Department for Education

Meg Hillier Excerpts

Tuesday 26th February 2019 Commons Chamber

[Meg Hillier (Hackney South and Shoreditch) (Lab/Co-op)]

Let me put on record my thanks to the Backbench Business Committee for granting this important debate. For some newer Members of this House who may not realise this, thanks is also owed to the Procedure Committee. When I first arrived in Parliament, it was impossible to debate proper facts, figures and the Budget in the estimates debate without being ruled out of order. The Chair of the Procedure Committee and I decided that that was not good enough and we worked together to try to make sure that we could get these debates, which are now granted by the Backbench Business Committee. I warn the Minister that we are well prepared to go through the numbers in her budget. I am sure that, as an assiduous Minister, she is well prepared to take on board our concerns and to answer them. We have worked closely with the National Audit Office in preparing for today’s debate so that we can focus on the actual figures. I know the Minister is assiduous and will not try to give us smoke and mirrors in her answers. Hopefully, she will answer not in slogans, but in actual figures.

Today, I plan to discuss the overall schools budget. I know that the Chair of the Education Committee, the right hon. Member for Harlow (Robert Halfon), will also pick up on some of these issues. Other colleagues will be highlighting concerns around the spending on academies and multi-academy trusts, which, of course, report directly to the Department, teacher recruitment and retention, potentially the student loan book sales—although I see that the Member concerned is held up in a Statutory Instrument Committee—funding for Ofsted and the inspection regime; further education and higher education; and early years and special educational needs. The Minister will have her work cut out to make sure that she is over the detail, as I am sure that she is.

One reason why we wanted this debate is that the Government often repeat that more money is going into schools than ever before. In March 2017—on one of many occasions—the Public Accounts Committee looked at the sustainability of school funding. This was at the point when schools were already implementing a Government set target of £3 billion of efficiency savings—£1.7 billion of which was through more efficient use of staff, and £1.3 billion through more efficient procurement.

The House would expect the Public Accounts Committee, which I have the privilege of chairing, to be absolutely on board with the idea that schools should be as efficient as they can be, certainly with regard to procurement—where schools buy their paper or their electricity from. It is quite right that schools should be encouraged and supported to find the money that can be put into frontline teaching. We were concerned, however, that the Department did not really have a grip on what the impact of those efficiency savings would be, particularly on staff. It did not know what the impact would be in the classrooms and on the teaching in schools that had already found those efficiency savings, or on the outcomes for children.

I am delighted to see that the Secretary of State is in his place. I know that he feels passionately about the need to make sure that children are getting everything that they can from our schools. It is therefore important and incumbent on him and his Department to make sure that, when they are setting the budget or implementing efficiency savings or cuts, they understand what the impact is on school attainment. While we are discussing the budget, we must understand that, in the end, the education budget is for that range of services provided through his Department to support young people in our country.

We concluded that the Government had not done a proper assessment. It was also concerning to hear from headteachers on the frontline about the challenge of squeezing out that money in certain schools, particularly in small schools where a small percentage saving is a big chunk and could mean losing a whole member of staff even if it is not equivalent to a whole member of staff’s salary.

During the general election of 2017, I was absolutely amazed and heartened by parents in my constituency and up and down the country—not political activists and not driven by political parties—talking about the impact in their child’s classrooms of the squeeze on school funding.

[Mr Jim Cunningham (Coventry South) (Lab)]

I did a survey just before and after the 2017 general election. Out of 103 schools in Coventry, 102 were finding increases in class sizes. The cuts measured pupil by pupil amounted to £295. We had a debate yesterday about sex education in schools. Does my hon. Friend agree that that is another burden being loaded on to our schools? We have a situation in Coventry where schools badly need additional funding regardless of what the Government were going to allow because they are starting from a very low basis. In other words, the Government owe education £3.5 billion, despite the fact that they put in £1.5 billion.

[Meg Hillier]

My hon. Friend tees me up for my next point. He also raises an important point. It is a political disease to ask schools to do more all the time and very often assume that it can just be done without the additional funding. It is important that the Secretary of State and his ministerial team watch closely that, while other bits of Government suggest that schools do things, there is the funding in place for that and for the core of what they should be delivering. It was after the general election and as a result of that campaign and that pressure on the Government, who were then elected without a majority, that the Secretary of State announced £1.3 billion of additional funding, which was weighted towards next year. This year, schools are in the throes of receiving the £416 million that was announced for this year and will receive £884 million in aggregate across England for next year. But that—the £3 billion figure—does not even backfill those efficiency demands that were asked for before. It is important that we recognise—in fact, the Government have recognised this—that we need 599,000 school places, which is as a result of the increase between 2010 and 2015. We are very concerned about the pressure on school budgets.

