Academies (Funding)

Debate between Mike Hancock and Nick Gibb

Thursday 16th June 2011 Commons Chamber

[Mr Gibb]

I think it is rich when former Education Secretaries attack us for this policy. We are talking about a system that this Government inherited from the previous Government, and we are trying to sort it out. We will look at every instance of underfunding or overfunding of academies on a case-by-case basis. We want to reach a position where all schools and academies in this country are funded through a fair, simple and transparent process.

[Mr Mike Hancock (Portsmouth South) (LD)]

We can all accept that the problems that have occurred are the fault of the regime in place under the last Labour Government, but can the Minister give me an assurance that he will put in place a replacement formula, so that the next tranche of academies will not suffer from the same inconsistencies, and local authorities, which will continue to service other schools, will not experience a detrimental cut in their allowance?

Academies Bill [Lords]

Debate between Mike Hancock and Nick Gibb

Monday 26th July 2010 Commons Chamber

[Mr Gibb]

The amendments would collectively have the effect of increasing the burden of regulation associated with the academy conversion process. They propose several sets of regulations as well as a requirement that academy orders be made by statutory instrument. Hon. Members will recognise that that would take the Government’s policy in the opposite direction from our proposals. We want to deregulate when regulatory burdens are not only stifling innovation, but costing time and therefore money to achieve compliance. We want to give schools freedoms to allow them to focus on raising standards. Adding bureaucracy to the process is the last thing that we want.

Amendments 81 and 82 would introduce regulations that prescribed the contents of applications for academy orders and the criteria that the Secretary of State applied when deciding whether to make them. We do not believe that it is appropriate to regulate the contents of applications for academy orders. The Department already provides clear guidance on its website about the conversion process and the various steps that a school needs to take. The website also includes an application pro forma, which covers all the necessary information to enable a decision to be made. The Government have made it clear that they will apply a rigorous fit and proper person test in approving any sponsors of an academy.

The Secretary of State will consider applications from schools that wish to become academies and, in each case, confirm whether he is content for the conversion proposal to proceed to the next stage. If he is, he will make an academy order. In doing that he will, of course, take account of the relevant information before him, but he expects to approve most applications from outstanding schools. Those schools will make up the first wave, and we will publish the criteria for other applicants—the next wave—on the Department’s website.

Before issuing an academy order, the Secretary of State will undertake checks to ensure that the school is in a position to become an academy. That is important because academies operate with greater autonomy than other schools and need to be in a secure position to do so. We will check whether there has been any significant change since the school’s last outstanding Ofsted rating.

[Mr Mike Hancock]

Does my hon. Friend anticipate the criteria being changed from those that are currently applied to the raft of academies that is going through the process and the academies that he expects to go through shortly? Will the basic criteria be changed for future academies? He suggested that they would be published, but how different will they be?

[Mr Gibb]

The criteria will be different because the fast-tracking is confined to schools that are graded outstanding. When they have gone through the process, we will relax the criteria to enable other schools to do so. My hon. Friend will recall that the Secretary of State sent letters to all schools in the country. The criteria that I just mentioned apply to fast-tracking. There will be different criteria for the process once the first wave has gone through.

Issues that the Secretary of State will check include whether the school has a substantial budget deficit, whether there are PFI arrangements relating to the school and whether the school is already part of reorganisation proposals. Depending on the outcome of discussions, that may have a bearing on whether and when the Secretary of State can approve an outstanding school’s progression to the next stage. When an academy order is made, the Secretary of State must give a copy to the governing body, the head teacher and the local authority. If the application is rejected, the Secretary of State is required to inform the governing body, the head teacher and the local authority of his decision and the reason for it. It will therefore be transparent and clear why and when a school will be permitted to convert and when it will not.

However, the first stage of the process—the academy order stage—is just that: it permits a school to convert, but does not require it to do so. We need to be clear that, for many proposals, the greater detail and the final stage of the process will come later, when the Secretary of State decides whether to enter into a funding agreement with a proposed academy. It is only on signing the funding agreement that the conversion becomes legally binding. We therefore believe that prescription of the form and content of academy orders in secondary legislation is unnecessary and too bureaucratic.

An academy order is the means whereby a school’s conversion into an academy is enabled. The intention behind amendment 83 is that an academy order be made by statutory instrument, which would have to be laid before Parliament. Academy orders are intended to be the legal means whereby an individual school converts to academy status. They will contain key pieces of information that are pertinent to the conversion, but are highly specific to the circumstances of each school. It would not be a good use of Parliament’s time to require each order for each and every school to be tabled. The use of the negative resolution procedure would also be highly disruptive to any school, since the period of 40 days during which the order could be prayed against in this House or the other place would leave the school with no certainty about whether the conversion could go ahead.

