Co-operatives in Education

Barry Sheerman Excerpts

Wednesday 23rd October 2013 Westminster Hall

[Steve Baker]

As the hon. Gentleman says, it is the Minister’s duty, but he has been most generous in the way he has approached the debate.

My reason for calling this debate is to support the Cressex school in my constituency, the young people it serves and the wider community from which they are drawn. It is undoubtedly the most disadvantaged community in my constituency. I want to cover the circumstances and successes of Cressex school, and the wider experience of co-operatives in education, and to ask the Government for action. I hope the Minister will forgive me if I say that although they have said some interesting and good things, they need to follow them through.

In a message of support, Dame Pauline Green, president of the International Co-operative Alliance, has set the definitive context for this debate. She said:

“Co-operatives have been involved in education from the very beginning, and there is an inextricable link between education and co-operative development. That is why we continued to place great emphasis on education when the co-operative principles were last revised in 1995, and why new guidance notes strongly reaffirm the importance of co-operative education.”

When I visited the Rochdale Pioneers museum, I was pleased to discover two things that explained a lot to me: autonomy, which I will return to, and the fact that one of the principles of co-operation has always been to educate, train and inform.

[Mr Barry Sheerman (Huddersfield) (Lab/Co-op)]

As something of an historian, I must tell the hon. Gentleman that the co-operative movement started long before the Rochdale co-operatives in Yorkshire and in Huddersfield in my constituency.

[Steve Baker]

I am grateful to the hon. Gentleman for the information and the way he provided it. When watching some of the films about the pioneers, I noted that although they were not the first, they were perhaps the earliest successful ones.

[Mr Sheerman]

They had good PR.

[Steve Baker]

They had very good PR. A couple of things struck me. First, they did not trade on credit, so people did not get into debt to consume, which is an interesting lesson for present times. Secondly, they made a surplus. They did not like to call it a profit, but they realised that they had to make a surplus over time, and doing so enabled them to succeed. A lot of interesting language was involved in that conversation, and I am grateful to the hon. Gentleman for his information.

In April 2010, Cressex community school became part of the Cressex Co-operative Learning Trust. I remember my first visit to the school after the election because I encountered a defiant spirit of autonomy and independence. There was a whisper of forced academisation because of its results, but there was fierce determination to remain a co-operative because of the way that the co-operative structure allows all parties to be engaged across the community.

The proper context of the results includes the selective system. As a Conservative in Buckinghamshire, I am expected to support selective education, but a whole tier of students at Cressex has been taken off to another school, which naturally depresses the overall results. There is no denying that Buckinghamshire county council is one of the most affluent in the south-east, but a high proportion of Cressex students and their families experience levels of disadvantage equal to those in northern cities. Nearly half of Cressex students live on estates that are among the most economically disadvantaged in England, with areas of entrenched poverty and low skills. The proportion of families with experience of higher education is below the national average and the proportion of children living in overcrowded households exceeds the national average. More than half of students have been eligible for free school meals in the past six years and are entitled to the pupil premium.

Although Wycombe has an ethnic minority population of around one fifth, 80% of the school’s pupils are from minorities and the school now receives increasing numbers of students from eastern Europe. Crucially, about three quarters of the students do not speak English as their first language. That is the context for Cressex school, and that is the challenge to which it must rise.

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[Steve Baker]

Absolutely. I think we are in danger of fierce agreement in the Chamber.

Cressex school is keen to support business and enterprise, and that demonstrates its wider commitment. In particular, it hosts the Wycombe business expo. The principles of co-operation and engagement allow a school to reach out more broadly.

I turn to the challenge to which Cressex must rise. Last year, 36.4% of pupils across England who were known to be entitled to free school meals gained five or more GCSEs at grade A* to C, including English and maths, but Cressex did better. At the time, 39.1% of students were receiving free school meals. Over the last six years, the number achieving those GCSEs has risen to 48%. Of course, the school aims higher than 48%, but it represents a dramatic improvement in results and they are the best in the history of the school.