[Mr Adrian Bailey (West Bromwich West) (Lab/Co-op)]

I have often heard Ministers say in justification of restrictions on school budgets that there are large balances. In my own constituency of West Bromwich West, the cumulative shortfall in schools came to nearly £5 million between 2017-18 and 2018-19. The cumulative reserves of all the schools in Sandwell is £3 million. There is now hard evidence that the balances left in schools in local authorities are no longer adequate to meet the year-by-year shortfalls that are taking place in them.

[Meg Hillier]

I am going to move on, in particular, to the issue of capital funding where sometimes reserves are built up for capital funding purposes.

Looking at what is happening in schools, I really want to give the lie to the argument that more money is going into schools than ever before. The Government say that, and we can look at it in cash terms, but we need to look at it in terms of per-pupil funding. The Department is estimating that over the 2015 spending review period, pupil numbers will rise by 3.9%, or 174,000, for primary school pupils and 10.3%, or 284,000 for secondary school pupils. Therefore, funding per pupil will, on average, rise only from £5,447 in 2015-16 to £5,519 in 2019-20—next year. That is a real-terms reduction once inflation is taken into account.

[Caroline Lucas (Brighton, Pavilion) (Green)]

The hon. Lady is making a very powerful case. Does she agree that these cuts are often hurting the most vulnerable people most? Headteachers in my constituency are really concerned about teaching for special educational needs, with heartbreaking stories about schools having to lose their SEN teachers because they simply cannot afford them any more. These cuts really are having massive effects on individuals as well.

[Meg Hillier]

The hon. Lady raises a significant point. In my own constituency, since 2011, special educational needs provision has been backed up by the local authority through other funds that are now being squeezed because of the other funding caps.

The other point I would make very firmly to the Secretary of State is that so much of what happens in our schools is not just reliant on the Department for Education. If there are cuts in other parts of government or reductions in spending, there is a real squeeze where schools are sometimes expected to fill the gap but without the funding. This needs to be looked at in the round. We on the Committee are repeatedly concerned about what we call cost-shunting, where a saving is made in one area but the costs fall on another. A teacher or a headteacher with children in front of them in a classroom has to deal with the reality of that, and they do so very ably but often with great difficulty.

It is not just the Public Accounts Committee or the National Audit Office that is concerned about per-pupil funding. In 2018, only last year, the Institute for Fiscal Studies concluded:

“Between 2009-10 and 2017-18, total school spending per pupil in England fell by about 8% in real terms”.

In October last year, the UK Statistics Authority wrote to the DFE complaining about its misleading use of statistics on school funding. So I hope that we have nailed the lie about the funding. We need to acknowledge where we are and then we can have a debate about how much we should be funding our schools by.

In the time I have got—I do not want to take up colleagues’ time because I know that they have prepared hard for this debate—I want to touch on capital funding. I congratulate the Department and the permanent secretary on undertaking a stock conditions survey of the school estate. This is the first time that that has properly happened. It is quite shocking, really, that Governments, over time, have not done this. It is quite challenging because schools are under different ownerships. It is a good and welcome step, but of course, as the Secretary of State will know, it will throw up many issues for him. Some 60% of the school estate was built before 1976, which underlines, for those of us thinking of the schools in our constituencies, the amount of work involved. The National Audit Office estimates that £6.7 billion is needed to return all school buildings to satisfactory or better condition. They are not all to be fantastic and “all singing, all dancing” but just to be satisfactory or, in some cases, better. In 2015-16—the beginning of the spending review period—the DFE allocated £4.5 billion to capital funding, about half of which was spent on creating new school places. So there is a significant shortfall in what is needed and the amount of money that is being spent, and that has an ongoing impact.

