Education Funding

Damian Hinds Excerpts

Tuesday 13th November 2018 Commons Chamber

[The Secretary of State for Education (Damian Hinds)]

Great schools are all about great teachers, and we have 10,000 more of them in our schools than in 2010. They and their colleagues have achieved quite remarkable things, with our highest ever score in international tests in primary reading, a reformed curriculum and qualifications, more young people doing the subjects that keep their options most open, more young people going on to further study, and more—many more—young people in schools rated good or outstanding.

[Mike Kane (Wythenshawe and Sale East) (Lab)]

How many?

[Damian Hinds]

1.9 million, Mike.

But it is not only about overall attainment, it is also about narrowing the gap and evening the odds between the rich and the poor. Here we have seen substantial improvements since the Labour party left office, with the attainment gap having narrowed by 10% or more at both primary and secondary age and disadvantaged 18-year-olds going on to university at a record rate. This decade, we will have created 1 million new school places—the biggest expansion for at least two generations.

[Marsha De Cordova (Battersea) (Lab)]

Will the Secretary of State give way?

[Damian Hinds]

That contrasts with the reduction of 100,000 places that Labour oversaw between 2004 and 2010—answer that.

[Marsha De Cordova]

Well, I am making an intervention. The Secretary of State talks about a record number of people going on to university, but because of the £200 tax that his Government introduced, fewer disabled people go to university. Will he address that?

[Damian Hinds]

We want all people, whatever their background and whatever extra challenges they face, to be able to benefit from all that education, including higher education, has to offer. That is one reason why the Universities Minister, my hon. Friend the Member for East Surrey (Mr Gyimah), works closely with universities to ensure that, and why more than £800 million a year is spent on access and participation arrangements to ensure that access to universities is as wide as possible.

I was speaking about the expansion of the school estate. If hon. Members will forgive me, I will repeat myself. By the end of the decade, we will have created 1 million new places—the biggest expansion in school capacity for at least two generations, in contrast with the reductions I am afraid we saw under the Labour party. The latest data show that there is now less school overcrowding than when we came into government in 2010. The remarkable success of schools is of course thanks to the hard work and dedication of teachers and school leaders—and, let me add, of everyone else who plays a key role, such as school staff, parent teacher associations, governors and trustees.

I recognise that the Government and society ask more of schools than ever before, so I want to take the opportunity to set out the record investment we are making in schools. In the Budget, as well as hundreds of millions of pounds for reforms to apprenticeships, T-levels, the national retraining scheme and children’s social care, there was £400 million in additional capital funding for schools this year. That is additional in-year funding for schools to spend on capital projects to support their own priorities. An average-sized primary school will receive £10,000, and an average-sized secondary school will receive £50,000.

[Huw Merriman]

It is important that Government Members talk up our record. A fifth secondary school in my constituency has just been rated good—they are now all good or outstanding. That school had a vast injection of money into its capital budget to help make it a good school. We should talk up our record rather than listening to the Opposition.

[Damian Hinds]

My hon. Friend is absolutely correct. I commend and pay tribute to the teachers and leaders in the schools in his constituency, and to him for the work he does with them.

[Gareth Snell (Stoke-on-Trent Central) (Lab/Co-op)]

The Secretary of State briefly mentioned T-levels. T-levels will come into Stoke-on-Trent Sixth Form College in 2020, when the money follows, but its principal, Mark Kent, tells me that its funding pressures will start next year. What help can he expect from the Government next year? Given that the Chancellor did not mention further education in his Budget speech, what will the Secretary of State do about that?

[Damian Hinds]

As the hon. Gentleman no doubt covered in his discussions with the principal of that college, there is also funding for preparation for T-levels and industrial placements, and for staff preparation. There was also confirmation in the Budget of our party conference announcement of extra capital money for facilities and equipment in preparation for T-levels. I will return to technical and vocational education a little later.

