Schools Bill [HL]

Lord Davies of Brixton Excerpts

Committee stage & Lords Hansard - Part 2
Wednesday 15th June 2022 Lords Chamber

[Baroness Wilcox of Newport (Lab)]

My Lords, we degrouped the amendment because, although it was related to an earlier group, we wanted a specific ministerial response on this policy choice to remove local authorities from the allocation. To fully evaluate the changes, the public will need—and indeed deserve—a robust analysis of how they affect the funding by region when we know that there are already huge disparities in how different areas have been funded, as was alluded to in the previous debate. Indeed, in some cases, this has worsened over the duration of the pandemic. We cannot have this change just happen without detailed analysis and democratic scrutiny. Recent examples, such as the woeful implementation and less than satisfactory delivery of the National Tutoring Programme, clearly demonstrate that monitoring, evaluation and scrutiny of the implementation of policies are key drivers of success.

The DfE has acknowledged that there is a critical question over whether there would continue to be merit in local control of certain aspects of mainstream school funding, and we would argue that there is such merit. But what does the profession say? I will quote Geoff Barton, the general secretary of the Association of School and College Leaders. I am sure that my noble friend, although she is not in her place, will agree with me that ASCL is not the most revolutionary of trade representative bodies. Nevertheless, he says:

“While we support the direction of travel, our bigger concern is that there is not enough money being put into the system in the first place. The cake is too small, no matter how it is sliced. We recognise that the government is currently investing more money in schools but we do not think this is enough to repair the damage done by years of underfunding and we are concerned that much of the new money will be simply eaten up by rising costs. This is even more critical because of the havoc wreaked by the pandemic and the pressing need for significant investment in education recovery.”


So if not this amendment—as I predict that the Minister cannot agree to it today—what are the Government’s future plans to assess these impacts? I beg to move.

[Lord Davies of Brixton (Lab)]

My Lords, I totally support the amendment moved by the Front Bench. If this change in the system of funding schools goes ahead, it is essential that an assessment along the lines proposed is made.

However, I question the need for—indeed, am deeply opposed to—Clause 33 and Part 2 as a whole. I am against the proposal for a hard national funding formula, fundamentally because I am a believer in local education authorities—LEAs—as a matter of principle. My noble friend Lord Knight is not in his place, but he said that everyone would be raising their hobby-horse, and this could well be mine. I am in favour of a seamless education system that works for local people through their local representatives. I am prepared to accept that there is scope for debate on the structure of LEAs. Personally, I have a predilection for bodies of sufficient scale which have significant financial and organisational autonomy—basically, a service that is run democratically and is responsive to local voices. Unfortunately, the trend over the last 40 years has been the other way: centralisation and financial restrictions.

I have re-read the debates that have brought us here and it is my view that no case has been made for a hard formula. Some figures are quoted showing what might be thought were gross discrepancies in what individual schools were receiving in financial support, but without providing the context within which these figures have been reached, it tells us nothing. We are also told that the new system will provide “a consistent assessment,” as if that in itself was sufficient justification, when in my judgment it will be consistently bad. In truth, a close reading of the White Paper tells us that it

“supports the expansion of … trusts.”

What we have here is little more than a by-product of the move to full academisation.

I am against a hard formula in principle, but I am also against it in practice, because it will not achieve a workable or effective outcome. I endorse the comments of the noble Lord, Lord Shipley, during the last debate, where the problems were made clear.

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Finally, the noble Lord, Lord Davies, asked how an MP would respond to his challenge on this. I encourage him to look at the fact sheet we put out with the Bill on the national funding formula. If I were the MP responding, I would certainly pick out that it is fair, efficient, transparent, simple and predictable.

[Lord Davies of Brixton (Lab)]

I think figures were quoted comparing Blackpool and Brent—

[Baroness Barran (Con)]

It was Blackpool and Manchester.

[Lord Davies of Brixton (Lab)]

Okay. Does this imply that the introduction of the new funding formula will see a significant reduction in the payments received by the school that had the higher figure? The Minister told us there was a difference but we do not know the reason for it. If she is saying that the reason is unjustified, it must lead to a reduction in funding for the school that had the higher amount previously.