Then there is the free schools agenda, where the Secretary of State is wedded to his manifesto commitment of 500 new free schools by 2020 from the 2017 base. I think that there will be just over 850 if that target is reached. We are concerned that those buildings are often not the best. Asbestos surveys are not often done. Local government treasurers tell me that they know of buildings in their own areas that have been sold at well over the odds. It is as though people see a blank cheque when the Government come along with their cheque book for a free school site: the price goes up. That is not good value for money, and it really does need looking at. I do not think that even those most wedded to the free schools principle would want to see money wasted. In my own constituency, where many secondary schools were rebuilt under the academies programme and we have fantastic buildings, it breaks my heart to see new schools opening in inadequate buildings without sports facilities, without proper access, and often with very little in the way of playground facilities. I do not have to time to go into all that, but I recommend to the Department the reports we have done on this, because it is a very big concern.

The biggest concern for me on capital funding is about asbestos. I have a very strong constituency link here. I have a constituent, Lucie Stephens, whose mother was a primary schoolteacher for 30 years and died from mesothelioma—the cancer that comes from exposure to asbestos. She should have been enjoying her retirement now, but instead she is not because she caught this disease from working in a school that had asbestos in it. We looked at this on the Public Accounts Committee. The Department for Education has reported that over 80% of the schools that have now responded to its survey have asbestos. It has estimated that it would cost at least £100 billion to replace the entire school estate—the only way, really, to eradicate asbestos from our school buildings—but in January this year, we found that nearly a quarter of schools had still not provided the information that the Department needs to understand the extent of asbestos in school buildings and how the risks will be managed. Three times now, the Department has had to go back with a different deadline to get those schools responding. The last deadline was 15 February—just over a week ago. Does the Minister have an update on that? We have suggested that it is perhaps time to name and shame those schools. I do not say that lightly, but it is a very serious issue for those concerned.

My big concern is that there is no real incentive for schools to acknowledge their asbestos and get the expensive surveys done without some understanding of where the money will then come from to resolve it. It is not something that will be urgent in every school, and some schools will last a bit longer without it. Clearly, there needs to be a long-term plan and everyone needs to know what it is. There must be a clear plan from central Government with a pot of funding that schools can bid for. As we have heard, reserves and capital funding are very squeezed—squeezed to nothing in many cases, and certainly not enough to pay for asbestos removal or for a new school building. I urge the Secretary of State to be the one who finally upgrades our school buildings so that they are all as good as those in my constituency and the one who does not allow bad free schools to open.

As I said, there are many other issues that many colleagues in all parts of the House will be raising—everything from early years through to higher education—and I look forward to hearing the Minister’s response. There is a real issue about how we debate school funding, particularly in how we talk about the numbers. We need to make sure that we are actually talking about the same numbers, and then we can move on to a discussion about policy. Unless we get the maths right, we are talking at cross-purposes.

[Several hon. Members rose—]

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[Tim Loughton (East Worthing and Shoreham) (Con)]

I congratulate the Chair of the Public Accounts Committee, the hon. Member for Hackney South and Shoreditch (Meg Hillier), on bringing forward this report. It is good that we have recently had more debating time on things to do with children in schools. We have another debate on schools funding on Monday, and we recently spoke about maintained nursery education and the false economy of not continuing to fund it sustainably. Yesterday, we had the announcement on sex and relationship education. All these things add to the pressures and costs on schools, and I am afraid that the budgets for schools just do not go up commensurately to make them possible. We have had an intelligent debate so far. It has concentrated almost exclusively on schools, but it is a little-known fact that children’s social care is an important part of the Department for Education, which comes within the scope of today’s debate, so I want to raise a few issues on this.

[Meg Hillier]

One of the challenges is that, while this is a policy responsibility for the Department for Education, the funding goes through the Ministry of Housing, Communities and Local Government and directly to local authorities. This is one of the instances in which the Government need to work together and not succumb to cost-shunting, where cuts in one area can have an impact on children’s achievement elsewhere.

[Tim Loughton]

The hon. Lady is absolutely right, and it is of course the local authorities that get the blame for not delivering the goods, even though we have not been giving them the money to do so in certain cases. There are also huge differentials in the way in which those local authorities use their money.

On children’s social care, I would like to hear more about sufficiency funding, which the Chair of the Education Committee, my right hon. Friend the Member for Harlow (Robert Halfon), mentioned, and also about a 10-year plan. Children’s most important years are the ones before they go to school—those years will shape their careers in school and beyond more than anything else—so, for goodness’ sake, if we cannot have a 10-year plan for the social care needs of our children as they grow up, what can we have one for?

