(9 months, 3 weeks ago)
Lords ChamberMy noble friend is absolutely right. Last June, DWP published an official measure of the gender pensions gap, which is currently 35% in private pensions. The reforms that we brought in will mean that 3 million women will benefit by more than £550 per year by 2030 and that the gender pensions gap will equalise by the early 2040s—more than 10 years earlier than under previous legislation.
My Lords, following the previous supplementary question, I think the Minister was referring to achieving equality in state pensions. The big problem—and what is leading to most of the gender pension gap—is the difference in the caring responsibilities, with most unpaid care undertaken by women. The Minister is correct that the Government have identified the problem; can she give a commitment to come up with a worthwhile solution?
As I have already said, the Government are working on a number of different aspects of this. Obviously, a critical part in relation to maternity leave—and the impact that, as the noble Lord rightly says, one can see on the gender pay gap —is our huge commitment to expanding the childcare offer, so that no women will be unable to return to work for lack of childcare support.
(1 year, 8 months ago)
Lords ChamberMy noble friend makes a very important point. Risks relating to gambling are part of the RSHE curriculum and there are two main aspects of this. One is supporting pupils to manage risk and make informed decisions in relation to their mental well-being and their behaviour online. The second area relates to internet safety and harms and addresses exactly my noble friend’s point: pupils are taught about the risks relating to online gambling, including how advertising and information is targeted at them, the risks of accumulating debt and how to be a discerning consumer of information online.
My Lords, I am glad that the Minister stressed the importance of mathematics in this context. Will she take the opportunity to inform the Prime Minister that it is facile to suggest improving maths in our schoolchildren without paying mathematics teachers enough money to encourage them to join and stay in the teaching workforce?
I have to say that I do not really have any intention of saying to the Prime Minister that his plans are facile. More importantly, I point the noble Lord to the pickup in recruitment of maths teachers following our interventions over the last three years.
(2 years ago)
Lords ChamberAs I said in answer to an earlier question, the percentage of children receiving free school meals is at an all-time high. If one takes benefit-related free school meals and universal infant free school meals, over one-third of all pupils in this country—37.5% of pupils in state-funded schools—receive free school meals. The Government keep this policy under review at all times, but there are no current plans to extend free school meals to all those receiving universal credit.
My Lords, to pursue the point on the advantages to children’s education of being well fed, this has been known for many years. Does that not lead inexorably to the conclusion that all children require a decent education, so we need to ensure that all children are well fed? It is not just about poverty relief; it is not just about nutritional standards; it is about ensuring that all children get a decent education.
This Government are absolutely committed to all children getting a decent education—but, as I said in response to the question from the noble Lord, Lord Storey, we believe that parents also understand that very well.
(2 years, 6 months ago)
Lords ChamberI think figures were quoted comparing Blackpool and Brent—
Okay. Does this imply that the introduction of the new funding formula will see a significant reduction in the payments received by the school that had the higher figure? The Minister told us there was a difference but we do not know the reason for it. If she is saying that the reason is unjustified, it must lead to a reduction in funding for the school that had the higher amount previously.
I see the noble Baroness, Lady Chapman, is tempted to answer the question. The figures I referred to were from 2017. I am happy to set out in a letter to the noble Lord more of the reasons for the differences, but I suspect, being familiar with the subject, he knows what some of them are. To date, no area has seen a reduction in nominal terms in its funding. One reason why we intend to implement this over a longer period is to avoid any disruption to local funding. As I am sure the Front Bench opposite would say on my behalf, it will depend on the total quantum of funding committed to our schools.
I thank the noble Baronesses, Lady Chapman and Lady Wilcox, for Amendment 87 and for their unerring focus on ensuring that all children have a fair chance to realise their potential. The introduction of the national funding formula in 2018 was a historic reform to school funding, replacing what we believe to have been an unfair and out of date system.
