School Funding

Robin Walker Excerpts

Tuesday 24th April 2012 Westminster Hall

[Mr Robin Walker (Worcester) (Con)]

It is good to see such a well subscribed debate under your chairmanship, Mr Gray. I am mindful that Worcestershire’s lowly place near the bottom of the league tables for school funding is only one above that of Wiltshire so, although as Chair you can make a limited contribution to the content of the debate, it is appropriate for you to be presiding over it.

I declare an interest as an unpaid member of the executive of F40, a cross-party group that campaigns on behalf of Wiltshire, Worcestershire and the other authorities that are among the lowest funded in the country. I also congratulate my hon. Friend the Member for Gloucester (Richard Graham) on securing today’s debate. He and I have worked closely together on a number of issues, representing as we do two of England’s finest cathedral and rugby-playing cities. It is always a pleasure to hear him speak eloquently and wittily for the interests of his constituents and schools, interests on which Gloucester, Worcester and, it appears, Warrington are fully united.

I am pleased to speak before a Minister who understands such a complex and difficult area of policy extremely well. He has a firm grasp of the issues facing our schools and has given a great deal of time to colleagues and to campaign groups, for which I thank him. He has previously expressed the clear and unequivocal view that the current system of school funding is flawed and that reform is necessary. Indeed, before I express my pleas and concerns, it is important to recognise that there was much to be warmly welcomed in the Government announcement of 26 March, “Next steps towards a fairer system”. The Secretary of State, in his foreword to the paper, said:

“The current system is opaque, inconsistent and unfair with huge differences between areas.”

I could not agree more. He promised a new national funding formula after the next spending review—the right answer on the wrong timetable in my opinion, but nevertheless the right answer.

The Secretary of State also announced moves to simplify significantly local funding formulae and to create much greater transparency—I welcome the latter in particular, because transparency might be the key to breaking down the vast disparities and lack of consistency in the current system. If Ministers mean school governors to have more notice of their funding arrangements in future, I strongly welcome such a move, which has been called for by pretty much every school governor I have ever met. If, too, we will see the per pupil funding that is actually received school by school and area by area—rarely possible to date—I welcome it all the more. Ministers could be providing the decisive weapon to expose once and for all the disparities of the system; organisations such as F40 will use it to the best of their abilities.

[Fiona Bruce]

I congratulate my hon. Friend on his work co-ordinating Members in the F40 group, of which I am one. I highlight again the anomalous funding position of the adjacent large unitary authorities of Cheshire East and of Cheshire West and Chester. Cheshire East runs from Poynton near Stockport in Greater Manchester in the north right down to Audlem, near Shropshire, in the south; within that range, we have severe pockets of deprivation. Meeting with head teachers, I have the sense that not only do they see the funding as unfair but they feel the injustice. Is it not right that we address the issue as a matter of justice, and that we do so expeditiously?

[Mr Walker]

Absolutely, I could not agree with my hon. Friend more. That injustice would be made all the more clear if there were greater transparency on school-by-school funding.

There have also been some moves to protect special needs funding and to simplify arrangements for early years provision, all of which we welcome. The Government set out plans to end disparities within local authority areas but, with a perhaps understandable concern to limit turbulence, they have so far resisted dealing with disparities between authorities until 2015. There is much to praise, therefore, but that last point is a profound mistake.

The biggest and most obvious flaws in the current funding system, as my hon. Friends have pointed out, are the yawning gaps left in per pupil funding between neighbouring authorities. There is a gap of £1,088 between annual per pupil funding in Worcestershire and neighbouring Birmingham; my hon. Friend the Member for Loughborough (Nicky Morgan) mentioned the gap of almost £900 between Leicester and Leicestershire, the lowest funded authority; and there is the stunning gap of nearly £5,000 between the lowest and the highest authorities. We have often discussed such disparities before, and I accept that there are many historic and political reasons for them, but the Minister has accepted the point that no firm formula underpins them any longer. The successive layers of government priorities that created those gaps have ossified over the years, and the gaps have grown ever wider as spending has grown, creating an unfair and indeed unjustifiable system.

