Schools Update: National Funding Formula

Debate between Lord Storey and Lord Nash

Thursday 14th September 2017 Lords Chamber

[Lord Nash]

The noble Lord makes some very good points about teacher recruitment and retention. Of course we have a strong economy with very high levels of employment and very low levels of unemployment which impacts on the ability to recruit teachers. We are doing a huge amount of work on improving our recruitment approach, which is a much more regionally focused approach to look at where we particularly need to recruit teachers. There is no doubt that the work of a number of our multi-academy trusts in career development, CPD and teacher retention will help teacher retention.

The independent School Teachers’ Review Body has recommended teacher pay increases. We have listened carefully to what it recommended and accepted the recommendations. We continue to work closely with schools to help them manage their finances.

[Lord Storey (LD)]

I think we all welcome this, and the Government are to be congratulated on bringing a fair funding formula forward—four Fs, such alliteration. I have a number of questions. Schools will still face financial difficulties because the problem for school budgeting has been oncosts, such as national insurance and the costs of buying in services, which vary dramatically, and we will not know the full financial impact until we see the figures working in schools. In terms of primary schools and £3,500 per pupil, will that be the same for each key stage—that is, foundation, key stage 1 and key stage 2—or will it vary between the stages? I am fascinated by the fact that we are gradually bringing local authorities back into the frame. Who would have thought that the archenemies, local authorities, are now going to have a little role in terms of the distribution of funds in their areas? In terms of schools in remote areas, what is the definition of a small school which would be eligible for this extra funding?

[Lord Nash]

The noble Lord is absolutely right about the oncosts, which is what I was referring to, and them actually being cost pressures rather than cuts. But as I say, we have very sophisticated work under way in the department looking at school finances. We have something called a RAT—a risk assessment tool, which is slightly easier to say than a fair funding formula. We are working with local authorities and with academy trusts to ensure that their financial planning is good. I do not really recognise the expression “archenemy” as applied to local authorities. We are working very closely with local authorities on a number of fronts, including the free schools programme and our basic needs school place planning. We have increased the number of school places by three-quarters of a million in the last six years. We now have the strategic improvement boards, on which local authority representatives and regional schools commissioners sit, among others. I am confident that this will improve relationships even further. But, as I think I have said, the relationships with local authorities are generally extremely good. The noble Lord may be very pleased to hear that.

Schools: Children in Care

Debate between Lord Storey and Lord Nash

Thursday 7th September 2017 Lords Chamber

[Lord Nash]

I will look at this and I am happy to discuss it with the right reverend Prelate in more detail. I am not briefed on it, but I am fully aware of the situation with military families and I will look at the point he makes.

[Lord Storey (LD)]

My Lords, the appropriate word is “appropriate”, and we must do what is right for the individual child in care. It might be that boarding school provision is correct, but would the Minister agree that, where boarding school provision is provided, we must have the most vigorous safeguarding assessment of that provision?

[Lord Nash]

I agree with the noble Lord that that is essential, but we have moved a long way from the 1960s. It may have been, as a reaction to some of the points the noble Lord, Lord Laming, made, that we have moved too far in the other direction and there is a certain overreluctance by some local authorities. We have definitely seen that local authorities are now better informed and visit schools. If noble Lords visit the Boarding School Partnerships website— at boardingschoolpartnerships.org.uk—they will be impressed, as there is a lot of information there to help local authorities on which schools are providing this and how they might assess whether it is appropriate for a particular child.

Free Childcare Entitlements

Debate between Lord Storey and Lord Nash

Wednesday 6th September 2017 Lords Chamber

[Lord Nash]

I am grateful to the noble Lord for his comments. I think it is fair to say that no Government have done as much as this one to develop childcare. We have delivered a massive increase in childcare provision and the sector has handled that well. Our evidence from the 12 live pilot projects—not surveys but live projects—is that they are handling this implementation well. As I said, this is a complicated project, which the noble Lord also referred to, but overall it is going well. Of course there are teething problems, as there always are with a new provision, and we apologise to those parents who may have experienced them. We will do all we can to help them.

The evidence from the 12 pilots, however, is that the vast majority of providers are engaging, parents are happy and, for many of them, this project has had a life-changing impact. We have heard some moving stories of parents who have experienced this. Almost a quarter of mothers have reported that they have been able to increase their working hours, along with a 10th of fathers. The fact that some 150,000 or so places have been taken up reflects that these are very early days. It is inevitable when one has a deadline that there is always quite a rush up to it, and the fact that 70% of these children have already had their codes validated by nurseries is pretty good, given that only a few days have elapsed since the deadline and obviously not all parents will want to take up the offer immediately.

We have no desire to preside over a two-tier system. The Government have done all they can to support less privileged children. We have the early years pupil premium, the free entitlement for two year-olds and tax-free childcare. It is certainly not our intention to preside over that kind of system.

[Lord Storey (LD)]

My Lords, I welcome the Minister’s Statement. As he rightly said, getting these extra free hours—the 30 hours and the 15 hours—is life changing for many families, particularly working families who perhaps could not afford the extra costs of childcare or did not have the family networks to support them.

