School Funding: North-east of England

Catherine McKinnell Excerpts

Wednesday 26th April 2017 Westminster Hall

[Catherine McKinnell (Newcastle upon Tyne North) (Lab)]

I am incredibly grateful to my hon. Friend the Member for Washington and Sunderland West (Mrs Hodgson), who is an excellent MP, for securing this important debate to highlight the complex issues facing education funding in the north-east. As a parent of three young children, a member of the Education Committee and a local MP who cares very much about the schools in my area, one of the best things about being an MP is getting to visit local schools. I am always blown away by the enthusiasm and ingenuity of the children I talk to and by the hard work and dedication of the education professionals I meet. However, it has become increasingly clear of late from the number of distressing stories I have heard that headteachers are deeply concerned about the real-terms cuts to their school budgets.

I recently visited a primary school in a deprived part of my constituency where the headteacher, who was clearly struggling to hold back tears, told me that budget pressures had forced her to cut the school’s family support counsellor and consider cancelling long-standing extracurricular activities for the children. It is clear that for a primary school that needs to provide all-round support for its children to lose such a counsellor through lack of resource not only has an impact on the school’s academic outcomes but makes it unable to help children and families who may face chaotic home lives or experiences that could lead to mental health issues, meaning that those issues will not be picked up in childhood and may escalate throughout adolescence and into adulthood. That is clearly a false economy, both in educational terms and more broadly. When children are suffering, they are not able to learn, which leads to lower educational attainment and compounds the social mobility challenge.

I have also spoken to headteachers who decided to take early retirement to reduce budget pressures, knowing that the school would save some money if it got in a younger headteacher on a lower wage. It is baffling that the Government are creating a situation where talented, valuable headteachers see no option but to retire for the sake of their schools’ budgets.

Although the Government repeatedly inform us that they are protecting schools funding—the Minister has already attempted to do that today—they know fine well that they are failing to give a full account of real-terms cuts. The introduction of the living wage and rising inflation, which, according to the Government’s own measure, is currently at 2.3%—its highest for more than three years—mean that schools have to make their money go significantly further. The National Audit Office has said that, as a direct result, schools will need to find an extra £3 billion by 2020, which equates to an 8% real-terms cut in funding. For one secondary school in my constituency, that amounts to a reduction of £761 per pupil by 2019 and, worryingly, the potential loss of 30 teaching jobs.

The Prime Minister’s so-called “great meritocracy” clearly does not extend to the north-east. While the children of the north-east continue to be let down, the current Tory Government unveil plans to expand grammar and free schools at a cost of £320 million. The Public Accounts Committee today denounced the Government’s free school programme as

“incoherent and too often poor value for money”.

I am also incredibly frustrated and angered that the Government are steamrolling ahead with their divisive grammar schools policy when there is overwhelming evidence that grammar schools do not increase social mobility. Statistics from the Sutton Trust show that less than 3% of entrants to grammar schools are entitled to free school meals; so the answer, for the Government, is to create more of them, rather than to invest in schools that now serve less well-off children. It defies common sense.

In response to the disappointing announcement of only £260 million of extra funding for existing schools in the north-east, Mike Parker, the director of Schools NorthEast, said:

“The Government has to recognise that if it wants a world class education system it has to fund schools appropriately.”

He also said that the funding settlement

“doesn’t fill the operational blackhole in schools across England.”

The question remains: why fund new grammar schools on an ideological whim when, as my hon. Friends have testified this morning, existing schools across the north-east are in desperate need of increased funding?

Headteachers across the north-east are expected to make exceptionally difficult decisions day to day, because of an inadequately funded system. If the Minister had to balance a school’s books, what would he cut—teachers, subject choices, support services or after-school clubs? Equally, he could increase class sizes; but let us remember that 900 pupils in primary schools in the north-east are already in classes of 40 or more. When the Prime Minister was shadow Education Secretary she railed against large class sizes, but they are increasing on her watch. The answer is clear: the Government should not cut school funding at all. It is often said in the north-east that the Tories cannot be trusted with the NHS. I say they cannot be trusted with the education system either.

--- Later in debate ---

[Catherine McKinnell]

I did not want to take up time in my speech, in case there was not enough time in the debate, but I too want to pay tribute to both my hon. Friends. I am sorry they are leaving but very much hope to hear from them again.