The head teacher, David Hood, recently provided details. Of the students who left year 11 in 2013, 46.5% gained five or more GCSE passes including English and maths, a rise from 27% in the previous year, and 64.8% gained five or more GCSEs in any subject. The overall results represent a considerable increase over the previous year.

[Mr Sheerman]

To someone who has chaired a Select Committee for many years, that sounds really good, but when such figures are read out I sometimes insist that we ask how many pupils left with no qualifications or barely one GCSE, as 25% of kids at our schools do. It is important to get the balance right when looking at the figures.

[Steve Baker]

I am grateful to the hon. Gentleman. He is of course right that we sometimes forget to look at such points. It is crucial that no one should be left behind and the ethos of the school, as he will appreciate, is that the co-operators involved are determined to lift everyone up. I appreciate his point and I apologise that I do not have that information to hand.

Mr Hood made the point that performance in all core subjects rose markedly. In particular, Cressex has risen well above the national average in maths for the first time. He said that that is an exceptional achievement and he is right. Cressex is improving itself, which goes back to the point about defiant spirit. Cressex does not wish to have a model imposed on it; it is improving itself.

I have been on a journey, discovering something of the traditions of the left and the co-operative movement, and to me, that was the essential thing to understand. It is about self-help—a difficult term for a Conservative to use—mutuality, self-responsibility, direct democratic control, equality and solidarity. Such terms are perhaps vexed for Conservatives, but separated from state power, they actually just represent values and ideals that any fully formed human being should support. That, to me, explains the defiant spirit of autonomy that I found. Those values are being used by the Cressex school to engage with the community around it, and they are values transforming the lives and prospects of individuals whom we cannot allow to fall into neglect. Those people must be supported with a degree of delicacy if they are to flourish, which, in the end, is what we want for all the people in our constituencies, irrespective of their voting habits.

I turn to what it means to be a co-operative, and how Cressex has applied some of those principles. In the co-operative statement on identity, we find a definition that I think anyone could support and welcome:

“A co-operative is an autonomous association of persons united voluntarily to meet their common economic, social, and cultural needs and aspirations through a jointly-owned and democratically-controlled enterprise.”

That crucial element of voluntarism surprised me. I hope that Members on the left will forgive me if I say that I have always misunderstood socialism to mean compulsion, and I was amazed to discover that on the left, there is this great tradition of voluntarism. When I look down through the values—

“ethical values of honesty, openness, social responsibility and caring for others”—

who could possibly disagree with them?

I turn to the principles: “Voluntary and Open Membership”—of course, a school should certainly comply with that. When I look at “Democratic Member Control”, I start thinking that the Government need to act, because it seems to me that across the whole suite of policy areas in education, the Government need to ensure that when parents, staff and others in the community are engaged in a school, they have the opportunity for their democratic control to be meaningful. The next principle is “Member Economic Participation”—although I paid £1 to become a member of Cressex co-operative, it does not seem to me, unless an Opposition Member would like to correct me, that anyone is immediately leaping to suggest that there should be economic participation in schools. However, “Autonomy and Independence”—what a marvellous idea, which seems to go directly to the heart of the Government’s policies. We then have “Education, Training and Information”, “Co-operation among Co-operatives”, and “Concern for Community”.

Those are some of the values that the Cressex co-operative trust has implemented, and which I think could allow other schools to follow suit, particularly where they are smaller and need to combine in order to be viable. The partnership with Cressex school has included Buckinghamshire New university, Dr Challoner’s grammar school, Wycombe Abbey school, the local authority and the Co-operative college.

After years of campaigning, the school moved into a new building, which certainly lifted spirits, and I have to say that we are grateful to the previous Government and all those involved locally for giving us those new premises. The community’s values were naturally aligned to those of the co-operative movement, and particularly the notion of being values-driven and faith-neutral, which, in my constituency, is highly relevant. The community engages actively, and as I mentioned in response to an intervention, is a specialist business and enterprise school.