I am pleased that the Government have apologised for the problems—the website crashing and the difficulties of the eligibility codes, et cetera. The fact is, mistakes will occur in any new system. The fact that they have resorted to doing some of the eligibility codes by manual means shows the determination to sort this out and ensure that every parent gets the financial support they need.

I have two other issues to raise. The first is not the financial aspect or the application, but whether the places are there to provide for families. I raise the impact of the introduction of free childcare for three and four year-olds on availability of places for one and two year-olds. Two year-olds from the most disadvantaged backgrounds are already struggling to access places in many areas. If we are to create more places for three and four year-olds there is a danger that the places for two and three year-olds will be reduced.

There is also concern about the sector facing quite serious financial problems. The number of nurseries forced to close has almost doubled. The parliamentary Public Accounts Committee found that many private and voluntary providers were finding that the funding they receive does not cover the costs. Are there plans for government to meet with local authorities and the private sector to see what extra support can be provided?

Finally, I would be interested to know what proportion of children eligible for the 30-hour week of free childcare received the eligibility code by 31 August. The Minister might have given that in his reply, but if he could repeat it I would be grateful.

[Lord Nash]

I am grateful to the noble Lord, Lord Storey, for his realistic comments on this complicated but important new provision. As far as availability is concerned, as I said, in the 12 live pilot schemes 80% of existing providers have engaged and another 10% say that they are considering it. Obviously there will be some areas where there may be gaps in provision and we will work with the sector to see that they are filled.

We did a detailed study of the amount of money that should be paid, which the National Audit Office described as thorough and wide-ranging. The recent independent survey from Frontier Economics said that we were more than covering the costs of the extra provision.

So far as support for providers is concerned, the noble Lord makes a very good point that we need to do all we can to help providers develop their businesses. We have a package of support to help providers to ensure that their business remains stable. This includes a document of key insights from successful providers, guidance on marketing, managing finances and business planning, and an online directory of organisations that can provide business and finance support. We have also awarded grants to the National Day Nurseries Association and the Professional Association of Childcare and Early Years to develop new business sustainability resources. We will do whatever else we need to do.

On the percentage, we anticipated on the basis of a 75% take-up that we would get 200,000 applicants at this time. We have had 216,000.

Education: Funding

Debate between Lord Storey and Lord Nash

Tuesday 4th July 2017 Lords Chamber

[Lord Nash]

I am grateful to the noble Lord for his questions. To be clear, first of all, on grammar schools, as the noble Lord will know there is no education Bill in the Queen’s Speech and the ban will remain in place, although we will keep working with the Grammar School Heads’ Association and good grammar schools to see how their excellent practice can be spread more widely.

As far as breakfast is concerned, we do not plan to introduce free breakfasts, although we will continue to work on a number of schemes for breakfast clubs, such as Magic Breakfast.

There has been a lot of talk about the expansion of class sizes. Despite the fact that, by this September, schools will already have experienced an increase of more than 3% in their cost base, the actual increase in class sizes in the last six years has been very marginal indeed. This is at a time when we have 1.8 million more pupils in good and outstanding schools and have created nearly 750,000 new places. I have already said that there will be no cuts in per-pupil funding as a result of the national funding formula. We will be responding in full to the consultation shortly and I am afraid that the noble Lord will have to wait until then for the answers to the rest of his questions.

[Lord Storey (LD)]

My Lords, I am grateful to the Minister for his Statement. He is right to say that funding is anachronistic in England. I was pleased to hear that there will be no cuts to any school budgets. Presumably with the fair funding system there would be winners and losers, so he is clearly saying that the losers—in other words, those whose budgets will not go up—will not be cut at all. However, there is a problem now. When I asked an Oral Question back in March, I pointed out that audit figures showed that, on average, over the next four years, every primary school will be £74,000 worse off and every secondary school will be £291,000 worse off. In his reply, the Minister said it was about organising things differently and that better deployment of staff, efficiency savings and redeployment of non-teaching staff in schools could save £1 billion. He has never said how and where that is going to happen.

My main question is in regard to sixth-form colleges. The Minister believes in fair funding for all secondary and primary schools, but he clearly does not believe in it for sixth-form colleges—because only those which have become academies are VAT exempt. Those that choose to remain maintained have to pay VAT. That is surely grossly unfair. Why is the Minister not prepared to allow the same advantage to all sixth-form colleges? If he did, it would mean an immediate amount of money for the maintained ones. At the same time, why has the full amount of funding for sixth-form colleges—£200 million—been held back? That could be released to them as well.

[Lord Nash]

I am grateful to the noble Lord for recognising that we have been the first Government for some time to grasp the issue of the anachronistic state of school funding. It was never going to be easy —that is quite obvious from the debates we have had. However, we are determined to press on and make school funding fair. As I have said, there will be no cuts per pupil as a result of the national funding formula.

I would invite the noble Lord to come into the department and see the extensive work we are doing on school efficiency and organisation to make sure that schools fully understand how to make the resources available in a more efficient way so that there are many more resources for the front line. I recognise the pressures that schools are facing, but it is a fact that under the Labour Government schools received a 5.1% per annum increase in their funding in real terms and that during that time we slumped down the international league tables in the performance of our schools. So it is not just about money; it is about the efficient deployment of resources.