Schools Bill [HL]

Lord Hunt of Kings Heath Excerpts

Committee stage & Lords Hansard - Part 1
Wednesday 15th June 2022 Lords Chamber

I am very enthusiastic about all the other amendments and—this is my first attempt to do this—I beg to move.

[Lord Hunt of Kings Heath (Lab)]

My Lords, it is a great pleasure to follow my noble friend. I have added my name to her Amendments 60, 61 and 75. I have my own Amendment 62, and my Amendments 69 and 70 seek to amend Amendment 68 in the name of the noble Baroness, Lady Barran, on which my noble friend Lady Blower has already spoken.

I very much support what my noble friend said and could not help reflecting on the previous debate, where the argument was about the extent to which this legislation is forcing single academies to join multi-academy trusts. My view is that although the noble Baroness was explicit on this, we do not really need it, because the system is putting so much pressure on individual academies anyway. The combination of the government policy in the White Paper, the regulator, the regional apparatus and what people can see happening is putting tremendous pressure on those schools. I think that this is a really underhand way of doing it; if the Government have a policy, on this or on another Bill, they should be explicit.

The underhand way in which this is all being done reinforces the points we are making in this series of amendments about the importance of governing bodies. What seems to be happening is that all sorts of secretive talks take place between MATs and the heads of the schools that they want to take over, and left out of these discussions are the parents and staff of the individual schools. They are usually presented with a fait accompli. As my noble friend said, this formal consultation stuff is really an attempt to legitimise a decision that the system has clearly already made. Our amendment seeks to put this right.

In addition to the excellent National Governance Association submissions, the work by the LSE and by Professor West and colleagues, which has looked into the governance of academies in detail, is very striking. I draw the Minister’s attention to the recent instance of what I regard as high-handed action at Holland Park School. Since March, when staff and parents first learned of the governors’ plan to transfer the school to a MAT, they have been seeking dialogue with the governing body to negotiate the involvement of the entire school community in a transparent, accountable consultation. As Ministers know, the school has been through a great deal of turbulence resulting from management changes in the past year or so: the sudden departure of the new head, the imposition of a new governing body and the absence of much of the leadership team for quite lengthy periods. It has clearly been a challenge to maintain a sense of coherence and direction for the children on a day-to-day basis. I have met some of the teachers. I believe that they have worked hard to provide continuity for pupils, but that is put at risk by this kind of unilateral, opaque decision-making and poor communication from the governing body.

This is often reflected up and down the country. The absence of meaningful consultation in the MAT acquisition process is a common theme. There have been numerous examples of high-handed governors ignoring parents and teachers, who have then fought hard to stop the school being taken out of local authority control and turned into an academy or forced to join a multi-academy trust. Public meetings organised by parents and staff, with large attendance, often make it made abundantly clear to the governing body that the larger school community does not want to go down that path, but they are often dismissed by the people making the decisions. Parents, governors, staff and pupils have no official rights to detailed information on the reasons why their school might choose to academise under a particular trust, let alone to have their views taken into account in the process.

As Warwick Mansell has written, the academies policy sees all decision-making as a closed-loop process between central government and academy trusts, with no decision-maker answerable at a local level to the people who depend on the decisions. The comment often made from the Dispatch Box is that we will talk to the academy trust. Once again, we do not hear about maintained schools. Ministers constantly harp on about MATs and point to their achievements—which are many—but they do not point to their defects and they give the sense that maintained schools are second-class entities. I object to that.

The Government’s amendment reads:

“Before a maintained school in England is converted into an Academy following an application … the local authority must consult such persons as they think appropriate about whether the conversion should take place.”


So, as I read it, it is only after you have made the application decision that the consultation has to take place. My argument is that that is far too late. Once the conversion application has been made, effectively the decision has been taken. Asking the parents what they think about it then is, frankly, a waste of time. Seeing the noble Baroness, Lady Shephard, here reminds me of health service consultations, which she will know about over many years: you make a decision and then you put out a consultation. My noble friend Lord Winston will also know about the way that the health service does consultations: you make the decision, you consult on it and then you reach the view that the original decision was right in the first place. For me, that is what the amendment is talking about.

