Academies Bill [HL]

Lord Adonis Excerpts

Tuesday 13th July 2010 Lords Chamber

[Lord Bates]

Let me correct that for the record in Hansard. There was no suggestion of that at all.

[Lord Adonis]

My Lords, I congratulate the noble Lord, Lord Hill, on his Amendments 6 and 7. He has gone as far as he reasonably should to meet the concerns about consultation in respect of new schools. He will obviously explain his response to the particular issues to do with funding raised by my noble friend Lord Knight. I do not regard the concerns raised on other issues to be matters of substance. The noble Baroness, Lady Walmsley, was concerned that the definition of what constituted a replacement school in subsection (4) of the proposed new clause might mean that a school which just had a somewhat larger age range did not constitute a replacement school, but my reading of the amendment is that, if that were the case, it would then be a new school and so would still be subject to the consultation arrangements which are encompassed in the other amendments tabled by the noble Lord, Lord Hill. Either way, whether it constitutes a replacement school or whether it constitutes, in the wording of Amendment 6, “an additional school”, it is captured by requirements for consultation that are equivalent.

Regarding the concern raised by the noble Lord, Lord Phillips of Sudbury, about the subjective nature of the consultation, I do not read the amendment as being entirely subjective. He is the lawyer and I am not, but my reading of subsection (2) of the proposed new clause is that because the Secretary of State must take into account the likely impact of establishing the additional school on maintained schools, academies and institutions within the further education sector, he will have to be satisfied that there has been a consultation in respect of them. It would not be possible for the Secretary of State to take into account the impact on those institutions unless they had been consulted. My reading of subsection (2) of the new clause proposed by the Government’s Amendment 6 is that it substantially limits the subjective scope, because the Secretary of State would need to be satisfied that they had been consulted in order to be able to evaluate the impact.

[Lord Phillips of Sudbury]

I am grateful to the noble Lord for giving way; he may have finished. It was precisely to elicit a clear statement along those lines that I raised that query. Being a lawyer, I think the wording as it stands leaves things a little open, hence the clarity I seek, which I hope will be given.

[Lord Adonis]

I had almost finished. I just wish to make one concluding point. I support the policy of new school providers getting a fair opportunity to establish new schools where there is a need for additional schools in an area, either to meet the requirement for additional school places or—to be quite frank—to meet the requirement for high-quality places where they are not being provided by existing schools. If there is to be that opportunity, it is very important that we do not tie up school promoters in red tape that will either dissuade them from coming forward with proposals in the first place or hamper them unduly when it comes to conducting their consultations. Amendment 8 states that,

“the Secretary of State must satisfy himself that relevant interested parties have been consulted”.

As soon as you put phrases like that in legislation, you guarantee a succession of legal cases as people challenge what constitute “relevant interested parties”. That would not meet the purpose, which is the provision of new schools where they are needed or will raise the quality of education in an area, so I do not believe it is desirable.

[Baroness Morgan of Drefelin]

My Lords, it is my turn to pop up from behind the Dispatch Box. I was very interested to hear the noble Lord, Lord Bates, talk about the philosophical issues in Clause 4; I was equally interested to see the little exchanges going on across his Benches. Of course, we have very important business before us at this Third Reading.

My noble friend Lord Adonis and the noble Lord, Lord Phillips, put their finger on the issue that my amendment is about; that is, the Secretary of State being satisfied that appropriate consultation has been undertaken before an academy is established where there was no school previously. I think that we are all keen to hear what the Minister has to say, as my amendment is an amendment to his government amendment. I know that my noble friend Lady Royall will be pleased that he has listened to her remarks and taken on board concerns voiced around the Chamber about appropriate consultation on the establishment of free schools. There are real concerns and questions, for example, about how the admissions code might work in some very small schools, how schools set up by a group of parents might cater for other parents and how the broad and balanced curriculum might work in them. It is therefore important that questions around consultation are taken seriously. Like my noble friend, I believe it is important that, where there is a need for a new school, we make sure that parents have the opportunity to establish a school with the support of the education community around them and that if they consult appropriately they will not be accused at some later stage of having consulted only a few of their mates and people whom they know are fellow travellers and will simply agree with them.

In the interests of ensuring that taxpayers’ resources are invested in good new schools and that work is done to establish sustainable schools that fill a need, the consultation on the establishment of new free schools should be no less important to the Secretary of State than consultation on the conversion of a maintained school to an academy. I look forward to hearing the Minister set that out on the record. I shall think about his response when it comes to considering whether to press my amendment to his amendment.

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[Lord Adonis]

I have absolutely no objection to the amendment. If this is part of the glue that is holding the coalition together, it is clearly a very worthwhile amendment. However, it does not amount to much, since Ofsted already publishes an annual report that evaluates the progress of all schools. It has not been mentioned in our debate, but Ofsted gives specific coverage to the performance of academies in that annual report.

The last Ofsted annual report makes glowing reference to the progress of academies—to the value that they add and, in particular, to the extremely favourable ratings that Ofsted gives them, especially to their governance and management. That is the main difference that academies make; they bring in and enhance governance and management.

The Ofsted annual reports have, over several years, substantially validated the previous Government’s decision to start the academy movement. I imagine that this annual report will largely photocopy the annual report which Ofsted produces. It no doubt goes through a different bureaucratic procedure and will allow different opportunities for debate, but it will not substantially add to the knowledge base which the House and the public already have as a result of the Ofsted report. It complicates the legislative framework a little, but that may or may not be a bad thing.

[Baroness Howe of Idlicote]

My Lords, I am, I admit, rather attracted to this idea. Maybe it has gone on in the past and it has not appeared before us or we have not followed it up as we should. Nevertheless, we are talking about a situation in which there are going to be rather a large number of changes. It would also have the attraction of being a sort of pre- and post-scrutiny process. It would be a splendid opportunity to see how the whole scene is working, and equally, as the noble Baroness, Lady Walmsley, has said, where there are specific interests such as special needs, to see what is happening about children in care and so on. I think it well worth considering, and I hope the Minister will consider it favourably.

Academies Bill [HL]

Lord Adonis Excerpts

Wednesday 7th July 2010 Lords Chamber

[Baroness Walmsley]

My Lords, in his Amendment 25 the noble Lord, Lord Whitty, replicates probing amendments that were tabled by at least three Members of this House in Committee and about which we had long discussions. As a result, the Government have come back with a very sensible amendment, accepting our feeling that we should insist that schools consult the most appropriate people. The words,

“such persons as they think appropriate”,

are particularly right in the light of what I have just heard from the noble Lord, Lord Whitty. He suggested that we should list the future pupils of a school as being appropriate to consult. How far in the future are we talking about? What about children in the womb or the parents of children who may at some stage go to that school but who may have moved 50 miles away by the time the child is born? That is nonsense. To list the various organisations and groups of people who should be consulted is the sort of thing that the noble Lord’s own Front Bench resisted on many occasions.

[Lord Adonis]

The nonsense that I see in the amendments before us is subsection (3) in government Amendment 30, which, as my noble friend rightly says, allows there to be consultation after the order, in respect of which the consultation should have taken place, has been made. The noble Lord, Lord Wallace, is very anxious that we all shut up and do not speak. I have been very frugal in my interventions on Report. I was anxious not to have to make such a speech, but I badly need to hear the justification of the noble Lord, Lord Hill, for government Amendment 30, particularly subsection (3). How does he justify a requirement for consultation to be permissible after the event to which the consultation refers? We need to hear that before we know whether this needs a longer debate in which further views will be expressed. Perhaps the noble Baroness will give her view on whether she thinks it is adequate for consultation to take place after the event to which it applies.