It is extremely welcome that the Government have recognised the problem, and the previous Government suggested that they were beginning to do so, but it is not enough to recognise a problem—the challenge is to correct it. When the previous Labour Government opened a consultation on funding reform but proposed no preventive action, I and many others present would have accused them of dithering. Now that my own coalition Government, whose education reforms I support strongly and whose pupil premium I have praised, are proposing no action until after the next spending review, I cannot do otherwise with them. To accept the need for fundamental reform but to postpone any move towards it is similar to a dentist recognising the cause of a toothache making a patient’s life unbearable and then offering to deal with it in three years’ time. If such a case came to our surgeries as MPs, we would react with outrage. On behalf of all the teachers, head teachers, parents and—above all—pupils in our schools, we must demand swifter action now.

The question is not about a system that rewards the neediest areas and gives least to the best off. If that were the case, the City of London would hardly be the best funded authority in the country, nor Kensington and Chelsea in the top 10. Since the introduction of the pupil premium, many F40 authorities have received a good chunk of pupil premium funding, despite the factors mentioned by my hon. Friends, showing that there are significant levels of deprivation in many F40 areas. In my own urban constituency, I have wards that are among the most deprived in the entire country. However, the low level of underlying funding, before the allocation of the pupil premium, means that many head teachers in those wards tell me that they need the extra money to break even—to keep their schools afloat—and that they cannot spend the money on what it was intended for, to improve the chances of the most deprived.

[Mark Garnier]

My hon. Friend and neighbour might be interested to hear about my recent discussions with some schools in Wyre Forest. Usually, a school expects to pay somewhere between 80% and 85% of its budget on staffing. Now, because of the very low funding formula, we see typical schools in such lower funded areas spending nearer 90% or even more than 90% of the budget on staffing—an intolerable situation for their head teachers to manage.

[Mr Walker]

Absolutely right. My hon. Friend from Worcestershire points out that the extra money from the pupil premium is sometimes needed to support such costs and it is not necessarily reaching the target at which it is aimed.

We all recognise that it is impossible to correct the problem overnight. Ministers have said that their consultation threw up widespread support for reform but also much concern about turbulence. Interestingly, the teaching unions came out strongly in favour of postponing the issue; in doing so, they might have been representing many of their members, but they were certainly failing to represent the interests of those members in F40 areas whom we meet day in, day out.

The many MPs I have spoken to and the volunteers who make up the F40 executive recognise the need to avoid setting one part of the country against another in a scrap for funding. We also recognise that it is incredibly difficult to change the system radically when spending is under extreme constraint. We can idly wish that the previous Government had been quicker to act and more determined to deliver, but what is done is done; the opportunity to correct the glaring inequalities in the system during the days of ready money has now been lost forever. In the tough conditions of today, however, the need for fairer funding is all the greater. Worcestershire school leaders tell me that they understand the need for constraint and, like other public servants, they are straining every sinew to deliver more with less, but they are harder pressed to do so when there is an open and acknowledged injustice in how they are funded. In Worcestershire, we have schools within a few miles of the boundary with Birmingham that must deliver lessons on a budget hundreds of pounds per pupil lower, that must compete for teachers with a much better funded authority down the road and that are now being asked to accept the same constraints as that neighbouring authority, having missed out on many of the benefits of easier times. It would be neither fair nor reasonable to make no move in the lifetime of this Government to right such wrongs.



I am grateful that, within days of his March announcement, the Secretary of State met the Chairman of F40 and some of its local authority members to hear their concerns. Neither he nor the Minister would have been surprised at the profound disappointment they expressed at the decision to postpone until 2015 the move to a new formula. At that meeting, it was agreed that further representations would be accepted from the group on changes that would not hurt the funding of other authorities, but would mark a first step, however small, towards greater fairness. F40 has since sent in its suggestions, which I strongly support.

We have heard about Martin Luther and Martin Luther King, and I want to introduce Mark Twain to the debate. He wrote:

“The secret of getting ahead is to get started”.

F40 has suggested some options for getting started. It looked at the cost of bringing the lowest-funded authorities up to the level of Lincolnshire, which is the 41st worst-funded authority, and found that that would cost almost £300 million. It considered giving each of the lowest-funded authorities a small flat cash bonus to help, but found that the difference would be too small, and the process would simply rearrange the league table, pushing some authorities outside the F40 down the tables. Under its preferred option, it has proposed making the shift towards Lincolnshire levels of funding, but doing so proportionately, taking each of the lowest 40 one third of the way towards that level. That modest suggestion has the advantage of giving most help to those who need it most, while not altering the fundamental balance of funding.