The national funding formula already calculates funding allocations for each school, which, as I mentioned in the earlier group, are publicly available and, with these, the calculations used to determine funding allocations for local authorities. In the current system, individual schools’ final allocations are then determined through 150 different local formulae. The direct national funding formula will mean that every school is funded through the same national formula, with only specific, local adjustments. That will achieve this Government’s long-standing ambition that funding is distributed fairly, and means that parents, school leaders and governors will have assurance that their school is funded on the basis of the needs and characteristics of their pupils, rather than where the school happens to be located. The intentions of the reforms are not to lead to changes in the distribution between geographical areas, but within them.
Similarly, this change should not impact how much funding the formula directs overall towards socioeconomic disadvantage. Instead, it should ensure that each school, in each local authority, receives a consistent amount of deprivation funding based on their pupil cohorts.
I want to reassure noble Lords that we are committed to levelling up opportunity to make sure that all children have a fair chance in life, wherever they live and whatever their circumstances. We are specifically targeting funding towards disadvantage. Through the national funding formula, we are allocating £6.7 billion towards additional needs, including deprivation, which is a sixth of available funding. In addition, we are directing other funding sources towards disadvantaged pupils, including the pupil premium which is rising to over £2.6 billion this year, and the school supplementary grant which includes a further £200 million targeted towards deprivation. We are also allocating over £200 million to support disadvantaged pupils as part of the holiday activities and food programme. This means that, altogether this year, we are allocating £9.7 billion towards pupils with additional needs, including deprivation.
For the 2022-23 academic year, the Government have committed around £500 million through the recovery premium and £350 million through the national tutoring programme, through which 1.5 million courses have been started so far to support the children whose education has been most impacted by the pandemic, with a particular focus on disadvantaged pupils.
By introducing the national funding formula and replacing the previous postcode lottery, we have a funding system that is much more responsive to changes on the ground. School funding is allocated based on current patterns of deprivation and additional needs across the country. It means that pupil intakes that have similar levels of deprivation, such as Liverpool and Wolverhampton, or Calderdale and Coventry, are now receiving similar levels of funding per pupil. The redistribution of funding seen since the introduction of the national funding formula reflects that the funding system has been catching up with changes in patterns of relative deprivation.
As we have discussed at length, the principle of transparency has underpinned our reforms to the school funding system. As I have said, we publish information annually on the national funding formula. We are committed to publishing the impact of transition on individual schools and on different types of school every year. I would also like to reassure the noble Lord, Lord Hunt, who is not in his place, that this does include the factor weightings which he questioned in the last group. Based on this, it is already possible to see the geographical distribution of funding and how that changes year on year, and what support the national funding formula offers for deprivation. We will continue to review the impact of the national funding formula in terms of meeting policy objectives, such as supporting schools to close attainment gaps. In addition, we want to ensure the information we publish is as helpful as possible and we are currently consulting with schools and the wider sector on what published information would be most useful for them.
I hope this has persuaded your Lordships that the national funding formula will continue to distribute funding ever more fairly, based on the needs of schools and their pupil cohorts. I therefore ask the noble Baroness opposite to withdraw her Amendment 87.
(2 years, 6 months ago)
Lords ChamberMy Lords, I very strongly support the remarks made by the noble Lord, Lord Shipley, but I will return to that issue in the next group. I was not going to participate in this debate, but I have been forced to because of the references made to rural and metropolitan areas. I say to my noble friend on the Front Bench as gently as I possibly can that comparisons between allocations to different regions are always difficult and complicated.
The noble Lord, Lord Deben, said that we metropolitan elites do not have much knowledge of what happens in the countryside. Equally, people from the rest of the country have surprisingly little knowledge of what happens in metropolitan areas. The levels of deprivation in London—a vast area in terms of population—are enormous. In terms of picking out individual figures, I have the brief from London Councils, which provides figures demonstrating to its satisfaction that London has been hard done by over the last few years, with bigger reductions in the allocation to schools than the rest of the country. I do not believe bandying figures in that way is that helpful. What we want is sufficient funding across the country as a whole, and I think that setting one part of the country against another should be done with great discretion.