Essentially, with the combination of our amendments we seek to ensure that a consultation must be comprehensive and in a timely fashion with the parents and staff of the school that is subject to the application. As my noble friend said, we are entitled to have it shown how the proposal will benefit children’s education and, most importantly, what alternatives have been considered. I do not think that is at all unreasonable. If the Government are asking us to believe that this is all going to happen by a process of gradual change rather than mandation, I would have thought they would welcome a proper process of parent and staff involvement.

[Baroness Bennett of Manor Castle (GP)]

My Lords, I shall speak to Amendment 75, in the names of the noble Baroness, Lady Blower, and the noble Lord, Lord Hunt of Kings Heath. It is a great pleasure to follow the noble Lord, and I agree with pretty well everything that he said. I shall build on it with a practical example.

Amendment 75 says that consultation with parents and staff has to happen before the application to join a MAT. I entirely agree with what the noble Lord just said about the problems with the government amendment. Across many fields of government, not just the health service, the term “consultation” now has an extremely bad odour. That is something that really needs to change, or we need to find a new word or a different process that genuinely addresses the collection and exploration of views before a decision is made. That is not what people think of when you say “consultation” now, but that is the word in the amendment because that is the word we currently have.

I draw the Committee’s attention to the sad and traumatic case study of Moulsecoomb Primary School in Brighton, which is of course of particular interest to my noble friend Lady Jones. We have just seen first-choice applications to the school fall to their lowest level ever after the school was forced to become an academy despite considerable local community, family and parent resistance. Of course I wish the school all the best and very much hope that things work out for it, but we have to focus on what kind of disruption happens both to pupils and to a community if a decision is made that parents and the community are unhappy with. We have seen a number of pupils leave that school and a huge amount of time, energy and attention that might have gone into doing the best possible for the education of pupils going instead into resistance to an ideological decision being made. It is important that this whole set of amendments tabled by the noble Baroness, Lady Blower, and the noble Lord, Lord Hunt, would make this a co-creation and co-production process, not an imposition.

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[Baroness Barran (Con)]

The noble Lord’s point is a little broader than what we are talking about at the moment. With the free school applications that have come across my desk I have certainly tried to be very aware of, and sensitive to, the challenges they can pose. The noble Lord is also very well aware that, historically, there were areas where new free schools have been really important in raising standards. There is not a single answer.

[Lord Hunt of Kings Heath (Lab)]

My Lords, I will take the opportunity of the Minister’s slight pause to ask her a question about my reading of her Amendment 68, which says:

“Before a maintained school in England is converted into an Academy following an application under section 3A (application for Academy order by local authority)”.


By the time the local authorities have made an application, that is, in effect, the decision. The point my noble friend and I were trying to make is that, surely, there should be mandatory consultation before the local authority makes the application.

[Baroness Barran (Con)]

I am glad that I have been promoted to be the noble Lord’s “noble friend”; things are looking up. I am very happy to take this offline with the noble Lord. It is just not case that the decision is made at that point, but I would be happy to meet with him and we can go through this in more detail, if that would be helpful.

Amendment 75 is concerned with existing stand-alone academies joining multi-academy trusts, which we discussed at length in the earlier group. The process by which an academy joins another trust is not set out in legislation; it is a matter for agreement between the two trusts and is subject to the approval of the regional director. I hope that noble Lords can forgive me for repeating myself. When considering any application for a stand-alone academy to join a MAT, the regional director will consider what stakeholder engagement has taken place, and the views expressed by stakeholders.

I do not believe that it is necessary or appropriate to provide for very specific consultation requirements in legislation. Stakeholder engagement is already embedded in the decision-making process. However, I agree that the process by which academies join trusts should be transparent—here, I am a little more optimistic about reassuring the noble Baroness, the noble Lord and other noble Lords opposite. As part of the regulatory review, which I have mentioned previously, we will consider the scope to clarify the arrangements for engaging with stakeholders when a stand-alone academy joins a multi-academy trust.

In the light of Amendment 68 in my name, and given these assurances, I ask the noble Baroness, Lady Blower, to withdraw her Amendment 60, and that other noble Lords do not move their amendments. I apologise to the noble Baroness, Lady Wilcox of Newport, that I did not echo the birthday wishes, but I wish her a very happy birthday.

