Free Schools

Ian Mearns Excerpts

Tuesday 19th November 2013 Westminster Hall

[Ian Mearns (Gateshead) (Lab)]

Good morning, Mr Gray. It is a pleasure to serve under your chairmanship.

What a shame that the Minister for Schools cannot be with us. I am glad that the Under-Secretary of State for Education, the hon. Member for Crewe and Nantwich (Mr Timpson) is here—it is good to see him—but it is a shame that the Minister for Schools could not attend, because this is clearly his area of responsibility.

Why would a relatively new Member of Parliament from a place like Gateshead be interested in the oversight of free schools? We do not have a free school in Gateshead. I have been interested in the concept of free schools since I read an article in The Sunday Times, on 4 October 2009—before I was elected—in which the right hon. Member for Surrey Heath (Michael Gove), who was then shadow Secretary of State, said that Tory

“policies are aimed at the Gateshead mum…a no-nonsense working class woman passionate about her kids. Passionate enough to set up a massive comprehensive with 2,500 feral children on a depressed sink estate?”

Having represented Gateshead since 2010, and having been a member of the council there since 1983—with 30 years of elected public service under my belt in Gateshead—I was interested in those comments and wondered whether that was the Gateshead that Michael Gove really knew or was really thinking about—but back to the main item.

The oversight of free schools, which are a new type of school under this Government, will not have escaped the attention of hon. and right hon. Members in the past few weeks and months. Indeed, free schools were described by Channel 4 only last night as the Government’s “flagship” education policy. Although the quality of education that our young people receive is the most important factor in any discussion about education policy, we cannot disregard the cost implications for the public purse, particularly in the case of an ideologically driven policy.

Before mentioning oversight, it is important to give some context to this debate. In that regard, we should consider resources, including the funding allocations up to the next financial year. The Government have allocated a staggering £1.7 billion of capital funding to free schools, which equates to a third of the total budget for creating new school places in England as a whole over the spending review period. We should bear in mind the fact that, at the beginning of the autumn term, there were 174 free schools, compared with about 24,000 non-free schools. The words “disproportionate” and “partial” do not seem adequate to describe this investment in so few schools. However, I am more concerned that all this money is being ploughed into free schools, which are an as yet unproven, ideologically driven model of education, with serious implications for our young people.

The inspection and oversight of free schools, or rather the lack of it, has exposed the worrying shortfalls of this Government’s free schools policy.

[David Simpson (Upper Bann) (DUP)]

I congratulate the hon. Gentleman on obtaining this debate. Just to clarify, does he believe that local authorities should have oversight or should a separate body be set up to oversee the free schools?

[Ian Mearns]

That question needs to be decided. At the moment, local authorities do not have oversight and it is clear—I will come on to this—that the other organisations given the duty of oversight do not yet have the resources to do it effectively.

It is particularly worrying that the Government, in the shape of the Education Funding Agency and Ofsted, seem to find out about failures of governance only when whistleblowers inside the schools feel it necessary to act. Free schools have a great deal of freedom in how to constitute and run their own governing bodies, and there is little evidence that either the EFA or Ofsted is able to identify and act on emerging problems.

In spite of Her Majesty’s chief inspector’s criticism of local authorities for not picking up problems in academies, one basic tenet of the free school movement is that they are totally detached from the local authority. Schools such as the Al-Madinah free school in Derby, Kings science school in Bradford, and Barnfield Federation in Luton—we are not entirely sure how many others there might be, and it seems that the Department for Education and Ofsted are not sure either—show that the wheels are well and truly coming off the free-school wagon and that free schools are vulnerable to a catalogue of problems.

Chief among those problems is the lack of good governance. That failure of governance is compounded by weaknesses in inspection and oversight of free schools. The three schools that I mentioned are examples of that. I should like to make it clear that, when we talk about schools, we are talking about children who, as the Secretary of State reminds us, get only one chance at a good education.