[Wera Hobhouse]

Newbridge Primary School in Bath is struggling with the maintenance of its buildings and its big grounds. I met one of the Secretary of State’s colleagues, who said that the £400 million would not be available for the maintenance of buildings or grounds. Will the Secretary of State set out precisely what the £400 million is for and how schools can access it?

[Damian Hinds]

There are published criteria governing how this type of capital can be spent, and I will be happy to provide the hon. Lady with a complete copy. We will be issuing a calculator in December so that schools can work out how much their allocations will be. The allocations themselves will follow in January, and the rules that normally apply to capital of this sort will apply to them.

The £400 million is on top of the £1.4 billion of condition allocations that have already been provided this year for the maintenance of school buildings. The Government will also spend £1.4 billion on condition allocations in 2019-20, and schools can now apply for the first tranche.

[Jim McMahon (Oldham West and Royton) (Lab/Co-op)]

Will the Secretary of State give way?

[Damian Hinds]

I think I must ask for the hon. Gentleman’s forbearance.

We will have provided a total of £7 billion for new places between 2015 and 2021. We also continue to introduce innovative free schools to give parents more choice.

[Michael Tomlinson]

The hon. Member for Ashton-under-Lyne (Angela Rayner) almost accepted that the Government were spending a record amount on our primary and secondary schools. Can my right hon. Friend tell us how that compares with spending in other G7 nations?

[Damian Hinds]

My hon. Friend asks an important question. There are many ways of comparing spending on education in different countries, and in most cases the UK is shown to be a relatively high spender. If my hon. Friend will forgive me, I will come to some of those figures a little later.

[Jim McMahon]

Will the Secretary of State give way?

[Damian Hinds]

Yes, while I am here—go on.

[Jim McMahon]

It would be interesting to know what the Government will do to ensure that they get value for money. In my own town they have spent £80 million on a failed university technical college and a failed free school, and since 2012 there have been 16 referrals to the police for financial fraud in academies and free schools.

[Damian Hinds]

The free schools and academies programme has overwhelmingly been a success, but when there are issues in our schools, whether in the maintained or the academy system, we must deal with them quickly. The difference with the academy system is that there is that much more transparency, so people know what is going on. However, as the hon. Gentleman knows, we continue to develop the system and ensure that it works as well as it can.

[Rebecca Pow (Taunton Deane) (Con)]

The Secretary of State has made a very good point. Facilities are obviously very important—I recently visited a fabulous new school, West Monkton Primary School, which is already chock-a-block—but is not the quality of the education the most important element? We are getting a lot of barrage from Opposition Members, but under Labour, a third of 11-year-olds left primary school unable to reach the right standards of reading and writing. This Government have completely turned the situation around, and that is thanks to the quality of our teachers.

[Damian Hinds]

My hon. Friend is, of course, entirely correct. The quality of our education is all about the person standing at the front of the room. It is all about the 450,000 teachers, and I join my hon. Friend in her commendation of them.

Free schools are among some of the highest-performing state-funded schools, and 442 are now open across the country. That includes 41 alternative provision and 34 special free schools, and a further 69 are in the pipeline. Again, parents are being given more choice in selecting the right provision for their children.

[Mary Creagh (Wakefield) (Lab)]

Will the Secretary of State give way?

[Damian Hinds]

I think I should make some progress. I have given way a number of times.

As I have said before, spending on education is in a different category from the spending of other Departments. It is about investment in our skills base, about bringing on the next generation, about social mobility, and about fulfilling the potential of all children. So it is right that this Government have prioritised education spending, and that our schools are receiving record investment. The total core schools and high needs budget, which was almost £41 billion last year, will reach a record £43.5 billion by 2020. That is thanks to an additional £1.3 billion put into core schools funding in July 2017 over and above the plans set out at the previous spending review.

[Mr Marcus Jones (Nuneaton) (Con)]

One of the biggest education funding challenges for areas like Warwickshire is that the last Labour Government left office with a massive gap between funding for metropolitan areas and funding for county areas. What is my right hon. Friend doing to address that, and what will that mean for areas such as Warwickshire?