My Lords, I genuinely welcome the chance to talk to your Lordships about reforms to the national funding formula. We will come on to this in more detail on Clause 33 in the next group. I want to start my response by noting that this part of the Bill delivers a long-standing commitment to achieve fair funding for schools and, I should say, a commitment where there have been multiple consultations over the years with the sector.
I will start by responding to Amendment 79 in the name of the noble Lord, Lord Hunt, and Amendments 79ZA and 79C in the names of the noble Baronesses, Lady Chapman and Lady Wilcox, on the financial arrangements of multi-academy trusts. One of the ways that the best multi-academy trusts transform outcomes for pupils is by focusing their expenditure and investment towards the right areas, whether this is investing in new IT across the trust or securing additional staff to work across all the trust’s schools.
Trusts can target funding to turn around underperforming schools they have brought into their trust or, indeed, as we discussed with the noble Lord, Lord Shipley, on a previous day, target funding to very small, rural schools which would otherwise not be viable. The academy model relies on trusts’ ability to harness and share expertise and resources. However, Amendments 79 and 79ZA would stifle trusts’ ability to do this, undermining one of the fundamental benefits of the model.
Moreover, academy trusts are already required to publish a full set of financial accounts annually, which are publicly available. The department publishes a full report and consolidated accounts for the academy sector each year. We believe this meets the intention of Amendment 79C. The report includes data on financial health across the academy sector, and the educational performance of the academy sector at a regional level, to which the noble Baroness alluded.
My noble friend Lord Deben suggested that we needed to do more with data. Again, I challenge my noble friend just to look at how much data on schools we share publicly. The website Get Information about Schools gives very detailed information on school and trust performance. You can look by constituency area, local authority area or trust area. It gives information on finance—including the voluntary income that was referenced in the debate—workforce, and educational outcomes. That allows one to compare academies and maintained schools. We also publish school-level funding formula allocations for every school every year and the Department for Education runs a website specifically to enable anyone to see school-level national funding formula allocations and understand what funding they would receive if the national funding formula was followed locally. That may be something to look at for the Devon schools; I have not looked but I will do. The webtool is called view NFF allocations—I will write to noble Lords with the link—and it is published on GOV.UK.
We continue, of course, to look at how we can improve transparency, and in the schools White Paper we committed to consult on future financial reporting arrangements. The noble Baroness, Lady Chapman, asked —again, I hope she will forgive me if I paraphrase inaccurately—why we were not including local authorities in the process. She will know that we worked hard with local authorities ahead of publishing the schools White Paper to get a much clearer role for them. We are clear that the Government’s responsibility is to make sure that local authorities are empowered to be the champion of the child. They will be at the heart of the system, championing all children in their area but particularly the most vulnerable children, so they will play a leading role, of course, in safeguarding, pupil place planning and admissions. They will continue to be responsible for the high-needs budget and will lead local delivery of provision for children with special educational needs and disabilities, and they will be supported by the new partnerships.
The noble Lord, Lord Hunt, alluded—again, I think I am right in saying—to related party transactions in trusts. The Government are extremely vigilant to make sure that related party transactions, whether they are in maintained schools or in trusts, are handled with the highest levels of governance. But I point out to the noble Lord that the £120 million is on a budget in 2019-20 of over £31 billion so, if my maths is right, it is 0.3%.
I turn to Amendments 85 and 86 in the name of the noble Lord, Lord Storey. As I have already said, transparency is critical and is at the heart of our reforms. In relation to Amendment 85, we will continue to publish information annually on the national funding formula, including how it is calculated, what factors it uses, school-level allocations, and an equality impact assessment. Based on this information, it is already possible to see the impact on rural schools, or indeed any other group of schools.
Just to be clear, there has been significant growth in funding in the system. In 2022-23, schools in the north-east, to which the noble Baroness opposite referred, will see a funding increase of 6.1%, with 5.9% in Yorkshire and the Humber. Small rural schools are attracting per pupil increases of 5.6%.
If my noble friend will allow me to butt in with some figures, London Councils points out that, between 2017-18 and 2020-21, 84% of schools in inner London saw a real-terms decrease in per pupil funding, compared with 55% in the rest of the country.