[Baroness Walmsley]

My Lords, I will come to my Amendment 31 in just a moment. I strongly suspect that the Minister’s answer to the noble Lord, Lord Adonis, is that the academy order is permissive. It does not force the school to become an academy; it is permission for it to do so. The school becomes an academy only when it converts. I suspect that will be the answer, but my noble friend will speak for himself. I agree with the noble Lord, Lord Whitty, that it is desirable that the school consults all the right people before it even applies. I very much suspect that all those groups who feel themselves to be appropriate consultees—

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[Lord Hill of Oareford]

My Lords—

[Lord Adonis]

My Lords, my understanding of the rules of procedure is that if I do not speak now, I cannot speak after the Minister. Is that correct?

[Noble Lords]

Yes.

[Lord Adonis]

In that case, I need to speak now. I wish to put to him the specific points raised by a number of noble Lords—including, implicitly, the noble Baroness, Lady Walmsley, in her Amendment 31—about subsection (3) of his Amendment 30. Why does he think that it is satisfactory for consultation to take place after an academy order has been made? The noble Baroness said that the order may be permissive. That may be true, but it would have to have been applied for in the first instance, and only the governing body can apply for it. My reading of subsection (3) of the noble Lord’s amendment is therefore that it will be possible for a governing body to apply for an academy order without any consultation, and then to go through a second procedure as to whether it wishes to activate the powers in the order. I am anxious to know what circumstances the Minister could conceive of in which that would be a reasonable course of action. Surely the reasonable course of action is for the consultation to take place at the point at which the school applies for the powers. I should be grateful if the noble Lord could explain to us why he thinks it would be reasonable for the powers to be applied for without any consultation, and then for the consultation to take place later.

In respect of my noble friend Lady Royall’s Amendment 26, I should point out that under the Education and Inspections Act 2006, for which of course the previous Government were responsible, schools may change from community to foundation status. That is a significant change of status that enables the school to become the direct employer of its staff, the owner of its land and buildings and its own admissions authority and to make significant changes to its governing body. It can undertake that process by a decision of its governing body without the Secretary of State playing any role at all.

In terms of consistency, I see no case for Amendment 26. Crucially, it depends on the validity and confidence of the local community in the consultation on the decision that a governing body takes in the first instance when applying for academy status. I look forward to the Minister’s response. However, it would look peculiar to the local community if the whole process of seeking to become an academy happens without any consultation, and if a consultation takes place only at the very last stage when it will be clear to all concerned that the school intends to go down that course.

[Lord Hill of Oareford]

My Lords, when we discussed consultation in Committee, I said that I would think further. In doing so, I have kept very much in mind the distinction drawn by the noble Lord, Lord Adonis, in that debate between what he called the spirit of consultation and an overly prescriptive legislative approach. That is an important distinction that will inform my response to the other amendments in the group.

Before responding to those amendments, I wish to speak to Amendment 30, explain the background to it and respond to the points that have been made. Many noble Lords expressed the desire in Committee to see something in the Bill on the expectation to consult. That point was put to me by my noble friend Lady Williams and other noble friends, and by Members on the Benches opposite. I reflected on that and, while the general direction of our policy is rightly to be less prescriptive, I recognised the need to reassure the House further and came back with my amendment.

My amendment aims to introduce a statutory requirement for a maintained school to consult on its proposal to convert to academy status. The school's governing body must consult such persons as it thinks appropriate. The consultation, as has been pointed out in the amendment, may take place before or after an application for an academy order has been made in respect of the school, or after it has been granted. That will allow each school to determine when it has sufficient information on which to consult, and at what point during the application process it wishes to do so. It is our view that schools are in the best position to determine when and how best consultation should take place. They might prefer to approach parents or others at the point at which they have firm proposals. The requirement in the amendment is therefore that the consultation must be held before the funding agreement is signed, since that is the point at which the school would be legally committed to the conversion process.

My noble friend Lady Walmsley made a point about academy orders. As the noble Lord, Lord Adonis, knows probably better than I do, they are a step along the way but are not irreversible. It is proper for consultation to take place based on the facts, the evidence and the specific proposal, right up to the point at which the funding agreement is signed—when, as noble Lords know, the process is irreversible.

Many types of schools will have different views on whom and how to consult, and we prefer to trust them to determine how to do this rather than provide an inflexible checklist. I think that that point is broadly accepted, although not by the noble Lord, Lord Whitty. I will pick him up on one point. He said that these deals could be stitched up in smoke-filled rooms. Because of legislation passed by his Government, the rooms could not be smoke-filled. We are not in favour of the more inflexible approach. We must trust professionals to make decisions of this sort. In line with the commitment that we are giving, we are amending our advice to converting schools on the department's website to include guidance on good consultation practice. We will discuss with an applying school as part of the conversion process what arrangements it has made for consultation.

I turn to Amendment 28. The Secretary of State will want to review each application for an academy order on its merits. As we discussed earlier, there needs to be flexibility in those considerations, as there always has been with academies policy. Our guidance for academy converters that are not yet rated outstanding will be published on our website. It will include details of the information to be included in an application.

We are not persuaded of the need for the Secretary of State to consult on academy conversions, as Amendment 29 proposes. It should be the school's decision to become an academy except in those cases where the school is eligible for intervention. Therefore, we do not believe that it is necessary for both the Secretary of State and the school to consult on the matter.

I do not expect that this will satisfy everyone. I have sought with my amendment to capture what I felt was the mood of the House and the desire for more reassurance, given the importance that the Government attach to consultation. Making it a statutory requirement in the Bill provides the greater degree of reassurance that noble Lords asked for. I therefore commend Amendment 30 and ask noble Lords not to press their amendments.

Academies Bill [HL]

Lord Adonis Excerpts

Wednesday 23rd June 2010 Lords Chamber

[Lord Northbourne]

Amendment 69 is a permissive amendment along the same lines as that tabled by the noble Lord, Lord Lucas. We are trying to be overprescriptive in this. There may be circumstances under which it would be appropriate for charges to be made, possibly because the child’s parents were well off or because a charity had agreed to pay for the extra facilities being talked about. I do not see why we should screw the whole thing down in the way that it is screwed down in the Bill. My amendment loosens it up and allows a decision to be made on the basis of the facts and the best interests of the child.

[Lord Adonis]

There is in fact no sector of education that has more experience of academy-type schools than special education because of the existence of a large number of non-maintained special schools that are sponsored and managed by outstanding charities such as Barnardo’s and a number of other charities whose presidents are in the Chamber this evening. They are entirely independently managed but take their pupils largely or wholly by way of referrals from local authorities.

The improvement of special educational needs provision was of great concern when my party was in office and I know that it will be of great concern to the Minister. During my time in the department, I looked at this in detail and, so far as I could tell, there is no difference in inspection grades, quality or responsiveness to the needs of the special education community between maintained and non-maintained schools. There are sectors where schools that are maintained or non-maintained perform better and sectors where they perform less well. EBD is a classic case where special schools, whether maintained or non-maintained, perform less well.

Indeed, this is an area that needs a significant injection of new dynamic energy of the kind that academies could well breathe into the special schools sector. However, I saw no evidence that a school being managed in the maintained system or in the non-maintained system, which actually gives it greater independence in management than academies have, made a difference either to its responsiveness to the needs of pupils with particular special educational needs or to its maintained collaboration with local authorities, because the whole pupil referral base of these schools depends on the local authorities being willing to place their pupils in them. I therefore do not share concerns about the principle of academies in the special schools sector.