F40 has suggested that Ministers should seek the £99 million cost directly from the Treasury. I think all hon. Members here would support the Department for Education in applying for that. However, knowing the harsh constraints on public spending that are Labour’s unfortunate legacy, will the Minister consider whether any of it can be found from other sources within the education budget? The sum of £99 million is less than the set- up costs of the new Education Funding Agency, and a very small amount relative to the £1.25 billion earmarked for the pupil premium next year, or the £2.5 billion that it is set to reach by 2015. It could make a major contribution to the work of that vital premium, ensuring it had its intended effect in the areas that it currently has difficulty reaching.

The sum of £99 million is a tiny amount compared with the £36.5 billion paid out under the dedicated schools grant to local authorities and schools around England. If that £99 million were taken equally from all those authorities better funded than Lincolnshire, it would equate to just 0.4% of their DSG funding, and cost no single authority more than £4 million. I hasten to add that that is not what F40 nor I propose, because we prefer no authorities to lose out in the quest for fairer funding, but such a change would be a small step towards a fairer system at a cost that would enable them to stay well within their minimum funding guarantee that no school lose more than 1.5%. At the end of the day, it is up to Ministers to decide the best way of meeting the challenge. We are here today to urge them to do so.

I shall illustrate how the problem has developed. During the first year of the Labour Government, when my predecessor in Worcester used his maiden speech to promise fairer funding as a result of the abolition of assisted places, the gap between Worcestershire and the national average stood at £230 per pupil, and was £380 between us and our neighbours in Birmingham. By the end of that Labour Government, the gap with the national average had risen to £371 per pupil, and with Birmingham it had doubled to £760.

The coalition agreement focused on fairness, but it is disappointing to record that under the coalition Government the unfair gap has widened further. In the current financial year, it stands at £482 per pupil against the national average, and £1,088 against Birmingham, almost three times the gap in 1997. For too long the system has been working against us. For too long we have faced an ever-widening gap. The Government have been brave to recognise the flaws in the system, and right to recognise the need for fundamental reform. However, as Benjamin Franklin said:

“Well done is better than well said."

Today, we are asking for a down payment on reform, a firm signal that the changes that we all agree are needed will be delivered, and a first step towards delivering them. The last Government failed completely to deliver on the issue. The present Government not only can, but must deliver. I urge the Minister to respond positively to the urgent representations from F40 to set much-needed change in motion, and to deliver a real improvement to schools in Worcestershire and across all the areas that have hitherto been left behind. We must not just talk the talk on fairer funding; we must walk the walk. As Shakespeare said: “Action is eloquence”. The Government have displayed great eloquence in dealing with the issue. Now is the time for action.

Oral Answers to Questions

Robin Walker Excerpts

Monday 27th February 2012 Commons Chamber

[Mr Gibb]

I am aware that many teachers do enormous amounts of unpaid overtime. That is a tribute to the professionalism of the teachers in our schools today. It is important that that overtime is not spent filling in voluminous forms or reading huge lever arch files of guidance.

[Mr Robin Walker (Worcester) (Con)]

8. How many schools have applied to become an academy in (a) Worcester constituency, (b) Worcestershire and (c) England.

[The Minister of State, Department for Education (Mr Nick Gibb)]

In the Worcester constituency, three secondary schools have applied for academy status, of which two have successfully converted. In Worcestershire, 25 schools have applied to become academies, of which 19 are open, and there is one sponsored academy open. Across England, there have been a total of 1,861 applications from mainstream funded schools to become academies, of which 1,243 are open, and there are 337 sponsored academies open.

[Mr Walker]

One application that has recently been approved is that of Bishop Perowne college in my constituency, with support from King’s school Worcester a leading local independent school, the university of Worcester, which specialises in teacher training, and a major local employer, Yamazaki Mazak Ltd. Will the Minister join me in welcoming that approach, and will he encourage more such innovative partnerships to bring public and private sector expertise together to offer the best to pupils at our academies?