(2 years, 8 months ago)
Lords ChamberThe Government think a lot about the happiness of our children. We worry a lot about the children who are in underperforming schools, and where their life chances are being held back because of the nature of the education they receive. This is why we are focusing our education investment on areas of really entrenched under-performance. The noble Baroness shakes her head, but 54% of children in secondary schools in Knowsley today are in schools which have been judged more than twice as requiring more improvement. That is what will turn around our children’s life chances, and that is where we are focusing.
I thank the Minister for the answers she has given. I welcome the ambition of the Government’s policies as set out in the White Paper. I will look at the statistics they have provided with some care. Are such statistics in a White Paper run past the UK Statistics Authority—not just the figures, but the conclusions drawn from them? It would be useful if we could be told.
I hope I will be forgiven if I suggest, for those with long enough memories, that the support expressed in the White Paper for well-managed families of schools delivering high-quality and inclusive education, coupled with the encouragement in the White Paper for LEAs to establish their own strong trusts, might be taken as an attempt to recreate the achievements of the Inner London Education Authority after many years. Of course, the fear of many people is that academies—particularly when we have multi-academy trusts—lead, in effect, to the privatisation of the education service. The distinction between an MAT and a commercial organisation is often hard to discern.
My first question for the Minister is, what are the Government going to do to ensure that all academies, whether SAT or MAT, operate with a social purpose? My second question, given the emphasis on what parents want from education in the previous question, is, what role do the Government want for parents in the governance of academies? There is a reference in the White Paper to a review of the governance of the system, but it is notable that in the document, The Case for a Fully Trust-Led System, there is only one reference to parents, and then only as passive observers. Should the Government not do more to enable the participation of parents in school governance?
I am really puzzled by the image the noble Lord paints of multi-academy trusts representing privatisation. They receive exactly the same funding as any other state-maintained school, and they are inspected in exactly the same way. The majority of them are charities. I am not sure quite where privatisation comes in. What we see in the best trusts—and perhaps this is behind the noble Lord’s question—is that they use the resources from the taxpayer intelligently, in the interests of the child. I will give an example from the north-east of England. I recently visited a trust which, through better procurement, was able to reinvest those savings in dedicated tutoring for all their students. I do not know where the noble Lord’s concern comes from, but I genuinely think it is misplaced.
I turn to the noble Lord’s second point, about trust standards. We will be working with this sector. There is not a lot of detail in the White Paper because we want to co-create those standards together with the sector, and we look forward to reporting back more on that in the future. This would, of course, include the role of parents.
(3 years, 6 months ago)
Grand CommitteeMy Lords, on 14 June I tabled minor and technical amendments to the Bill, which are needed to ensure that it works properly. These included changes for clarity and consistency, and updates to references and consequential amendments. I set these amendments out in my letter to your Lordships on the same day.
The changes, for clarity, can be grouped into three categories. The first group includes Amendments 1, 2, 3, 5, 21, 22, 23, 24, 28, 29, 30, 31, 42 and 46. These amendments clarify that amounts owing or payable to a person include those which are not immediately owing or payable until some action is taken. The second group includes Amendments 16 to 20, as well as Amendments 75 and 77. These amendments clarify that orphan moneys would arise in the context of a sub-fund of an umbrella structure. This is because an umbrella structure is effectively a shell structure, and it is the sub-fund of it that would be authorised under the Financial Services and Markets Act. The third group includes Amendments 7, 8, 9, 13, 14, 15, 25, 26, 27, 33, 35, 36 and 44. These amendments clarify that lifetime ISA provisions apply in the context of access restrictions and to client moneys; in other words, restrictions on assets held within lifetime ISAs apply when their transfer to the Reclaim Fund Ltd would trigger a withdrawal charge payable to HMRC. With that, I beg to move.
My Lords, I was going to crave the indulgence of the Grand Committee in trying to hang on to my fast-disappearing status as a new, inexperienced Member: I wanted to provide an opportunity for a debate on Clause 1, on the overview of the scheme, and I was going to do that by stand part or by putting down an amendment—but I got the timetable wrong and I failed to do so. However, other people have come to my aid, in that there will be sufficient opportunities later in the Bill’s progress to raise the issues that I would have raised here had I got my act together.