On the contrary, in crucial areas of special educational needs, particularly EBD, the dynamic innovation and attention to the needs of particular sectors that academies can bring could lead to significant improvements in provision and could enable existing special schools to expand their provision and to adapt to improve the way in which they meet the needs of pupils with special educational needs in ways that enhance the overall quality of the state education system.

[Baroness Howe of Idlicote]

My Lords, I have just one query. I am grateful, as everyone is, for the time the Minister has already given to this whole area—we have had a whole session on it—and I am enthusiastic about the variety that will be available through the plans under the Bill. However, I am slightly worried that the overall cost might go up if the local authority is less involved in the whole set-up. It might contract out some of its provision. It might do that now, but it might need to do even more than that. Is that likely to put up the cost of meeting the special needs that really must be met if we are to do our duty by those with them, as we all want to do?

Academies Bill [HL]

Lord Adonis Excerpts

Wednesday 23rd June 2010 Lords Chamber

[Lord Adonis]

My Lords, I have two points about the funding of academies. I will speak particularly to Amendments 15 and 16, which were tabled by the noble Baroness, Lady Garden.

Reflecting on the experience of grant-maintained schools, the Minister will accept that the perception of unfair funding, as much as the debated reality of the funding position, did a huge amount to undermine the reputation of those schools in the wider education system. To be fair, they did a large amount to discredit the reform. If the extension of academy status more widely, which I support, is to carry public confidence and confidence in the education world, it is vital not only that the funding arrangements for schools transferring to academy status are fair but that they are seen to be fair. The only way they are likely to be seen to be fair is if there is an independent validation process of the overall financial scheme by which the academies are to be funded.

The amendments in the name of the noble Baroness, Lady Garden, are very interesting in that respect, in that she seeks to inject the National Audit Office into the validation of the arrangements for the funding of academies. I have considered very carefully her amendments. To require the National Audit Office to advise on each individual academy, given that we will be talking about a very large number, would be an extremely bureaucratic process that is not conducive to the public interest. However, it would be worth the Committee reflecting on—and the Minister giving us an initial reaction to considering further—whether the National Audit Office might play a role in validating the overall academy scheme in respect of funding. It could concern the principles of action by which the Government are allocating funds to academies, particularly when it comes to a number of the areas that the noble Baroness mentioned in respect of special educational needs funding, which, to be frank, will be contested by local authorities.

That view is given added force by the letter of 15 June 2010 which the noble Lord, Lord Hill, sent to Members of the Committee. He sets out in the annexe the arrangements for the allocation to academies of funding that otherwise, in respect of other schools, goes to local authorities for children with special educational needs. He states:

“Academies do receive a share of funding which is for: funding retained from the Schools Budget for centrally provided SEN support services; behaviour support services; licences and subscriptions …; therapies and other health related services; and education and welfare services”.

However, they currently,

“do not receive a share of local authorities funding in the following”—

very important—

“areas: educational psychology services; SEN administration, assessment and co-ordination; parent partnership services …; monitoring SEN provision; SEN transport”—

SEN transport is an extremely expensive item in local authority funding—

“support for inclusion between mainstream and special school; and pupil referral units, education out of schools and excluded pupils”.

Those also are very significant items of local authority spending, which have a huge impact on the budgets of individual schools.

It is not clear to me from the noble Lord’s letter what course the Government propose to take in respect of those important items of spending. Clearly, they will need to be considered case by case in some detail before a proper funding scheme can be put together in relation to the expanded number of academies that we are considering in this Bill.

The conclusion of that annexe has a wonderful sentence of the kind which I fear to say I signed off on so many times when I was a Minister, but to which the House should pay very great attention. It says:

“We want to work with local authorities on what these changes will mean for local authorities, and the important … role they have to play”.

Let us be clear—that means that we do not have the foggiest idea at the moment what the actual arrangements are that we are proposing, and a great deal of work will be needed before we will be in a position to give any detailed guidance on what that will mean. That further strengthens the case for having some independent process of assessment and reporting on the overall scheme for funding academies. Having the National Audit Office or some other independent body—although the National Audit Office is clearly eminently equipped for the work—giving independent validation to the overall scheme being used for academies, and advising Parliament that the scheme meets the commitments that the Government have given, that academies will be fairly funded in relation to other maintained schools, could be a very important element in ensuring that these arrangements command public confidence.

[Baroness Perry of Southwark]

My Lords, it is apparent that academies will have more money in their fist, so to speak, than community schools. As the noble Lord, Lord Adonis, has just made clear, an enormous amount of money can be withheld by the local authority, which will now come into the academies’ own purview for them to spend. The difficulty with having an outside agency to lay down frameworks or even to observe the frameworks is that there is enormous variety from one local authority to another in the amount that they hold back and the amount of these services—the noble Lord read them out—that they provide. Authorities such as the London Borough of Wandsworth, where I live, withhold less than 5 per cent from school budgets for their central services, whereas others withhold well over 20 per cent to provide centralised services. The inequality will be very apparent. I share the wish expressed by the noble Baroness, Lady Garden, and the noble Lord, Lord Adonis, to have some way in which to demonstrate that fairness is being exercised and is being seen to be exercised, but it would be difficult to do that, given the huge disparity at present. Of course, it will be possible for schools, once they become academies, as they do now, to contract back with the local authority for some of these services, which will return that money to the local authority. However, in many cases—it is the case in Hackney, for example—very few of the academies do that.

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[Baroness Morgan of Huyton]

I wish to speak against the amendments proposed by my noble friend Lord Whitty, as they would take us completely in the wrong direction. It is in everybody’s interests that schools should be encouraged to run and manage healthy budgets and to build up sensible surpluses if they are planning for developments perhaps two or three years ahead. I have always felt strongly that head teachers of whatever school—an academy or a normal community school—have to be able to manage their own budgets for several years ahead. If you are moving towards the provision of single sciences when you have been doing a joint science course, for example, it will inevitably take real investment, particularly in teaching but probably in facilities too. The amendments would be a retrograde step. My concern about the package in general is that in some way I would like the freedoms that are being talked about regarding budgets to go across the piece for all schools, whether they are academies or not. I should declare an interest as normal as working for ARK and city academies.

[Lord Adonis]

I support what my noble friend Lady Morgan has just said, with particular reference to Amendment 11A. We need to distinguish sharply between deficits and surpluses. At the moment, unless the policy has changed in the past 18 months since I was in the department, schools with deficits are not allowed to transfer to academy status. The deficit must be written off before the school can transfer. I remember many long and very difficult negotiations with local authorities about how deficits would be dealt with.

The issue of deficits then becomes very important if not clarified. Schools with deficits, particularly those with difficult relationships with their local authority because it quite rightly is seeking to get to grips with the deficit, might regard the opportunity to transfer to academy status as a way of evading their responsibilities to deal with the deficit. It can be in no one’s interests that that should happen. If a school is being poorly managed, its budget may be suspended under Section 66 of the Education and Inspections Act 2006. It is not clear under the current Bill what will happen to schools whose budgets are suspended. I should welcome clarification from the Minister on that point, perhaps in writing. There is a statutory procedure for a school’s budget to be suspended, which has to do with very poor management, so will such a school be allowed to transfer to academy status? I imagine that it would be allowed to apply but would not be allowed to transfer. I think that the general principle should be that schools with appreciable, non-trivial deficits should not be enabled to transfer to academy status until the deficit is dealt with. In the early phases of the expansion of academies I find it inconceivable that a school with a large deficit would be able to transfer in any event, as I cannot see how it could be rated as outstanding if it has a non-trivial deficit. That is an important point in terms of taking the policy forward. Will the Minister confirm that it is not the Government’s policy to allow schools to transfer to academy status as a way of evading responsibility to manage their budgets properly if they are currently in deficit?