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Moved by

[Lord Hunt of Kings Heath]

79: After Clause 30, insert the following new Clause—
“School reserves and income raising(1) Where an academy or maintained school comes under the control of a Multi Academy Trust, the reserves of the school must be—(a) independently audited to arrive at an agreed level;(b) ring-fenced for the exclusive use of the school for the benefit of that school's pupils with any expenditures required to be agreed by the Local Governing Body of the school.(2) Where an academy or maintained school comes under the control of a Multi Academy Trust, any income generated by the school including the renting out of premises when under the control of the Multi Academy Trust must be used exclusively for the benefit of that school's pupils with expenditures required to be agreed by the Local Governing Body of the school.”Member's explanatory statement
The amendment is designed to ensure that where an academy or maintained school comes under the control of a Multi Academy Trust, the reserves and income generating activities of the school can only be used with the agreement of the Local Governing Body of the school exclusively for the benefit of that school's pupils.

[Lord Hunt of Kings Heath (Lab)]

My Lords, my Amendment 79 is part of a wider group dealing with funding of schools and provisions in the Bill for the nationally determined funding for schools in England. My amendment is rather narrow, but it introduces the subject of funding. My concern is the circumstance under which an academy or mainstream school comes under the control of a multi-academy trust, as there are questions about what happens to its reserves or income-generating activities. I want to see them essentially used, with the agreement of the local governing body of the school, exclusively for the benefit of that school’s pupils. I am very honoured to have an Opposition Front Bench amendment to my amendment, Amendment 79ZA, and I very much accept the principle of what my noble friend is proposing there.

The Local Government Association briefing has a lot of wisdom on the matter:

“At present, MATs can reallocate an uncapped proportion of funding from schools’ budgets within their MAT, with no requirement for transparency as to how this money is spent or the outcomes it delivers. … While we support MATs having a degree of flexibility over budgets within their trust to best meet schools and pupils needs, the lack of public transparency over their expenditure should be addressed to ensure public funding is delivering the best outcomes for pupils.”


I am sure that the noble Lord, Lord Shipley, will speak in this group, but on the first day in Committee he said that there is a danger of a multi-academy trust removing a highly skilled governing body and the trust, to cover its own costs, would end up top-slicing the school’s budgets, making successful, smaller schools a little less viable.

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[Baroness Barran (Con)]

I may have to write to the noble Lord on that. However, he will know that, through the Education and Skills Funding Agency—the ESFA—we already deal with payments to, as I think he said, roughly 10,000 schools. I would hope that the infrastructure that has been built to do that would allow scaling without having to increase staff in a direct proportion. However, I will write to him to clarify that.

Specifically regarding local authorities, there is a key interaction between schools and high-needs funding, which we are consulting on. The House will be aware that funding for high needs is increasing by £1 billion this year to a total of over £9 billion, which is an unprecedented investment in this area. Once we move to a direct national funding formula, local authorities will no longer calculate a local schools formula or transfer funding from the schools block to high needs. Clause 40 provides a new national-to-local budget reallocation mechanism from schools to high needs.

The Secretary of State will make final decisions to ensure national consistency, while still taking account of local circumstances. That could not occur if decision-making was left to 150 local authorities. Local authorities will still retain a key role in this process. They will initiate requests for funding transfers, setting out their rationale, and will consult with local schools. Overall, we think this strikes the right balance and aligns with the wider reforms in the recent SEND and AP Green Paper.

I hope that I have convinced your Lordships that the direct national funding formula will allow us fairly, consistently and transparently to fund schools on the basis of their needs. I ask the noble Lord, Lord Hunt, to withdraw his Amendment 79 and I hope that other noble Lords will not move theirs.

[Lord Hunt of Kings Heath (Lab)]

My Lords, this has been a fascinating debate which has ranged very far and wide. I put in only an innocent little amendment to talk about the reserves of schools going into an academy trust or multi-academy trust. It is the gentlest of amendments, which the Minister ruthlessly swept away, saying that it would stifle the innovation and leadership of the multi-academy trust. However, behind it was an issue of substance, which is that the integrity of a whole school and its leadership is very important, and having control over its own budget goes with that.

