Free Schools

Debate between Bill Esterson and Ian Mearns

Tuesday 19th November 2013 Westminster Hall

[Ian Mearns]

I am grateful to my hon. Friend for making that point.

Although the Department for Education, Ofsted or any other inspectorate should be absolutely sure of its facts before going public, the time delay is worrying. The worrying precedent is that in those cases we have had to rely on whistleblowers—had they not been stripped of powers in relation to free schools, local authority officers would be uncovering failures. The EFA and Ofsted obviously do not have the required infrastructure, and are therefore not currently up to the job.

[Bill Esterson (Sefton Central) (Lab)]

I congratulate my hon. Friend on securing this debate. He makes a crucial point on the role of local authorities. Does he agree that one of the big problems in our school system is that local authorities are responsible for the education of all children but have absolutely no power to intervene in very serious cases such as those that he describes?

[Ian Mearns]

My hon. Friend makes a crucial point. The Minister could reassure hon. and right hon. Members in the room today, and members of the public outside, that local authorities should be given at least a temporary ability to intervene because of the concerns raised in three of the 174 free schools.

The alleged serious financial mismanagement at Kings science academy also extends to the school’s land lease. The Yorkshire Post revealed that a company owned by a vice-chairman of the Conservative party, Alan Lewis, is to receive some £6 million over 20 years, or £300,000 a year, to lease the land on which the academy was built. Particularly in the absence of local authority oversight of free school finances, it seems that there are what some might call beneficial deals for some at the expense of the public purse.

The plot thickens. According to the BBC, there was “a forensic investigation” earlier this year:

“The school was paid a £182,933 grant when it opened in September 2011. The EFA investigation found that £59,560 of payments were not supported by any evidence of payments being made, and £10,800 of this was supported by fabricated invoices for rent.”

More recently, it was found that an independent panel had fined the school £4,000 for failing to reinstate an excluded pupil. I am sure many colleagues on both sides of the House will agree that that is not how public money should be spent—it is not aiding the education of any child. That £4,000 is money that could, and should, have been spent on front-line education services.

That appalling level of financial mismanagement is even more concerning as it is public money. The coalition Government like to stress the importance of sound public finances, but oddly enough, their flagship education policy seems to have free rein on the use of public money.

An investigation into E-ACT—which, according to its website runs 34 academies and free schools from Dartmouth to Leeds—by the EFA revealed that a total of £393,000 was spent on “procedural irregularities,” including consultancy fees, breaking E-ACT’s own financial rules. The investigation also found that expenses indicated a culture of “prestige” venues, large drinks bills, business lunches and first-class travel, all funded by public money. “Extravagant” use was made of public funds for an annual strategy conference, at a cost of almost £16,000. Monthly lunches took place at the Reform club—I would like to go there some day, as I have never been—a private members’ club in London, with the public purse paying the bill for that excess. Boundaries between E-ACT and its trading subsidiary, E-ACT Enterprises, became “blurred.” A number of activities undertaken by the subsidiary were paid for with public funds. E-ACT, one of the largest chains of academies, was finally issued with a notice to improve by the EFA, so E-ACT lost Sir Bruce Liddington, its chief executive and former schools commissioner for England who, it is believed, was paid some £300,000 in 2010-11.

Barnfield college in Luton, part of the Barnfield Federation, which includes Barnfield Moorlands free school, has come under scrutiny for its educational practices. The concerns include grade massaging, as well as how the school treats its learners. The Barnfield Federation mantra, according to its website, is:

“One purpose. One team. One standard.”

--- Later in debate ---

[Ian Mearns]

My hon. Friend makes a crucial point. Some free schools have not been established in areas where additional places are required or where a significant number of schools are failing and need to improve—to get a kick up the backside, as it were—but in areas where neither of those criteria has been met. There is really no educational rationale for the existence of those schools; this is an ideologically driven policy.

[Bill Esterson]

My hon. Friend said money is taken from other schools in the locality to set up free schools. Does he agree, however, that the £1 billion overspend on the free schools and academies programme has a much wider impact on the education of children, because it takes away huge resources across the country? That is an extremely worrying consequence of the programme.

[Ian Mearns]

My hon. Friend makes a crucial point. Every pound spent on one item cannot be spent on another—that is simple economic opportunity cost. If we as a country indulge ourselves in establishing a relatively small number of these schools, the opportunity cost is that the money cannot be spent on the educational opportunities of millions of other children.

If you will indulge me, Mr Gray, I would like to look at other elements of free school admissions policy. Recent research suggests that the majority of the first wave of free schools did not take their fair share of disadvantaged pupils. The vast majority took lower numbers of children on free school meals, compared with local borough and national averages. That not only underlines the idea held by some that free schools are the preserve of a privileged few—set up by the few to serve the few and not the many—but exposes how schools can use the dilution of admissions policy that the Secretary of State has overseen.

I know the importance of good governance and the impact it can have on the direction of schools. There must be robust, independent oversight of schools if they are to flourish and if we are to be sure that the children in them are getting a good-quality education and that public money is being spent in the best way. I can speak from experience, having been a school governor for more than 30 years, as well as the chair at a once underperforming school in my community. I am sure that many of my hon. Friends are, or have been, governors in schools in their communities, and they will be well aware of the role’s importance.

We cannot afford to let the scandals in free schools damage and undermine the reputation of school governors or governance. More importantly, we cannot let poor oversight of free schools distract us from ensuring that all children receive a high-quality education from properly qualified teachers. All parents and pupils need to be able to trust their school, and, as institutions that spend public money, free schools are no exception.

In “Academies and free schools programmes: Framework for assessing value for money”, an eight-page document published on 8 November, the Department says that value for money is based on the consideration of three key elements:

“Economy: minimising the cost of the inputs needed to deliver a service; Efficiency: maximising the service output delivered with those inputs; and Effectiveness: maximising the impact of the service on outcomes for those who use it.”

Referring to outcomes, it talks about assessing

“how educational outcomes are improving and the consequential economic and social outcomes that occur over the longer term.”

I am pleased that educational outcomes are at least mentioned, but the document raises a number of questions, which I would like the Minister to answer, if he can, when he sums up. What has been the total cost so far of free schools—including capital costs, revenue costs and the hundreds of thousands of pounds given to the New School Network? What measures are in place to measure outcomes in value-for-money terms? How many free schools are under scrutiny for financial or educational reasons, and how many have received warning letters? The final question, which has a very clear answer, is: can we afford the financial and educational cost of this ideologically driven policy? I am not sure that the answer is yes.