[Dr Matthew Offord (Hendon) (Con)]

I am pleased that the hon. Gentleman has secured this debate. In the past few weeks the tone used in respect of free schools has changed. I welcome the new approach by the Opposition Front Bench. However, I plead with the hon. Gentleman not to accept that all free schools have poor governance and poor arrangements in place. For example, in my constituency, Etz Chaim school has high standards, good governance and good people running it. I ask the hon. Gentleman not to characterise all schools and categorise them as he has done.

[Ian Mearns]

I am grateful to the hon. Gentleman for making that point. He has given a good example— an anecdote—of a school in his vicinity, but there are 174 such schools and as yet the mechanisms do not exist to ensure that every free school is of the high quality that he mentioned.

[Nia Griffith (Llanelli) (Lab)]

Does my hon. Friend agree that qualified staff, proper standards for school buildings and school meals, and adherence to a national curriculum are ways of guaranteeing that every child in a free school can have a good education? Without those four starter points, there is a danger that we cannot guarantee the standard of education in free schools. That is the problem. The hon. Member for Hendon (Dr Offord) mentions a school where he thinks things are going well, but without those guarantees and proper inspection there will be ever more disasters such as those my hon. Friend mentions.

[Ian Mearns]

I am grateful to my hon. Friend, who makes a telling point. We are talking about educating children at a cost to the public purse. When the public purse is involved, we should expect minimum standard requirements in education. My hon. Friend makes the point well.

We are talking about the standards of education that these children receive. All too often, school policy is discussed as if it is somehow divorced from the fact that the ultimate victims of school failure are the children themselves. Let us not forget that even though these are free schools it is still public money that is paying for them.

The Al-Madinah school was branded “dysfunctional and inadequate” by Ofsted and “a national embarrassment” by Muslim leaders. Its own head teacher, Andrew Cutts-McKay, dismayed at poor governance and lack of foresight, turned whistleblower to expose the worrying slide in standards. Ofsted lamented the “limited knowledge and experience” of the governing body and the fact that teachers lacked proper skills to deliver a quality education. It condemned the school’s governance in no uncertain terms, stating:

“Accounting systems are not in place to ensure public money is properly spent and governors have failed to ensure an acceptable standard of education is provided by the school.”

Kings science school in Bradford has been accused of “serious financial mismanagement” and possibly fraud. Indeed, as with the Al-Madinah school, it was a member of the Kings science school staff—the finance director—who blew the whistle on the management of the school.

[Lisa Nandy (Wigan) (Lab)]

I congratulate my hon. Friend on securing this important debate. Does he share my concern that it took a full year after the whistleblower first raised these concerns for the Department for Education to publish that report into the alleged failings? Is that not just another example of the lack of transparency that has surrounded the free schools project from the beginning?

[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.”

[Kevin Brennan (Cardiff West) (Lab)]

My hon. Friend rightly mentions the Barnfield Federation. Would he welcome a commitment from the Minister today that, when the Department completes its investigation into that particular scandal, it will undertake to publish the investigation immediately—rather than sitting on it for six months, as it did in the case of Kings science academy in Bradford?

[Ian Mearns]

The Minister has heard my hon. Friend’s question, and I echo that sentiment.

The Barnfield Federation has taken on some 10 schools in recent years, and I share the concerns that the federation might have overstretched itself by trying to take on too many schools too quickly. Although Barnfield college has stressed that it remains financially viable, its managerial viability is still a major cause of concern.

Advice given to those looking to set up free schools is careful to stress the importance of acquiring

“the right level of expertise to oversee the financial management of your school.”

It seems odd that the Government stress the importance of financial expertise in free schools—we have seen such failures—but have little concern about the expertise, standards or professional qualifications of the teaching staff. As I have previously mentioned, Ofsted raised concerns about both the financial and teaching provision at the Al-Madinah school, but Ofsted has not commented on the Secretary of State’s repeated assertion that free schools, and indeed all academies, do not need to have qualified teachers at all. That is apparently based on his view that what is good enough for Eton is good enough for any school. I appreciate that there is a little local difficulty in the coalition on that, but the Secretary of State and his Liberal Democrat Minister for Schools, at least, seem to be in accord, despite the apparent wider political Cleggmire.

