Education Funding

Debate between Paul Farrelly and Gareth Thomas

Tuesday 13th November 2018 Commons Chamber

[Gareth Thomas (Harrow West) (Lab/Co-op)]

I am grateful to you, Madam Deputy Speaker.

The Secretary of State’s first major test was to lead the education sector’s negotiations with the Treasury in the run-up to the Budget. On any basic evidence, he seems to have failed that test spectacularly. Not only did he fail to secure any meaningful increase in funding for our schools and sixth-form colleges, but the Chancellor of the Exchequer’s complacent language of “little extras” suggests that the Secretary of State was not even able to convince the Treasury of the scale of the funding needs of the school system in England, which is profoundly worrying when the comprehensive spending review negotiations are beginning.

I give credit to the Minister for School Standards and the Minister for Apprenticeships and Skills, who has responsibility for sixth-form colleges, for being willing to receive deputations of Harrow headteachers, including the principal of St Dominic’s Sixth Form College. I am grateful to both Ministers for the way in which they listened to the concerns of professionals in my constituency.

I have been given information that underlines the concerns of those headteachers, but first I will set out the broader London perspective, which reflects some of the concerns raised in interventions by London colleagues about the financial crisis facing many of our capital’s schools. London Councils’ analysis of the provisional school funding allocations for 2019-20, which were announced in July and appear to follow a similar structure to the 2018-19 formula announcements, shows that London schools will receive a lower proportion of funding across 2018-19 and 2019-20 than those in any other region of the country. Some 70% of schools in London will receive the minimum—a 1% increase per pupil—between 2017-18 and 2019-20, compared with just 39% of schools across the rest of England. Fifteen boroughs in the capital will see more than 90% of their schools receive the floor of a 1% rise per pupil across these two years. In comparison to the 2018-19 allocations, 21 out of London’s 32 boroughs are in the lower half of schools’ block increases, and two of the four local authorities in the country that are expected to see a funding decrease are London boroughs, including, crucially, my own London Borough of Harrow.

Headteachers in the borough report to me that they face significant financial pressures: non-teaching pay awards; rises in non-teaching pension costs; the impact of the apprenticeship levy; and concerns about whether the funding for teaching pay awards and incremental pay rises for teachers will be provided from central Government. These all point to an average annual cost increase in Harrow of more than £70,000 for primary schools and more than £200,000 for secondary schools. At the same time, funding, notably for the pupil premium grant, is reducing for the average school in Harrow, so schools in Harrow are estimated to be losing some £80,000 a year in income and are profoundly worried as a result. Given that, on average, a teacher costs approximately £50,000 per annum, Harrow Council’s analysis suggests that the funding pressures facing each primary school in Harrow amount, on average, to the equivalent cost of one to two primary school teachers. For secondary schools, it is the equivalent of four secondary teachers per annum.

That assumes that, on average, school budgets are cash-flat. In Harrow, some 25% of schools—14 out of the 54—are currently protected by the minimum funding guarantee, which means in practice that they will lose 1.5% of their per-pupil budget per annum. That could equate to a cash reduction of a further £20,000 to £30,000 per annum. The Secretary of State and other Government Members might like to hide behind the idea that there have been record funding increases, but on the ground in Harrow, headteachers and governing bodies report substantial financial pressures. Similarly, local authorities report profound concerns about the rising demand for high-end special needs funding, and it would be good to hear—

[Paul Farrelly]

My hon. Friend may have seen a piece in The Observer at the weekend about the crisis across the country in special needs education. My county council has just announced a review, and we fear the worst—it is already removing special needs allowances for mainstream schools. Does he agree that it is time that the Government launched a review of how special needs are met across the country in order to inform a coherent policy and provision?

[Gareth Thomas]

My hon. Friend makes a good point. The key thing is that extra money needs to be found immediately for special needs provision, particularly high-end provision. Like Harrow Council, many local authorities—particularly in London, but clearly around the rest of the country—are profoundly worried about that. I suspect that the Secretary of State knows full well the scale of the pressures facing headteachers in this country. It would be good to hear from the Minister for School Standards in his winding-up speech what his Department will do about that in negotiations with the Treasury.

