School Funding

Clive Betts Excerpts

Wednesday 24th October 2018 Westminster Hall

[Mrs Main]

I do not have experience of that, but I recognise the picture the hon. Gentleman paints. It is vital that we address those concerns about funding.

The UK tax burden is at a 50-year high, so the Minister will be pleased to hear that I do not propose additional tax rises. We are at the limit of how much tax we can reasonably ask ordinary people to pay. Working families have felt the squeeze since 2010 as the Government have tried to tackle the enormous financial burden we found ourselves with. It is good that we have made progress. Far be it from me to tell the Chancellor how to do his job, but the Budget is looming, so I am going to put my thoughts on the record. I am certain that the Government can find the money if we prioritise our spending appropriately.

We had a manifesto commitment—the hon. Member for Westmorland and Lonsdale will probably profoundly disagree with me about this—to scrap universal free school meals for reception, year 1 and year 2 pupils, but it was dropped. That was misguided. I and some of the teachers who were at the meeting I mentioned think we should have investigated that further. Thankfully, in St Albans only around 6% of pupils are entitled to free school meals. In Hertfordshire overall that figure is about 8%. Perversely, that means we subsidise between 90% and 94% of parents in Hertfordshire who could pay for their own children to be fed. Just as I do not want budgets that should be used for pupils at the poorest margin to be taken away, I do not want wealthier parents to be cross-subsidised when they do not need it. Such largesse is costing my local authority £6 million, and it is money that should be spent on teaching. I would rather St Albans pupils received a universal quality of teaching than that those with more affluent parents should receive a gratuitous free lunch they are not entitled to.

I am a great supporter of the good aid projects that have been carried out around the world, but, again, it seems crazy to me that we ring-fence huge sums of money for foreign aid when vital public services such as the education budget lack funding. The aid budget should be under the same scrutiny and pressures as other Departments’ budgets. We are effectively shovelling money out the door to meet an arbitrary target set in law. That misplaced policy should be brought before the House so we can decide whether to look at that ring-fencing.

I hope that the Minister will listen carefully to the issues raised in the debate, including some of the experiences recounted by teachers and parents. There is a funding problem in schools and it does not seem right that more and more schools have to go cap in hand to parents for even the most basic of provisions, such as textbooks. Alan Gray started the public meeting I attended by asking “What price education?” He did not ask the price for pruning trees, painting the classrooms or replacing some broken paving slabs, but the price of education. Of course it is entirely reasonable for parents to be asked for contributions for bonus offerings such as trips, but when they are asked to contribute for vital reading materials, the central funding formula needs to be addressed.

Teachers in my constituency do not tell me that the NFF is bad policy; they want it to be funded correctly. The aim of ending the so-called postcode lottery for school funding under the NFF is sensible, but the lack of overall funding means that it is difficult to deliver. I look forward to hearing the Minister’s response, and I hope to see some movement on the issue in the Budget. We must answer the call: what price do we put on our children’s education?

[Mr Clive Betts (in the Chair)]

Six hon. Members want to speak in the debate, and we have to start the winding-up speeches at 20 minutes to 11. That gives us about 50 minutes, so Members have about eight minutes each, maximum.

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[Gillian Keegan (Chichester) (Con)]

I congratulate my hon. Friend the Member for St Albans (Mrs Main) on securing this debate, which is vital for most children in our country.

Every child deserves an equal opportunity to get on in life, with the same access to high-quality education as their peers, wherever they are in the country. I am proud that Chichester exceeds the national average for attainment at key stage 4 and A-level, as a result of the hard work and dedication of teachers from early years through to secondary schooling.

Spending on our children’s education has never been higher and the new national funding formula is a welcome step toward rebalancing some of the disparities in the old system, where there were over 100 different models across the country. As my hon. Friend the Member for East Worthing and Shoreham (Tim Loughton) said, however, West Sussex historically suffers from being one of the lowest funded authorities. It is currently the sixth lowest recipient of secondary school funding in the country, and eighth lowest for primary school funding.

I am pleased that under the new funding formula, Chichester schools are to receive an additional £1.2 million in baseline funding for 2018-19—a welcome step toward ensuring that our schools are given the resources they need to help and support every pupil. However, speaking to teachers across my constituency, there is concern that the positive impact of the increased funding will not be felt in the classroom, simply because operating costs in the form of salaries, pensions and apprenticeship levies, to name but a few elements, have increased. All the additional moneys are being used to service those additional costs.

There is much innovation across the sector to reduce expenditure and share costs. One example is executive headships. A headteacher’s salary is one of the largest costs faced by schools, particularly small rural primaries, such as those in my constituency. Last term, two rural schools came under the leadership of one head, ultimately saving money. Those schools are just a 10-minute drive from each other, so the arrangement works. The headteacher now divides his time between the sites and is doing a brilliant job of improving Rogate Primary School, just as he did with Rake Primary School. The money saved will go towards additional resources to aid the children’s educational experiences. Of course, such a move comes with strains, particularly because of the close relationships that teachers and staff form with parents and pupils in small villages such as Rake and Rogate. It takes time to build those, and I pay tribute to the commitment shown by headteacher David Bertwistle in that venture.

