School Funding

Mike Kane Excerpts
Wednesday 24th October 2018

(5 years, 8 months ago)

Westminster Hall
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Mike Kane Portrait Mike Kane (Wythenshawe and Sale East) (Lab)
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It is a pleasure to serve under your chairmanship, Mr Betts. I congratulate the hon. Member for St Albans (Mrs Main) on securing this timely debate a few days before the Budget. She has stood up for schools in Hertfordshire, which have faced and are facing a £33-million cut since 2015. She is right to defend the schools in her constituency. While reading out the parliamentary Labour party brief, as my hon. Friend the Member for Harrow West (Gareth Thomas) pointed out, she also alluded to the disingenuousness of the statistics that have come from the Department. That was also alluded to by the hon. Member for Oxford West and Abingdon (Layla Moran).

The Department is fast becoming the ministry for dodgy stats. We have heard that we have the third highest spend in the OECD, which was knocked back because it included private school fees and other items. We have heard that there is more new money for our schools, which was knocked back by the Office for National Statistics. We have also heard that 1.9 million children are in good or outstanding schools. I am desperate to see whether the Minister repeats that, because it was pulled up by the UK Statistics Authority. The Minister must have forgotten to tell the Prime Minister that though, because she repeated the stat in Prime Minister’s questions. We have heard that the Government will fully fund the pay rise—another dodgy stat for teachers up and down our country.

Lilian Greenwood Portrait Lilian Greenwood
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Does my hon. Friend agree that the Government’s disingenuous attempts to override the statistics are failing, because parents, pupils and teachers know precisely what is happening? That is why I welcomed children and parents from SOS East Midlands to Parliament a fortnight ago. They know that 82 out of 84 schools in Nottingham city face cuts, including every single school in my constituency, they know that their children’s schools are losing an average of £296 per pupil, and they say that that is not good enough. It has to be addressed in the forthcoming Budget.

Mike Kane Portrait Mike Kane
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My hon. Friend articulates the point for Nottingham city brilliantly, as my hon. Friend the Member for York Central (Rachael Maskell) did for York, where 32 schools are facing cuts.

The hon. Member for St Albans also talked about special educational needs and disability—SEND—which is vital. Last year alone, 20,000 children were off-rolled because of it. She talked about a school in her constituency, the Links Academy, which takes in many off-rolled children, but we lost 20,000 to the system. My hon. Friend the Member for Plymouth, Sutton and Devonport (Luke Pollard) highlighted that problem with regard to mental health too—we do not know where 10,000 of those children are in the system. In an age when we have criminal child exploitation going through the roof and the running of county lines, the school system does not know where 10,000 children are.

The Institute for Fiscal Studies has stated that the stats that we have heard used are simply not accurate, and the UK Statistics Authority has rebuked the Education Secretary for his inaccuracy. The figures quoted by Education Ministers attempting to defend their pitiful record on state school funding included money spent by parents on private school fees. There has been a concerted effort by the Secretary of State and the Minister to fudge the figures and deflect attention away from the cuts to school funding that they have presided over.

Let us assess the facts. Some £2.8 billion has been cut from school budgets since 2015, and we will find out in a couple of weeks that that will be a lot more. That means that 91% of schools are facing real-terms budget cuts per pupil. For the average primary school, that will be a loss of about £50,000 a year. For the average secondary school, it will be a loss of about £178,000 a year. But those figures are based on last year’s data. When can we expect the Department to release the schools block funding data for 2018-19? With the inclusion of those figures, it is likely that the outlook for our schools will be even bleaker.

Perhaps the Minister will try to deflect the House’s attention away from the reality of the impact of his Government’s cuts to school funding again, but hon. Members already know the impact on the ground all too well, as headteachers and parents are telling us about it. It is right that we are well represented by the hon. Members from West Sussex, the hon. Members for East Worthing and Shoreham (Tim Loughton) and for Chichester (Gillian Keegan). The hon. Member for East Worthing and Shoreham said that schools are x millions of pounds down in that borough in his constituency. I have the statistic: they are £8.9 million down based on last year’s data. It will be interesting to see what next year’s data will be when the Minister releases the block funding grants. The Minister’s own schools are threatening a four-day week because of the funding cuts.

We know that the £1.3 billion of additional funding announced by the Secretary of State is nowhere near enough to reverse the £2.8 billion that has been cut since 2015. We also know that none of the money announced so far is actually new money for education. While I, of course, support the principle that all schools should receive fair funding, the answer is not to take money away from existing schools and redistribute it. A fair approach would be to apply the lessons of the best-performing areas in the country to schools everywhere. A fair approach would look objectively at the level of funding required to deliver in the best-performing schools, particularly in areas of high deprivation, as my hon. Friend the Member for York Central pointed out, and use that as the basis for a formula to be applied across the whole country.

The F40 group, which includes my constituency of Trafford, has told us that school funding requires an injection of £2 billion to meet the needs of all schools, and that an early indication is that the shortfall for 2019-20 will be £3.8 billion. Schools need to see plans for the funding formula beyond 2020. They need a three to four-year rolling budget settlement so that they can plan for the future with confidence, and any settlement should take into account inflation, the cost of living increases and the wage and national insurance increases that have been pointed out by several hon. Members.