[Mr Gibb]

I am delighted that Bishop Perowne college received its academy order in January to convert to academy status, and that as my hon. Friend says, it will do so with the support of King’s school, the university of Worcester and Yamazaki Mazak. I strongly encourage other public-private partnerships to come forward to support academy conversions and share their expertise in that important part of our school reform programme.

Rural Schools

Robin Walker Excerpts

Wednesday 8th February 2012 Westminster Hall

[Mr Reed]

I share the right hon. Gentleman’s concern. All too often, people—especially those who live in or adjacent to national parks—are treated almost as living museum exhibits. That policy attitude has to change and to change fundamentally.

That viewpoint, to which the right hon. Gentleman alluded, must change. As the economic squeeze worsens, as the public sector and the state retreat further and as areas of market failure become ever more prominent, all of us need to pay urgent attention to the plight of ordinary people in that forgotten England, because they need our help and they have little or no interest in the colour of our rosettes. That is why village schools are so important. They can act as the lynchpin for extended services in a community, through the provision of other public services such as general practice, citizens advice, tourist information or even banking. By doing that, they give us the best possible chance of reaching all the people I have mentioned and more, but particularly those most at risk of social exclusion.

The CRC report states:

“Small village schools are in close contact with families and have a track record of providing good outcomes for children. Based in isolated communities, small schools may hold the key to engaging the most disadvantaged families, but their numbers are decreasing.”

Ultimately, that is the crux of the issue. The closure of small rural schools such as Captain Shaw’s is perhaps not seen as a problem for those with private transport and steady employment, but delivers another significant contradiction with regard to the statutory responsibilities of the local education authorities and others in relation to child poverty.

The Child Poverty Act 2010 creates a duty for local authorities to reduce child poverty. As the CCR report points out:

“If poverty is to be tackled effectively, it must be a priority to identify and consult with those families who don’t know about or are prevented from accessing services.”

Village schools have a critical role to play in supporting individual families in need, or as a hub for activities that will promote learning, economic well-being and social cohesion. More than that, it is clear that the choice is becoming binary. Maintain small village schools such as Captain Shaw’s in rural areas and extend their provision of services, and we can tackle the problems of poverty, aspiration and lack of economic opportunities in those areas. Close the schools, and the evidence would seem to be clear that we cannot do any of that. Closure is effectively a choice to worsen the lives and life chances of the people in any community facing the loss of its school. As the report points out, that loss is “felt to be irreparable.”

I therefore make three specific requests of the Government today. First, to intervene in the process to close Captain Shaw’s school. Allowing the smallest school in the country’s most beautiful national park to close would destroy any credibility of the Government’s presumption against the closure of rural schools—it could scarcely be more symbolic. Secondly, to ensure that local education authorities and other responsible bodies in the case of academies or free schools, nationwide, are acting in a manner consistent with the statutory obligation to reduce child poverty laid out in the Child Poverty Act 2010. Thirdly, to bring forward as a matter of urgency a streamlined process whereby small rural schools can provide extended services, whether public, private or both, so as to secure the viability of those schools and to reach the most excluded people in our communities.

While I have the Minister’s attention, it is only right that I raise the issue of school investment more broadly in west Cumbria. I have written to the Secretary of State, and I hope that he or the Minister will be able to meet me as a matter of urgency. Some of west Cumbria’s secondary schools, which had been allocated more than £60 million by the previous Government as part of the Building Schools for the Future programme, are reaching crisis point with regard to their physical fabric and infrastructure. That affects standards, attainment levels, teaching and the aspirations and ambitions of their pupils. We urgently need major funding for the fabric of our schools, whether from a public or private source, or the consequences for education and my community as a whole will be dire.

[Mr Robin Walker (Worcester) (Con)]

The hon. Gentleman is making a passionate case. Does he agree that it is not only the capital funding that is important, but the ongoing revenue funding for schools? A fairer funding formula, which does not discriminate against rural areas, is vital to keeping small rural schools viable.