I am particularly pleased that Johnson & Johnson’s Dr Cesar Rodriguez Valdajos, a Spaniard, has engaged with the school and become a governor. At a time when we are challenging how capitalism is working and where it has gone wrong, it is particularly interesting that someone from Johnson & Johnson has engaged with the school. When capitalism previously failed, that company showed, through its credo, how private enterprise could step up. What I find encouraging is that the notion of enterprise being people-centred is actually highly inclusive. Wycombe Abbey school is one of the finest independent girls’ schools in the country, and its engagement with Cressex has been not only crucial but mutual, because it is in those sixth-form pupils’ interests that they engage with the school and help with literacy and numeracy.

Crucially, the pupils share the school’s co-operative vision and values. As a former head boy told the governors recently:

“High achievement for all is certainly our shared responsibility. I can say for a fact that Cressex is a rising star. It’s climbing to the top and I am proud to be head boy.”

I have to say that Cressex has travelled a long way very quickly, since when I first visited the school as a candidate and saw a collection of prefab buildings and some people who were rather long in the face. There were some poor results, but Cressex is transforming itself very rapidly.

I am aware of the time, and that other Members would like to speak, so I shall abridge some of my other remarks on other co-operatives, but I particularly want to point to the experience of Mondragon university from the Library debate pack. Mondragon university is a Spanish institution owned by its staff, and an article, in the course of describing it, interviews a British academic, saying that

“many of the principles on which cooperatives are based are not necessarily that radical in higher education. Cook”—

Dan Cook—

“points out that the University of Cambridge ‘is already configured as a sort of workers’ co-op’ because every academic is part of the governing body…he adds: ‘I don’t think anyone has told them yet.’”

Therefore, it may well be that co-operatives are more advanced in the United Kingdom at all levels than has generally been believed.

Co-operative schools are now the third largest network of schools in the country, following Church of England and Roman Catholic schools. More than a quarter of a million young people attend a co-op school and more than £4 billion of assets have been transferred from local education authorities to co-operative trusts. In September 2011, co-op trusts ran 63 secondary schools. There are now 94 and the figure is predicted to be 102 by December. In the same period, co-op primary schools increased from 76 to a surprising 389, which is predicted to be 444 by December. Overall, co-operative schools have grown from 188 in September 2011 to a predicted 714 in December this year. That is an astonishing vote in support of autonomy and self-governance in relationship with others. To me, it is an enormous endorsement of liberty and civil society, and I believe that the Government should row in behind it.

The first co-op free school will be in Swanage, which demonstrates that co-ops are not incompatible with the Government’s free school programme. However, I look ahead to 2014, and I must say to the Government that at this time there are real imperatives for action, because about half of secondary schools and almost 90% of primaries still need to determine their long-term structure. There is every likelihood that they could choose to be co-operatives. If co-operation is a necessary requirement to enable small schools to flourish, the Government certainly need to act fast to put in place whatever is necessary to allow co-operation to thrive.

The Government ought not to fear co-operatives. I know that the co-operative movement began with figures such as Robert Owen, who was a utopian socialist, but the values and principles, and the place reached by the co-operative movement today, are not to be feared by people on the Government side of the House of Commons. Co-operatives are, above all, people-centred businesses, and it strikes me that co-operatives can resolve a number of conflicts of interest and ideology.

On markets versus collectivism, we have democratic, collective ownership of property, and yet co-operatives participate—and always have participated—in markets. I observe that one of the crucial reasons why state socialism can never work is that it eliminates markets in capital goods. Co-operation does not do that.

On employer versus worker, the Co-operative party’s website recognises that producer interest can effectively be dealt with through co-operation. I would suggest that some problems that the Government are currently experiencing could be ameliorated if more schools were directly controlled by parents, staff and the community, so that not only were industrial relations easier from the outset, but if difficulties did arise, they would be easier to resolve, because it would be clear who was negotiating with whom, and to what end.

It seems to me that today, sometimes co-operative schools are succeeding despite obstacles. That may well be in the spirit of the co-operative movement, but it seems that the Government ought to do more to ensure a crisp, simple and effective legal framework. I do not wish to pre-empt the remarks of the hon. Member for Sheffield, Heeley (Meg Munn), but I would like to ask the Government to look closely at the ten-minute rule Bill that she brought forward. She proposed a measure that would enable schools to register as industrial and provident societies and enable nursery schools to be established as school trusts. That seems an extremely good idea, not only to complete that scale of education from nursery through to—it turns out—university level, but to ensure that things are viable and sustainable. I expect the Government to go down that road because of what has been said, and I would like to provide a little detail on what has gone before.