In any event, the hon. Member for Gedling (Vernon Coaker) will be interested to know that the Lords Delegated Powers and Regulatory Reform Committee issued a report on the Bill, dated 17 June. I am sure that he knows it well, given that he has been so assiduous in scrutinising the Bill and all the accompanying documents. As he predicted, it states about the provision:

“this seems to us to be reasonable. Each order affects only one school and there is provision for those affected to be provided with copies. We agree… that these Orders are not really legislative in character and we see no reason why Parliament would want to have any control over them.”

For those reasons, I urge the hon. Gentleman to withdraw the amendment.

Academies Bill [Lords]

Debate between Mike Hancock and Nick Gibb

Wednesday 21st July 2010 Commons Chamber

[Mr Mike Hancock]

Will the Minister explain the position on excluded children? He has intimated that academies will be expected to take a quota of excluded children. Does that mean excluded or difficult-to-place children in the school’s normal catchment area, or a general quota of children who are difficult to place in the local education authority area?

[Mr Gibb]

They will be subject to the same fair access protocols that have been agreed by other schools in the area. The position will be no different from the one that existed before the school became an academy.

It seems unreasonable to deny existing selective schools freedoms, or to require them to change their nature fundamentally before being granted those freedoms. For clarification, we are not allowing non-selective schools to begin selecting by ability; we are merely facilitating a change in status for existing maintained schools, including those with academic selection.

[Mr Gibb]

I will deal with that, but I want to respond to all the points in order.

My hon. Friend the Member for Altrincham and Sale West (Mr Brady) tabled amendment 49. I pay tribute to him, not just because he is chairman of the 1922 committee, and therefore chief of the men in suits, but because of his highly principled support for grammar schools in his constituency and elsewhere in the country. I was hugely impressed by the quality of education in Trafford. I visited Wellington high school, which has GCSE results that many comprehensive schools throughout the country would envy. From memory—I visited the school a few years ago—67% of pupils gained five or more GCSEs including English and maths, and that school had experienced 40% of the most able children going elsewhere. I also visited Ashton on Mersey school, which is exemplary, as well as Trafford grammar school for girls, which impressed me.

Amendment 49 would directly apply sections 105 to 109 of the School Standards and Framework Act 1998 to wholly selective academies. That legislation governs the mechanisms for removing selection from maintained grammar schools either through parental ballot or by the governing body introducing proposals to remove selection. Neither the grammar school ballots legislation nor current provisions that allow governing bodies of grammar schools to introduce proposals to remove selection apply to academies. We do not believe that that means that academies have fewer protections than maintained schools when removing selection is an issue. Indeed, one could argue that the ballot mechanism gives parents a route to removing selection in maintained selective schools. I listened to my hon. Friend carefully, and although the amendment might protect selection when that is the wish of parents, we do not believe that it could necessarily frustrate statutory proposals to remove selection that the governing body of a maintained selective school made. He knows that the ballot process has a high trigger threshold, requiring a petition from at least 20% of the eligible electorate.

The Government’s arrangements for academies are a more significant protection of the ethos of any school, including selective schools. I want to go into some detail about that because it is important. Outstanding schools that convert will essentially be self-sponsoring. That means that existing governors will become the new academy trust. In the case of a foundation school with a foundation—a grammar school with an ancient foundation—that converts to academy status, the foundation will be responsible for appointing the majority of governors on the governing body of an academy, a greater proportion than currently exists in a maintained school. That will make it possible for the foundation to maintain the academy’s ethos, including its selective ethos, over an extended period.

[Mr Mike Hancock]

Will the Minister give way?

[Mr Gibb]

I will in a moment. This section of my speech is fairly technical, and I want to finish it before I give way again.

A similar arrangement would apply in the case of a foundation school without a foundation—in other words, a grammar school that is essentially a community school. The current governors would decide on the members of the academy trust. The members would be responsible for appointing a majority of the governors to the governing body by electing members who are committed to a selective ethos. That ethos would be maintained over time, because—in theory and, I suspect, in practice—they would appoint a majority of governors who were similarly committed. We are nevertheless committed to ensuring that the same rights are afforded to parents, and the same rights and protections are afforded to grammar schools on conversion, as were enjoyed while the school was a maintained school.

I hope that that reassures my hon. Friend to some extent. No doubt he will intervene, either now or later, if he needs further reassurance.

