Education: Academies Funding

Lord Knight of Weymouth Excerpts

Tuesday 21st June 2011 Lords Chamber

[Lord Hill of Oareford]

There are a number of complexities in the system. One that is not widely recognised is that, because of the way in which the LACSEG system operates, local authorities continue to receive funding for some services that academies are being funded for. So there is some double funding. It is not that an academy is getting more than it should; it is that, traditionally, the local authority has carried on receiving that funding. We need to look at that and to address all these issues to make sure that the principle of equity is maintained.

[Lord Knight of Weymouth]

My Lords, I agree that the current funding system is too complex, which is why I announced a review when I was Minister in 2008. The consultation was ongoing when the noble Lord became a Minister—perhaps he could have encouraged his colleagues to deal with it quicker by picking up that consultation. Will he answer the specific point raised by the noble Baroness, Lady Jones of Whitchurch, about making sure that no maintained schools have lost out? I have looked at comparisons across local authorities, including in Hampshire, where maintained schools are getting considerably less than they were in contrast to schools in other authorities. Given that the academies in Hampshire have done so well, can he give us an assurance that maintained schools will not lose out as a result of this problem?

[Lord Hill of Oareford]

My Lords, as a former Academies Minister, the noble Lord, Lord Knight, will be one of the few people on the face of the earth who may have some glimmer of knowledge of how the LACSEG operates. I had not realised that he had initiated a review. I would be happy to discuss where he got to with it, because we are obviously grappling with the same issues. He will know that, because of the complexity and because the approach taken varies from year to year and from local authority to local authority, it is hard to be definitive about how the system operates. I give the noble Lord an absolute undertaking that our aim throughout is to make sure that the funding that an academy gets is the same as it would have got as a maintained school, and that a maintained school will not be disadvantaged by the development of the academies programme.