When will the Secretary of State and the Minister remove their heads from the sand and begin to truly hear the voices of schools, teachers, parents and Back Benchers from across the country? If that does not happen soon, our children’s education in St Albans, Harrow, Plymouth, York and West Sussex will continue to lose out.

--- Later in debate ---
Nick Gibb Portrait Nick Gibb
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I am sure that that is the case.

I congratulate my hon. Friend the Member for St Albans (Mrs Main) on securing this important debate. It is always interesting to follow a Labour spokesman talking about school funding. It was the Labour Government who left the coalition Government with a record public sector deficit of £150 billion, which is equal to 10% of GDP—on the brink of collapse—an economy in recession and high unemployment. We have reduced that deficit to under 3%, we have the lowest level of unemployment since the 1970s and we have halved youth unemployment to record low levels. The hon. Member for Wythenshawe and Sale East (Mike Kane) should be more careful when he talks about public finances.

This debate is timely, given the looming Budget next week. I am sure that everybody has listened carefully to my hon. Friend the Member for St Albans and other hon. Members who have spoken. We are determined to create an education system that offers opportunity to everyone, no matter what their circumstances or where they live. That is why we have delivered on our promise to reform the unfair, opaque and outdated school funding system by introducing the national funding formula for schools, which previous Governments had shied away from doing, including the previous Labour Government.

The introduction of the national funding formula means that this year, for the first time, funding was distributed to local authorities based on the individual needs and characteristics of every school in the country. This historic reform is the biggest improvement to school funding for a decade and it is directing resources to where they are needed most.

This Government want to ensure that all children receive a world-class education, and we have made significant progress. More schools than ever before are rated good or outstanding; 86% of schools are now rated good or outstanding, compared with—

Mike Kane Portrait Mike Kane
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Will the Minister give way?

Nick Gibb Portrait Nick Gibb
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I will not give way.

That figure compares with 66%, which is what we inherited from the previous Government. The attainment gap is beginning to close and we have launched 12 opportunity areas to drive improvement in parts of the country that we know can do better. Children’s reading ability is also improving. We have risen from joint tenth in the reading ability of nine-year-olds to joint eighth in PIRLS, the progress in international reading literacy study.

However, we have made those achievements against a backdrop of inheriting an unfair method of distributing funding, which has hindered and not helped progress. Across the country, schools with similar pupil characteristics used to receive markedly different levels of funding for no good reason, meaning that the right resources did not reach the schools that needed them most. That is why it is so important that we have delivered on our promise to reform the unfair school and high-needs funding systems and introduced a national funding formula.

Schools are already benefiting from the gains delivered by the national funding formula. The formula has allocated an increase for every pupil in every school this year, with increases of up to 3% for underfunded schools. Next year, those schools that have been historically underfunded will attract increases of up to 6% more per pupil compared with 2017-18, as we continue to address historic injustices.

The constituency of my hon. Friend the Member for St Albans will attract gains of 2.5% per pupil under the formula next year compared with 2017-18, which is an extra £3.1 million for schools in St Albans when rising pupil numbers are taken into account. Of course, how that money is allocated will depend on the local authority. Special needs funding in Hertfordshire will rise by £4.4 million this year, rising to some £107.9 million.

I listened very carefully to the hon. Member for Harrow West (Gareth Thomas), and of course I would be delighted to accompany him on a visit to schools in his constituency and to meet headteachers.

My hon. Friend the Member for East Worthing and Shoreham (Tim Loughton) has attended many of these debates on school funding, as he pointed out, and made calls for a fairer funding system. He has been successful in that respect; he should acknowledge his own success in putting the case for schools in West Sussex, because they have seen an increase in the funding allocated to them. How it is allocated on a school-by-school basis will depend on West Sussex, but the funding that it has received for schools in my hon. Friend’s constituency for 2019-20 has risen by 5.5% compared with 2017-18.

My hon. Friend and constituency neighbour the Member for Chichester (Gillian Keegan) was right to point to improving standards in her constituency and she was also right to refer to special needs funding, which I will come to. Under the national funding formula, the amounts allocated to schools in her constituency will rise by 3.4% in 2019-20 compared with 2017-18.

I was interested to hear about the “Politics and Pastries” roundtable that the hon. Member for Plymouth, Sutton and Devonport (Luke Pollard) held. I would love to have been there; nevertheless, I would be delighted to meet headteachers from his constituency at some point very soon. Pupils in Plymouth will be funded on the same basis as in the rest of the country, despite what he said, under the national funding formula. That is the whole purpose of the national funding formula: based on the same needs, those pupils will receive the same amount. The hon. Gentleman referred to the gains cap, which ensures that changes in funding can be smoothed over the years under the national funding formula. Approximately 75% of schools that gain under the national funding formula—those that were historically underfunded—will be fully on their national funding formula figure by 2019-20.

The hon. Member for York Central (Rachael Maskell) raised the issue of York’s position in the national league tables of school funding, but I should point out to her that the amount allocated to schools in her constituency will rise by 5.4% in 2019-20, compared with the baseline of 2017-18. We have made a significant—

Mike Kane Portrait Mike Kane
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Will the Minister give way?

Nick Gibb Portrait Nick Gibb
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No, I will not give way, because I am running out of time.

Mike Kane Portrait Mike Kane
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rose—

Clive Betts Portrait Mr Clive Betts (in the Chair)
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Order. The Minister is not giving way.