[Baroness Barran (Con)]

I see the noble Baroness, Lady Chapman, is tempted to answer the question. The figures I referred to were from 2017. I am happy to set out in a letter to the noble Lord more of the reasons for the differences, but I suspect, being familiar with the subject, he knows what some of them are. To date, no area has seen a reduction in nominal terms in its funding. One reason why we intend to implement this over a longer period is to avoid any disruption to local funding. As I am sure the Front Bench opposite would say on my behalf, it will depend on the total quantum of funding committed to our schools.

I thank the noble Baronesses, Lady Chapman and Lady Wilcox, for Amendment 87 and for their unerring focus on ensuring that all children have a fair chance to realise their potential. The introduction of the national funding formula in 2018 was a historic reform to school funding, replacing what we believe to have been an unfair and out of date system.

The national funding formula already calculates funding allocations for each school, which, as I mentioned in the earlier group, are publicly available and, with these, the calculations used to determine funding allocations for local authorities. In the current system, individual schools’ final allocations are then determined through 150 different local formulae. The direct national funding formula will mean that every school is funded through the same national formula, with only specific, local adjustments. That will achieve this Government’s long-standing ambition that funding is distributed fairly, and means that parents, school leaders and governors will have assurance that their school is funded on the basis of the needs and characteristics of their pupils, rather than where the school happens to be located. The intentions of the reforms are not to lead to changes in the distribution between geographical areas, but within them.

Similarly, this change should not impact how much funding the formula directs overall towards socioeconomic disadvantage. Instead, it should ensure that each school, in each local authority, receives a consistent amount of deprivation funding based on their pupil cohorts.

I want to reassure noble Lords that we are committed to levelling up opportunity to make sure that all children have a fair chance in life, wherever they live and whatever their circumstances. We are specifically targeting funding towards disadvantage. Through the national funding formula, we are allocating £6.7 billion towards additional needs, including deprivation, which is a sixth of available funding. In addition, we are directing other funding sources towards disadvantaged pupils, including the pupil premium which is rising to over £2.6 billion this year, and the school supplementary grant which includes a further £200 million targeted towards deprivation. We are also allocating over £200 million to support disadvantaged pupils as part of the holiday activities and food programme. This means that, altogether this year, we are allocating £9.7 billion towards pupils with additional needs, including deprivation.

For the 2022-23 academic year, the Government have committed around £500 million through the recovery premium and £350 million through the national tutoring programme, through which 1.5 million courses have been started so far to support the children whose education has been most impacted by the pandemic, with a particular focus on disadvantaged pupils.

By introducing the national funding formula and replacing the previous postcode lottery, we have a funding system that is much more responsive to changes on the ground. School funding is allocated based on current patterns of deprivation and additional needs across the country. It means that pupil intakes that have similar levels of deprivation, such as Liverpool and Wolverhampton, or Calderdale and Coventry, are now receiving similar levels of funding per pupil. The redistribution of funding seen since the introduction of the national funding formula reflects that the funding system has been catching up with changes in patterns of relative deprivation.

As we have discussed at length, the principle of transparency has underpinned our reforms to the school funding system. As I have said, we publish information annually on the national funding formula. We are committed to publishing the impact of transition on individual schools and on different types of school every year. I would also like to reassure the noble Lord, Lord Hunt, who is not in his place, that this does include the factor weightings which he questioned in the last group. Based on this, it is already possible to see the geographical distribution of funding and how that changes year on year, and what support the national funding formula offers for deprivation. We will continue to review the impact of the national funding formula in terms of meeting policy objectives, such as supporting schools to close attainment gaps. In addition, we want to ensure the information we publish is as helpful as possible and we are currently consulting with schools and the wider sector on what published information would be most useful for them.

I hope this has persuaded your Lordships that the national funding formula will continue to distribute funding ever more fairly, based on the needs of schools and their pupil cohorts. I therefore ask the noble Baroness opposite to withdraw her Amendment 87.