The Government stress that expertise is necessary for the financial management of schools, yet they offer little insistence on such expertise when it comes to the governance and oversight of free schools. Many of the problems that I have outlined at the Al-Madinah school and Kings science academy, Bradford, stem from a lack of credible, organised governance and a lack of experience. The Department for Education may stress the importance of financial expertise, but if the systems of governance are poor, the financial health of a school will suffer as a direct consequence.

As free schools are autonomous, there is no way for local authorities to ensure that free schools in their jurisdiction have adequate, well rounded governance. It is imperative that that issue is addressed, urgently. The Government may write off Al-Madinah school as a one-off or as a contained incident, but the fact remains that that debacle has lifted the curtain on the fallacies and frailties of the programme. The Government simply do not have a clue about how many other free schools are in a similar situation.

The Department for Education’s website states:

“The right school can transform a child’s life and help them achieve things they may never have imagined.”

But what is the make-up of “the right school,” and what will the “wrong” school do for its students, who are ultimately children for whom we all have a duty of care?

Aside from good teachers and good facilities, I believe it is imperative that there is excellent governance, guaranteed by extensive oversight and rigorous inspection. I have called this debate because I have serious concerns about the oversight of free schools. I also have more general concerns about free schools, especially the disproportionate amount of the education budget eaten up by such schools. The unit costs of free schools bear no comparison with the vast majority of schools or schoolchildren.

One of my biggest concerns is the admissions policies adopted by many free schools that appear to be at best opaque, and at worst deliberately exclusive. A study by Race on the Agenda titled “Do free schools help to build a more equal society?” shows that only two out of 78 free schools are fully meeting their legal requirement to publish information pertaining to measurable equality objectives.

The ROTA report further states that only six free schools have published at least one equality objective, which is a poorer level of compliance than any other type of school. The question posed by the report is seemingly answered by those dismal figures. Free schools are doing very little to build a more equal society.

[Lisa Nandy]

My hon. Friend is making a powerful point. What lies behind this is the fact that schools are not islands: what happens in one school has an impact on children in other schools and across the wider community. Does he agree that the free-for-all that free schools have become is bad for children—not just in the failing schools he talked about, but in other schools?

[Ian Mearns]

It is clear that free schools have an impact on other schools in their areas. Where those other schools hoped to have a comprehensive intake, the free schools will have a skewing effect. Indeed, they might also undermine the financial viability of other schools by taking pupils away from them. This is about not just whether free schools have a positive impact on the children who go to them, but whether they have a significant negative impact and a destabilising effect on other schools nearby.

[Nia Griffith]

Does my hon. Friend find it odd that some free schools have been set up in areas with surplus places, but not in areas with a need for more places? That is another worrying feature.

[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.

--- Later in debate ---

[Grahame M. Morris (Easington) (Lab)]

It is a pleasure to serve under your chairmanship, Mr Gray, and I congratulate my hon. Friend the Member for Gateshead (Ian Mearns) on securing an important and timely debate.

I want to respond to some criticisms by the Secretary of State for Education of the schools in my area. I believe that they are an attempt to garner support for a free school in an adjacent area. I am not by nature boastful, but I want to begin by boasting about the achievements of schools in my constituency. We have seen year on year improvements, which have continued in 2013 with the academy at Shotton Hall, the Seaham school of technology and Easington academy achieving record results. Dene community school, which continues to improve year-on-year, also saw record-breaking results, and St Bede’s Catholic comprehensive school achieved its best-ever results, with more students exceeding the Government’s benchmark of making three and four levels of progress in both English and Maths from year 7.

