School Funding

Ranil Jayawardena Excerpts

Wednesday 24th October 2018 Westminster Hall

[Mrs Main]

If the hon. Lady secured a debate on CAMHS, I would attend it. I can testify that many parents in my constituency experience issues with CAMHS.

Staff and staffing costs are under severe pressure. Schools cite increased staffing costs, and the amount of their budget that those costs take up, as their main concern. WorthLess? surveyed headteachers as part of its fairer funding campaign and found that 60% had had to reduce their staff by one or more to balance their budget. That goes back to the pressures I mentioned.

Sandringham School in my constituency, which hosted the public meeting I attended—it was quite a rocky meeting, but I said I would bring back people’s concerns—explained to me its issues with staff pay rises, national insurance and pension contributions, and teacher recruitment shortfalls. Many schools across the country are grappling with those four key issues. In an area such as mine, where house prices and the cost of living are very high, wages sometimes just cannot keep up so that teachers are able to live in the constituency and work in its schools.

[Mr Ranil Jayawardena (North East Hampshire) (Con)]

I congratulate my hon. Friend on securing this important debate. Although I welcome the extra £3.5 million per annum for North East Hampshire’s schools as a result of funding adjustments, there is still a big divergence in per-pupil funding across the country. That is entirely in line with her point about the cost of staffing, which has no relationship with per-pupil funding, given the high cost of living in Hampshire and elsewhere. Does she agree that it is important that future funding formulas take proper account of the cost of living?

[Mrs Main]

As a former teacher, I know that there are teachers who argue vociferously for universal pay standards across the country and dispute the need for pay to reflect local house prices and so on. That is a debate for another day. However, teachers in my area say—this is awful, but I accept it—that when a valued, top-of-the-range headteacher or head of department goes, there can be a small, collective sigh of relief in the budget department because that means the school can take on a younger, less experienced teacher on a lower pay scale and the budget suddenly becomes a little looser.

It is demoralising for a school not to be able to reward and keep high-value staff because it simply does not have the money to pay them. I am experiencing that cycle in St Albans, where staff are hard to retain. Although it is great to have bright young things—I was one of those once—coming through the door, with all the enthusiasm they bring to teaching, there is nothing like an experienced head of department.

There is widespread unhappiness about the handling of the recent teacher pay rise announcement. The key problem is that schools themselves have to fund the first 1% of that pay rise, which we so generously allocated them but did not provide additional funding to support them with. Declan Linnane, the head of Nichols Breakspear School in St Albans, told me that that 1% alone will cost his school £30,000—money it will have to find from yet further efficiency savings or another member of staff in already difficult times.

With rising national insurance contributions and an impending increase in employer pension contributions, schools are under huge pressure to find more savings at the cost of our pupils’ education. Increasing staffing costs have a huge impact on schools’ budgets. Removing the need for schools to fund the first 1% of pay increases themselves would be welcome. I wonder whether the Minister is in a generous mood and would like to make a grab on the Chancellor’s Budget.

Schools are interested in the Government’s proposal to create a central staffing database to reduce agency fees. Agency staff are a big issue for many schools, which often cannot retain staff and are obliged to use agency staff as cover, or run their staff so tightly that there is no slack in the system if a staff member goes ill, for example. I would be grateful if the Minister updated me on that database and when headteachers should expect it to be available.

The Institute for Fiscal Studies, which reported last month on education funding in England, found that per-pupil school spending has fallen by 8% in real terms since 2010. That must be considered alongside the fact that, according to the DFE’s own figures, half a million more pupils are in our schools now than in 2010. The IFS also reported that school sixth forms have endured a 21% reduction in per-pupil spending since 2011, and it estimates that by 2019-20 spending per sixth-form pupil will be lower than at any point since 2002.

Those are worrying statistics, which address many of the real concerns of teachers and parents in St Albans. We must aim for funding that meets the needs of schools across the country—as my hon. Friend the Member for North East Hampshire (Mr Jayawardena) said, certain parts of the country are really struggling—and allows them to deliver excellent teaching that inspires pupils to succeed in life.

Worryingly, we have also heard reports of schools having to use the pupil premium to fund their core budget. A recent poll of headteachers found that 70% had dipped into the pupil premium to prop up their core budget. That is borne out in St Albans, where we are aware that happens. It should be of real concern that a fund designed to help students from the most disadvantaged families has to be used for overall school spending. That cannot be right.

Schools are also concerned about their lack of ability to plan their finances. With the NFF being introduced over a number of years and uncertainty about how it will affect individual schools, headteachers are unwilling to commit to long-term planning. That was reflected in a poll of headteachers, which found that 90% feel the NFF has given them no long-term financial certainty and has resulted in no “meaningful financial planning” being carried out beyond year 1.

I do not just take things at face value. Trading statistics is never good, as I said at the public meeting I mentioned. I believe in listening to what teachers say, and they say they are struggling to do long-term planning under the current system. They need longer-term certainty about their budgets.