Obviously, we have a load of interesting amendments around the whole concept of fair funding of schools. The noble Baroness, Lady Humphreys, spoke on rural schools. I totally agree with my noble friend Lord Davies; he might have mentioned Birmingham schools in his analysis of the issues that metropolitan schools face. My noble friend Lady Chapman, in looking at a region’s ranking in the index of multiple deprivation, sought to bring a holistic solution to the undoubted different issues and tensions that are faced.

I noted the Minister’s helpful comments. Whenever you have a funding formula, it is easier to shift money when you have real growth in the overall funding settlement. One of the problems we have at the moment has been the squeeze on school funding—my noble friend Lord Adonis made a telling intervention in our previous day in Committee. From my own experience, the health service has gone through its own funding formula. We had RAWP for many years, and then ACRA. It was all about the same issues of teeing up deprivation in rural and urban areas, age factors, and a population who are growing older. However, my goodness me, it was much easier to shift money when you had real growth in the system.

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[Lord Davies of Brixton (Lab)]

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.

[Lord Hunt of Kings Heath (Lab)]

I am grateful to my noble friend. The point is that, if we look at school funding going back to 2010, my goodness me, what a squeeze there has been between then and 2022.

[Lord Knight of Weymouth (Lab)]

My noble friend may know that the Institute for Fiscal Studies, which is regarded as pretty authoritative on these things, has said that school spending per pupil in England fell by 9% in real terms between 2009-10 and 2019-20—the largest cut in over 40 years.

[Lord Hunt of Kings Heath (Lab)]

There we have it. Is it not good to have noble friends to fully apprise me of the facts?

I sympathise with what the noble Baroness, Lady Garden, said on transport costs for 16 to 18 year-olds. This is not an issue just in rural areas; at sixth-form schools in metropolitan areas, there is a huge movement of students. I know that, in Birmingham, there is an enormous movement of students, which can be costly.

I noted the noble Baroness’s comments about the EMA. I would gently say that it was a coalition Government decision to get rid of the EMA. I think that the EMA was one of the most brilliant initiatives—we still have it under a Labour Government in Wales—to encourage attendance at school. It is a great pity that it was removed.

I sympathise also with what the noble Baroness, Lady Brinton, said on the impact of Covid.

On Amendments 92 and 93 in the name of the noble Lord, Lord Shipley, I agree with him about the centralisation of powers. There is an issue around how bureaucracy responds to it but it is also about the span of political control. I do not want to go back over the first 18 clauses of the Bill but it is about putting the two together. There is a desire for the Secretary of State to control everything, including funding. The implication is that, in the end, Ministers are going to have to account for individual school performance here. I do not think that they have really taken that into account. The line of accountability, including for dosh, is clear now; Ministers have taken responsibility. In the end, they will find it very difficult to say, “I’m not going to get involved in that; it’s nothing to do with us”, because I am afraid that it will be to do with them. That is why it really is not good to have such central powers in an education system.

What an uplifting contribution from my noble friend Lord Knight. I have skimmed the Times commission’s report. It has some wonderful ideas. What struck me is how uplifting it is. It gave me a positive feeling about what education could do, which drags us away from the rather dreary, exam-focused situation that we now find ourselves in. I almost thought that year 6 pupils might be able to enjoy their last year, instead of having incessant pressure from those wretched SATs at the end of the year. My noble friend is also right about pupil councils. In many cases, before we moved to the new system, the Lords outreach programme allowed us to engage with student councils. I found it a fantastic experience. Having some money tied in with sustainability is a wonderful idea indeed.

Finally, the Minister was a bit dismissive of my noble friend Lady Chapman’s Amendment 79C, which would introduce a requirement to report on academy funding and performance. I think that that is a very good idea. I would tie that into the remarks from the noble Lord, Lord Deben, about transparency. I know the Minister says that this is all transparent but the process by which the funding formula is put together—it is the weightings that are so crucial—warrants greater transparency.

Having said that, I beg leave to withdraw my amendment.

Amendment 79ZA (to Amendment 79) withdrawn.