School Funding (Worcestershire)

Robin Walker Excerpts

Tuesday 23rd October 2012 Westminster Hall

[Harriett Baldwin]

I thank my hon. Friend for highlighting the examples in Stroud.

If, as the formula seems to do, we move closer to a per pupil amount across the county of Worcestershire without making any correction to the national unfairness, we shall run into a crucial problem. Small, mainly rural primary schools form an integral part of the fabric of county life in a dispersed constituency such as mine. Where distances are large and sparsity is high, we find that the village school is the focus and beating heart of the village. Rural schools are likely to have fewer children on free school meals, for a couple of reasons. There is a lower chance of meals being served and a much higher chance of the possible social stigma being known, and there is therefore lower take-up. Those schools thus miss out on the pupil premium, as can be seen from the fact that Worcestershire has just over 1% of the pupils on roll in England, but less than 0.75% of the pupil premium for 2012-13.

[Mr Robin Walker (Worcester) (Con)]

I congratulate my hon. Friend on securing the debate. She has made the case admirably for the small rural schools in her constituency, but she will be aware that some of the smaller schools in my constituency, which are urban schools and receive quite a lot of pupil premium, are also negatively affected by the changes. Does she agree that for the Government’s pupil premium policy to work and for their funding reforms to work really well, we need fairer funding on an underlying basis to make progress?

[Harriett Baldwin]

I do agree. How lucky my hon. Friend’s constituents are to have such a tireless champion and voice for fairer funding for Worcestershire.

Today, I ask the Minister to allow the county council to have more sector-variable lump sums that can be set locally. Some flexibility at local level is essential. Small rural primary schools are a priority for Worcestershire county council and it has a democratic mandate to take that approach. In addition, it is in its interest to do so, as travel and building costs would rise sharply if there were a consolidation of the smaller local primary schools. Furthermore, parts of Worcestershire support a middle school system, and the local authority should have some flexibility to reflect that.

I welcome the Minister’s letter of last week, confirming that there is a minimum funding guarantee extended out to 2015—a per pupil guarantee of minus 1.5%—which will help to moderate the impact of the changes up to 2015. However, Worcestershire needs more flexibility—it needs more money. More flexibility over a lump sum from the local authority could insulate small rural schools from too much fluctuation. Even after that guarantee, a school such as Eldersfield primary in my constituency would have a 5.5% fall in its budget by 2015, despite educating each child to an excellent standard for a frugal £3,523 per child.

I have so far been contacted by primary schools in the villages of Castlemorton, Martley, Broadwas, Grimley and Holt, Clifton-upon-Teme, Astley and Hallow, Great Witley, Eldersfield, Lindridge, Kempsey and Pendock, many of which have asked whether the funding formula is a deliberate attempt to close or merge village primaries and move towards a system of larger urban primary schools. Will the Minister please assure the dedicated teachers and governors and the parents of children at those rural primary schools that there is no such policy and that the value of village primary schools to their communities is fully recognised by the Government?

I hope that the Minister can also resolve the funding problem. Village schools should be considered unviable only if they do not attract pupils on a sustainable basis. Allowing local authorities, such as Worcestershire county council, to have a larger amount to use as a flexible lump sum to support those valuable schools would allow them to continue to serve the large rural areas that still make up such a large part of Worcestershire and, indeed, England.

--- Later in debate ---

[Mr Laws]

At the moment, we have made it clear that we will continue it beyond the period of 2014-15. Although we are not in a position to make an announcement yet, given that we are seeking to move to a national funding formula, it is highly likely that we will need some form of protection for a considerable period. I will be happy to update my hon. Friend when we are in a position to say more.

[Mr Robin Walker]

The minimum funding guarantee is excellent, and I am sure we all welcome its extension, but is it not the obvious answer to the turbulence of moving towards a national formula? Therefore, is there any reason for the Government not to move towards a national formula, using the minimum funding guarantee, before 2015?

[Mr Laws]

Moving straight to a national funding formula without the transitional arrangements would be even more challenging and would create an even larger departmental postbag. I understand my hon. Friend is doing his best to push Worcestershire’s case, but the Secretary of State is right to be going about this in a measured way as we are seeking to bring about a complex change.

In any case, the extension of the minimum funding guarantee beyond 2015 should reassure the several Worcestershire schools—including the Hanley Castle pyramid, Prince Henry’s high school and Evesham high school—that have contacted me to express concerns about a potential cliff edge in funding from 2014-15 if the minimum funding guarantee were to end. I have no doubt that my hon. Friends will take that message back to other schools concerned about a cliff edge. The last thing we want is for parents not to send their children to those schools because of fears that are not well grounded.

I also reassure my hon. Friends that we have decided to carry out a thorough review in early 2013, starting now effectively, of the impact of simpler formula factors. We will work with local authorities to explore the effect of the different factors that we have, including the lump sum, which is a key element of Worcestershire’s formula, as well as those that we have eliminated.

We have made it clear that we want to prevent the changes from having unacceptable consequences for good schools. That is why a review will be so important in evaluating the effects and will enable us to make any necessary adjustments in the following year, 2014-15. As a consequence of the representations that have been made today by my hon. Friend the Member for West Worcestershire and her colleagues, I will ask officials to add Worcestershire to the shortlist of authorities that have been particularly assiduous in making representations to the Department and that I would like officials to talk to over the period of the review, which we hope will report back in the springtime—spring being a slightly flexible season.

I am enormously grateful to my hon. Friends for drawing attention to the concerns of Worcestershire schools about our school funding reforms. I hope I have been able to provide some reassurance that our aim in making the reforms is ultimately to ensure that England has a fair and transparent funding system in which funding follows pupils and there is consistency within and between different areas of the country. I know that Worcestershire shares that ultimate aim with the Department. I also hope that my hon. Friends understand that we are listening carefully to their concerns and, where necessary, are responding to them.

I commend my hon. Friends for making their representations so effectively to the Department that the Worcestershire file is probably the largest of any county. I look forward to maintaining contact with Worcestershire in the run-up to the decisions, which we will make and announce next year.

Question put and agreed to.