School Funding: Greater London

Karen Buck Excerpts

Tuesday 31st January 2017 Commons Chamber

[Ms Karen Buck (Westminster North) (Lab)]

I am grateful for the opportunity to have this short debate on the impact of funding changes on London’s schools. I apologise to the Minister for his drawing the short straw of having to respond to a debate at midnight, although I suspect that this will be the first of many such debates.

London Members of Parliament have some grave concerns, although I know that other parts of the country are affected by changes to the funding formula and by the wider squeeze on schools funding. In my constituency—this experience will be replicated widely, particularly in London—the story of school progress over recent years has been one of the great public policy successes. In the mid-1990s, our school estate was crumbling. We were teaching children in badly ventilated, overheated and old-fashioned buildings that had not received investment for decades. I remember when North Westminster community school, which was a sprawling three-centred school, achieved in the last year before its closure just 18% GCSE grades A to C, including English and maths. It was one of the worst results in the country. I remember when half our secondary schools and a number of primary schools were in special measures, despite some frankly heroic efforts by a number of teachers and heads. I remember when there was virtually no provision at all for pre-school education.

Over the course of the past 15 years, the situation was transformed by a number of measures, including the London challenge programme—a focused management and good practice sharing policy that, under the inspirational leadership of Tim Brighouse, was widely understood to be a key factor in driving change in London schools. The transformation was also brought about by the new infrastructure, with magnificent new buildings across the city. It was brought about by the investment that went into the Sure Start children’s centres and the early years programme. Critically, it was brought about by money. The additional funding that went into London schools was used particularly to invest in teaching and improved teacher pay; in support for schemes such as Teach First; and in generally giving headteachers the ability to marshal resources to support a better learning environment. We have seen the outcome of that investment —both human and resource investment—in the hugely improved outcomes in school performance across the capital.

In the days before the London Challenge, London was the worst performing region in the country at key stage 4 level. By the end of that programme and the additional investment that accompanied it, we were the best performing region. Yet we know that the job is not done. Despite the improvements, there are still too many children who are not going into secondary school having achieved the standard at primary that is our benchmark. Across the country as a whole, we are still not managing to close the gap in attainment with some of our competitor nations. That is, as the last few hours of debate have confirmed, more of a challenge to rise to than it was previously. More than ever, the country as a whole but London in particular requires an education system that will allow us to be a world leader creatively, technically and economically, with an education system to support that.

The pressures and challenges that face London education are as great as ever. We have problems of deprivation that are still acute, and problems of churn. I appreciate very much that the Government have, for the first time, introduced a churn or pupil mobility indicator into the funding formula. I remember having an Adjournment on this very topic 10 years ago, when I wanted a factor of mobility to be brought into the funding formula for policing, for health and for education. I welcome the introduction of the indicator, but none the less schools face enormous pressure in some cases. I know of primary schools where not a single child at key stage 2 was there at the completion of the key stage 1 process. This is a very real difficulty for schools. We know of the challenges of English as an additional language and, critically, of the higher salary, building and other operating costs that London schools have to face. Even my borough of Westminster—the hon. Member for Charnwood (Edward Argar), who was a Westminster councillor, will recognise this—despite its reputation as the glittering centre of the capital that people see with Oxford Street and, indeed, the Palace of Westminster and so forth, has the seventh highest child poverty in the whole country.

[Seema Malhotra (Feltham and Heston) (Lab/Co-op)]

My hon. Friend is making a very powerful speech. The impact of child poverty on educational attainment is very much the subject and the driver of the work we are doing in Hounslow with Hounslow’s promise. Does she agree that there is tremendous concern about comments I have heard from headteachers suggesting that schools may be reluctant to accept pupils with significant needs, who may also be quicker to be excluded, because those schools do not have the resources to deal with some of their in-depth needs? Will she, with me, congratulate Hounslow Council, which tonight, with Tory and Labour councillors together, has called on the Government to consider again the impact that these changes will have on Hounslow schools’ ability to maintain the highest standards in quality of provision?