[Mr Reed]

The funding formula does need to be looked at and, given the inconsistent definition of rurality to which I alluded, we need to have a more sophisticated approach to the funding of pupil places, rather than the blanket, catch-all provision for rural areas and the blanket, catch-all provision for urban areas. The hon. Gentleman makes a very important point, which needs urgent attention. Whether it is as simple as introducing a one-size-fits-all approach for rural areas, I am not so certain—we would need to look at the evidential base.

I was about to conclude. We are an ambitious community, as I am sure the Minister is aware, with an incredibly prosperous future before us if we make the right decisions, but we require the reinstatement of the money that the Government took away. I hope that the Minister will meet me as a matter of urgency to explore how and when that can be done.

--- Later in debate ---

[Mr Gibb]

I am rapidly trying to calculate 400 divided by 13. I will come back to my hon. Friend when I am sure that I have all the mathematics absolutely correct, that we are both defining rural schools on the same basis, and that we are not conflating rural and small. I will write to my hon. Friend because I want to know the answer to this question as well.

The protection for rural academies lies in their seven-year funding agreement with the Secretary of State, which requires his consent before it can be terminated.

Let me turn to the issue of school funding. The main funding issue faced by rural schools is that, as they are generally much smaller than schools in urban areas, they do not benefit from the same economies of scale. Our analysis shows that it is small primary schools in particular that need additional support to remain viable. The hon. Member for Copeland and my hon. Friend the Member for Penrith and The Border pointed out the discrepancy in funding that Cumbria receives—£4,828 per pupil compared with £5,082 on average nationally. That puts Cumbria 105th out of 151 local authorities. My hon. Friend the Member for Worcester (Mr Walker) has taken an active role, as part of the f40 group—the Campaign for Fairer Funding in Education—in trying to address these issues.

[Mr Robin Walker]

I thank the Minister for his kind words and for giving way. Given that the Government are preparing to respond to their consultation on the funding formula and that the previous Government recognised that the funding formula was in need of reform, would he agree to meet me and other MPs representing f40 constituencies to hear the concerns of the group ahead of the Government’s official response?

[Mr Gibb]

I would be delighted to meet my hon. Friend and other hon. Members who are part of the f40 group to discuss their concerns about the funding. We do want to address these disparities in our funding system. That is why proposals in the “Consultation on School Funding Reform: Proposals for a Fairer System,” which we undertook in 2011, looked at how small schools could be better protected, as well as at the underlying discrepancies and unfairness that are in the current system. We would like to address the disparities in the rural schools either through a sparsity weighting or, in the case of primary schools, through a lump sum figure. The lump sum suggested in the consultation—I emphasise that it is only a consultation at this stage—is £95,000.

We have published a summary of responses that we are considering and we will make a further announcement in the spring. We had better arrange this meeting with my hon. Friend and other hon. Members before that response; otherwise, the meeting might seem a little superfluous.

In the interim, for 2011-12 and 2012-13, we have set a cash floor of minus 2%, which means that, in practice, no local authority will see a drop in its dedicated schools grant allocation of more than 2% regardless of pupil numbers. That is to protect local authorities that have falling pupil numbers.

I understand the local community’s passion for Captain Shaw’s school in the constituency of the hon. Member for Copeland. I can see why it is the “beating heart” of the community and why it is supported by an “indomitable community spirit.” As my right hon. Friend the Member for Berwick-upon-Tweed pointed out, people prefer to see village children attending their local school, being heard at playtime and being seen walking home instead of arriving home half an hour or an hour later on a school bus. I understand that the local authority in Cumbria has provided small school support through its funding formula and that the school has received a one-off schools in financial difficulty allocation to protect its budget concerns.

Apprenticeships

Robin Walker Excerpts

Monday 19th December 2011 Commons Chamber

[Lorely Burt (Solihull) (LD)]

Apprenticeships are one of the key tools we as a Government have at our disposal both to tackle youth unemployment and to skill our young people to serve the needs of industry both today and in the future, when there will be increasing demand and the country will need to be able to achieve the growth we all desire. I do not intend to ruin the positive ambience we are fostering with the Opposition this evening, but I must say that the last Government concentrated on higher education, sometimes at the expense of apprenticeships. That is not to say that higher education is not important; it is hugely important, but it is not all-important. The last Government did increase the number of apprenticeships, but it was by an average of 13,000 a year over eight years, whereas this coalition Government have raised it by 160,000 over one year alone.

