Education: Academies Funding

Baroness Perry of Southwark Excerpts

Tuesday 21st June 2011 Lords Chamber

[Lord Hill of Oareford]

My Lords, as a former Academies Minister, the noble Lord, Lord Knight, will be one of the few people on the face of the earth who may have some glimmer of knowledge of how the LACSEG operates. I had not realised that he had initiated a review. I would be happy to discuss where he got to with it, because we are obviously grappling with the same issues. He will know that, because of the complexity and because the approach taken varies from year to year and from local authority to local authority, it is hard to be definitive about how the system operates. I give the noble Lord an absolute undertaking that our aim throughout is to make sure that the funding that an academy gets is the same as it would have got as a maintained school, and that a maintained school will not be disadvantaged by the development of the academies programme.

[Baroness Perry of Southwark]

Will my noble friend confirm that one of the difficulties that academies experience as they go through the transition is the enormous disparity between the amounts that local authorities have retained for their central expenses and therefore the amounts that are handed on to schools as they become independent? Is it correct that the disparity ranges from below 5 per cent of academies’ budget to more than 25 per cent?

[Lord Hill of Oareford]

I am not aware of the specific percentages, but there are big variations between local authorities and the decisions they take as to how they want to spend their money, which seems to me to be proper. There are variations between years, and then, more generally, the school funding system operates in a way whereby some children in some schools in some parts of the country are funded at a significantly lower level than children in similar schools with similar characteristics in other parts of the country. As well as looking at academies’ funding and trying to make sure that it follows the principles that I set out, we are consulting on the whole school funding formula to try to make sure that children in one part of the country are not out of pocket compared with children in schools with similar characteristics in another part of the country.