Local Government Funding

Debate between Anne Main and Tim Farron

Wednesday 27th March 2019 Westminster Hall

[Tim Farron (Westmorland and Lonsdale) (LD)]

The hon. Lady is absolutely right to point out that the impact is felt beyond council staff and workers, and particularly on children and families. Will she reflect on the fact that in 2008 there were fewer than 60,000 children in care and that today there are more than 75,000? At the same time, since 2008, there has been a 49% cut in early intervention—

[Mrs Anne Main (in the Chair)]

Order. The hon. Gentleman’s name is down on the list of speakers. He has made his intervention.

School Funding

Debate between Anne Main and Tim Farron

Wednesday 24th October 2018 Westminster Hall

[Tim Farron (Westmorland and Lonsdale) (LD)]

I congratulate the hon. Lady on securing this important debate. There is an anomaly that schools that accept pupils from poorer backgrounds are rewarded and encouraged by the pupil premium that those schools attract for taking those children, but for children with additional or special needs the first 11 hours of the education, health and care plans are funded by the local school, which often places a financial burden on it. There is therefore a disincentive for schools to take on children from those backgrounds who have additional special needs.

[Mrs Main]

I completely agree. I will touch on that issue later in my speech. Links Academy in St Albans says that it is mopping up the very pupils that the hon. Gentleman says are being cold shouldered or refused positions elsewhere.

The National Association of Head Teachers carried out a survey on SEN funding, and a mere 2% of those surveyed said that the top-up funding received was sufficient to meet the growing needs of SEN pupils. That was recognised by both teachers and parents in St Albans. Inevitably, that will have an impact on the way that schools look after SEN pupils. Department for Education figures say we have 2,800 fewer teaching assistants and 2,600 fewer support staff in our schools. That puts even more pressure on teachers and can be especially challenging for teachers dealing with SEN pupils. The increased amount of money paid to some of those who are lower paid and work as assistants or support staff was welcome, but it puts an additional pressure on school resources. We welcome the additional funds for people paid lower wages but we must recognise the true impact.

To return to the remarks of the hon. Member for Westmorland and Lonsdale (Tim Farron), I have been in contact with David Allen, headmaster of Links Academy, which I recently visited, and he welcomes pupils with special needs. He described his despair at the rising number of SEN pupils being permanently excluded from mainstream schools. In fact, I was due to meet him there on Thursday with parents and the SEN group, but as soon as the SEN group heard that I was coming, it said it would pull out. Unfortunately, I have had to pull out in order to ensure a fair hearing for the pupil in that school. I was concerned to hear that SEN children are regularly subjected to bullying at school and have resorted to either drugs or knife crime as a result—that is anecdotal and not in my schools in St Albans, but the teacher has backed that up.

--- Later in debate ---

[Mrs Main]

As a former teacher, I know that there are teachers who argue vociferously for universal pay standards across the country and dispute the need for pay to reflect local house prices and so on. That is a debate for another day. However, teachers in my area say—this is awful, but I accept it—that when a valued, top-of-the-range headteacher or head of department goes, there can be a small, collective sigh of relief in the budget department because that means the school can take on a younger, less experienced teacher on a lower pay scale and the budget suddenly becomes a little looser.

It is demoralising for a school not to be able to reward and keep high-value staff because it simply does not have the money to pay them. I am experiencing that cycle in St Albans, where staff are hard to retain. Although it is great to have bright young things—I was one of those once—coming through the door, with all the enthusiasm they bring to teaching, there is nothing like an experienced head of department.

There is widespread unhappiness about the handling of the recent teacher pay rise announcement. The key problem is that schools themselves have to fund the first 1% of that pay rise, which we so generously allocated them but did not provide additional funding to support them with. Declan Linnane, the head of Nichols Breakspear School in St Albans, told me that that 1% alone will cost his school £30,000—money it will have to find from yet further efficiency savings or another member of staff in already difficult times.

With rising national insurance contributions and an impending increase in employer pension contributions, schools are under huge pressure to find more savings at the cost of our pupils’ education. Increasing staffing costs have a huge impact on schools’ budgets. Removing the need for schools to fund the first 1% of pay increases themselves would be welcome. I wonder whether the Minister is in a generous mood and would like to make a grab on the Chancellor’s Budget.

Schools are interested in the Government’s proposal to create a central staffing database to reduce agency fees. Agency staff are a big issue for many schools, which often cannot retain staff and are obliged to use agency staff as cover, or run their staff so tightly that there is no slack in the system if a staff member goes ill, for example. I would be grateful if the Minister updated me on that database and when headteachers should expect it to be available.