[Mrs Lewell-Buck]

As with my hon. Friend the Member for Washington and Sunderland West, it was in my excitement at the start of my speech that I said we might never hear from my hon. Friends again; I did not mean that, obviously.

The desperate state of schools in the north-east is clear from the speeches that my hon. Friends have made, but I am afraid schools throughout the country are in similar circumstances. The crisis in schools is a national failure, perpetrated by the Conservative Government, and made worse by news today of the failed free schools policy and by the decision made by the Prime Minister in her short time in office to divert school funding to grammar schools. That is despite all the teaching bodies, the unions and thousands of teachers talking about the crisis in schools. The Government’s response is to deny that the problem exists, trot out the mendacious response that funding in schools has never been higher, and try to introduce an inequitable new funding formula that has been universally condemned and under which every school in England is likely to face funding cuts in the next three years.

I hope that today the Minister will at least accept that there is a crisis in schools, and take the opportunity to explain why the Government are not responding to the consultation on the new funding formula this side of the general election. Surely the public deserve, at the very least, a summary of responses to the consultation, so that they can make a fully informed decision before they go into the polling booth.

Alan Hardie, the principal of the excellent Whitburn Church of England Academy in my constituency was recently forced, as many others have been, to do the Government’s dirty work; he had to send a begging letter to parents, asking for donations of £10 a month to cover basic resources. Alan said:

“We hear the same phrase repeated time and time again by the Department for Education that school funding has never been higher. What they neglect to mention is more and more of this funding returns directly back to central government through the very significant increases in employer’s National Insurance and pension contributions. This is a stealth tax that means that schools have less and less to spend on the pupils in their care”.

The truth is that schools in England are facing their first real-terms funding cuts in 20 years, and must find about £3 billion-worth of savings—on average about 7% of their overall budget; that the secondary schools that will experience the largest cuts will, in real terms, lose an average of £291,000; and that funding to the most deprived secondary schools, where more than 30% of children receive free school meals, will fall, while the highest relative gains will go to pupils in the least deprived areas. It is an all-too-familiar approach from the Government, who, time and again, make those who can least afford it pay for their mistakes.

Since 2010 the Conservatives have offered much in the way of rhetoric on education, but have consistently failed to make that a reality. Instead, they have left in their wake a litany of broken promises. They promised us they would recruit and keep the best teachers. Yet schools face a crisis of both recruitment and retention. Teachers are leaving the profession in record numbers, and many more are set to follow. The Conservatives promised they would create small schools with smaller class sizes, but the opposite is true. Even analysis by the Department for Education has revealed that more than 500,000 primary school children are now in super-sized classes of more than 30. In secondary schools more than 300,000 pupils are taught in classes of more than 30. The Government promised in their manifesto that money following children into schools would be protected and that funding would rise in line with pupil numbers. Yet the National Audit Office has confirmed that schools are required to make £3 billion of efficiency savings.

Worse still, the Department for Education does not have a clue where it expects schools to make those savings. Perhaps the Minister can use the debate as an opportunity to let us, and schools, know how the savings can be made; or will he confirm what we all know—that the only way to make the savings is by schools continuing to increase pupil-to-teacher ratios, reduce basic services such as cleaning and site and premises work, stop investment in books and IT equipment, cease providing apprenticeships to people such as Liam, who was mentioned by my hon. Friend the Member for Washington and Sunderland West, design curriculum offers that fulfil only basic requirements, not replace staff who leave, outsource support services, and lose more support staff, teaching assistants, lunchtime supervisors, caretakers and—the death knell—teachers?

The National Union of Teachers general secretary, Kevin Courtenay, said that headteachers are cutting back on all spending areas to try to keep teachers in front of classes. That is where the Government have taken us; it is the depth of the crisis in schools. Schools are struggling just to put teachers in classrooms. He has said that the fears about schools operating on a four-day week are real. Four-day weeks—that is the future of children’s education under another Tory Government.

Children with special educational needs and disabilities are another group that the Government promised to prioritise, but it is the hardest hit, as specialist support is no longer available.

The pupil premium, which was designed to help children from poorer backgrounds, is being used by almost a third of schools to cover their budget shortages, with schools with the highest numbers of disadvantaged pupils more likely to report cuts to staff as a result of those shortages. Is it not true that the Government’s priorities do not lie with disadvantaged children or children with special educational needs?