Monday 21st June 2010

(13 years, 10 months ago)

Lords Chamber
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Moved by
2: Clause 1, page 1, line 3, leave out “any person” and insert “the governing body of a school”
Baroness Morgan of Drefelin Portrait Baroness Morgan of Drefelin
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We turn now to the issue of free schools. As I said a moment ago, I am very grateful to the Minister for making the Statement repeating the Answer given to the Urgent Question asked in the other place, and for taking such a comprehensive set of questions. However, the Statement has generated more questions than answers. I am sure that as we go on in Committee we will learn a lot more.

Even the disinterested passer-by cannot help but notice that free schools are a flagship policy of the coalition Government—or at least of the Conservative part of the coalition Government. The Prime Minister and the Secretary of State were clearly delighted to be photographed during the election campaign with parents celebrating their promise of a new school on demand. It was great campaigning, I am sure that noble Lords will agree. A whole page of the Conservative manifesto was devoted to a case study of the Swedish education system, the model for the Government’s free school proposals. Actually, when I looked at it, most of the page was taken up by photographs—very nice too—but at least nominally there was a page on the subject.

The Chancellor cited the reform as key to the Government’s plans to close the deficit, as it would see free schools use money more efficiently. The Secretary of State says that he has seen the future in Sweden and it works. The Government seem to want a great deal of attention focused on this policy, but considerably less scrutiny about the practicalities of it. We may be changing that today.

Nowhere, however, in the pronouncements of the Secretary of State in connection with the Swedish-style free school reform, of which we have heard so much, has the Academies Bill been mentioned—until today. The Bill was announced under the headline, “Legislation to give more schools opportunity to become academies”. The Department for Education website carries a document outlining the purpose of the Bill. It states:

“The Academies Bill will enable more schools to become Academies and give them the freedoms and flexibilities they need to continue to drive up standards”.

The document makes no mention whatever of new providers entering the school system. The Explanatory Notes to Clause 1 state:

“This clause replaces similar existing provisions in section 482 of the EA 1996. It enables the Secretary of State to make ‘Academy arrangements’ with another person, to establish and run an Academy. That person will be funded by the Secretary of State further to either a contractual agreement (an ‘Academy agreement’) or, by new subsection (2)(b), through grant funding under section 14 of the Education Act 2002”.

There is no mention of new providers here either, merely an oblique reference to previous legislation and “other persons”.

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Lord Bates Portrait Lord Bates
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Following on from the previous speaker, I should like further clarification on the rules concerning the new schools. It is desirable that the Bill should encompass all three types of new schools. This would, first, allow the best schools to become better by freeing them up; secondly, tackle the failing schools through the academy orders in Clause 4; and, thirdly, make provision for the new schools so that they, too, can become academies. It would be tidy if those three elements could be within the Bill.

We do not need to be too anxious about the burden that this will place upon the Government. Taking things in context, the brief on the Bill pack prepared by the House of Commons includes two or three helpful sections on new schools. It states that currently 19 per cent of the 3,200 secondary schools are judged to be outstanding and will qualify for the fast track. So that is potentially 600 schools out of 20,000. At the other end, depending on how you define inadequate Ofsted reports for longer than a year, there are about 100 failing schools. So, added together, that makes approximately 700 schools out of 20,000.

In the document Raising the Bar; Narrowing the Gap, which was the discussion Green Paper of the Government when they were in opposition, it was anticipated that the total number of new schools—roughly about 300 to 400—would be equivalent to about 220,000 places. I mention this for two reasons. First, all of the proposed changes might touch upon, potentially, 5 per cent of the total cohort of schools within the country. Therefore, the sense that this will send shockwaves through the entire system is unfounded and it is perhaps unfair to concern people about that. Secondly, the catchment areas of the new schools—

Baroness Morgan of Drefelin Portrait Baroness Morgan of Drefelin
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When the noble Lord refers to “new schools”, does he mean free schools?