My right hon. Friend the Secretary of State for Education said:

“First, let me pay tribute to the work of the co-operative movement. Since it started in Rochdale, many of us have been inspired by its achievements. I believe that the academies programme and particularly the free schools programme provide an opportunity for the ideals of the original co-operative movement to be embedded in our schools. The idea that all work together for the good of their community and for the fulfilment of higher ideals is one that Government Members wholeheartedly applaud.”—[Official Report, 16 January 2012; Vol. 538, c. 468.]

Cabinet Office Ministers have been outspoken in support of co-operatives. My right hon. Friend the Minister for the Cabinet Office and Paymaster General said of mutuals and the Government’s policies:

“The right to provide will challenge traditional public service structures and unleash the pent up ideas and innovation that has been stifled by bureaucracy.”

That chimes directly with the Co-operative party’s message that co-operative models offer the best model for the reform of the public services or public service delivery.

In November 2007, my right hon. Friend the Prime Minister spoke of co-operatives in Manchester and developed arguments leading to the tantalising prospect of

“a new generation of co-operative schools in Britain—funded by the taxpayer but owned by parents and the local community.”

In January 2012, he also held out the prospect of a new co-operatives Bill. Without wishing to give succour to Opposition Members, I say gently to the Government that the Prime Minister ought now to find time to bring forward that Bill, encompassing the proposals of the hon. Member for Sheffield, Heeley, if we are to avoid the allegation of mere posturing. I want us to get behind co-operative schools, and more broadly co-operatives in education, in the general interest, to transcend some of the partisan debate that has gone to and fro, because I know that, in Wycombe, co-operative principles are transforming Cressex school. Those principles are proving increasingly popular across the country.

Today, a revolution in autonomy for schools is taking place, but it seems to me that it is taking place despite obstacles, so I ask the Government please to work more closely with the co-operative movement in establishing new free schools and helping academies to become co-op trusts. Will they bring forward the co-operatives Bill and will they look closely at the hon. Lady’s proposals? I am sure that Ministers will be welcome at Cressex school if they wish to see how it works in practice.

The Government ought just to do the right thing. Principles of co-operation entrench liberty and civil society. They produce self-esteem, confidence and resilience. They are evidently popular with the public. The Government should now move heaven and earth to liberate the co-operative spirit in education.

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[Meg Munn (Sheffield, Heeley) (Lab/Co-op)]

Thank you, I think, Mr Hollobone. It is a delight to take part in the debate. Of course, I must start by congratulating the hon. Member for Wycombe (Steve Baker) not just on having secured the debate and established such good cross-party support for it, but on his speech. He spoke very eloquently of the reasons why some of us in this room have been co-operators for many a decade, not just many a year. I warmly welcome him to the cause of co-operation. It is everything he says it is and should be spread more widely, not least in our schools. I have always been proud to be a Labour Member of Parliament, but I am more proud to be a Labour and Co-operative Member of Parliament. Some of my colleagues also bear that title. Other Labour Members do not stand as Labour and Co-operative, but are members of the Co-operative party. It is a set of principles and a vision that are widely shared.

I shall not repeat what the values are, as the hon. Gentleman has done justice to that. I shall simply say that I wholeheartedly agree with him that the values of co-operation could not be more appropriate for schools. This is about having all parts of the community—not just the teachers and parents, but people from the community and pupils—involved in the schools. It is about helping them to understand what it means to take on responsibility for themselves, helping them to understand that they have a role in the school and embedding the school firmly where it is—in its local community.

We heard the excellent example from the hon. Gentleman of the school in his constituency that has done so much to persuade him of the values of co-operation, but that is happening up and down our country. We are talking about values such as business and enterprise, and values that are enabling young people to think about going into the world of work, but in a different way—not a competitive way that is unhelpful, but one that focuses on the benefits of co-operation.

