Academies Bill [HL]

Lord Knight of Weymouth Excerpts

Tuesday 6th July 2010 Lords Chamber

[Baroness Williams of Crosby]

My Lords, I support my noble friend, because this is a crucial amendment that would greatly strengthen the Bill if it were to go through. This is not only because a local authority has a profound responsibility in arranging for the provision of adequate education for every child in its area, but for another reason that is very close to all of us at present: namely, the financial issues facing the Department for Education and many other departments. It is to those issues that I will address a few remarks.

It is worth pointing out—I looked up the figures recently—that in primary education there are 4,000,237 places, with 482,930 surplus places unused and unfilled at present which cost the Government a good deal of money. In secondary education, the figures are slightly, but not a great deal, better. There is a surplus in secondary education of 307,712 places, which is 9 per cent of the total. In the case of primary schools, 11 per cent of all places are empty. That puts a heavy burden on those, whether they are local authorities or churches, who are responsible for running the schools. Therefore, it becomes all the more important that, in creating a new school, whether it is a converted academy or a new school altogether, careful consideration is given to the impact on the number of places already being supplied.

An academy can do one of two things: it can add to the number of schools that already exist or it can replace those that are taken out. As many noble Lords know very well—I certainly do—it is not easy to close schools. There is usually a great deal of passionate commitment to them, especially primary schools, and the procedure for church schools can be long involving dioceses, parents and others in agreeing to such a provision being made. On the coolest statistics of all—the effect of financing education by having a large number of surplus places that are then added to—it is crucial that such an amendment is accepted.

From 1999 to 2003 the birth rate in Britain fell—not hugely, but by about 40,000. Those children who are just at the age when they go to school will be entering schools with already surplus places, which will increase because of the drop in the birth rate. That change in the birth rate goes back to a modest increase in 2003-04, which means that that group of children will not be reaching school until next year. For all those reasons, therefore, I strongly urge the Government to give due consideration to my noble friend’s amendment. I hope that they will consider it and feel inclined to accept it on grounds of cohesion, the satisfaction of people involved in schools and because of the fundamental financial difficulties.

[Lord Knight of Weymouth]

My Lords, I support the amendment and the comments of the two previous speakers. It is an important amendment in the context of yesterday’s announcement on Building Schools for the Future. I shall be interested to hear the Minister’s comments, given that Building Schools for the Future began in those areas of greatest educational need. By definition, those are the same areas where parental dissatisfaction is likely to be highest and where parents are most likely to want to start their own free school academies. That raises the scenario of brand new, state-of-the-art, beautifully designed schools effectively having to close down because parents send their children somewhere else and the schools end up being white elephants. That would be a scandalous misuse of resources. I shall be interested in the Minister’s comments and hope that he will support his noble friend’s amendment.

[The Lord Bishop of Lincoln]

My Lords, I also support the amendment for two reasons. First, building on the comments of the noble Baroness, Lady Williams, we are anxious that church schools should be part of a network of choice to those for whom a faith school or an alternative could be their choice. That demands a degree of planning and the amendment would ensure that the Secretary of State took account of a range of possibilities when considering the provision of schools in an area. Secondly, one of our concerns about the Bill in general is the removal of the local authority interest in ensuring a degree of overview or strategic planning. The amendment at least goes some way towards mitigating the consequences of that omission.

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[Lord Hill of Oareford]

My Lords, I start by saying to the noble Lord, Lord Hunt, and other noble Lords that I am sorry that the model funding agreement did not get to them any earlier. I know that there is a lot to take on board and that it is a long document. On his particular point about paragraph 17, the model will need some changes to reflect the particular circumstances of individual schools, which I hope answers his question.

Like the noble Lord, I am grateful to my noble friends for raising the issue of grant funding and for giving me the opportunity, I hope, to reassure them and the rest of the House as far as I am able. On Amendments 2, 19 and 19A, as we discussed at an earlier stage and to which the noble Lord, Lord Hunt, has just referred, the rationale for allowing the Secretary of State to fund via a grant in what is likely to be a small number of cases is to provide more flexibility, and as we have also discussed, we envisage a grant being used particularly in response to proposals for a free school where by definition there is no track record. We think that this flexibility makes more sense than committing to seven years at the beginning, but I want to emphasise that we expect this to be a minority of cases.

[Lord Knight of Weymouth]

Perusing the model funding agreement, I have one question on the specific issue of the general academies grant. Clause 50 talks about the amount of grant that would be available in the first year of conversion, and that the money would be on the same basis as that used by the local authority for determining the budget share of the predecessor maintained school. In the case of an academy free school where there is no predecessor, how would the funding for the first year be calculated so that people who are interested in setting up these interesting new schools can have some certainty?

[Lord Hill of Oareford]

I accept entirely the need for giving certainty to people who are setting up new schools. This process has just started and the question will be worked through with the first group of schools that have expressed an interest. It is a good point to which we will need to return when we have done that work.