Lord Bates Portrait Lord Bates
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The terminology is getting to us all. I do mean that. I come from an inner city urban area on Tyneside and it happened quite regularly that, where you had a failing school in a suburban area, dissatisfied parents who could afford to, or opted to, would take over an old large Victorian terraced house and its grounds—we have all seen them—and set up a new independent fee-paying school. The parents who could afford to opt out of the system would then pay fees for their children to go to that school. This movement still exists and is happening within the private sector. I cannot understand how anyone who has a passion for narrowing the gap and giving greater opportunity could possibly object to it. We should do all of these things in inner city areas and make them free and available to everyone. That would be entirely laudable.

I wish to make two other brief points, the first of which relates to catchment areas. If there is going to be a greater number of schools, broadening catchment areas would be a good thing. When the city technology colleges were established, they covered not only one entire local education authority area but often encompassed two or three. In other words, if the parents were prepared to undertake the duty of getting their child to school and it was not going to damage the child’s education, it was deemed acceptable for the child to attend there. Where there is greater choice the catchment areas need to be broadened. The noble Baroness, Lady Morgan, rightly made the point that narrow catchment areas could have too severe an effect on neighbouring schools.

The final point on which I seek clarification from the Minister concerns the properties that could be used. There are many buildings in inner city areas—including, many educational buildings—under the control of local authorities. Indeed, where they have a surplus of places they are paying additional money for them. Does my noble friend agree that local authorities should look at their existing stock of prepared educational establishments, embrace this change and, where there is a surplus, hand over existing buildings to a new school provider? That would give the authority an additional income and would mean that the provider was not forced into premises that might not be suitable.

Lord Hill of Oareford Portrait The Parliamentary Under-Secretary of State for Schools (Lord Hill of Oareford)
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My Lords, it has been wide-ranging debate. As the noble Lord, Lord Phillips, pointed out, we have in some ways already got on to some of the issues that we will discuss in later groups of amendments. We can pursue them in greater detail then. Given how wide-ranging the debate has been, it would perhaps be helpful if I briefly restated the amendments and their purpose.

Amendments 2 and 3 would mean that academy arrangements could be made only with the governing body of an existing school rather than any other group. They are linked in this group to Amendment 24, which would mean that, for future academies, the academy proprietor would have to ensure that its governing body was not controlled by a majority of parents of pupils at the academy—which was the point made by the noble Lord, Lord Northbourne.

Amendment 13 seeks to ensure that the SEN annex of an academy agreement, which sets out the school’s detailed obligations in relation to pupils with SEN, would apply also to the arrangements for academy financial assistance. Amendment 33 seeks to prescribe in the Bill that the academy agreement includes details of the roles, composition and continuance of the governing body. Amendment 76 seeks to ensure that academy funding agreements include additional provisions on SEN, including a requirement to comply with special educational needs legislation and regulations as if it were a maintained school.

Perhaps I may start with Amendments 2 and 3. The Government want to make it easier for teachers, charities, educational groups and groups of parents to start new academies. As the 2005 White Paper stated:

“We believe parents should have greater power to drive the new system: it should be easier for them to replace the leadership or set up new schools where they are dissatisfied with existing schools”.

We debated that earlier. I do not feel that I need to go through much of it again.

I should make it clear to the noble Baroness, Lady Morgan—I think that my noble friend Lord Greaves also raised the point—that a free school could be regulated either through a funding agreement or a grant under Section 14 of the 2002 Act. In both cases, similar requirements will be placed on free schools as are placed on academies which convert from a maintained school. The only difference would be more flexibility in relation to the length of the funding period, a point that I made in our earlier debate on the Urgent Question. The more flexible arrangement would be used mainly in cases where new providers did not have a previous track record.