On the issue of surpluses I take the view entirely of my noble friend Lady Morgan. I do not believe it right that schools should be penalised for being well managed and accumulating surpluses. I can see no reason whatever for a school that has a surplus to have that surplus seized by the local authority if the school chooses to become an academy.

That raises the issue of excessive surpluses. As I know only too well, an excessive surplus is a much debated concept. It may seem excessive to the local authority but, generally, it does not seem excessive to the school, which regards the fact of the surplus as a testament to its excellent management of its own affairs. I am sure that if you ask a school about the purpose for which it has maintained that surplus, it will give you 100 good reasons why it needs the surplus and 100 good reasons why it should not be seized by the local authority.

Therefore, I do not have much sympathy with the notion that schools with surpluses should not be able to transfer to academy status, but I believe that there is an issue about deficits which the Government need to address.

[Lord Hill of Oareford]

My Lords, before I respond to the detailed points on the amendments and pick up directly on deficits, perhaps I may draw noble Lords’ attention to the published policy statement setting out our intention regarding deficits. In a nutshell, it makes clear that no school with a substantial deficit, which is defined at around £100,000, will be able to convert. However, I will go on to explain what we will do about deficits, because the purpose of the policy is absolutely to prevent any school evading its financial responsibility by converting to academy status and thereby writing off any kind of deficit.

Basically, it would work as follows. If a school had a deficit of less than £100,000 and the Secretary of State therefore decided it was able to convert, the Department for Education would compensate the local authority for the sum of the deficit. The academy would not get a financial advantage out of it as it would have to pay the amount of the deficit back through reduced levels of grant. That is how we would deal with the deficit problem.

Overall, the aim of all these arrangements is to try to ensure that they are fair and reasonable to both the converting school and the local authority. Amendment 11A would mean that the Secretary of State would not be able to enter into academy arrangements with a person with an excessive surplus or deficit. We do not believe that that is necessary because we would put in place arrangements for dealing with surpluses and deficits.

As regards schools applying to convert to academy status—particularly the first wave of outstanding schools, which tend to be pretty good at running their financial affairs, as the noble Lord, Lord Adonis, said—they are retaining their same leadership and management. It is not like the original model for academy conversion whereby one is starting a new school. Therefore, we think it only fair that what is essentially the same school keeps the same money it has put aside as part of its long-term financial planning, the point made by the noble Lord, Lord Adonis, and the noble Baroness, Lady Morgan. However, to underline the point, we think it also right that if a school converts when it has a deficit, it should deal with that deficit.

Amendments 140 and 141 would require the local authority to determine whether a school had a deficit, as well as whether it had a surplus. In our view, those amendments are not necessary because if the local authority is making a calculation to determine whether a school has a surplus, by definition it will have determined whether it has a deficit.

Amendment 142 seeks to maintain the current position when a school closes and becomes an academy. That approach had considerable logic when original academies replaced predecessor schools and gained new management and governance. In effect, in that case an institution was closing and a new one was opening. But in this case, the school is continuing, and if it has put money aside as part of its long-term financial planning it should be able to keep it.

Amendment 143 would prevent the academy from retaining a surplus, and the same argument applies. The local authority will not be losing out from the approach as the money is already accounted for in current surpluses. Therefore, it is not an additional charge on local authorities from which other schools will suffer.

Amendments 144 to 149 would treat a converting school's surplus as a loan from the local authority which the academy would have to pay back over time. Again, we do not want schools to be disadvantaged financially. Maintained schools can carry forward their surpluses from year to year; we think that the same principle should apply to academies. To pay back a loan over a long period would set up a whole new bureaucratic process, which we do not think would help.

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[Lord Hill of Oareford]

These are difficult and complicated matters and I do not have a simple and straightforward answer for the noble Lord now. I have said that it is an important matter that we can debate further outside this House. Let us do that by all means.

As I was saying, we think it important to ensure that local children of all faiths or none—I take the point that has just been made—have access to new academies. We will ensure that there is the balance that I discussed between community and faith places. All academies will have to have admission arrangements.

[Lord Adonis]

The noble Lord has just made an incredibly important statement of policy in respect of new schools. After this debate, will he clarify whether the 50 per cent provision that he mentioned in respect of new academies covers existing independent schools that transfer into the state system by means of academy status? That would be the principal means by which schools that are exclusively of one faith in terms of admissions could seek to come into the state system.

[Lord Hill of Oareford]

That is an extremely good question, which I will need to follow up separately with the noble Lord either orally or in writing, in which case I will circulate the letter. The principle of independent schools coming in is that academically they should be not selective but open in their admissions. I will need to follow up that precise point and come back to him.

We expect that in most cases the relevant religious body would be represented on the governing body of the school that converted. I am talking about existing religious schools converting. Therefore, those people would be informed of the Secretary of State’s decision not to issue an order. The relevant religious foundation or trustees would obviously be closely involved in the process and could veto any academy application. In many cases, they would be the people signing the funding agreement as the academy trust. They would be closely involved in all stages of the application process and fully informed of all decisions.

Where there is currently an existing foundation or a trust associated with the predecessor school, we expect those bodies or their representatives, if they wish to, to become members of the new academy trust. That academy trust, once established, would appoint the majority of academy governors. That mirrors the current arrangements for both academy sponsor appointees and the appointment of governors to voluntary aided schools. As members of the trust and as signatories to the academy’s memorandum of association, they would be fully involved in the process of a school becoming an academy. The governance arrangements will be agreed between the Secretary of State and the academy trust and set out in the articles of association. As I explained earlier, the articles cannot be changed unilaterally by either the Secretary of State or the academy trust.

The Bill does not change the required processes in respect of consultation, objection and adjudication on admission agreements for religiously designated academies. A school will continue to be required to consult its religious authority on any changes. Neither will it be affected by our policy on the provision of new non-faith places that a new academy is required to provide at least half of available places to the broader community. The Government’s intention overall is to maintain the current relationship between religious bodies and their schools. My letter to the churches set out that commitment.

If the right reverend Prelate the Bishop of Lincoln would like to discuss this further, I shall be happy to do so. More generally, as I have said on those other important points that have come up, I will do my best to provide further clarification. I hope that I have dealt with the broad issues of what has been a long and interesting debate and I ask the right reverend Prelate to withdraw his amendment.

--- Later in debate ---

[Lord Adonis]

I shall speak to my amendments, Amendments 45, 48 and 49, which are in this group, although they raise issues distinct from those raised under the other amendments. They go to a point of overall principle in terms of the scope of academies, but I wish to raise two specific practical consequences of that principle. The overall principle is the wording of Clause 1(6)(d), which states that academies must be schools which provide,

“education for pupils who are wholly or mainly drawn from the area in which the school is situated”.

This is one of the few cases in which I think that the Bill may be genuinely over-regulating academies. I query whether that provision is necessary. As we said in the previous debate in respect of schools with a religious character, we do not anticipate that schools will change their character by taking on academy status, and of course schools are bound by the admissions code, unless there are specific reasons why not—and I shall come to one specific reason in a moment. Therefore, the huge generality of schools will provide for pupils who live wholly or mainly in the area which the school serves.

The reason why the formulation is here is that, unless you want to bring about a change of policy, statutes tend to replicate previous statutes. The phrase “wholly or mainly” goes back right to the beginning of academies. The Education Reform Act 1988 was the first legislation providing for city technology colleges, which were independent state schools—the name to which the noble Lord, Lord Greaves, takes such exception, but that is what they were called even then. Section 105(2)(b) stipulates that city technology colleges should be,

“for pupils of different abilities who have attained the age of eleven years but not the age of nineteen years and who are wholly or mainly drawn from the area in which the school is situated”.