On the point my noble friends have raised with me, particularly in relation to Amendment 28A, I stress that any academy funded via a grant will be subject to exactly the same requirements as those which apply to the funding agreement: there will be the same safeguards on admissions, exclusions and special educational needs, about which I know not only my noble friends but others on all sides of the House are concerned. These safeguards will apply equally to the majority of academies, which will be funded by the funding agreement, and to the minority, which may turn out to be funded by grant. The safeguards will be set out in the grant letter just as they are set out in the funding agreement. I can confirm that the governing body and the academy trust would be aware of the terms of the grant before finalising the academy arrangements. I hope that provides reassurance to my noble friends and your Lordships generally and I am happy to place it on the record.

Amendment 20, to which a number of noble Lords have spoken, would require academy funding to be based on the needs of pupils as well as on their numbers. I agree with my noble friends and others who have spoken that the needs of pupils as well as the numbers of pupils must be taken into account. The primary driver of academy funding will be the numbers on the roll because that is the best way to begin to measure the total amount of teaching and other resource that is likely to be required in a school. However, the local authority funding formula which is used to fund an academy also contains factors which measure special educational need and the level of deprivation among pupils. Some do this directly—for example, by measuring prior attainment—others use proxy indicators such as free school meals. The sixth-form formula used for academies and maintained schools also contains a measure for deprivation. In no case is an academy funded simply on the basis of its pupil numbers.

On the point raised by the noble Lord, Lord Knight, we intend developing a simple funding model for free schools based mainly on a per pupil amount. However, of course—I think this point was raised by my noble friend Lady Walmsley; she will forgive me if it was not her—the pupil premium for disadvantaged pupils, on which we will bring forward proposals in the autumn, will also be in operation and so needs will be recognised.

On Amendment 12A and the establishment of an independent monitoring system, as we discussed in Committee, the Bill requires that the academy arrangements will oblige the academy proprietor to comply with these characteristics when establishing and running an academy. The Secretary of State ensures at the outset—

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[Lord Sutherland of Houndwood]

My Lords, two important points weigh with me in considering these amendments. The first is the principle of whether primary schools should have a place as academies in the future. I assent to that: I think that they should have the option of becoming academies. The second is the practical point of whether all primary schools are capable of operating under such a system. The answer is clearly no. I made that point at Second Reading. Then the question is—this was put by my noble friend Lady Perry—whether we deny that opportunity now through legislation or look seriously at the fact that there is a double lock on this door. The first lock is whether the head teacher and governing body are prepared to apply for such status. If they apply mistakenly, because they have 23 pupils, perhaps the judgment will be made against them. The second lock is that of the Secretary of State giving assent. We should stress to Secretaries of State—some of them are exceptionally good, although I shall not name names—that they are taking responsibility for this and will be judged on the decisions that they make on primary schools. As has been pointed out around the House, some primary schools may well be in difficulty. The Secretary of State will be judged on the decisions that are made but we should not rule out having this option in legislation.

[Lord Knight of Weymouth]

My Lords, I support the amendments in the name of my noble friend Lord Hunt in respect of primary schools becoming academies. We wrestled with this question in the three years that I was Schools Minister in the old Department for Children, Schools and Families. In discussions on this issue with my noble friend Lord Adonis, it was necessary to go back to first principles about why we were having academies in the first place.

Many people think that the secret of academies lies simply in their freedoms from the constraints of the national curriculum, teachers’ pay and conditions and other matters. Freedoms are a part of it, but it is a question of how they are used. It is important to have the leadership capacity, supported by strong governors, to deploy those freedoms effectively to improve children’s education. Academies also offer opportunities for innovation. However, I do not believe that 23,000 independent schools—that is the implication of primary schools becoming academies—are sustainable on the ground of the capacity for consistently strong leadership.

England has some of the greatest state schools in the world but we also have some weak schools. Our problem is variability, not the overall standard. I agree with the noble Baroness, Lady Perry, that we have some wonderful leaders in our primary schools and some great governing bodies, but I say with the greatest respect to her that we also have some slightly less good leaders and less good governing bodies. We have to be cautious about how we design a system that is dependent on them all being excellent. I advocate—I did so as a Minister—that we pursue primaries becoming academies as part of all-through academies. I greatly encouraged all-through academies when I was a Minister and we are starting to see more of them spring up.

I am not completely against the notion that there might be circumstances where groups of primaries could become academies, but that needs further consideration. I was interested in the arguments of the noble Baroness, Lady Walmsley, in respect of Amendment 5, but my caution about groups of academies in some ways relates to what the right reverend Prelate said about the religious foundation of schools. The obvious form of a group of primaries would be on a geographical basis, but then you start to lose choice and diversity. My experience of dealing with various diocesan boards is that they are very nervous about joint governance of academies—for example, between the Anglican Church and the Catholic Church. In the communities that I represented in Dorset, we could not get boards to agree to single primary schools entering such arrangements because of the importance of their being able to preserve the tenets of their faith and wanting to represent that in the school. Parents also value that choice and diversity in being able to send their children to a school with the sort of foundations that they value.