Baroness Morgan of Drefelin Portrait Baroness Morgan of Drefelin
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It would be helpful if the Minister set out in greater detail in writing what he has just said. We received a letter from the Secretary of State today—I am scrambling around to find it among my papers—stating not only what he has just said but also that academies funded through grant would have the conditions of their grant outlined in a letter. It states that the provisions would be in line with those in the funding agreement, as the Minister has just said. However, there is anxiety that, for issues around SEN, vulnerable children and all the areas set out in the funding agreement, the provisions might well be “in line with” but not the same. The Minister has just made a strong statement. It would be helpful to have that more clearly set out. My noble friend Lord Adonis said that the Secretary of State can already fund schools in this manner under the 2002 Act. If that is the case, and all the instruments exist, why do we need this additional route? If all the instruments exist, are we not just confusing matters? Around the Chamber, we are starting to understand the importance of the academy agreement. If we introduce another way of doing things, will it not confuse things further? Perhaps a letter would be helpful.

Lord Hill of Oareford Portrait Lord Hill of Oareford
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I am very happy of course to write further and set out what the noble Baroness seeks, because it is absolutely our intention that the two forms of funding should be on a completely equal footing. I recognise that many Members of this Committee want as much reassurance as they can have on that. If I can help in making it clearer, I will be delighted to do so.

Amendment 13, tabled by the noble Lord, Lord Low, seeks to ensure that the SEN annex of an academy agreement, which sets out the school’s detailed obligations in relation to pupils with SEN, would apply also to the arrangements for academy financial assistance. In a way, that is a variant of the point made by the noble Baroness, Lady Morgan. The amendment is unnecessary, because academies whose arrangements take the form of an academy agreement and those whose arrangements are for financial assistance will both be under the same obligations in relation to special educational needs. I shall pick up again on special educational needs in connection with Amendment 76, although I know that a later group of amendments has been tabled on SEN.

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Baroness Morgan of Drefelin Portrait Baroness Morgan of Drefelin
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I thank the Minister for giving way. Will he also think in his deliberations about both routes for academy designation—through an agreement and through the grant letter?

Lord Hill of Oareford Portrait Lord Hill of Oareford
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One is approaching this from first principles, and first principles are first principles. I give an undertaking to come back at Report with proposals as to how one could put the principle of parity into effect.

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Lord Lucas Portrait Lord Lucas
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I thank my noble friend for his reply and look forward to the model agreement, or the bits of it that we will get. Yes, charities do evolve, generally, a self-sustaining model for their governing body, but those that do not, die. Schools that do not either die, as many have this year, or the bursar very quickly puts other arrangements in place. It does not seem that those triggers are there for a straightforward maintained school with no sponsor. I shall return to this matter again in another context but, before the passing of the Bill, we need to know how we can stop schools getting into a real mess and how we can pick it up early and do something about it.

Baroness Morgan of Drefelin Portrait Baroness Morgan of Drefelin
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We have had a very helpful and full debate, and I thank the Minister for replying so comprehensively and in such a helpful way. To return to my earlier remarks, and picking up on the point that my noble friend Lord Adonis made, I think that it would be helpful—now that we know that free schools will be academies, and being in favour of reducing the alphabetti spaghetti, or soup, as the House was earlier—if the proposal forms for the free schools were called proposal forms for academies. We should get that clarity and consistency, so that those outside, who have not had the benefit of listening to the deliberations that we have had, can be clear about the relationship between new schools, free schools and academies. That would be very helpful.

Lord Phillips of Sudbury Portrait Lord Phillips of Sudbury
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I hesitate to prolong this debate, but after all that has been said on this group of amendments, is it not sensible to have the phrase “free school” somewhere reflected in the Bill? The Government themselves refer to these new academy schools as “free schools”. I should have thought that, in trying to make the legislation as helpful as possible to the poor devils who have to implement it hereafter, that would be a useful thing for the Government to contemplate—and I should be grateful if he would.

Baroness Morgan of Drefelin Portrait Baroness Morgan of Drefelin
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I beg leave to withdraw the amendment.

Amendment 2 withdrawn.