[Ms Buck]

I am happy to congratulate Hounslow Council, and I completely endorse what my hon. Friend has said. I will come in a second to the comments of headteachers and councillors from across London who have expressed their dismay about the effect of the funding formula changes.

I want to finish what I was saying about the level of deprivation. I think that it is either not understood or glossed over by too many of the representatives from the shires, who want to negotiate a better funding settlement for their own schools—that is something that I completely understand and appreciate—but who do not always recognise the extent of the expense and the pressures faced by the capital city, which is experiencing a redistribution away of funding to meet those needs. Seven of the 10 local authorities with the highest levels of poverty in the UK are in London, so it is horrifying that the new Government formula for distributing schools funding hits London particularly hard. In briefing me for this debate, London Councils and the Mayor of London have made it clear that they are extremely concerned about that.

A higher proportion of London schools—an estimated total of 1,536—will see a reduction in funding than in any other region. Seventy per cent. of London schools face a fall in funding, compared with 58% of schools in the north-west and 53% in the west midlands—and the figures for those areas are bad enough. Eight of the 10 local authorities that face the highest percentage losses in funding are in London. Worst affected are councils known for high levels of deprivation and challenge, such as Hackney, Camden, Lambeth, Lewisham, Haringey, Tower Hamlets and Hammersmith.

[Helen Hayes (Dulwich and West Norwood) (Lab)]

I am grateful to my hon. Friend for securing this important debate, even at this late hour. I have written to all the headteachers in my constituency over the last few weeks, and they tell me that the pressures of the increase in national insurance contributions and the cuts to their funding are already forcing them to make very difficult decisions about cuts to support staff, in particular, and to SEN provision and so on. Does she agree that those are precisely the kinds of resource that have enabled London schools to be so successful over the past 10 years?

[Ms Buck]

I absolutely agree with my hon. Friend, and I will reinforce that point in a minute. The modelling undertaken by London Councils indicates that at constituency level the national funding formula element of the changes alone will mean that 28 schools lose in Barking; 35 in Bermondsey; 42 in Bethnal Green; 41 in Poplar and Limehouse; 37 in Tottenham; and 48 in West Ham, to list just a few. Leyton will lose £4.5 million —equivalent to 6.8% of its funding; Deptford £6.1 million or 7.6%; Hammersmith £5 million or 7.6%; Brent North £9 million or 7.3%; and Hendon £5.5 million.

My council, I am happy to say, is not one of the worst affected. We are still waiting for some of the modelling data, but I think that that is to do with the churn factor that the Government have introduced. Even allowing for that, many individual schools still stand to lose. Westminster Academy, for example—last time I looked, it was the seventh highest on the free school meal indicator, making it one of the most deprived schools in the country—will potentially have its funding cut by a quarter of a million pounds. According to analysis undertaken by the council, all but two secondary schools are potential losers, including Westminster Academy, Paddington Academy, St George’s, St Augustine’s, Pimlico Academy, St Marylebone and Westminster City. Primaries that face losses include George Eliot, St Joseph’s, St Luke’s, Robinsfield and Barrow Hill. Many Westminster children attend schools across the borders in Kensington, Camden and Brent, which are hit even harder. A number of local parents will be affected by the impact of the cuts on schools outside the boundary.

[Dr Matthew Offord (Hendon) (Con)]

I congratulate the hon. Lady on securing the debate, which comes at an important time. She is talking about the indices of deprivation, which are important. In the London Borough of Barnet, we do not suffer to the same extent as other people, but we have a significant number of one-form entry schools. Yesterday, I visited Etz Chaim Primary School, where the staff explained to me that economies of scale mean that they will find themselves in a very difficult financial situation. Does she agree that the Government should be looking at that as part of their funding formula? It is not just the shires that suffer from that problem; so do some local authorities in inner London.

[Ms Buck]

I absolutely agree with the hon. Gentleman. The pattern of school development in London—not just inner London—means that we have a historically large number of smaller schools and one-form entry schools, which are taking a particular hit from this formula.