[Damian Hinds]

I am grateful to my hon. Friend for that question, and I will come on to questions about the fairer national funding formula that we have put in place.

[Mary Creagh]

One of the free schools the Secretary of State mentioned is CAPA College—the Creative and Performing Arts College—which is being built in Wakefield after his Department’s disastrous attempts to move it to Leeds, purchasing a site which it later transpired was on the route of HS2. I am genuinely grateful, but that did overshadow last year’s general election to quite some degree. When I looked at the plans for the new free school, I was dismayed to learn that new schools are not being built to BREEAM—Building Research Establishment environmental assessment method—standards, which are the highest environmental standards. Will the right hon. Gentleman look at why that is, and make sure that all new schools and refurbishment projects meet environmental standards, since kids are going to be taught in them for the next 100 years?

[Damian Hinds]

The Education and Skills Funding Agency follows high standards, but I will be happy to follow up with the hon. Lady separately on some of the specific issues she mentions.

As we were discussing, spending on schools is high by historical standards. According to the Institute for Fiscal Studies, real-terms per-pupil funding for five to 16-year-olds in 2020 will be more than 50% higher than it was in 2000 and more than 70% higher than in 1990.

[Several hon. Members rose—]

[Damian Hinds]

I ask colleagues for forbearance: I have given way many times and do not want to try your patience too much, Madam Deputy Speaker, on the length of my speech. [Interruption.] Well, I believe we are having a debate.

Funding for the average primary school class of 27 this year is £132,000, which is £8,000 more in real terms than a decade ago. The same children will be funded at an average of £171,000 when they move to secondary school, a real-terms rise of £10,000 compared with a decade ago.

[Mr Kevan Jones (North Durham) (Lab)]

The Secretary of State will be aware that there are pressures on all authorities in providing for children with special needs and disabilities. The cabinet member for education in Durham, Olwyn Gunn, has written to the Secretary of State highlighting the plight of Durham, which had a £4.7 million overspend last year and is projected to spend even more this year. What is the Secretary of State doing to help authorities tackle the demand that many are now facing in providing for special educational needs?

[Damian Hinds]

I do recognise that issue; there are additional demands. We are putting in place some extra capital and there are special free schools, but I recognise that this is a wider issue, and I will say a little more about it later.

UK spending is also high by international standards. According to the latest OECD data—from the 2018 “Education at a Glance” report, which refers to data from 2015, the last year for which comparable data for the various countries are available—on state spending on primary and secondary education, in terms of proportion of GDP the UK was the highest spender in the G7. Our spending was higher than that of the United States, France, Germany, Italy, Canada and Japan. We were also higher on that measure than countries outside the G7, including Australia, the Netherlands, Spain and Ireland. On a per pupil level, the UK ranked lower than the US but above or in line with all the other G7 nations.

As well as ensuring record levels of funding for our schools overall, this Government have taken on the historic challenge of introducing a national funding formula to distribute the money more fairly—something that was ducked by previous Governments. For example, Coventry previously received £510 more per pupil than Plymouth, despite having the same proportion of pupils eligible for free school meals. Nottingham similarly attracted £555 more than Halton—

[Rushanara Ali (Bethnal Green and Bow) (Lab)]

Will the Secretary of State give way?

[Damian Hinds]

No, I am sorry.

This year, we have given every local authority more money in cash terms for every pupil in every school, while allocating the biggest increases to the schools that have been most underfunded. It is also worth highlighting some of the funding that schools receive on top of what is distributed through the new funding formula. That includes £2.4 billion this year in pupil premium funding and £600 million per year for universal infant free school meals. We have also estimated that, through the roll-out of universal credit, around 50,000 more children will benefit from a free school meal by 2022, compared with under the previous benefits system, and that even more will benefit in the meantime through transitional protections. I regret to have to say that that stands in stark contrast to the scaremongering and wholly misleading accusations made by the Opposition about eligibility.