Real strength and depth is emerging in parts of the country, including the south-west, my own beloved Yorkshire and Humberside and the north-west, which I am sure we will hear from. Of course, Cornwall, which I am sure the hon. Member for Truro and Falmouth (Sarah Newton) will speak about in due course, is looking to become the first county in the country in which the majority of schools work together mutually to pool resources in co-operative ways. This revolution in structures and governance is gaining momentum, and we should all be supporting it. That is why I want the Government to take more seriously the proposals that I made back in April this year in my ten-minute rule Bill.

I support choice in education, but there are barriers that should be removed to allow more schools to follow the successful model of co-operation. As the hon. Member for Wycombe said, the legal forms currently available are industrial and provident societies and co-operative and community benefit societies. There is no specific provision in relevant Acts for co-operative schools, so although they have done well so far and they exist, they are having to work around the existing structures and legislation. They have been helped enormously in that by the relevant parts of the co-operative movement, Co-operatives UK and the Schools Co-operative Society, but that is not enough. We want this to go further.

I am an optimist: I believe that one clause could deal with the issue. Of course, it would be a powerful clause. I have a draft of the Bill that I put forward, and would be delighted to pass it to the Minister later. It suggests that we allow Education Acts to be amended to include the legal forms that I just mentioned and ensure a level playing field with other school structures. Of course, I know that any legislation has to stand up to proper scrutiny. I would warmly welcome the Government looking at what I have proposed and coming to a view on whether it is the right way forward. I would like to press the Minister on taking that forward.

[Mr Sheerman]

As greater ammunition, is my hon. Friend aware that a change in the tax structure is coming out of the Treasury imminently and will be very helpful to co-operatives, community interest companies and social enterprise generally? Harnessed to that tax change, a change in regulation might be quite easy and simple to do.

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[Meg Munn]

I entirely agree and am grateful for the example. The important aspect is that parents obviously first become involved with schools as institutions at nursery. They are often more likely to be present in the building, because they bring their children there, and possibly take part in parents’ groups, so if they were introduced to the values of co-operation at that point, they would see it as a normal way to get involved in their child’s education and schooling throughout the age groups.

One of the most powerful aspects of Sure Start, which the previous Government introduced, was that, in a non-threatening, non-stigmatising way, parents from all parts of society were made to feel welcome entering the building where their children were being supported in their education. I know from my constituency and my experience working in social services that many young parents who have had not good experiences in school do not like to cross the threshold, because doing so brings back bad memories. It is enormously powerful to involve, from that early point, the values of co-operation and support, and to say not only, “Come in, because your child is here,” but “Come in and have your say. We are all equal; all have equal membership.” From the first, it creates a different relationship between the parents and the people providing the education and support for children. The Minister should look closely at that second change.

[Mr Sheerman]

My hon. Friend and I are both Co-operative Members, and she knows that I have set up a few co-operatives myself. Does she agree that being a co-operative is not a panacea? On this sad day of the demise of the Co-operative bank as an independent co-operative, it would be wrong of us, as Co-operative Members, not to put on the record that sometimes people get into co-operatives for reasons of venality, and that through incompetence things can go wrong. Full involvement in a co-operative is needed to stop that happening. Today is a sad day for many co-operators.

[Meg Munn]

My hon. Friend has put his concerns on the record and he is absolutely right. There is strength in the co-operative movement; it is not about co-operative schools managing on their own and being separate academies or free schools, but about their being part of a movement that, as the hon. Member for Wycombe indicated, naturally gives support—there is support from Co-operatives UK and co-operative schools organisations —and sets up mutuality with other schools that can be helpful and supportive.

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[Gavin Shuker (Luton South) (Lab/Co-op)]

It is a pleasure to speak in this important debate. I congratulate the hon. Member for Wycombe (Steve Baker) on securing the debate and on his eloquence in furthering the arguments I support. Despite co-operatives and the co-operative movement having a strong association and history with the Labour party, not least through the 32 Labour and Co-operative MPs in this Parliament, of which I am one, it is praiseworthy that the ideas that power them are not owned by a political party. They are represented by a political party, but they are owned by all of us. It is incumbent on us, in each of our political traditions, to uncover those self-sustaining values for the time we are in now, and the hon. Gentleman has been a powerful advocate today.

