Pupil Referral Units

Jim Shannon Excerpts

Tuesday 22nd January 2019 Commons Chamber

[Chris Green (Bolton West) (Con)]

Pupil referral units perform excellent work in my constituency and across the country in complementing mainstream schools. There are two in my constituency, Youth Challenge and Lever Park, and both are run by Bolton Impact Trust. When I met the trust recently, I was made aware of how vital these units are to the pupils who rely on them and how fantastic they are at delivering the service and support they do to those pupils. Both were rated outstanding in their last Ofsted inspections.

It was a particular delight when I visited to hear of the relationship that Youth Challenge had with local business. It is an important fact about these units that often the experience of children is in vocational work and training and that often those are the kinds of careers they go into once they have finished school, whether that is at age 16 or 18. That transition into mainstream employment is very important. The close relationship that the unit has with local business is very good for local businesses, which increasingly understand the value that these children can contribute to their businesses, and also sets a positive direction of travel and gives the children the opportunity and vision to move into good and productive jobs once they leave education.

The services provided by Bolton Impact Trust really do make a difference. That can come in the form of 1:1 teaching support, which a teacher in a mainstream school, perhaps with a class of 30 or so pupils, cannot provide, but it does others things as well. There is one simple, straightforward thing that it does. Teachers often sit with children at lunchtime, and that engagement between adults and children can produce a useful environment that is more relaxed than a formal classroom setting. It also reinforces the support that referral units give to families. Mums and dads often have a very challenging time. Bringing up any children obviously has its challenges, but the support that these units can give by introducing more stable adult figures to children’s lives is very important.

There is concern about funding, as was confirmed by my visit to Bolton Impact Trust. As the Minister will know, the dedicated schools grant is split into four notional blocks, but I want to focus on the high needs block.

[Jim Shannon (Strangford) (DUP)]

The hon. Gentleman has raised a vital issue. Given the importance of helping children who are ill, pupil referral units are an essential tool to retaining access to education that is specifically tailored to them. Should that not be protected at all costs?

[Chris Green]

I agree with the hon. Gentleman. Different schools and different parts of the educational structure serve different groups of children. The work done by referral units and, more widely, by specialist schools is very important, and ought to be protected. There will always be a need for these units, and they ought to be reassured that support will continue. Many of the people who work for them are very specialised and highly trained, and we must maintain that continuity in order to maintain that talent.

High needs funding is essential in helping to meet the educational requirements of pupils. The cost of those additional needs can be as much as £10,000 a year, £6,000 more than the normal average of £4,000. As the Minister is no doubt aware, local authorities determine the budgets for referral units and specialist schools on the basis of the number of places that are required before commissioning those places at £10,000 per place per annum, regardless of whether they are taken up.

In that context, it is important to recognise the difference between specialist schools, where there is a certain continuity, and referral units, where the intake can be slightly more erratic. If a place is taken up, the local authority funds a top-up on a daily and weekly basis. That funding model works very well for specialist schools. They normally experience less in-year movement of pupils, which means that forecasting income is comparatively straightforward. The situation in referral units is much more volatile. For example, in September there were 170 pupils on the roll in Bolton, but by the following June the number had risen to 260. There can be a stark contrast between the numbers at one point and the numbers at a later stage.

We need a responsive system. Because specialist schools have a longer-term relationship with children, there tends to be far more clarity about who will be in those schools, and hence more clarity about access to funding. Moreover, the main aim of referral units is to support pupils so successfully that they are able to return to mainstream schools, and an unfortunate consequence of that success is that a unit will lose between £12,000 and £14,000 per pupil per year. The current funding model provides no incentive for a referral unit to deliver successful outcomes. They will of course be focused on delivering successful outcomes, but there is a clear challenge in the funding model. Certain costs, such as for the building and the staff, are permanent regardless of the number of people in the unit, but the income can significantly vary over a period of time. Would it not make more sense to have a funding model that did not disadvantage referral units for successful outcomes, rather than one that could be seen as an incentive to units keeping hold of children? PRUs that are doing very good work, perhaps better than average, must not lose the money that is coming to them more quickly than the average, because that would be a disincentive.

In addition, there is no consistency in how local authorities determine the level of top-up funding for PRUs, and more broadly for specialist schools, when additional funding is required to support challenging behaviours. Often PRUs are unable to determine the level of a pupil’s needs until they have worked with them for a few weeks. At that point, with the pupil’s needs being met, it can be a challenge for the PRU to obtain additional funding from the local authority because the placement has already been made, and naturally, local authorities who are under a great deal of financial pressure, having decided to give a certain amount of funding, would find it challenging to give more funding; there would be resistance to that.

Does the Minister agree that a system which provided greater consistency and security of funding, whereby services are commissioned in a manner which allowed schools and academies to predict their income accurately, would deliver a better service for pupils? That would also lead to a reduction in the degree of friction between local authorities and providers, and allow greater emphasis to be put on educational standards, rather than needing to focus on volatile funding. Often in units much of the management time is spent on asking, “How do we get the money in? How do we get the funding in? How many meetings do we have? How much pressure do we have to apply?” That time ought to be focused more on the needs of the unit itself.

PRUs provide a vital service both locally and nationally, but we must focus on how we can reward units for success. The units in my constituency have been remarkably successful and are deserving of their outstanding status. How can we remove the financial penalty I have described? What steps can the Minister take to address the concerns of referral units and deliver more consistent funding in such an important part of children’s education?