I do not want to talk about the past, however. The past is past and today we face a new series of challenges. I therefore want to talk about what those challenges are, what the coalition Government are doing already, and what else we might do to develop this success story even more.

We do have a good story to tell. Provisional data for the full 2010-11 academic year show that apprentice starts increased by over 50%, to 442,700, with increases at all levels and stages, contrary to the assertions of the hon. Member for Sheffield Central (Paul Blomfield). There has also been a strong increase in completions, to 181,700. That is mirrored in my constituency of Solihull, where the increase is 53%.

We want the figures to rise even further and faster, but to achieve that we must identify the obstacles preventing employers from recruiting more apprentices. Red tape is a culprit, and I would give special prominence to health and safety red tape. Clearly, we cannot put young people at risk, but from this January employers and trainers will no longer have to comply with the additional health and safety requirements imposed by the Skills Funding Agency. Employers will have to comply only with the Health and Safety Executive’s requirements as set out in “Health and safety made simple”—if that is not a contradiction in terms.

Small businesses are obviously a key area that we need to target, as several hon. Members have said. The Federation of Small Businesses reports that only 8% of businesses surveyed had taken on apprentices last year but 28% said that they would do so if there were a wage subsidy. The FSB very much welcomes the incentive payment recently announced and says that

“initiatives like this will help the smallest of firms to take on young people.”

[Mr Robin Walker (Worcester) (Con)]

Would the hon. Lady recommend the initiative taken by Worcester city council? A small subsidy can, in some cases, make a big difference, so it is providing £500 to small businesses that take on their first apprentice.

[Lorely Burt]

I would definitely commend the hon. Gentleman’s local city council.

I also suggest that the payment of £1,500 should be available to as wide a range of businesses as possible. I would welcome greater clarity on how the money will be targeted and what the eligibility criteria will be. I would be grateful if the Minister elaborated on that in his remarks, particularly given that the FSB wishes to take advantage of this as quickly as possible. For small businesses that may not have the time and wherewithal to organise courses for their apprentices, the FSB would like the use of apprenticeship training agencies and group training associations to be expanded. The ATAs would employ the apprentice and lift the administrative burden for the small business, while GTAs enable employers to come together to offer the right training to meet their needs.

Other barriers that the Government should be addressing are outlined by the United Kingdom Electronics Alliance. It talks about schools and universities

“releasing students onto the jobs market without key life skills such as communication, practical problem solving, work ethic and an understanding of manufacturing and the role it plays in the economy.”

We are back to the “oily rag syndrome” of ignorance, where many young people have little idea of what manufacturing really is; a key area that we need to address is how to give kids an understanding of what exciting futures are out there, and these futures involve ingenuity, creativity, imaginative design, great job satisfaction and good money. We have to link schools up with companies while kids are at a formative stage, to open their eyes to the possibilities of what is out there and crying out for their skills and aptitudes. When these young people have a realistic idea of what the world of work is like, they will focus on the skills that the UKEA talks about.

The coalition Government are also doing some good things for higher apprenticeships. The higher apprenticeship fund will support the development of up to 25,000 new higher apprenticeships at levels 4 and 5, which compares with a figure of just 200 in 2008-09. The shadow Minister talks about achieving by hand or by brain, but surely the pinnacle of achievement in manufacturing comes about by hand and by brain.

The UKEA also suggested that a tax credit would “de-risk” the decision for companies willing to set up apprenticeship schemes and that we could introduce the idea of leaving money on the table if a company does not invest—this is a push-pull strategy. I would be interested to hear the Minister’s views about using tax credits in that way. I could say more, Madam Deputy Speaker, but other colleagues wish to speak. Of course we need to do more, but we have made a pretty reasonable start.

Financial Education

Robin Walker Excerpts

Thursday 15th December 2011 Commons Chamber

[Mr Robin Walker (Worcester) (Con)]

I join colleagues in congratulating my hon. Friends the Members for North Swindon (Justin Tomlinson) and for Brigg and Goole (Andrew Percy), and all hon. Friends and colleagues who have contributed to this excellent report. I am pleased to hear the Minister’s clear statement that the report will feed into the curriculum review. Like many Members, I have come across some terrible cases of constituents who have found themselves in dire financial trouble as a result of not having the tools to understand financial matters. It is tragic that such situations arise as often as they do, and with the growing complexity of the financial marketplace, combined with the growing ease with which people can access it, the case for the Government addressing financial education is stronger than ever.