Rural schools play a vital role in their communities —perhaps even more so than in larger, urban centres. They are the centre of a community and are often the frontline in offering social and mental health support to pupils and their families. The reduction of base funding from £150,000 to £110,000 leaves a £40,000 hole in the budgets of small rural primary schools that cannot easily be filled with additional pupils. Additional pupils will come within a natural catchment area, and schools are not in control of those numbers. It is important that the Government funding formula understands the additional pressures facing rural schools and ensures that the level of funding for which they are eligible through the sparsity grant reflects the uniqueness of their place in our communities.

The number of pupils with special educational needs in West Sussex is well above the national average, with 13.5% of all pupils recorded as needing SEN support, compared with the national average of 11.6%. The number of referrals for education, health and care plans has risen by 43% over the past three years. Although those plans are a much-needed device to ensure that children with special educational needs are given personalised support, we must ensure that the Government are equally adaptable when it comes to tailoring the new higher needs formula to authorities with very high numbers of pupils with special needs.

Let me give an example. I have a constituent who is fighting for her daughter to attend a specialist school equipped to provide the 24-hour care that she needs that is halfway across the country, as she fears that the SEN provision in West Sussex is just not adequate. We need investment in the right provision in West Sussex. No parent should ever feel that their child’s education is worth less than that of others. It is vital that every child has the opportunity to enjoy a high-quality education. It is a one-off shot in most cases and has a massive impact on life chances.

I do understand that the formula is designed to provide more resources for areas with higher levels of deprivation and lower prior attainment. I recently visited schools in Knowsley, where I went to school, and I know that the extra funds are essential to those schools, where 70% of the children are on free school meals and almost half the children are looked after by foster parents or grandparents. Those schools face additional challenges in terms of attracting and retaining the best teachers, but there are additional needs in West Sussex, too. The challenges of rural primary schools and pupil numbers and the unanticipated rise in special educational needs are putting severe pressure on some school budgets. Of course more is being spent on education than ever, but we have increased costs, higher numbers of pupils and more children getting the support they need for their special educational needs.

School standards have been transformed. When I go into my local schools, I am constantly struck by how much better the provision is now than when I went to school, but we should expect the best. We are living in an increasingly competitive world—one that is global and without borders. Providing our children with the best education that we can is vital to their future.

[Mr Clive Betts (in the Chair)]

I thank all hon. Members for their co-operation so far. There is eight minutes each for the two remaining Back-Bench speakers; the winding-up speeches will start at 20 minutes to 11.

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[Rachael Maskell]

My hon. Friend raises an important point. I meet with colleges in my constituency, which are absolutely on their knees with regard to funding. We know that this is an issue right across the education system. It has a real impact on outcomes, which is what I want to focus on.

While our schools have excellent outcomes, in the areas in my constituency where the cuts have been the greatest in real terms, the attainment is the worst. We can easily see the correlation between money and outcomes. If we make those cuts, we must expect those children to be short-changed, perhaps for the rest of their lives.

We are also seeing a change in class sizes. York has the second biggest increase in the teacher-classroom ratio in its primary schools and the fourth biggest fall in staffing numbers in primary schools, with 20 teachers leaving between 2014 and 2017—that has an impact. We have seen the biggest increase in class sizes in secondary schools across the country—the relevant figure is 2.9, with the next biggest being 1.8. In secondary schools, York has the joint biggest teacher-classroom ratio. Pupil numbers are increasing. I know at least one school in my constituency that is really struggling and does not know how it will accommodate its children next year.

We have also experienced a real turnover of teaching staff, as hon. Members have mentioned. Experienced teachers are leaving and being replaced. In one school around 60 teachers have moved and newly qualified teachers have been brought in. That has an impact on the experience of staff and therefore on the teaching of students. We are also seeing the impact on vital support staff. When the pay increase was announced, schools had to find the resource to pay their support staff, which resulted in many having to leave. We must focus on them as well.

The excellent head teacher of Millthorpe School in my constituency, Trevor Burton, had to write to parents to inform them of the reality and what they can expect. The school is unfunded by £169,000, for four years of 1% pay increases, £56,000 for increased employer pension contributions, £78,000 for national insurance, and £21,000 for the apprenticeship levy. The school’s expenditure has increased by £324,000. The school had an 8% real-terms cut, but it received increased funding of only 3.6%, so it has had a 4.4% cut. Of course, that has had a real impact on children through increasing class sizes, cutting events, doing without teacher posts, stopping all year 10 and 11 vocational courses—as we just heard, that has a real impact on children—and not replacing staff when they leave. On top of that, the school, like many others, has had maintenance issues. It has had to spend £900,000 on double glazing in classrooms, to keep them warm and dry, and to replace school roofs in the dining hall, sports hall, gym, language lab and one of the classrooms.