I am not going to have time to talk about schools today—I shall have to reserve those comments for the debate on Monday—but I just want to make the point that all the ongoing cost pressures on schools are going to be compounded by the recent directive from the Department for Education that was sent to schools on 6 February recommending a 2% pay rise for teachers this year. That is fine, but the Department’s report stated that

“a pay increase for teachers of 2%, in line with forecast inflation, is affordable within the overall funding available to schools for 2019 to 2020, without placing further pressure on school budgets.”

I am afraid that that is just not the case. School budgets are under huge pressure, certainly in my constituency and elsewhere in West Sussex, where we have been at the bottom of the pile for funding for many years. The cumulative effect of that underfunding means that there is no fat left to cut. All the savings have been made, so even a 2% increase in teachers’ pay, if it is to be paid for by the schools, will have enormous impacts on those school budgets’ ability to provide all the other services, which I will go into in detail in the debate on Monday.

On children’s services, a report commissioned by Action for Children, the National Children’s Bureau, the National Society for the Prevention of Cruelty to Children, the Children’s Society and Barnardo’s has come out today, and it confirms what we all know about the huge shortfall in funding for children’s social care. That shortfall was also identified in the work that the all-party parliamentary group on children did in the report “Storing Up Trouble” that we produced last year. It is estimated that there will be a £3 billion funding gap by 2025. One of the alarming observations in today’s report is that spending on early intervention services for children and young people fell from £3.7 billion to £1.9 billion between 2010-11 and 2017-18. That is a 49% decrease in spending on early intervention. At the same time, local authority spending on late intervention services for children and young people has risen from £5.9 billion to £6.7 billion—a 12% increase.

This is not rocket science. If we do not spend early to prevent the problems from happening to these children, we will pay for it later. We will pay for it socially—most importantly—and also financially. It is such a false economy not to do more in those early years around perinatal mental health, around child neglect and around making children ready for school, for growing up and for society generally. Some of the biggest falls in spending have been in some of the most deprived authorities in the country, where the impact can be greater because the other support services, including family support services, are not available to help those children.

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[Meg Hillier]

I rise very briefly to thank all hon. Members who have contributed and put in such detailed preparation and to thank again the NAO for its work.

It is important that we debate the money, because ultimately that is what then shapes how policy can be delivered, and I reiterate my points made at the beginning: that we must look at the money and talk about the right baselines—per-pupil funding, not vast global amounts on different year bases, because that gives a confusing message.

The Government need to look at every area of spending and assess how effective they are being in delivering their outcomes. I may disagree with the outcomes, but it is right, as the hon. Member for Oxford West and Abingdon (Layla Moran) said, that we focus on those outcomes.

I thank hon. Members for their contributions. This is not the end of this: the PAC will continuously look at education spending, value for money and outcomes, and I know the Select Committee on Education so ably chaired by the right hon. Member for Harlow (Robert Halfon) will do so as well. So the Minister will see a lot more of us, and I put the Secretary of State on alert that we will be poring over the numbers and challenging him at every step of the way to make sure he is getting as much value as possible for the taxpayer, for our pupils and for all those who work so hard in our education system from cradle to further education and higher education in order to deliver better outcomes for young people.

Question deferred, (Standing Order No. 54).

Supplementary Estimate

Department for Work and Pensions

[Relevant Documents: Twentieth Report of the Work and Pensions Committee, Universal Credit: managed migration, HC 1762; and the Government response, HC 1901; Twenty-first Report of the Work and Pensions Committee, Universal Credit: support for disabled people, HC 1770; Twenty-third Report of the Work and Pensions Committee, Two-child limit, HC 1540.]

Motion made, and Question proposed,

That, for the year ending with 31 March 2019, for expenditure by the Department for Work and Pensions:

(1) further resources, not exceeding £880,517,000 be authorised for use for current purposes as set out in HC 1966,

(2) further resources, not exceeding £170,914,000 be authorised for use for capital purposes as so set out, and

(3) a further sum, not exceeding £1,334,611,000 be granted to Her Majesty to be issued by the Treasury out of the Consolidated Fund and applied for expenditure on the use of resources authorised by Parliament.—(Rebecca Harris.)