It is welcome that the coalition Government are in the process of undertaking a curriculum review. I support the clarity of vision with which Ministers have carried through this and the many other vital reforms of our education system. I understand the Secretary of State’s desire to simplify and slim down the core curriculum to focus on the essential subjects that will enable us to compete in the 21st century, and to ensure that it is uncluttered, with a strong emphasis on numeracy and literacy. However, like many other colleagues, I believe that personal financial education is one of the elements that are vital to our ability to compete in this century and protect the life chances of our constituents.

As my hon. Friend the Member for Wyre Forest (Mark Garnier) neatly set out, financial education also has enormous relevance to the national scene today. Today’s debate and the excellent report of the all-party group on financial education for young people provide valuable tools for dealing with that problem, both nationally and locally, in all our constituencies. We need financial education that gives people a clear understanding of budgeting, as my hon. Friend the Member for High Peak (Andrew Bingham) pointed out, and of the costs and uses of debt.

We should not see financial education as an entirely negative problem; it should also provide an opportunity. More financially educated students today will be better placed to be the next generation of business people and entrepreneurs tomorrow. Businesses are crying out for greater financial skills, and by providing better financial education we can meet that need and provide those skills. A higher degree of financial literacy among the public will also mean people are better able to see and understand the problem of balancing budgets at the town hall and in Whitehall, and the costs of long-term debt. Vitally, it means that fewer people will get into financial difficulties in the first place, which bring such huge financial and social costs to themselves and their families.

One of the many constituents who urged me to take part in this debate wrote to me to say that financial education was

“a hugely important concept. Unfortunately I got myself into some financial difficulties in my early 20s and for the last 5 years I have had to work 2 jobs in order to repay the debt. I have very little spare time and am unable to afford holidays or luxuries that others take for granted. I still have debt to pay off but I now ensure that I keep myself educated financially to make sure that I am getting the best financial products for my needs. I have learnt the hard way, but if this education was provided in schools, I feel fewer people would end up in the situation I found myself.”

That provides a perfect illustration of why this debate is so important, but why is it so important right now?

We face a crisis of debt and, as Martin Lewis has pointed out, we live in a time when the stigma of debt has somehow been diminished. We also live in a world where we are all increasingly bombarded by offers of credit, as my hon. Friend the Member for High Peak neatly pointed out. I do not know whether I am the only Member who regularly receives calls on my House of Commons office telephone carrying recorded messages offering me cheap debt deals or spurious payment protection insurance compensation. [Interruption.] I see from the reaction of some hon. Members that I am not the only one. I hope that this is not a comment on my own financial circumstances.

Not only by telephone marketing, but through the internet and increasingly through mobile phone apps, credit is more available and more heavily marketed than ever before. In some respects, this need not be a bad thing—credit can help people to manage their finances, and legal credit at reasonable rates is infinitely preferable to the alternative of loan sharks and doorstep lenders. However, the constant bombardment becomes a real problem when people lack the tools to understand concepts such as APR—annual percentage rate—or to develop a proper understanding of the real costs of the debt they are being offered. It is a shocking fact that only one in three adults in the UK knows what APR stands for, let along what it means financially.

It is particularly concerning that many of these credit services are heavily targeted at students who are managing their finances for the first time—perhaps without the benefit of the useful book of guidance produced by my hon. Friend the Member for High Peak—and the level of financial knowledge among many university students does not seem to be as high as we would hope. The surveys showing that only 36% of adults knew the definition of APR showed that this fell to less than 31% for people under 30, and I have heard from student representatives a number of worrying stories of students actually boasting about the level of APR they were paying on a loan, believing that a higher APR meant a better loan. As the right hon. Member for Bermondsey and Old Southwark (Simon Hughes) pointed out, there is strong demand for students to be better informed on these issues.