Our troubles do not of course end with the impact of the redistribution through the funding formula. We know that the changes will coincide with the wider spending shortfall identified by the Institute for Fiscal Studies and by last month’s National Audit Office report on the financial sustainability of schools. The report identified a £3 billion squeeze, reflecting the fact that education is protected in real terms, but not against inflation, the pressures arising from salary increases and national insurance contributions—my hon. Friend the Member for Dulwich and West Norwood (Helen Hayes) mentioned that—or pension contributions, the impact of the rates revaluation, the apprenticeship levy and other costs.

Taken together, the funding formula implications and the unfunded cost pressures hitting schools are turning what would already be a challenging situation into a nightmare. Schools spending next year will be reduced by £6.6 million in Westminster, £23.3 million in Newham, £13.5 million in Enfield and £11.1 million in Ealing. For some individual schools, such a scale of cuts is equivalent to £1,000 per pupil per year.

As both my hon. Friend and my hon. Friend the Member for Feltham and Heston (Seema Malhotra) have said in respect of their own local schools, heads and schools are also contacting me to describe their fears about the consequences of this reduction in funding. Many are anxious not to be individually identified at this stage, as in many cases they are not absolutely certain which of the many unpalatable decisions they may have to make to balance the books they will have to make, but they are keen to stress their concerns.

Heads point out that many of them are struggling to recruit at current pay grades, and trying to retain more experienced staff is of course more expensive. For others, the cuts mean the loss of teaching staff, and particularly of support staff, and some very worrying cases of special educational needs support being under threat are emerging. The early intervention services relating to mental health, speech and language, and SEN support are in some cases being targeted as areas where cuts are more possible to make than they are in the number of teaching staff. In many of those cases, schools are already grappling with the consequences of the loss of funding through child and adolescent mental health services.

One of my long-standing concerns, which I know is shared by my hon. Friend the Member for Dulwich and West Norwood, is the issue of gangs and serious youth violence. That issue has a crossover with child protection, and it is having an impact even down to primary schools, not just secondary schools. Early intervention and support in schools is absolutely vital if we are to turn what is, unfortunately, once again a rising tide in London. At the extreme end, two teenagers have already lost their lives in the past fortnight. I know that this is a particular concern for the Mayor, who is being briefed on the impact of school budget cuts with particular reference to early intervention.

Our outstanding nursery schools are also coping with pressures because of unrelated and already extant changes to their funding. One told me yesterday that the payment for the 30 hours provision for early years that they expected to begin in September is exactly half of what they were getting per child two years ago.

Why are we putting the quality of our children’s education at risk when, facing so much uncertainty, we need skills and creativity more than ever? Why would we risk undermining London’s crucial role as an economic driver for the whole country? The Government must think again, not choose this moment to inflict damage where it will hurt most—in the foundations of our future.

I want to end my speech by asking the Minister a few specific questions. I hope he will be able to answer them now, but, if not, that he will be kind enough to write to me after the debate. Although I appreciate that some parts of the country have historical spending patterns that are perceived as unjustly low, is it fair that the deepest cuts are being proposed for schools in the poorest local authorities in the country, most of which have to cope with the impact of very high staffing and other operating costs? What specific recommendations are the Government making to heads in respect of efficiency savings, which are cited as a way in which schools could accommodate both the funding formula changes and the £3 billion spending squeeze identified by the NAO? Will the Minister tell us what efficiency savings are being recommended to schools to achieve these savings?

What guidance will be given to ensure schools do not seek to meet shortfalls by seeking additional contributions from parents, as is increasingly being flagged up by schools across the capital? What action will the Minister take to ensure that special needs and pupil support are protected within school budgets, and what protection is available to schools hit by the combined impact of reductions under the funding formula and cost pressures? I know that a cap is being applied to school funding changes through the funding formula, but not to the additional cost pressures, which actually have a larger total impact. I hope that the Minister will be able to address some of those comments, and I look forward to what he has to say.