Free Schools Policy

Baroness Morgan of Drefelin Excerpts

Monday 21st June 2010 Lords Chamber

[Baroness Morgan of Drefelin]

My Lords, I thank the Minister for repeating the Answer to this Urgent Question from the other place. I have a number of questions to ask him, but before I do, I want to make the point that this Urgent Question followed a press release issued by the Minister’s department on Friday about the process for progressing the coalition Government’s free schools policy. Just a moment ago, we were in Committee looking at the Academies Bill, and it would be very helpful for the House if we could understand how the Government’s different policies and priorities fit together so that when we are scrutinising the legislation we have a full picture of what the Government are trying to achieve. It was therefore a bit of a disappointment that the Secretary of State for Education chose to announce the process for progressing the free schools policy in a press release on Friday when we could have heard more about it in this House. However, the Minister has repeated the Statement to the House, which I very much appreciate.

We have heard a great deal from the coalition Government about the challenging economic times that we are in. We on these Benches recognise that and the real challenge of having to make cuts in the near future. How will these new free schools be paid for? The Guardian suggested, possibly on Friday, that funding from the previous Government’s proposals to widen access to free school meals will be used to pay for the new free schools policy. Will the Minister explain what assessment has been made of surplus places? Surplus places might not be a very cost-effective way of funding school places. Indeed, creating surplus places through the development of a free schools policy could be quite an inefficient way of using what will be scarce resources.

I believe that the coalition Government are keen to broaden the number of providers that deliver education through the free schools model, and I am interested to know whether the coalition Government envisage new providers coming into education being able to make a profit from using public funds to develop free schools, or whether, under some enterprise model, any surplus that was generated through the use of public funds would be ploughed back into public benefit.

I was quite interested on Friday to see a little box on the form on the website that has enough space for 200 words that are designed to show what parental demand there is for a new free school. For the benefit of those who are interested in taking forward an idea such as this, will the Minister say what he is looking for in those 200 words that will give a really good picture of parental demand? Will there be published criteria? I know that the Secretary of State will have to look at each of these applications, and I understand that there have been many expressions of interest. When the Secretary of State looks at these 200 words, over breakfast on Sunday morning perhaps, what will he be looking for to assess parental demand?

There is also a space on the form to set out the premises that have been identified or to say what the premises would be like. The Minister mentioned planning requirements when he repeated the Statement, and I am interested to know how any legislation on this will work. Again, what is required in the box about premises? Will the new free school have disabled access, for example, or will a car park, office block or corner shop work just as well?

How will local authorities be involved? The Secretary of State for Education said very clearly in a letter that he sent to directors of children’s services that there would be a role for local authorities in that local authorities are central to the Government’s plans to improve education. It would be very helpful to understand what that vision is in relation to free schools.

It is also interesting that the coalition Government have made strong statements about a commitment to fairness in approach. How will the admissions code, which I think is all about fairness for children’s educational opportunities, work in the free school setting? How will vulnerable children and those with special educational needs, about whom this House cares very much, be catered for? I am aware that I have asked a lot of questions, but it is important that this House hears from the Minister the vision and the practicalities of how it will work.

[Lord Hill of Oareford]

My Lords, I will try to answer all the questions raised by the noble Baroness, Lady Morgan of Drefelin. On her first point, no disrespect to this House was intended. The view was taken that this was an announcement about practicalities. The principle of the policy had previously been announced and had been long trailed. Over many years it was in the Conservative Party manifesto and it features in the coalition agreement. As the noble Baroness knows—we will be discussing it in Committee over the next three days—free schools will be set up as academies under the Academies Bill. They will have the same framework, rights and responsibilities as the academies that we have just been discussing in our first group of amendments in Committee. The view was taken that this was a practical implementation and a first step of policy rather than a new policy announcement.

On the point fairly made by the noble Baroness about the challenging economic times, perhaps I may reassure her about the modest funding for what is, in effect, a series of pilots that we will look at over the next year to see how this policy works out. The £50 million will not come from free school meals pilot money. As the Statement in the other place made clear, the department is basically recreating a programme which the noble Baroness may know—the standards and diversity fund. The money has come from the harnessing technology grant. Therefore, as the Statement made clear, it has come from money that was put aside for IT, not from free school meals.

As regards the noble Baroness’s question about profit, the school or trust must be non-profit making. As now under existing legislation, a school can subcontract to a provider of a service, which, if a commercial operation is providing that service, will charge what it needs in order to make a profit and a living. As now, the school cannot make a profit. There is nothing here which will enable free schools to be profit-making schools.

As the noble Baroness will understand, parental demand, and the Secretary of State’s breakfast, is work in progress. We have made clear that a demonstration of parental demand might be, for example, a petition. An interested party can make the application and then work with an official in the department who will work up the detailed application. As part of that process, some of the noble Baroness’s fair questions on how these things will be demonstrated will be worked through.

On premises, revised planning guidance will be issued by CLG in due course, which should free up and remove a lot of the bureaucratic systems that currently make the establishment of a school for anyone extremely difficult to countenance. The noble Baroness’s point about precisely what the requirements will be needs to be worked through.

On the role of local authorities, I have somewhere another letter—we in the department are busy writing letters at the moment—written by the Secretary of State to local authorities specifically on the free schools announcement, which is subsequent to the previous letter to which the noble Baroness referred. It makes clear that part of the process under which he will judge the criteria for whether an application to be a free school should be able to go forward will include consultation with the local authority.

The admissions code for free schools will work just as the code for academies because the free schools will be set up under the academies legislation. All the safeguards and requirements that were put in place for academies will apply to free schools. That remark also applies to the noble Baroness’s final and extremely important point about vulnerable children. All the safeguards, particularly with regard to vulnerable children and SEN issues, which will be discussed at greater length as we go forward with the Academies Bill, will be in place.