I will mention the main issues that I have in mind. Of course, I mentioned them at Second Reading, but the ability to repeat points seems to be one of the great assets of this process that we go through. The first issue that I will come back to at an appropriate time is the whole structure that leads to this situation. We can have a lot of discussion about the process of the dormant assets scheme, but we need to address the question of why dormant assets appear in the first place. It would be wrong to have a full debate on the scheme without at least reflecting, to some extent, on that issue.
In the government consultation and in preceding debates that led to the Bill there has been a lot of discussion by various people about what the financial institutions are doing to make sure that this issue does not arise. In general terms, there has been a lot of discussion of that issue—well, perhaps not a lot—but I am not sure that it really gets anywhere. Everyone expresses intentions, but how detailed the planning is to avoid it happening is a separate issue.
However, I think there is a stage before that. Why do we have a structure that leads to this sort of end result? The fact that this can happen is something that bears investigation—not just because it has happened but what we can do about it—as does the extent to which the financial institutions seem, in one way or another, to try to shift the blame to individuals. There are questions about what we can we do so that it does not happen in the first place, and I will come back to that at a later stage, possibly this afternoon—and I will try not to repeat myself too much.
The other issue is additionality. There has not been nearly enough discussion of what exactly is meant by additionality; there is no clear structure as to how it is defined. I will take the opportunity at a later stage to raise and discuss that issue as well. So I am really just putting these issues on the table and saying that, at the appropriate time, I will raise them at a later stage of the process.
Since I am here and speaking, I will ask something. The Bill was published effectively only a few days ago, yet we end up with this extensive raft of minor technical amendments, which makes the job of understanding what the Bill is doing extremely difficult—twice or three times as difficult. The grid that we have been supplied with for today’s session is extremely useful, but getting it only an hour before the meeting reduces its value. If I had been quick, I would have ticked off which amendments fall into which of the groups that the Minister has identified. It would have been helpful if we had had it earlier and the different groups had been identified on that list. Perhaps we could have that in arrears, as it were.
I naively had it in my mind when I spoke that I was speaking only to Amendment 4. I cannot come back on the substance of the amendments, but I have a couple of specific questions. First, in the formal consultation, and in the previous reviews, the Government said that they recognised
“the strong interest in the ways that funds can best be spent”,
even though it was outside the consultation, and that:
“Accordingly, we will consider whether this is an area that should be reviewed”—
in other words, other ways of spending the money. Is this what the Minister just referred to or is it a separate exercise that is being considered?
In the Second Reading debate, the Minister referred to the additionality principle in her introduction. She said:
“Money must fulfil the additionality principle, so it cannot be used as a substitute for central government funding.”—[Official Report, 26/5/21; cols. 1035.]
In response to the debate, she said:
“There was a lot of discussion about the additionality principle. This is set out in paragraph 9 of Schedule 3 to the 2008 Act and remains unchanged.”—[Official Report, 26/5/21; cols. 1084.]
Of course, I turned to the 2008 Act. It is far from explicitly set out; it is actually set out only at one remove. It refers to the need for the Big Lottery Fund to cover the issue in the annual report and to say how it complied with that requirement. It does not set out explicitly what is meant by additionality, so my second question is would it not be better to have a clear and specific definition of what is meant by additionality, given the emphasis the Government place on it as a pillar of the scheme?
I thank the noble Lord for his additional questions. He talked about other ways of spending the funds. I was talking about other causes; I am not sure whether we are using different words for the same thing. In the consultation that we are proposing, we will invite the public to name the issues they care about on which these funds should be used—the aim being to have that in secondary rather than primary legislation to make it a bit more flexible—as opposed to using different types of spend organisations. I was referring to the causes on which that will be spent.
I think that issues of additionality are likely to come up quite frequently, particularly on Wednesday, when we debate some of the other amendments. Perhaps we can take that issue in the round then, if the noble Lord is agreeable.