I want to start by talking about some of the shifts that we have seen in education in recent years and conclude by talking about some of the ways in which the co-operative movement may be able to contribute to and shape that story, rather than merely being subject to it. We have already discussed several excellent co-operative schools across the country. Cressex, to which the hon. Member for Wycombe (Steve Baker) referred, is a fine and outstanding example of a co-operative school.

In Luton South we do not have a co-operative school, but we are keen to have one. Co-operative schools, and co-operative education in general, empower local people to take responsibility for the education that they best understand. Co-operative education avoids many of the traps inherent in the fragmentation of education that has occurred in recent years, particularly when it comes to the dispersal of power, which is abused in the education system more often than we tend to admit.

In the past 10 or 20 years, under successive Governments, control and responsibility for education has shifted from local authorities to individual schools. As many Opposition Members have argued in recent years, however, I believe that under the coalition Government we have seen an expression not of localism but of centralism. In other words, the Secretary of State has been given direct responsibility over individual schools. In Luton, we have real issues around community cohesion, we are a good size to allow democratic control to be exercised across all our schools, and schools working in partnership are a key part of where we hope to be in future and the kind of community that we seek to shape. Many of the Government’s choices and decisions have, therefore, been unfortunate for our attempts to pursue our ends.

Whatever we feel about the shift, under either of the previous two Governments, towards more individual schools taking responsibility, taking ownership and taking governance, the change has happened. We see that in the statistics on the adoption of the academy and free school models. Co-operative education provides a powerful mechanism for harnessing some of the positives of that shift, such as the exercise of leadership and good teaching quality, which we understand to be most crucial for raising standards in schools and the provision of education.

[Mr Sheerman]

May I suggest to my hon. Friend that if he wants to be slightly subversive, the best example I have seen of a co-operative is one in which the pupils are empowered to help run the school through Learning to Lead? That combination is liberating and amazing, and it provides a revolutionary structure of governance. It now exists in more than 100 schools.

[Gavin Shuker]

My hon. Friend does not anticipate my remarks, as is often said when someone makes a good point that we would like to adopt. He does, however, pre-empt my central argument about the distribution of power in the education system. How do we reap the benefits of allowing people to get on and lead in their own context, while sharing the responsibilities and ensuring that abuses of power do not take place, without sidestepping effective governance? That is where I believe that co-operative schools can be truly helpful.

In my own experience of mixed provision of education, public interest units can sometimes run schools autonomously, which can be good for local authorities. In Luton, two of our high schools became academies under the previous Government’s academies programme, which was designed for schools that were struggling to keep up with others. A further education provider came in and ran those schools. There has been, and continues to be, a strand of scepticism and concern in the community when schools are taken over, which we must acknowledge, but the education provider had a trusted relationship with the local authority and was able to step in and improve results.

A free school has opened in the centre of my constituency. It seemed bizarre to me that the only way in which we could get the basic primary school allocation of places was to bar the local authority from running the school, but we had to find a way to get that allocation, because there is a massive push on places. We found an arm’s-length council body to run the free school. It was a good example of how to use the existing system and to link it back into the community, and I believe that it is a really positive development.

In the mix of those different models, I believe that the co-operative model presents one of the best ways in which to harness elements of the co-operative tradition, even now, when the Labour party does not control but seeks to shape education policy in opposition. We should encourage local authorities and others to adopt the co-operative model to ensure that we reap the benefits of choice and autonomy in the education system. I note the comment of Peter Laurence, who is development director in the Brigshaw Federation, one of the first co-operative trusts in Leeds:

“We could all see the direction of travel of Government policy and the rapidly changing role of the LA. To us self-help is a natural solution.”

Is that not exactly the point? From the rich traditions of the co-operative movement, we find mechanisms that are appropriate to us today.