Through the primary PE and sport premium, we have invested more than £1 billion of ring-fenced funding in primary schools to improve PE and sport since 2013. The soft drinks industry levy is also enabling us to put up to £26 million into breakfast clubs in the most deprived areas. To fund the biggest increase to teachers’ pay since 2011, our teachers pay grant of £508 million over two years will cover the difference between this award and the cost of the 1% award that schools would previously have been planning for. We are also proposing to fund the additional pressure that the increase in pension contributions will place on budgets next September, for the schools as well as the further education and sixth-form colleges that are affected.

[Several hon. Members rose—]

[Damian Hinds]

I am spoiled for choice. I will give way to the hon. Member for Bethnal Green and Bow (Rushanara Ali).

[Rushanara Ali]

Earlier, the Secretary of State mentioned per pupil funding. In my constituency, per pupil funding will be cut by an average of £448 per pupil. Can he tell me why he is doing that, in an area with the highest child poverty rate in the country?

[Damian Hinds]

Through the funding formula, additional moneys in cash terms are allocated to each local authority for each child. I believe it is right that the local authority is then able to make adjustments—for example, to cope with the pressures on the high-needs budget for children with special educational needs and disabilities. The local authority has the ability to do that, and I think that that is right.

[Paul Farrelly]

The Secretary of State has just mentioned help for colleges, as well as schools, with pension pressures. Will he extend that help to provide assistance with pay rises, so that there is no discrimination between colleges and schools? Will he also confirm that all colleges, not just sixth-form colleges and schools, will be eligible for the pot provided for the “little extras”, including Newcastle and Stafford College?

[Damian Hinds]

The hon. Gentleman will be aware that there are differences in how colleges are constituted. In particular, independent colleges are not subject to the pay and conditions arrangements of schoolteachers, but they are typically in the teachers’ pension scheme—hence that difference.

[Sir Geoffrey Clifton-Brown (The Cotswolds) (Con)]

I acknowledge the record amount of money that is going into schools, but we came up with that funding in order to have a national funding formula. Does my right hon. Friend not agree that in low-funding authorities such as Gloucestershire, a minimum amount of national funding should mean exactly that? Gloucestershire is about to top-slice its budget by 0.5%, so will he look at this and see what can be done?

[Damian Hinds]

I recognise what my hon. Friend says, and he is right. I thank him for acknowledging the additional money that has gone in, the fairer national funding formula and the additional £1.3 billion in resourcing. It is also true, as I was saying in answer to the hon. Member for Bethnal Green and Bow (Rushanara Ali), that local authorities can move money from schools into their high-needs block, which is sometimes the right thing to do. Of course, we also want to ensure that the facilities are always there to help local authorities manage their high-needs budget as effectively as they can.

We have increased opportunities in technical and professional education by doubling the level of cash for apprenticeships through the apprenticeship levy to £2.5 billion over the course of the decade. By 2020, funding available to support adult FE participation is planned to be higher than at any time in England’s history. At the other end of the age range, high-quality childcare supports children’s development and prepares them for school. That is why this Government are investing more than any previous Government in childcare and early years education—around £6 billion by 2020.

This Government have extended the scope and extent of support in multiple ways. As well as higher reimbursement under universal credit—higher than was ever available under tax credits—and tax-free childcare, we have increased the childcare available for three-year-olds and four-year-olds from 12.5 hours to 15 hours, and that funded early education now has a 95% take-up rate among parents of four-year-olds. There are also an additional 15 hours—so 30 hours in total—for working parents. All of that represents greater entitlement than under the Labour Government.