The purpose behind that is that the noble Lord, Lord Baker, wanted to establish independent state schools with a strong technological focus which served the broad area in which the school was located.

The noble Lord, Lord Bates, who is not in his place, said in our debates on Monday that the catchment areas of some of the original CTCs had contracted. That is true, but it is important to understand that they have contracted by the consent of their governing bodies to changing their admission arrangements, not by the requirements of the law. It is perfectly possible for an academy to draw from a wide area around the school by, for example, the use of banding, or inner and outer catchment areas—there are a lot of established ways in which schools can do that—while abiding entirely by the provisions of statute.

However, I wish to raise two categories of school in this debate which are covered in my Amendments 48 and 49, which sit very uncomfortably with the notion of schools whose pupils must be admitted wholly or mainly from the area in which the school is located. The first is boarding schools, and the second is schools which provide for pupils with exceptional talent in music, dance and the arts.

Let me start with a statement of principle. It is very important for a genuinely comprehensive system of state education that it provides for pupils in those categories. Indeed, we should be expanding the provision of state boarding schools. I am glad that a number of academies are opening boarding houses. It is important that the state system provides for pupils who have a boarding need—those with family circumstances caused by family breakdown or by the nature of parental occupation, for example parents who are in the military—in a way that, let me be blunt, those who have the means can obtain by accessing private schools. It is also vital for a genuinely comprehensive system of education that it can provide for those with exceptional talents in the arts, music and dance. By the nature of those disciplines, that will require attendance, wholly or partly, at separate educational establishments.

The state recognises that at the moment. There are 35 state boarding schools which, for the most part, are excellent schools. Local authorities often pay for pupils to attend wholly private boarding schools. A local authority paid for me to attend a wholly private boarding school because I had a boarding need. I would like to see the number of such places expanded. Through the music and dance scheme funded by the Department for Education, the state also provides for 2,000 exceptionally talented children to attend private schools, including Chetham’s School of Music in Manchester, Elmhurst School for Dance in Birmingham, the Purcell School in Bushey, the Royal Ballet School, Wells Cathedral School and the Yehudi Menuhin School, because they have exceptional talent in music, the arts or dance.

Where do boarding schools and schools for those with exceptional talent in these areas sit in relation to academy status? I shall ask two questions and make a suggestion. If the Minister cannot answer my first question tonight, I would be grateful if he will write to me.

My first question is whether the 35 existing state boarding schools will be able to transfer to academy status. Is the advice of the department’s lawyers that they would satisfy the requirements in the Bill to serve pupils wholly or mainly drawn from the area in which they are located? Looking at the list—and I know a lot of them well—my sense is that some will meet that requirement, but some will not. It would be a good thing if they were all able to meet that requirement. I cannot see, in principle, why any existing state boarding school should not be able to take full advantage of the right to become an academy.

Secondly, will existing private schools that provide a substantial number of places for state-funded pupils through the music and dance scheme be able to join the state system by means of academy status? It would be a good thing if they were able to do so, if they wished, so that we strengthened the capacity of the state education system to be genuinely comprehensive in meeting the needs of pupils with exceptional talent in music, dance and the arts. I imagine the advice that the Minister will get from his lawyers is that schools that educate pupils under the Government’s music and dance scheme will not be eligible for academy status as a means of coming in to the state system because they do not educate pupils drawn wholly or mainly from the area in question. Chetham’s in Manchester is a phenomenal school. I am glad to say that one of the good things that the department has done in recent years is to provide a substantial grant for rebuilding. Pupils come from across the country, and rightly so.

My practical suggestion is that either Clause 1(6)(d) is removed entirely, or that special provisions are inserted into the Bill to enable certain categories of schools which do not provide for pupils who are drawn wholly or mainly from the area in which they are located to become academies. I specifically have in mind boarding schools and schools whose purpose is to educate pupils with exceptional talent in music, dance and the arts. If it is possible, I would be grateful for an opportunity to discuss this further with the Minister to see how we can resolve this issue.

[The Lord Bishop of Lincoln]

I am very glad to follow the noble Lord, Lord Adonis. I shall speak to Amendments 47 and 127. I agree that the clause to which the noble Lord referred needs to be freed up a bit. Amendment 47 would allow exceptions to pupils being drawn from the local community. At the moment, the clause is very prescriptive, and my amendment would allow a broader intake of pupils. It could also have an impact in other areas, and I declare an interest as it would be of interest to faith groups. On the other hand, I am trying to strengthen the argument for the local community being the main user of these schools by shifting the burden of proof from that they might or might not be community schools to the general rule being that they are. That is why the Church of England is committed to the academies programme. My amendment would secure its interest and would also allow what the noble Lord, Lord Adonis, wants, even though we want to press for something more specific. However, in general terms, we are making a similar point.

If the Minister were to be sympathetic, it would strengthen the arm of those of us in the Church of England who want to be able to say to our people that we are in this business to serve the community, not primarily to further a particular faith position. My amendment would strengthen that position, and I hope that not only would it be of benefit to the Government in implementing the Bill but will help us ensure that our people remain on side when it comes to why we are in the business.

Amendment 127 is rather different. I am fishing in the same waters as the noble Lord, Lord Lucas, in the debate on the previous group and the noble Baroness, Lady Morgan of Huyton, in this group. The amendment is to do with the relationship between academies and other schools. I want to strengthen the Government’s arm when it comes to ensuring—not just hoping for or expecting—that these schools will form partnerships with weaker schools in the vicinity. They will be required to do so, subject to certain exceptions because there will be exceptions. A school could be situated somewhere where there are no other schools close by that are practically able to partner in that way. That is acknowledged in my amendment. The fundamental principle is to beef this up and turn it from hope or expectation to a requirement, with the possibility of exceptions where they might arise in the judgment of the Secretary of State.

--- Later in debate ---

[Lord Greaves]

My Lords, I thank everybody who has taken part in this long discussion on this group of amendments. The noble Baroness, Lady Perry, described it as disparate; I would call it a bumper bundle. It has been a quite extraordinary debate.

We had an extremely interesting debate on primary schools. I thank particularly my noble friends Lady Williams and Lady Sharp and the right reverend Prelate, who are all more expert in this matter than I am, for taking part. Whether or not the Bill needs changing in any way, it is clear that further discussion on primary schools, small schools and federations is required as it progresses through this Chamber and the Commons. We have sparked off that debate very usefully.

The noble Lord, Lord Adonis, talked about types of school which could become academies and which the Bill might restrict. I should like to put one pebble in the pond for the longer term, when more public finance might be available than there is now. I am one of those people who went to a direct-grant grammar school, which were quite extraordinary institutions. They were highly elitist academically, but many of them were not all that elitist socially. Approximately half the pupils at my school were fee-payers and the rest were, like me, scholarship pupils. They were paid for by the local authority to attend the school, which had a direct grant from central government. There was therefore quite a social mix. The school that I went to had an extraordinary social mix, because its intake ranged from children from coal-mining villages right through to the sons of the local professional middle classes.

In the 1960s, when there was a big drive towards comprehensive education, there was a general consensus that this system was not logical or sensible—that it was elitist and undermined the comprehensive principle. Direct-grant grammar schools were therefore abolished—I think by the Labour Government at the end of the 1960s.

[Lord Adonis]

The noble Lord does his noble friend Lady Williams a disservice. It was she who abolished them.

[Baroness Williams of Crosby]

That is also untrue. They were abolished by my predecessor, Mr Fred Mulley.