Higher Education Policy

Debate between Paul Farrelly and Gareth Thomas

Wednesday 27th April 2011 Commons Chamber

[Mr Thomas]

My hon. Friend is absolutely right that our students or would-be students face huge uncertainty about the fees that they will incur. Perhaps if the Government had published the White Paper that they promised to publish even early this year, her constituents might have had just a little bit of certainty. Is not the truth that Ministers in the Department for Business, Innovation and Skills have failed to stop other parts of Government creating huge uncertainty for Britain’s universities, thereby creating incentives for fees to be higher rather than lower?

[Paul Farrelly]

When the Government say that universities will be allowed to charge fees of £9,000 only in exceptional circumstances, is it not incumbent on them not only to say what control they will exert to turn down the 40% to 50% that will want to charge £9,000 anyway, but to tell the House how they will square the circle and make up the funding that universities will otherwise lose?

[Mr Thomas]

You would think that it was indeed incumbent on Ministers to do that, Mr Speaker, but so far they have not done so. Ministers need to publish the White Paper to give us some certainty. Thus far, it does not look as though they intend to do that any time soon.

There is also continuing uncertainty about how the remaining teaching grant will be allocated, if indeed some universities get any at all. As Opposition Members have made clear, it is the huge cut to university teaching funds and to capital that continues to drive fees higher. Surrey university’s vice-chancellor, Professor Christopher Snowden, has said that his university’s plans to charge £9,000 reflected the financial uncertainties for English universities and the substantial cuts that the Government have made to grants for teaching and building refurbishment. The university of Sheffield Hallam, which the Deputy Prime Minister may know something about, has said:

“The new fee will compensate for the government’s 80% cut in our teaching grant and the significant cuts in capital funding.”

The Government based their financial plans on average fees of £7,500. In the face of such uncertainty, it should come as no surprise that many expect average fees to be somewhat higher. Indeed, as I made clear in my interventions, the Secretary of State has confirmed that the Government are considering either a cut in student numbers or an even greater cut in the teaching grant as tools to plug the funding gap. Either he was scaremongering or the threat was real. Because the Government have lost control of higher education policy, if we take the Secretary of State at his word, then on top of an almost 80% cut in university teaching funds and a 20,000 cut in student places already, we face the prospect of our universities being starved of even more income, or more of the brightest and best of the next generation being denied the chance to better themselves through a place at university.

Frankly, watching Ministers on tuition fees has become increasingly like watching a bad episode of “Only Fools and Horses”, with Front Benchers desperately trying to sell any old line on tuition fees to people whom they clearly think are gullible punters. The right hon. Member for Havant (Mr Willetts)? The Department’s very own Rodney Trotter. Grumpy old Uncle Albert, with his best years behind him? Who else but the Secretary of State? And Derek “Del Boy” Trotter? It has to be the Deputy Prime Minister: never selling the real McCoy, never telling the whole truth—inadvertently, of course—a dodgy promise here, there and everywhere, and all his best deals done down the Nag’s Head with Boycie the spiv. Talking of whom, where is the Prime Minister for this debate?

“I’m sorry, we rushed into this and we got it wrong”—I paraphrase the Secretary of State for forests. “We’re going to have a pause, listen to people’s concerns and make changes”—the Secretary of State for Health, never mind the fact that his mea culpa is just an advertising gimmick. Either his lines or those of the right hon. Member for Meriden (Mrs Spelman) would have been a more appropriate starting point for the Minister this afternoon. He should have said, “I’m sorry, better access to university looks unlikely, despite our great promises.” He should have said, “I’m sorry, we thought OFFA could control fee levels. We were wrong.” And he certainly should have said, “I’m sorry that we were so spectacularly wrong when we claimed that only a few universities would charge the full £9,000.”

This is a policy in need of a radical overhaul. Trebling tuition fees was never fair. It was not necessary and neither is it sustainable. I commend our motion to the House.