Then, of course, there was the landmark extension of the 15-hour entitlement to—[Interruption.] Let me start that sentence again. Then, of course, there was the landmark extension of the 15-hour entitlement to disadvantaged two-year-olds in 2013, which has since benefited almost 750,000 children at an investment of £2 billion since the policy began—something that was never made available to disadvantaged families by any Labour Government. Looking ahead, funding for the future comes up periodically at spending reviews. We have a spending review next year, and we are already looking at the approach for this period. Of course, we have a review of post-18 education and funding in progress, and £84 million was confirmed in the Budget for children’s social care to help spread best practice.

Turning to school-age education, I am not the first Education Secretary to stand at the Dispatch Box and say that we need a better balance between technical and academic education. While we plan to invest nearly £7 billion during the current academic year to ensure a place in education and training or an apprenticeship for every 16 to 19-year-old who wants one, I am conscious that funding for 16 to 19-year-olds has not been protected in the same way since 2010 as funding for five to 16-year- olds, but we are ensuring a balance through public policy by developing high-quality routes for technical and vocational education through T-levels and apprenticeships.

On the high-needs budget, funding for local authorities has benefited from the same protections in the funding formula that we have been able to provide for mainstream schools, but there have been increasing pressures. There is a balance to be struck between mainstream and special schooling to ensure that most pupils can be supported in mainstream settings when that works best for them. Finally, we need to continue to ensure, as always, that there is the right level of resource to make sure that the quality of education is at the required level for people wherever they live—in a town, the countryside, the north, or the south.

Alongside all that we need to focus on ways to make the system work better for all schools. Ensuring that we invest properly in schools and distribute funding fairly is clearly fundamental, but how that funding is used in practice is just as important. The education system is diverse, operating between various local authorities, dioceses, multi-academy trusts and individual schools. While that is a strength, it does not always work in the system’s favour when it comes to leveraging the benefit of volume in purchasing, for example. That is why I am working hard to ensure that we come together to help schools get the best value, that expertise is available across the system and that resources that do not need to be purchased or created on an individual basis—from lesson plans to energy contracts—are shared. We will also work to bear down on the £60 million to £75 million that schools spend on recruitment with the new teacher vacancy service and the agency supply teacher deal. By creating financial benchmarking, we are helping schools to share good practice and identify ways to use resources more effectively. All of this allows schools to direct the maximum resource into what they do best—teaching.

[Jim McMahon]

Will the Secretary of State give way?

[Damian Hinds]

I am sorry, but I am short of time.

We all want to see standards rise across our schools and across the wider education system and, thanks to this Government’s reforms and the hard work of teachers, this is happening. I say we all want to see standards rise, but every step of the way the Labour party opposed the introduction of phonics checks. In Wales, where Labour runs the education system, PISA rankings for maths, science and reading are lower than those in England.

The Labour party wants to scrap academies and free schools, putting ideology before education and trusting politicians over teachers. In our exchange yesterday, the hon. Member for Ashton-under-Lyne (Angela Rayner) said that Labour’s policy is

“no threat to any new or existing school”—[Official Report, 12 November 2018; Vol. 649, c. 16.]

but she did not, and cannot, reconcile that with her explicit stated policy to stop the free schools programme,

“bring all publicly funded schools back into the mainstream public sector”

and impose the Orwellian-sounding “common rulebook” across the school system.

I have referred to a number of figures in the thousands, millions or billions, but what is clear is that each of those figures would be under threat from the Labour party, because we need a strong economy to invest in our public services. It is a balanced approach to the economy that will mean we can continue to provide our schools and our education system with the resources they need. Labour’s approach of more spending, more borrowing and more debt would take us back to square one and hit ordinary working people, just like last time.

This Government are unapologetic in our ambition for every child and young person in this country. Again, that ambition is backed by more revenue funding going into our schools than ever before—an investment that we are able to provide thanks to our balanced approach to the economy. The benefits of our reforms, backed by that investment, can be seen across the country, thanks to the hard work and dedication of our teachers and education professionals. It is a track record that gives all of us much to be proud of, but the job is not finished. We will always want to do more, and we will continue to do more so that every child, in every classroom and in every part of the country, has the chance to thrive, with none left behind.