School Funding

Alison McGovern Excerpts

Wednesday 25th January 2017 Commons Chamber

[Angela Rayner]

I have given way once, so I am going to make some progress.

It was no surprise when the National Audit Office found that the number of maintained secondary schools in deficit rose from 33% to nearly 60% between 2010 and 2015. Its report refers to a sample of schools that said that typical savings came through increased class sizes, reduced teacher contact time, replacing experienced teachers with new recruits, recruiting staff on temporary contracts, encouraging staff to teach outside their specialism, and relying more on unqualified staff, none of which are measures that parents would want to see at their school. The NAO tells us that the Department’s savings estimates do not even take account of the real impact on schools. For example, the Government seem to remain committed to cutting the national education services grant, which amounts to £600 million, but they have not yet completed any assessment of how that will impact on schools across England. When will that assessment be put to the House?

Just this Monday, the Public Accounts Committee heard from headteachers who are desperately trying to keep providing an excellent education in the face of funding cuts. I hope that the Secretary of State heard the contribution of Kate Davies, headteacher of Darton College in Barnsley, for example. She said that as a result of funding cuts she had had to

“reduce the curriculum offer and cut out the whole of the community team. We have reduced staffing and reduced the leadership team.”

I am sure the Secretary of State heard Tim Gartside, headteacher of Altrincham Grammar School for Boys, say only this morning that the funding cuts that his school faces are so severe that he only has three options left: reduce the curriculum, increase class sizes, or ask parents to make a cash contribution to keep the school running. What is the Secretary of State’s plan? Does she want schools to cut subjects, increase class sizes, or make parents foot the bill? Is she not worried that routinely requesting termly cash donations from parents risks discriminating against low-income families and schools in lower-income areas? We have heard similar from not only the representatives of teachers, but unions that represent teaching assistants, such as Unison and the GMB. If she thinks assistants are a soft target for cuts, she is much mistaken.

Evidence from the Education Endowment Foundation shows that teaching assistants have a particularly important impact on the literacy and numeracy of pupils on free school meals and on those who were previously struggling—the very pupils that the Government said only earlier this week needed extra support if we are to increase skills and productivity. Teaching assistant pay has declined so far since the Government abolished the school staff negotiating body that many are now on the minimum wage. There are literally no more cuts to make to pay. Any further cuts will hit teaching staff directly.

[Alison McGovern (Wirral South) (Lab)]

I have in my constituency a big secondary school that gets the pupil premium for 67% of its kids, and it believes that it will lose £300,000. Does my hon. Friend believe that that lives up to the Prime Minister’s rhetoric?

[Angela Rayner]

I absolutely agree with my hon. Friend. I am sure that the reason the debate has been over-subscribed is that many hon. Members from both sides of the House have realised that the national funding formula and the cuts faced by our schools are taking them over the edge and building a crisis in our school system.

The Conservative party’s promise was not to spend more on schools; it was to spend more on each pupil, in real terms. Yet the Government will cut per-pupil spending. Under Labour Governments, education spending increased by 4.7% per year. The fact of the matter is quite simple: the Secretary of State and her party entered government on a manifesto that pledged to protect per-pupil funding. That promise is being broken.

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[Fiona Mactaggart (Slough) (Lab)]

I am sure that, in her characterisation of different education authorities, the Secretary of State would say that Slough is unfairly generously funded, but I want to speak about the hundreds of pupils in Slough who get no funding at all for their education. You might think, “How can that be?”, but this is a very serious issue, which is not properly addressed by the Secretary of State’s proposed fair funding formula.

There is swift growth in areas such as Slough. For years, we have been in the top 10 authorities for growth in pupil numbers, and we do not get paid until 18 months later for extra children who arrive after the October census date. Locally, that is dealt with by taking a top slice of the dedicated schools grant of £1 million or £1.5 million to fund bulge classes in existing schools.

Obviously, other authorities face churn and growth in pupil numbers, but in most places the number of additional pupils is not particularly significant, and new arrivals after October tend to be balanced by departures. Also, most of the extra children are born in families who are already there, so they apply at the usual time for schools.

That does not happen in Slough. When I asked schools about the numbers, the results were stark. One primary school had 13 children leave, but it had 23 new starters: one was completely new to English, others had English as a second language, and two more from overseas start next week. One secondary school estimates that the pupil formula for the 13 extra pupils who arrived after the census date in 2015-16 would have been worth £49,937; in the current year, the figure is £39,595. Those figures have gone down partly because the school has been subject to the minimum income formula, which I call the maximum cut formula, because that is the case for the secondary schools in Slough.

A primary school that opened two extra classes in November 2015 to accommodate children new to the town now has 63 pupils above its standard number. The bulge classes are funded by the top-slicing of the dedicated schools grant, but that money only lasts for a year, and the extra pupils will not be funded by the DFE until next year, so this year two whole classes are being educated in one primary school with no capitation funding. We are not talking about children who are easy to teach, and there are the children who arrive from—

[Alison McGovern]

My right hon. Friend is making a unique and important point about places like Slough. Does she agree that this shows that the Government are yet to properly listen?

