere. For me, that “everywhere” is non-negotiable.

[Ms Karen Buck (Westminster North) (Lab)]

The Institute for Fiscal Studies estimates that schools will lose 8% of their funding in real terms over the next five years. What does the Secretary of State say to parents about the unfunded £1 billion cost of enforced academisation when schools are already facing that financial pressure?

[Nicky Morgan]

Opposition Members need to refresh their maths, because that calculation is completely wrong.

Our White Paper outlines exactly how we are going to ensure excellence everywhere. It makes it clear that while we have the most qualified teaching workforce in our country’s history, we can do more to ensure that every teacher has the support to do the job as well as they can.

Oral Answers to Questions

Karen Buck Excerpts

Monday 25th January 2016 Commons Chamber

[Ms Karen Buck (Westminster North) (Lab)]

Does the Minister agree that a parent’s childcare needs do not end when a child reaches four, and that after school and school holiday childcare is absolutely essential, particularly for working parents? Does he therefore share my disappointment that Westminster City Council is ending all funding for its school-age childcare service, or play service, as part of a £665,000 cut to their children’s services budget?

[Mr Gyimah]

The hon. Lady asks a very important question about childcare for school-age children. I cannot comment on the specific case of Westminster City Council, but I do know that tax-free childcare, which we have legislated for and which comes into force from 2017, will allow parents to purchase childcare out of school for children from nought to 12, and for disabled children up to the age of 18.

Oral Answers to Questions

Karen Buck Excerpts

Monday 30th November 2015 Commons Chamber

[Mr Gyimah]

The autumn statement set out the record levels of funding available to deliver our pledge of 30 hours of free childcare. As working fathers, my hon. Friend and I know that it is not just about the money; it is about flexible childcare available when it is needed. We will be consulting in the new year on ways to deliver that.

[Ms Karen Buck (Westminster North) (Lab)]

Has anyone told Westminster City Council of the Government’s intention to increase choice in school-age childcare? The council has just announced an end to all funding for the play service, which provides its after-school care for primary school-age children. It offered this to schools and, the last time I asked, only one school had agreed to take on the service because of the pressure on school budgets. Is it not the case that, in places such as Westminster, it is essential that working parents have the opportunity of decent after-school childcare, but that that is in retreat, not in advance?

[Mr Gyimah]

That is precisely the purpose behind the announcement that my right hon. Friend the Secretary of State made. Where schools cannot deliver wrap-around care themselves, they can work with private and voluntary providers to use their site to deliver that wrap-around care. This change will set a new expectation for schools to follow through on it.