School Funding: East Anglia

Debate between Lord Bellingham and Heidi Allen

Tuesday 3rd September 2019 Westminster Hall

[Sir Henry Bellingham]

There is a lot of truth in what my hon. Friend says: Educate Norfolk asked for a significant real-terms increase. I made a note at the time that one of the figures they pointed out was that the schools budget in 2017-18—that is two financial years ago—was £41 billion. They felt that over the next four financial years it should go up by at least £10 billion. As we know, under the announcement made a few days ago, the increase will be £2.6 billion next financial year, £4.8 billion the following year and £7.1 billion in 2022-23. That brings the schools budget up to £52.2 billion in 2022-23; the Minister may correct me on this, but I think I am right. That is not just some increase in the future; it is an increase next year and the following year. It is extremely significant given the context that we still have a budget deficit and a national debt, which will carry on going up in actual if not real terms.

[Heidi Allen (South Cambridgeshire) (Ind)]

We all agree that any money is welcome, but it is not right to say that our schools can wait for one, two or three years. There is a school in south Cambridgeshire—admittedly not in my constituency, but that of the hon. and learned Member for South East Cambridgeshire (Lucy Frazer)—that now has to close on one day a week; it cannot open its doors every day any more. Accepting that money will not flow so freely—particularly if we have a no-deal Brexit; we all know we will be short of cash then—is it appropriate for the Minister to look at an interim solution? For example, did the hon. Gentleman know that schools across the UK are sitting on surplus reserves of £1.7 billion? To balance the deficit between schools that are underfunded, in counties such as mine, and where they should be, we need £223 million; that figure is more than covered. Would the hon. Gentleman accept that perhaps that is an interim solution, while we are waiting for the money to flow through?

[Sir Henry Bellingham]

The devil will be in the detail, but it is incredibly important to get the money flowing quickly. The Minister can look at that, but, as I understand it, this is new money coming into the Department. It will mean that every school will get a real-terms funding rise next year, and hopefully that will have a significant impact on our schools. Secondary schools will receive an increased minimum of £5,000 per pupil and primary schools will get the minimum of £3,750, going up to £4,000 per pupil in 2021-22. There will also be an extra £700 million for special educational needs and disabilities. It is significant and I welcome it.

I also welcome the announcement made by both the Education Secretary and the Chancellor regarding teachers’ pensions. As the hon. Member for Norwich South pointed out, having high morale in the profession is crucial in terms of retention, managing mental health, the welfare of teachers and making sure we get the absolute best out of all our pupils.

I welcome the announcement on pensions and the pledge to meet the £4.5 billion requirement from outside the education budget; maybe the Minister can clarify that. I look forward to hearing what he says about this, as my understanding is that it will not impact on the extra money for schools. The employer contribution of 23.6% will be on top of the salary, which will ensure that the scheme is fully funded. One can link that to teachers’ pay, which again is crucial to morale and retention.

I agree with a lot of what the hon. Member for Norwich South said, but I hope that many of his concerns and the examples he gave will soon be historical, because they will be overtaken by the new funding that will become available. It is important that teachers are well rewarded. A starting salary of £30,000 by 2022-23 will help to make teaching salaries among the most competitive in the graduate labour market.

I have a specific question for the Minister: in July, he announced that teachers would have a 2.75% pay increase, but that his Department would only fund it to the tune of 0.75%. The understanding was that schools would have to pick up the rest. Can he clarify the situation? Obviously, we do not want school budgets to have to in any way subsidise the increase in teachers’ pay. I very much hope that the announcement made last week will cover that key point.

As I mentioned, the devil will mostly be in the detail. How quickly will the funding reach the schools? I am optimistic, on the basis of what the Minister has said in his interviews; I congratulate him on his performances in the media over the past week or so. He has been very clear and upbeat about this, and very passionate as well, because this funding will enable him to move forward in some of the key areas of priority within his portfolio.

[Sir Henry Bellingham]

I will just say to the hon. Gentleman that, yes, it is not all coming in one go, but there will be a £2.6 billion increase next year in 2020-21 and, if this Parliament goes its full five years, in 2021-22 it will be £4.8 billion and then up to £7.1 billion.

This is new, real money, now. It is incredibly important that we recognise that point. We can argue that it will not be enough, but I have also heard hon. Members talking about social care, the health service, the A47 and other priorities. It is a question of balancing priorities, and I am pleased that this Prime Minister has recognised that schooling and our young children are a key priority.

[Heidi Allen]

I suppose the question I have is: what on earth are my schools supposed to do now? Compared with, for example, a Westminster school, we get roughly £1,600 less per head per year, £400 less than the average across the UK. What on earth are we supposed to do now?

[Sir Henry Bellingham]

What I would say to the hon. Lady is very simple: the fairer funding for schools formula did indeed discriminate against a lot of small schools. I will come on to that in a moment, because what we need to know is whether the small schools in my constituency, in her constituency and in the constituencies of my right hon. and hon. Friends will see significant benefits. I would suggest, on the figures being put out by the Department, that that definitely will be the case. It is exactly what different teaching groups have been asking for.

I would also like the Minister to comment on one announcement that he made, which is relevant to the small schools that the hon. Lady has mentioned: the £700 million extra for special educational needs and disabilities, the so-called SEND pupils. There is a shortage of special educational needs co-ordinators in Norfolk and a significant lead-in time to get more in place. How quickly does the Minister think this extra money will be available? What impact will it make, and when will it make that impact?

I also ask the Minister another question about small schools, because we have in Norfolk—as I am sure we also do in Suffolk, Cambridgeshire and other counties in the country—the sparsity factor, which is designed to assist very small rural schools in areas that are sparsely populated. In my constituency, I have a number of federations of small schools, which have been a great innovation, because they can leverage their success and capabilities in different areas and put extra resources into individual schools when they need it. Working together in a federation is often a really good way of going forward, rather than closing a small school. However, we have a situation in which some small schools in a federation get the sparsity factor money, but schools nearby, in next-door villages, do not. I have never yet heard a satisfactory explanation of why.