Academies Bill [HL]

Lord Adonis Excerpts

Monday 21st June 2010 Lords Chamber

[The Lord Bishop of Lincoln]

My Lords, the Church of England has the largest family of academies under the existing provisions, as noble Lords will be aware, and is currently educating 34,000 children from relatively poor areas, so we are interested very much in the points that the noble Baroness, Lady Morgan, is making. As it stands, the Bill encourages her in the line that she has taken. However, as I look through the amendments tabled for us to debate in Committee, I see real potential—if the Minister is minded to accept some of them—for the Bill to enable us to recognise clearly the family resemblance between the new wave of academies and the ones that are now in existence. I await with interest the way that this debate develops. At the moment, I would find it quite easy to support the amendments, but I hope that I will find it very difficult by the end of this process.

[Lord Adonis]

I begin by paying tribute to the Church of England for the outstanding work that it does in promoting academies. As the right reverend Prelate said, the Church of England is the largest single sponsor of academies. The right reverend Prelate the Bishop of Liverpool and I worked closely on the development of academies in Liverpool and the area around, and they are making marvellous progress, extending opportunity in an area that has not had it in the past.

This is my first opportunity in the House to congratulate the noble Lord, Lord Hill, on his appointment, which I do very warmly indeed. I should also say how glad I am that my noble friends Lady Royall and Lady Morgan are leading on this Bill for the Opposition. They bring a wealth of talent and experience to the task.

My noble friend Lady Morgan raised a number of policy issues about the extension of academies, which I shall leave the Minister to respond to. However, on the specific issue about the legal name that should be given to a certain category of school, I find myself in surprising agreement with the noble Baroness, Lady Walmsley. She and I are survivors from the interminable debates on the Education Act 2005, on which our views did not coincide all the time, particularly on the issue of academies. But she is right that, in terms of legal category, the schools to which the Bill proposes to accord that status have all the essential characteristics of existing academies.

I know that a rose by any other name would smell as sweet but, for two reasons, I do not support this amendment on the name that it gives to a legal category of schools. First, the schools which we are talking about in this Bill are academies in all their essential legal characteristics. They are managed independently of the local authority, on a contract with the Secretary of State that regulates a whole host of their policies and funding and which will be similar to that of existing academies. My noble friend says that academies are schools largely in deprived or challenging circumstances, and she is correct, although I need to point out to the House that that is not the exclusive preserve of academies. A number of entirely new schools have been set up as academies in very mixed social areas and a number of successful schools, including successful independent schools, have come into the state system by using the legal category of academies.

The legal status is clearly set out in Section 65 of the Education Act 2002, which is cast in similar terms to Clause 1. I emphasise the fact that the 2002 Act, which was passed by the last Government, does not specify that academies, in legal terms, can only be schools that pass a threshold either of deprivation or of low achievement. On the contrary, I invite Members of the Committee to look at Section 65, which says:

“The Secretary of State may enter into an agreement with any person under which … that person undertakes to establish and maintain, and to carry on or provide for the carrying on of, an independent school in England with the characteristics mentioned in subsection (2)”.

Those characteristics are that the school,

“has a curriculum satisfying the requirements of section 78 of the Education Act 2002”,

and that it,

“provides education for pupils of different abilities who are wholly or mainly drawn from the area in which the school is situated”.

Those provisions are almost identical to those in the Bill.

If there is no legal distinction between the schools that we are talking about in this Bill and those referred to under the Education Act 2002, is there another public policy reason for us to give a different label to certain schools within a similar legal category? I urge your Lordships not to do so. We already have an alphabet soup of different names for schools within the state system: community schools, foundation schools with a foundation, foundation schools without a foundation, voluntary aided schools, voluntary controlled schools, trust schools, city technology colleges, grammar schools, maintained special schools and non-maintained special schools. If the schools that we are talking about are academies, as they are in their essential legal characteristics, the right thing to do is to call them academies and not to add to the alphabet soup.

[Lord Lucas]

My Lords, the noble Lord, Lord Adonis, paid tribute to the right reverend Prelates, so I shall pay tribute to him. He was a most excellent Schools Minister and was largely responsible for the success of the academies programme. As the Minister said, the party opposite has every right to be proud of what it achieved. I also praise the noble Lord for starting off his life as a Back-Bencher exactly as I hope he will continue, feeling free to disagree with his Front Bench. As my noble friend Lord Hill will discover, feeling free to criticise one’s own side when one feels that it is getting it wrong is the mark of respect that every Back-Bencher seeks to attain.

I feel that the noble Baroness, Lady Morgan, although she was in turn an excellent Minister, is getting it wrong. It was always inevitable that the academies programme, once it had proved itself and gained momentum, would be open to existing schools. The idea that schools have to fail in order to become academies is not tenable. The substance of the amendment is political phooey and should be disregarded.

The noble Baroness raised a number of points that I suspect I will agree with later—or at least I will share her concerns. This is a new phase for the academy movement and it raises questions which were left in abeyance when the academies were few and had strong sponsors but which need examining now. However, a change of name, with further confusion for parents and everybody else, is not required.

Academies Bill [HL]

Lord Adonis Excerpts

Monday 21st June 2010 Lords Chamber

[Lord Phillips of Sudbury]

My Lords, this is a broadly good Bill, but in boldly extending academy status from underachieving schools to any school, we must surely ensure that the Bill does not inadvertently undermine its avowed purpose,

“to raise school standards for all”.

Michael Gove in the other place and the noble Lord, Lord Hill, in his accomplished Second Reading speech here emphasised that primary focus of helping the educationally underprivileged. Mr Gove put it this way:

“We believe that the function of the state is to promote equity … the power of the state should be deployed vigorously to help the vulnerable and the voiceless, those who lack resources and connections, and those who are poor materially and excluded socially”.—[Official Report, Commons, 2/6/10; col. 463.]

My amendment is to ensure just that—that the coalition walks that talk and exemplifies its values. It addresses the risk that the free schools—the brand new academies—do not cause undue detriment to existing neighbouring schools. I accept that that would never be the purpose of any group promoting such a new school. However, sometimes any of us—indeed, all of us at times—can so concentrate on our own children and our own back yard that we overlook the needs of others. That is a particular danger when social considerations intrude, as they too often do in this country, vis-à-vis education. At Second Reading I gave an example from my own part of Suffolk of the proposal to convert a feeder middle school into a secondary academy school. That would devastatingly undermine the really good school into which it feeds by the consequent impact on its entry numbers and all that that would mean for finances, staffing, social balance and, ultimately, morale.

Britain is still a sorely disfigured country—disfigured by acute inequalities of life chances. That underlines, among other things, our social and law and order problems, and leads to huge financial and moral setbacks. It is against this backdrop that I very much hope that the Government—my Government—will accept this constructive amendment, which will provide an essential but practical safeguard against the unintended consequences of the Bill as it stands.

[Lord Adonis]

The noble Lord is a stickler in this House, and rightly so, for precision in language and comprehensibility in legislation. In his amendment he uses some very general terms. He talks about the Secretary of State being satisfied that an academy meets “a public need” and that it,

“will not cause undue detriment”.

Will he set out somewhere for us how he defines “public need” and “undue detriment”?

[Lord Phillips of Sudbury]

My Lords, the noble Lord made much the same point before the dinner break. If he looks back over some of the legislation that he introduced, he will find that it is peppered with considerations and language of that kind. You cannot legislate without using general terms. The amendment that I have put forward has a long-stop protection in that it is capable of being judicially reviewed. If the noble Lord were to suggest that that is the very evil against which more precise language would guard, I would have to tell him, first, that more precise language cannot be used in a situation such as this and, secondly, that to give a controlled guided discretion to the Secretary of State is a device used in every Bill in every month of every year in this place. I am confident that it will work in this case. You have only to look at Clause 1(6), which refers to,

“pupils who are wholly or mainly drawn from the area in which the school is situated”.

