School Funding

Michelle Donelan Excerpts

Wednesday 25th January 2017 Commons Chamber

[Mary Creagh]

No, I am not giving way.

Fair funding should mean a levelling up, not a levelling down. Every school in my constituency will see their funding cut under the Secretary of State’s proposals. The manifesto promise to protect education spending has been broken, as we have heard from my hon. Friend the Member for Liverpool, West Derby (Stephen Twigg). The Government have not provided for funding per pupil to increase in line with inflation; have not accounted for the increase in pupils attending schools; and have not considered the costs of higher national insurance and pension contributions, which now have to be absorbed by the school budgets. When the efficiency savings are factored into the funding formula, funding in Wakefield per pupil will fall from £4,725 this year to £4,211 in 2019-20—a real-terms cut of 11%.

[Michelle Donelan (Chippenham) (Con)]

Will the hon. Lady give way?

[Mary Creagh]

I will not give way.

Nine maintained schools across Wakefield district are projected to be in deficit by 31 March, which means increased class sizes, subjects dropped from the curriculum, pupils with special educational needs and disabilities losing vital support, and teacher vacancies left unfilled.

There will also be a very worrying impact on special educational needs. At the moment, there is some flexibility to move money around and to move it into the high needs block. Under the new formula, there will be disruption and uncertainty around special needs funding for cities such as Wakefield. The funds are simply not enough for children in our city who need that extra support.

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[Justin Madders (Ellesmere Port and Neston) (Lab)]

First, I should declare an interest, as my two children attend a local school that is affected by the cuts. My wife is the cabinet member for children and young people on our local authority of Cheshire West and Chester. By happy coincidence, my local council has an exceptional record on education, with over 90% of schools rated “good” or “outstanding”. Not one school is “inadequate”.

All that good progress, however, could be jeopardised if the planned reductions to funding are implemented. The extent of the reductions in both the lump-sum allocations and the basic per pupil amount will remove almost £7.9 million from schools in Cheshire West and Chester. That equates to a 2% cut across the board, with the biggest losers facing a cut of just under 3%. Thirty-two of 33 schools in my constituency will not maintain their per pupil funding in cash terms, contrary to what the Government promised. With that in mind, I wrote to local schools in my constituency to ask what they thought. I am extremely worried by the responses that I have received.

Ellesmere Port Catholic High School has seen huge improvements since being placed in special measures in 2013. The headteacher and the school worked exceptionally hard to turn things around, and in June 2015 they were awarded a “good” rating. So impressive was the improvement that the chief inspector of Ofsted, Sir Michael Wilshaw, referred to the school in a speech he made in November 2016 about schools that have made remarkable transformations, stating:

“At Ellesmere Port Catholic High School, only a third of pupils achieved 5 good GCSEs. Now almost three-quarters do”.

Those improvements should be applauded, so I was deeply concerned to learn that the school is projecting funding deficits for the next few years, which will threaten the improvements it has made. It tells me that early indications show a £44,000 annual reduction from 2018-19, on top of the deficit already forecast. That will make the approved deficit reduction plan completely unachievable unless cuts to staffing are made. The headteacher told me,

“we are already stretched to the limit and it is a very bleak outlook knowing that we will have to make further reductions...the Government must invest in schools for the sake of our children and future.”

Whitby High School told me that it could face a funding reduction of £111,000. By 2020, the School Cuts campaign estimates that it could be facing a 10% real-terms budget cut, equivalent to a staffing reduction of 17 if savings are not found elsewhere. Governors of Little Sutton Church of England Primary School told me that they are very concerned about the school’s future sustainability following the new funding arrangements. Cambridge Road Primary School has told me that since 2013 it has already experienced a real-terms reduction in income of 4.4%, or £65,000; and that, combined with wage increases and inflation, the real-terms reduction has been in excess of £100,000.

[Michelle Donelan]

Will the hon. Gentleman give way?

[Justin Madders]

I am sorry, but I do not have time.

St Mary of the Angels Catholic Primary School has estimated that by 2019 its budget will be down by £90,138, which could clearly lead to a loss of staff if savings are not found elsewhere.

This is a terrible situation for local schools. As one headteacher said to me,

“it does appear that the ‘fairer’ funding model being discussed is far from fair.”

I could not have put it better myself.

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[Jim McMahon (Oldham West and Royton) (Lab)]

Unsurprisingly, I am here to speak for the children of Oldham, who, under these proposals, will be significantly affected by money being taken away from their much-needed education. I should declare an interest: I have two young boys, one at secondary school and one at primary school, both of whom will see cuts—

[Michelle Donelan]

Will the hon. Gentleman give way?

[Jim McMahon]

I am going to carry on for a time because I am conscious that other people want to speak.

Both of them will see real-terms cuts to their education provision, as will another 60,000 young people in the town. Every single one of Oldham’s 99 schools will see a cut, with the average being 9%. We are meant to be an opportunity area. According to the Government, the roads are paved with educational opportunity gold. They say that they have recognised that there are issues and are determined to turn things around, so we should welcome the investment of £16 million. Unfortunately, they then come and take £17 million away. So let them tell me, and tell the young people, parents and teachers in Oldham, where the new money is. How can we turn around educational attainment when the problem is so deep-rooted and the situation is so unequal—when education has not been valued in previous years and we are desperate to realise the opportunities that these young people deserve for the future? Let the Government tell Oldham how it has a positive future when the rungs are being taken from under it.

We have seen money being taken away from early years. We have seen nearly £1 million taken away from a sixth-form college. We have seen £3.5 million taken away from Oldham College. Time and again, money is being taken away. I do not resent for one second any other Member of this House saying that their area needs more money to provide a decent standard of education. If they represent a Tory shire, then that is fantastic—they can make that case and I will support them in doing so, but not at the cost of children, and their families, who have been let down for generations, and who need this chance more than most.

The world is more complex than it has ever been. The skills that people need will be more complex than ever before, but people are being set up to fail under this model. I make this plea: next time the Secretary of State visits Oldham and my constituency, instead of just giving a courtesy notice, why not attend a roundtable with the headteachers and the governors to really listen and understand the impact of these cuts? If the Government really do care, let us have fewer words, more action, and more investment.