[Fiona Mactaggart]

Indeed. There is a hint in the new funding formula that they might do something about this, but no clarity about what. This is absolutely urgent, because the per-pupil comparisons between different authorities are not accurate. Places like Slough and London that have historically been quite well funded and are facing the largest cuts are the places with the largest numbers of pupils who are not being paid for at all.

The Minister for School Standards knows about the massive problems we face in teacher recruitment. Over the past five months, five geography teacher posts in Slough have been advertised, with not one single applicant. The Migration Advisory Committee will not make the teaching of English, where we have a real shortage, a job that can be applied for by teachers overseas. We are in a crisis, and the Department is not responding to the real needs of the community that I have the privilege to represent. I really want answers on this now.

--- Later in debate ---

[Alison McGovern]

Like my hon. Friend, I wrote to local schools. Does he agree that given the importance of the subject, it is unsurprising that so many people want to speak in this debate?

[Stephen Twigg]

My hon. Friend is absolutely right. The financial pressures that the schools told me about are highlighted in the Opposition motion. Secondary schools are also feeling the pinch. The head of St Edward’s College in my constituency told me that

“small budget lines are being nibbled away and in the end this is going to have a massive cumulative impact.”

The headteacher of St Cecilia’s Infant School told me that she is worried about the impact of budget cuts on staffing levels, particularly with regard to support staff.

Pupils with special needs present particular challenges for school budgets. The head of Croxteth Community Primary School raised with me the issue of educating those whose needs are more challenging and complex. The headteacher of Redbridge High School, a very good special school in my constituency, is worried that the imposition of a national funding model for children with additional needs has taken away local flexibility to move money around. Another of the fantastic special schools in my constituency is Bank View High School. The headteacher, who is concerned about the impact of cuts elsewhere in the public sector, said to me:

“How are we able to make our pupils effective members of society, who are able to be employed, if support agencies such as CAMHS are also having their funding reduced?”

--- Later in debate ---

[Alison McGovern (Wirral South) (Lab)]

I pay tribute to the shadow Secretary of State, my hon. Friend the Member for Ashton-under-Lyne (Angela Rayner), who made a brilliant speech. She demonstrated, as has the fact that a large number of Members wanted to speak in this debate, that education truly matters in our country.

I will make a few brief points. The first is that the narrative of this discussion is completely wrong. It is a typical Tory divide-and-rule strategy. I do not believe that schools that might gain from a change in the funding formula want to do so at the expense of other children, teachers and schools. For example, I know that the folks who are set to gain from the changes in Knowsley, just across the River Mersey from where I live, do not want to do so at the expense of children and schools in Liverpool, Sefton and Wirral. We should not be dividing people, but bringing them together.

Schools in Wirral are set to lose hundreds of pounds per pupil. That plays into another classic Tory narrative, which is that people do not need money to get anywhere in life or to help in education. The hon. and learned Member for South East Cambridgeshire (Lucy Frazer) said that money is not sufficient to drive achievement. In fact, money may not be a sufficient condition, but it is a necessary one, as all the evidence shows. I am next to my hon. Friend the Member for Liverpool, West Derby (Stephen Twigg), who led the London Challenge. I know he would say that it was reform and improvement, alongside decent funding, that resulted in those achievements under the last Labour Government that we are all proud of.

[Stephen Timms]

Will my hon. Friend join me in welcoming one element of the funding formula, which is the inclusion for the first time of a mobility factor to reflect the additional costs of high pupil turnover? However, does she agree that it ought to be larger than the 0.1% of the total that is being allocated on that basis at the moment?

[Alison McGovern]

I have never disagreed with my right hon. Friend yet and I do not now.

As a Member of Parliament, I am afraid of very little, but I still get nervous when I have to go and see local headteachers. I want to give the final words of my speech over to those headteachers. To begin with, Mark Whitehill, who is head of Gayton Primary School in Heswall, spoke this simple truth:

“If Education really is a priority, we need the staff to help us deliver it!”

Another brilliant head in my area, Catherine Kelly, agrees with that. She said that her job is about life chances, but colleagues whom she respects as fantastic educationists are talking about leaving the profession because, as heads, they are not focusing on the right things as they are having to balance the books and make ends meet. She said that they are

“invariably being set up to fail”.

She is frugal and knows that if the school is overstaffed, it is a waste of the students’ resources, so she would never make that happen. She says she is afraid that the Government “clearly doesn’t understand education”, which I believe is true.

The last word goes to David Hazeldine, a great head from Wirral, who says:

“The fundamental issue is that there is not enough money in the system. Teacher recruitment shortages and massive underfunding are placing children’s education and well-being at risk.”

He says that that is “creating a perfect storm”.

Those three heads have put it better than I ever could. I ask the Secretary of State to learn the lessons of schools in her own constituency and recognise that although money is not all that schools need, they cannot do without it if they want to give kids a chance.