You could argue till the cows came home about what “mainly” means and what,

“the area in which the school is situated”

means. As I say, at times legislative language must, and can only, resort to generalities. I think that the amendment I have produced is capable of being used practically and to effect. The alternative would be to have nothing in the Bill, which I suggest would be the worst of all worlds.

Given the backdrop that I have described, I very much hope that the Government will accept this amendment, which does not apply, of course—I have specifically excluded it from doing so—to maintained schools converting to parallel academies, which will be by far the larger number. However, there would still be a significant number of new free academies, which must surely also be expected to serve the higher purpose of educational justice for all, not just their own pupils. A big society, surely, must be an equitable society, particularly towards its most needy. My amendment may not be perfect, but something like it must be in the Bill if we want to end what Mr Gove called in his Statement today a “segregated and stratified” school system. I beg to move.

--- Later in debate ---

[Lord Adonis]

My Lords, I am sorry to return to the amendment tabled by the noble Lord, Lord Phillips, but I believe that it is fundamentally unworkable. It is not a question of judgments having to be made about terminology in legislation; these judgments have to be made the whole time. The problem with his amendment is that there are deeply competing interpretations within the education world as to what the words he has used in his amendment would mean. Having been on the receiving end of representations about the setting up of new schools, including schools in the county from which the noble Lord hails, I can tell him that he is setting up a procedure that will see every proposal for a new school that does not have near universal local support end up in the courts being bitterly contested because of the imprecision of language that he proposes to impose on the Bill.

Let me take the two specific terms he uses: that a new academy must meet “public need” before the Secretary of State is allowed to agree to it and that it should not,

“cause undue detriment to any neighbouring school”.

King Lear got this right more than 400 years ago when he said:

“O, reason not the need! Our basest beggars

Are in the poorest thing superfluous”.

But when it comes to defining need in respect of new school places, two fundamentally competing views are held. One is that “need” should be defined as a numerical need for additional places, while another and essentially different interpretation is that “need” should be based on parental demand for a new type of place or, as alas is too often the case in local authorities with a large number of failing schools, for better places, which is what has driven so much of the academy movement. It is not that there have not been enough school places in a locality, but that they have not been of a quality that parents in good conscience wish their children to take up.

The noble Lord owes it to the Committee to be frank and direct about which concept of need he has in mind. Is need to be defined simply as a numerical need for places or is it to be defined in terms of appreciable parental demand for a type of place—it could be for Montessori-type schools with a different educational philosophy—or better quality places than those on offer in the existing schools?

[Lord Phillips of Sudbury]

I am grateful to the noble Lord for giving way, but he has rather challenged me. The answer to his question is this. My amendment leaves a discretion with the Secretary of State, and it will be for the Secretary of State to decide on the two or more interpretations of need. In the same way, it will be up to the Secretary of State to come to conclusions about undue detriment. If, through guidance, the Secretary of State gives a further indication of how the two tests have been interpreted, all the better. But as the noble Lord is well aware, the only basis on which this could be challenged in a court—and challenges to ministerial discretions, which are widespread, are extremely rare—would be that the Secretary of State had acted in a way that no reasonable person could have acted.

[Lord Adonis]

My Lords, I do believe that that is a straight cop-out. Parliament has to be clear on what it means. There are two competing notions of need here and Parliament needs to state, before it charges the Secretary of State with these responsibilities, which one it means. As for judicial reviews and legal challenges being rare, there was one point when I was in the job now being done by the noble Lord, Lord Hill, when I was barely out of the High Court and the Court of Appeal on challenges to academies, most of them with support from the National Union of Teachers and a good number with support, one way or another, from bodies associated with local authorities. So Parliament needs to be clear on what it means.

We come then to “undue detriment”. Again, there are two competing views of what this is. It could be taken to mean making another school or schools totally non viable or it could be taken to mean that it would have a serious, definable or appreciable impact on another school or schools. Again, there is a fundamental difference between those two concepts of detriment—whether the detriment causes a school to become non viable or whether it simply has an impact or an appreciable impact. Again, Parliament needs to be clear which of the two it means.

This goes to the central point about school improvements as well. The noble Lord’s amendment says that the Secretary of State may not allow a new academy to be established if it causes undue detriment. I have to say that in many cases it is the dealing with the undue detriment that should be the duty of the Secretary of State or the responsible local authority using the huge array of school improvement powers available, including those that the Government of whom I was a member provided over 13 years. The idea that parents should not be able to access new or additional school places in areas where the schools are not providing good quality places simply because the provision of those places will cause detriment to other schools fundamentally ignores the interests of parents and their right to have a decent quality school to send their children to. If there is not such a decent quality school and someone is prepared to do something substantive about it, they should be applauded and not put through the legal rigmarole that the noble Lord is proposing, which will work fundamentally against the interests of parents, particularly in places where schools are not of a high enough quality. The imprecision of the language, where it is not clear what the definitions of essential terms such as “detriment” and “need” will be, will ensure that the only people who will gain from this are the lawyers, who will make huge fees while this is fought out in the courts over many years.

[Lord Baker of Dorking]

My Lords, I support entirely what the noble Lord, Lord Adonis, has said. It is a pity that he is not saying it from the Labour Front Bench because he is absolutely right.

On listening to the debates both before and after dinner, I was struck by how similar they were to the debates on the Education Reform Act 1988, when I decided to establish two groups of independent schools—city technology colleges, which were totally independent of government and financed by business people, and grant maintained schools, which were almost independent of government—which we had to get through as a result of an elaborate electoral process which in those days your Lordships tried to hinder, restrict and limit. I was told at the time that these schools would destroy the education system, that the detriment to schools would be overwhelming and that ordinary secondary schools would be undermined and destroyed. That is not what has happened.

In 1988 the Labour Party objected so strongly that it said it would abolish them all; that it would destroy them as soon as it came into power. That did not happen. The noble Lord, Lord Whitty, was a member of a Government who actually expanded and developed them at the expense of local education authorities, I would remind him. He was a senior member of a Government and a Minister of State who approved all this. The CTCs were not voted down. They became beacon schools which other local schools tried to emulate.

In the early days of city technology colleges, the local education authorities opposed them so strongly that they told the other local authority schools for which they were responsible to have nothing to do with them; not to play games with them. The noble Lord, Lord Phillips, will remember; he was in the House in those days. The local authorities ostracised them; they said that they were the cuckoos in the nest that would destroy them. Now they tell them to co-operate with them; they are trying to imitate them and to reach the standards that they have established. That is an enormous change, as it was with the grant-maintained schools. I shall allow the noble Lord, Lord Whitty, to intervene but I want him to listen to me for a moment. Again, the Labour Party spent 10 years totally opposing the grant-maintained schools and then it reinvented them and called them trust schools.

However, let us forget all of that. I do not want to make party points tonight. This provision for alternative types of schools is good for the whole education system; it drives up standards. As the noble Lord, Lord Adonis, said, if parents are dissatisfied with a local school and the local authority has tried to improve it—it has thrown resources at it and changed the head three times in two years and done everything it can—and it still has not happened, what does it do? Just let it go on to the detriment of all the pupils? I shall give way to the noble Lord, Lord Whitty, in a moment, because he is being stirred, but I shall give way to the noble Lord, Lord Phillips, first.