The Institute for Fiscal Studies, which reported last month on education funding in England, found that per-pupil school spending has fallen by 8% in real terms since 2010. That must be considered alongside the fact that, according to the DFE’s own figures, half a million more pupils are in our schools now than in 2010. The IFS also reported that school sixth forms have endured a 21% reduction in per-pupil spending since 2011, and it estimates that by 2019-20 spending per sixth-form pupil will be lower than at any point since 2002.

Those are worrying statistics, which address many of the real concerns of teachers and parents in St Albans. We must aim for funding that meets the needs of schools across the country—as my hon. Friend the Member for North East Hampshire (Mr Jayawardena) said, certain parts of the country are really struggling—and allows them to deliver excellent teaching that inspires pupils to succeed in life.

Worryingly, we have also heard reports of schools having to use the pupil premium to fund their core budget. A recent poll of headteachers found that 70% had dipped into the pupil premium to prop up their core budget. That is borne out in St Albans, where we are aware that happens. It should be of real concern that a fund designed to help students from the most disadvantaged families has to be used for overall school spending. That cannot be right.

Schools are also concerned about their lack of ability to plan their finances. With the NFF being introduced over a number of years and uncertainty about how it will affect individual schools, headteachers are unwilling to commit to long-term planning. That was reflected in a poll of headteachers, which found that 90% feel the NFF has given them no long-term financial certainty and has resulted in no “meaningful financial planning” being carried out beyond year 1.

I do not just take things at face value. Trading statistics is never good, as I said at the public meeting I mentioned. I believe in listening to what teachers say, and they say they are struggling to do long-term planning under the current system. They need longer-term certainty about their budgets.

[Tim Farron]

Does the hon. Lady agree that the problem with long-term planning and wriggle room in budgets is even greater for smaller schools? In constituencies such as mine there are lots of very small, very good schools of 30 children or even fewer. If a large school has a bad period in which it has an issue with leadership, a poor Ofsted report or whatever, it can absorb the effect of getting fewer pupils as a consequence and still be able to plan ahead. However, that could be curtains for a small school, which would mean a community losing its school for good.

[Mrs Main]

I do not have experience of that, but I recognise the picture the hon. Gentleman paints. It is vital that we address those concerns about funding.

The UK tax burden is at a 50-year high, so the Minister will be pleased to hear that I do not propose additional tax rises. We are at the limit of how much tax we can reasonably ask ordinary people to pay. Working families have felt the squeeze since 2010 as the Government have tried to tackle the enormous financial burden we found ourselves with. It is good that we have made progress. Far be it from me to tell the Chancellor how to do his job, but the Budget is looming, so I am going to put my thoughts on the record. I am certain that the Government can find the money if we prioritise our spending appropriately.

We had a manifesto commitment—the hon. Member for Westmorland and Lonsdale will probably profoundly disagree with me about this—to scrap universal free school meals for reception, year 1 and year 2 pupils, but it was dropped. That was misguided. I and some of the teachers who were at the meeting I mentioned think we should have investigated that further. Thankfully, in St Albans only around 6% of pupils are entitled to free school meals. In Hertfordshire overall that figure is about 8%. Perversely, that means we subsidise between 90% and 94% of parents in Hertfordshire who could pay for their own children to be fed. Just as I do not want budgets that should be used for pupils at the poorest margin to be taken away, I do not want wealthier parents to be cross-subsidised when they do not need it. Such largesse is costing my local authority £6 million, and it is money that should be spent on teaching. I would rather St Albans pupils received a universal quality of teaching than that those with more affluent parents should receive a gratuitous free lunch they are not entitled to.

I am a great supporter of the good aid projects that have been carried out around the world, but, again, it seems crazy to me that we ring-fence huge sums of money for foreign aid when vital public services such as the education budget lack funding. The aid budget should be under the same scrutiny and pressures as other Departments’ budgets. We are effectively shovelling money out the door to meet an arbitrary target set in law. That misplaced policy should be brought before the House so we can decide whether to look at that ring-fencing.

I hope that the Minister will listen carefully to the issues raised in the debate, including some of the experiences recounted by teachers and parents. There is a funding problem in schools and it does not seem right that more and more schools have to go cap in hand to parents for even the most basic of provisions, such as textbooks. Alan Gray started the public meeting I attended by asking “What price education?” He did not ask the price for pruning trees, painting the classrooms or replacing some broken paving slabs, but the price of education. Of course it is entirely reasonable for parents to be asked for contributions for bonus offerings such as trips, but when they are asked to contribute for vital reading materials, the central funding formula needs to be addressed.

Teachers in my constituency do not tell me that the NFF is bad policy; they want it to be funded correctly. The aim of ending the so-called postcode lottery for school funding under the NFF is sensible, but the lack of overall funding means that it is difficult to deliver. I look forward to hearing the Minister’s response, and I hope to see some movement on the issue in the Budget. We must answer the call: what price do we put on our children’s education?