Tang Hall Primary School also faces the pressure of maintaining its building—a matter I have raised since being elected. The school, which has had one of the largest cuts in the constituency, was top of the Building Schools for the Future list to have a new school built. However, that programme was cut, and the school is still struggling and desperately needs a new building. The school is so cold, because it is such an old building, that they have had to change the school uniform so that the children can wear hoodies to school. It is a disgrace that in 2018, after eight years, they are still waiting for their new school. Children cannot study when they are cold. This has an impact on children throughout their time at the school. The head teacher has pleaded for a new school.

Westfield Primary Community School, in perhaps the most deprived area of my constituency, has had the largest cut in my constituency. How can that be the case when children and families desperately need the support? The school does extraordinary work in the face of such cuts. That needs to be looked at, because we are failing some of the most needy children in our communities.

My final point is about budgets and where we need to go.

[Mr Clive Betts (in the Chair)]

Can you wind up?

[Rachael Maskell]

Yes. I have talked about buildings and attainment, and I concur with all hon. Members about mental health support, which we desperately need. Ultimately, however, schools just need to have funds.

[Mr Clive Betts (in the Chair)]

There are 10 minutes remaining for each of the Front-Bench speakers. If they could give up 20 or 25 seconds of that to allow Anne Main to respond, that would be appreciated.

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[The Minister for School Standards (Nick Gibb)]

It is a pleasure to serve under your chairmanship, Mr Betts. We all admired your agility in mental maths at the beginning of the debate.

[Mr Clive Betts (in the Chair)]

A good education.

[Nick Gibb]

I am sure that that is the case.

I congratulate my hon. Friend the Member for St Albans (Mrs Main) on securing this important debate. It is always interesting to follow a Labour spokesman talking about school funding. It was the Labour Government who left the coalition Government with a record public sector deficit of £150 billion, which is equal to 10% of GDP—on the brink of collapse—an economy in recession and high unemployment. We have reduced that deficit to under 3%, we have the lowest level of unemployment since the 1970s and we have halved youth unemployment to record low levels. The hon. Member for Wythenshawe and Sale East (Mike Kane) should be more careful when he talks about public finances.

This debate is timely, given the looming Budget next week. I am sure that everybody has listened carefully to my hon. Friend the Member for St Albans and other hon. Members who have spoken. We are determined to create an education system that offers opportunity to everyone, no matter what their circumstances or where they live. That is why we have delivered on our promise to reform the unfair, opaque and outdated school funding system by introducing the national funding formula for schools, which previous Governments had shied away from doing, including the previous Labour Government.

The introduction of the national funding formula means that this year, for the first time, funding was distributed to local authorities based on the individual needs and characteristics of every school in the country. This historic reform is the biggest improvement to school funding for a decade and it is directing resources to where they are needed most.

This Government want to ensure that all children receive a world-class education, and we have made significant progress. More schools than ever before are rated good or outstanding; 86% of schools are now rated good or outstanding, compared with—

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[Mike Kane]

rose—

[Mr Clive Betts (in the Chair)]

Order. The Minister is not giving way.

[Nick Gibb]

We have made a significant investment in our schools by providing an additional £1.3 billion across this year and next, which is over and above the funding confirmed in the 2015 spending review. The additional money means that core funding for schools and high needs will rise from almost £41 billion in 2017-18 to £42.4 billion this year, and to £43.5 billion in 2019-20. As the independent Institute for Fiscal Studies has confirmed, funding for five to 16-year-olds will be maintained in real terms per pupil across this year and next year. The IFS has also pointed out that by 2020 real-terms per pupil funding will be some 70% higher than it was in 1990 and 50% higher than it was in 2000.

Of course we recognise that we are asking schools to do more and that schools are facing cost pressures. That is why the Department is providing extensive support to schools to reduce cost pressures. We have recently launched “Supporting excellent school resource management”, a document that provides schools with practical advice on savings that can be made on the £10 billion of non-staffing expenditure in schools. It summarises the support the Department is offering to help schools to get the best value from their resources, including things such as buying equipment more cheaply and the new teacher supply agency framework, which ensures that fees paid by schools to agencies are transparent and that people are aware of what they are signing up to.

Another issue that was raised was, of course, high needs. We are firmly committed to supporting children with special educational needs and disabilities to reach their full potential. That is why we have reformed the funding for these children by introducing a high-needs national funding formula. We have invested an extra £1 billion in funding for children with high needs since 2013 and next year we will provide local authorities in England with over £6 billion in high needs funding, which is up from just under £5 billion in 2013. We recognise the challenges that local authorities face with their high needs budgets, which is why we have provided them with support to deliver the best value from their high needs funding. We are also monitoring our national funding formula for high needs and keeping the overall level of funding under review.

The issue of teachers’ pay and pensions was also raised. We have responded to the recommendation made by the school teachers’ review body to confirm the 2018 pay award for teachers, which will see a substantial 3.5% uplift for the main pay range, a 2% uplift for the upper pay range and a 1.5% uplift for the leadership pay range. That will ensure that schools are supported to continue to attract high-quality staff members and retain them.