--- Later in debate ---

[Mr Gibb]

I am grateful to my hon. Friend. I hope that I can be equally successful with other hon. Members.

Amendment 24 has a similar intention, in that it seeks to make it a statutory duty for academies to take part in their local in-year fair access protocol. Fair access protocols are established by the local authority, and the requirement to take part in them is set out in the school admissions code. Since participation is a requirement of the admissions code, it is applied to academies in the same way as other aspects of the code, through the funding agreement. That means that academies, along with all maintained schools in a local area, will take their fair share of hard-to-place pupils, including those who have previously been excluded from other schools. The funding agreement is crystal clear about the compliance requirements, and the amendments are therefore unnecessary.

[Mr Mike Hancock]

I am fascinated by the concept that certain processes will enable a grammar school that becomes an academy to manoeuvre around the selection rules. According to the Bill, the majority of pupils will come

“wholly or mainly… from the area in which the school is situated.”

That could be a very successful grammar school currently drawing its pupils from a wide area. Would the criteria be the same for an existing grammar school that becomes an academy, or would there be a specific designation? Would they be treated the same as any other school, consequently losing quite a number of pupils because it will undoubtedly be the case that when a grammar school becomes an academy without the prerequisite of being able to select under this system, it will be inundated with pupils and a lot of existing pupils will probably be forced to leave the school? I therefore ask the Minister to explain how this will work.

[Mr Gibb]

There is no change from the current situation. The catchment area of a grammar school after conversion to an academy will be the same as it was before. [Interruption.] Yes, this Bill does not seek to change any of the admissions arrangements or admissions appeal arrangements for schools, including selective schools. All it is allowing is successful schools—or, indeed, any school—to convert to academy status. We have been very clear about, and very conscious of, wanting to apply all the admissions arrangements. Therefore the code, the fair access protocols and the co-ordinated admissions systems will all still apply in the same way as when the school was a maintained school.

The final amendments in this group relate to faith admissions and faith designation. The Bill seeks to maintain the status quo on faith schools. There is nothing in this Bill that will make it easier for there to be an increase in the number of faith schools, or that seeks to change their character, but we do believe that faith schools should have the same chance to become an academy as any other maintained school.

Amendment 42 would require that no academy could select pupils on the basis of their faith, and it would effectively bar academy status for faith schools. As many Members on both sides of the House are aware, faith schools play an important role in this country’s education system, often providing high-quality education for their children, as my hon. Friend the Member for Banbury (Tony Baldry) explained so well. Parents value the role that faith schools play and many parents actively seek out a place at such a school so they can obtain an education for their children in accordance with their religious beliefs, which is one of the principal tenets of the Education Act 1944, as my hon. Friend also pointed out. Although many schools maintain a faith ethos without giving priority for admission based on a child’s faith, others maintain their strong religious ethos by ensuring that a significant proportion of their children are faith adherents. While we wish to ensure that new faith academies serve their broader communities, forcing existing schools to change admissions arrangements that may have been operating successfully for a number of years just because a school converts to become an academy would be unfair to those parents who chose the school on the basis of its religious character and ethos.

Amendment 43 also seeks to cap faith admissions by limiting the proportion of faith admissions in an academy that was previously a voluntary controlled school to the level prior to conversion. Voluntary controlled schools generally have a religious character. That means that although many do not prioritise children based on their faith, they are permitted to have faith-based over-subscription criteria. As maintained schools, they can increase the proportion of faith places through a local process of consultation and determination of admission arrangements. We wish to maintain the status quo in this respect, rather than be more restrictive. Therefore, academies that were previously maintained faith schools, including voluntary controlled schools, will be able to consult local people on changing their admission arrangements. Consultees will, however, retain their current rights of objection if they disagree with those changes.

Finally, we do not believe that amendment 44 is necessary or appropriate. We do not agree with its proposal that faith schools seeking to convert should have to go through an additional application simply to stay as they are, nor do we agree with its proposal that any non-faith maintained school should be barred from obtaining a faith designation as an academy. Any academy can currently apply to the Secretary of State for a faith designation provided that the relevant tests set out in existing legislation are met. Again, we want to retain the current provisions. I can, however, give the assurance that entirely new faith academies—by that I mean those that do not have a predecessor maintained school with a religious character—will be required to offer 50% of places to pupils from the community with no test of faith. I hope that provides some reassurance. I believe that the existing procedures for designating faith schools and the role of the funding agreement in regulating academies should provide sufficient safeguards for parents.