We would all agree that the achievements of east Durham’s schools constitute something of a success story and are testament to the ambition and hard work of the teaching staff and students and to the drive of head teachers in my constituency. The success of east Durham’s schools ought to be cause for celebration and Ministers ought to congratulate them on their efforts. Sadly, that has not been the case. For some unexplained reason, the Secretary of State for Education launched an inexcusable and unfounded attack on east Durham’s schools earlier this year, saying:

“When you go into those schools, you can smell the sense of defeatism.”

He added that the schools had a “lack of ambition”. He was quick to condemn the schools, but he will not visit them, despite having been invited.

The Minister for Schools does not share the Secretary of State’s unduly pessimistic view of the schools in my constituency. Following Easington academy’s latest results, the Minister wrote a letter of congratulation, in which—I will read out the highlights only—he identified that the school stood out in two ways:

“First, you were ranked number one in your table. Second, over 10 per cent more of your pupils achieved five good GCSEs including English and Maths than is typical of a school with your intake. This is a fantastic achievement that you should be very proud of.”

He continued:

“You are also one of the 56 top performing secondary schools in England on this measure.”

That is praise indeed.

I pay tribute to the hard work of the students, teachers, parents and the head teacher of the Seaham school of technology, which has had some fantastic results in the face of real challenges, given the condition of the school building. Those results have come in spite of the fact that the much-needed new building, which had been promised by the previous Labour Government, was withdrawn by this Government to divert, I believe, funds towards the Secretary of State’s pet free schools project.

I want to compare the capital and revenue funding of schools in my area with that of free schools. The Durham free school, which at the last count employed nine members of staff but had only 30 pupils, is one such school. According to the Secretary of State, it represents excellent value for money. According my calculations, however, that is a ratio of nearly three students to every teacher. How does that represent excellent value for money?

[Ian Mearns]

I understand my hon. Friend’s chagrin at the criticism levelled at schools in and around his constituency, but I wonder whether it may have something to do with the fact that one of the Secretary of State’s special advisers, Dominic Cummings, was connected through a family member to the establishment of the Durham free school.

[Grahame M. Morris]

I am grateful to my hon. Friend, who makes an interesting and serious point. If the Secretary of State seeks to promote a political ideology in the form of a free school with political backing and in so doing is undermining the education opportunities and funding for pupils in my area, quite frankly, it is an outrage.

How much better would the results have been at the Seaham school of technology, which has more than 640 pupils, if it had enjoyed the fantastic ratio of one teacher for every three students or if it had at least received the much-needed new building that it had been promised? The Secretary of State’s free school pet project is motivated neither by achieving better results, nor by the desire to obtain better value for money. Such schools are free only at the expense of the success of existing local authority schools. I therefore do not understand how they can be considered to be cost-effective.

The truth is that the free schools project is ideologically motivated and free schools are being driven to succeed, with teachers and students everywhere else being made to pay for it. Free schools have been unaffected by budget cuts and receive a disproportionate share of capital and revenue funding, as pointed out by several hon. Members, at the expense of local schools, despite the fact that they educate only a tiny proportion of all pupils.

The Secretary of State has turned down several invitations to visit east Durham, but it would be instructive if he came and listened to students and teachers at schools in my constituency. They would ask him for just a little of what he is spending on free schools to improve students’ learning experiences and life chances. Through the Minister, I urge the Secretary of State to wake up to the facts. Free schools mean less oversight, less democracy and poorer value for money. They are failing the taxpayer, teachers, parents and, most importantly, children. If the Secretary of State does want to come down to earth from his ivory tower, there is no better spot for him to land than in east Durham.

Finally, I ask the Minister to pass on one more invitation to the Secretary of State to come and see how things are being done, to witness the state of the building at the Seaham school of technology, to speak to the pupils, teachers and head teachers and to change the habit of a lifetime by listening to those doing the hard work. A person is never too old or too clever to learn—even a Secretary of State for Education.