Academies Bill [HL]

Lord Adonis Excerpts

Monday 21st June 2010 Lords Chamber

[Lord Greaves]

My Lords, Amendment 3 in this group is tabled in my name. It is similar to the amendment that the noble Baroness, Lady Morgan, has just moved. I tabled this amendment because I have read the Bill several times—more times than is good for me—and I cannot work out whether the Government intend to include free schools within this legislation, and this is meant to be the legislation that will apply to free schools, or whether it is just about converting existing schools. My confusion, which is similar to that of the noble Baroness, arises because all the Government’s statements about the Bill relate to converting existing schools into this new kind of academy. That is how the Bill was promoted. I read the Second Reading debate, and that was largely what it was about. So I was confused as to whether Clause 1, in particular subsections (1) and (2), could apply to free schools. The Bill states:

“The Secretary of State may enter into Academy arrangements with any person”.

That seemed to me to provide an ability to include any group of people who put themselves forward to set up a so-called free school.

Then there was the announcement at the weekend and the Statement that we have just had, and it now appears that the Bill includes free schools and that they will be set up within the terms of the Bill, if and when it becomes law. That is the real reason I put this amendment down for clarification. Will the Minister confirm that that is the case? Or do the Government think that free schools can be set up under existing legislation? In that case, they have a choice. If free schools are included in the Bill, a great deal of unanticipated extra discussion and debate is required, particularly in Committee.

I thank the Government and Ministers in both Houses for the amount of discussion they have been prepared to enter into with all Members of the House, and in particular with the Liberal Democrats, concerning the Bill. However, going over the notes I have made of meetings, I see that free schools have hardly been mentioned. The meetings have all been about conversions. Suddenly this weekend, the terms of the debate on the Bill seemed to change substantially. At this stage I do not want to enter into detailed debate about free schools. However, if there are to be free schools, the legislation and rules under which they are set up will need to be laid down at least as clearly as the rules for conversions are set out in the Bill. Given the quantity and detail of the amendments that have been tabled, we may feel that the detailed rules and regulations for conversions are insufficiently set out in the Bill and need improvement.

The system for setting up free schools does not exist in the Bill, as far as I can see, unless there is stuff that I have read without understanding what it means. This amendment is a means of getting from the Minister some clarification of these matters so that, in the rest of this debate in Committee and when the Bill goes back to the House, we can understand exactly what we are talking about. It may be that amendments that noble Lords might want to see in the Bill will be different according to the answer that the Minister gives. The basic questions are: do free schools need new legislation; can they be set up under old legislation so that the Bill does not apply to them; and, is the Bill necessary and fundamental to the setting up of free schools?

[Lord Adonis]

I hope the Minister will be able to confirm that entirely new schools can be set up, and indeed are set up at the moment, as academies. So, to the extent that that is true, free schools can be set up at the moment under existing academy legislation. I warmly welcome the suggestion made by my noble friend Lady Morgan that free schools should be called academies. I hope that the Minister is able to accept that suggestion, which my noble friend makes with great generosity of spirit, to make clear that we have a much more uniform nomenclature available. I am very keen to see all categories of schools that have the legal characteristics of academies called academies.

[Lord Low of Dalston]

I shall speak to Amendments 13 and 76, which are tabled in my name. When we debated the Bill at Second Reading, there was widespread concern throughout the House that academies should have obligations to meet the needs of pupils with special educational needs that are no less rigorous than those which apply to maintained schools. The Minister was very clear that he was fully committed to this, and I am grateful to him for the trouble he has taken in meeting Peers with these concerns and also in writing to provide assurance that that is what the Bill achieves. However, there are still areas that remain unclear, where the commitment could do with being spelled out more fully or where gaps in the obligations to which academies are subject need to be plugged. These amendments are directed at remedying these deficiencies.

Amendment 13 is a probing amendment with two purposes: first, to ascertain whether academies receiving academy financial assistance will be required to have funding agreements in place; and, secondly, to ascertain whether meeting the needs of children with special educational needs and disabilities will be included as a standard requirement within arrangements for academy financial assistance, just as it currently is in funding agreements.

Currently, academies are principally accountable through and governed by funding agreements signed with the Secretary of State. Clause 1(2)(b) introduces a new form of funding for academies—

“arrangements for academy financial assistance”.

These are not found in the original academies legislation. Arrangements for academy financial assistance are a form of direct funding from the Secretary of State granted through powers conferred by Section 14 of the Education Act 2002. Arrangements for academy financial assistance are an alternative to funding through an academy agreement so that it appears possible that, where arrangements for academy financial assistance are put in place, an academy may not be required to have a funding agreement.

While it is possible to have reservations regarding the scope and effectiveness of funding agreements as accountability mechanisms, there has none the less been clarity in funding agreements signed after 2007 that academies should have regard to the SEN code of practice and use their best endeavours to ensure that special educational needs are met. There are concerns that this new form of academy funding—arrangements for academy financial assistance—will bypass the safeguards contained in funding agreements in relation to SEN provision. This amendment gives the Minister an opportunity to make the position clear and to reassure us that academies receiving academy financial assistance will be required to have funding agreements, and that meeting the needs of children with SEN and disabilities will be included as a standard requirement within arrangements for academy financial assistance.

--- Later in debate ---

[Lord Adonis]

My Lords, there seem to me to be two distinct issues. The first is that of good practice in the establishment of academies, which was rightly raised by the right reverend Prelate the Bishop of Liverpool. It is clearly good practice that maximum efforts are made to engage the local community. Indeed, it is very unlikely that an academy proposal will be a success if it does not have a very wide measure of support from the parental body, the staff body and the wider community. As the right reverend Prelate rightly says, although the statutory consultation requirements are not present in the case of academies because very few statutory requirements apply in respect to academies, an elaborate process of consultation has taken place in relation to their establishment. In virtually every case consent has been given before an academy is established. I say “virtually” because, in the case of some failing schools, it is not possible to gain the consent of the parental body or sometimes even of the governing body. However, that is distinct from the precise provisions we propose to put in the law. As soon as you read Amendment 4A tabled by my noble friend Lady Morgan, you will see the difficulty of trying to put this into legislation. Having dealt with these issues at the Dispatch Box over a long period, I can say that they are only too clear to me. My noble friend’s amendment says that the groups to be consulted must include those it is perfectly reasonable to include, such as:

“(a) the parents of children of the school

(b) the children and young people of the school”.

I entirely agree with my noble friend Lady Massey about the importance of consulting pupils. One of the things the previous Government did which I think was a big step forward was strongly to encourage pupil engagement in schools, including with school councils, which were a very worthwhile development in schools in recent years. I would certainly expect to see school councils consulted before proposals of this kind came forward. However, paragraphs (f) and (g) of the amendment move into the land of the extremely subjective and difficult to determine. Paragraph (f) refers to,

“any local authority which sends a significant proportion of children to the school”.

What is “significant”? We shall be in the courts as soon as an application is challenged on the meaning of “significant”. Paragraph (g) refers to,

“the governing bodies of other schools in the area which might reasonably be considered to be affected by the arrangements”.

But who decides who might,

“reasonably be considered to be affected by the arrangements”?

Those who oppose proposals for schools to become academies will embark on months of litigation and will latch on to ambiguous wording in legislation that enables them to go to the courts.

While the spirit of these amendments is clearly correct and should be encouraged, as we want to see strong parental and community engagement in proposals for academies, I caution the Committee against seeking to put in primary legislation vague requirements which will open the floodgates to opponents to engage in litigation on the ground of ambiguous legal wording.

[Lord Northbourne]

My Lords, I should like to set down a marker. If academies are required to accept children with special educational needs, those who understand the needs of those children should be consulted to find out what the effect of the academy would be on their well-being.