We have debated the issue of high-cost credit separately, and I continue to believe that there is a need for some sort of system of flexible caps and that there is potential for a levy on high-cost lenders to help to finance the cost of debt advice and financial education. I am hopeful that the Government’s research into this area will produce both those results. However, in a world where such credit is as prevalent as it has become and when students are having to take on more long-term, low-cost debt as part of the process of getting higher education, it is clear there is a demand for them to be better prepared to understand and manage it.

All these reasons point to the urgency of including personal financial education in the curriculum, but they do not dictate how it should be included. There is not necessarily any contradiction between the Government’s desire for a simple curriculum that focuses on the basics and the inclusion of this basic tool for life in the curriculum. In my view, and in the view of the all-party group report, there is no need for a new subject to be added or for time to be set apart in the timetable. Rather, the provision of better financial education can be included in the teaching of maths and PSHE.

Indeed, as Carol Vorderman has pointed out, making maths more relevant and giving it a firmer basis in the real world might help to deal with some of the stigma that many students attach to it. I well remember as a teenage pupil being profoundly uninterested in algebra and trigonometry, but waking up and paying attention when maths touched on the finances of a business or the cost of a shopping trip. I suspect many pupils feel the same. We paid even more attention when people from outside school came in to talk about what they did, so I welcome the report’s recommendations about bringing in more outside experience.

We should not pretend that that would be a wholly new approach. Many of the best teachers, schools and colleges already employ such an approach to make their lessons relevant and engage their pupils. Tudor Grange academy in Worcester has forged strong links with local businesses, such as Worcester Bosch, and the Worcester college of technology has seen several hundred students take money management programmes as additional elements of their studies, showing that students want more financial education even when it is treated as an extra.

Many organisations, from banks and accountancy firms to the citizens advice bureaux, small businesses and entrepreneurs, already engage with schools to talk about the importance of financial knowledge, planning and budgeting. The Institute of Chartered Accountants runs a competition on financial knowledge for schools in Worcestershire. The best examples from among our schools, which include many schools in Worcestershire, would probably need to see no change if financial education were to be introduced as a statutory part of the curriculum, but the inclusion would make a real difference to the overall picture, allow better co-ordination and support those who are leading the way.

The inclusion of financial education in the curriculum would send a signal to all head teachers and all schools that it should be a core part of the teaching of maths and PSHE. It is one of the basic skills with which pupils need to emerge and from which they will benefit hugely. As the all-party group’s report clearly shows, the greatest reason for teachers saying that they do not currently provide financial education is the pressure on curriculum time. Giving it a place in the curriculum would therefore remove the greatest single bar to its successful delivery. I do not believe that would be onerous in any way and when I have discussed it with local heads, as I did at a recent meeting with a group of Worcester primary heads, I have received unanimous support for its inclusion.

I know that many hon. Members want to speak and that we are all anxious to get away today, so I will conclude by saying that financial education should be brought into the statutory curriculum as soon as possible. As a proud English member of the Select Committee on Welsh Affairs, I am pleased to see that Wales, like Scotland, has already taken that step. I believe this is an excellent example of how the UK Government can show their support for the respect agenda, respecting the devolved Assemblies and the students, teachers and heads who all tell us the benefits of financial education.

School Funding Reform

Robin Walker Excerpts

Tuesday 19th July 2011 Commons Chamber

[Michael Gove]

Swindon council does a lot of things right, and that is just one more.

[Mr Robin Walker (Worcester) (Con)]

I warmly welcome the commitment to a new national funding formula—something for which I have been calling since I made my maiden speech. Today the Secretary of State will receive a letter signed by all six Worcestershire Members of Parliament urging him to press ahead with these desperately needed reforms, and to close the appalling £1,100 gap between Worcestershire and the neighbouring authority of Birmingham. May I urge him, as my hon. Friend the Member for Beverley and Holderness (Mr Stuart), the Chair of the Select Committee on Education, did, to press ahead with the reforms and not to listen to the siren voices calling for delay?

[Michael Gove]

My hon. Friend makes an impressive case for Worcestershire, as do my hon. Friends the Members for West Worcestershire (Harriett Baldwin), for Redditch (Karen Lumley), for Mid Worcestershire (Peter Luff) and for Wyre Forest (Mark Garnier). I am very sympathetic to the case they make.

Apprenticeships (Small Businesses)

Robin Walker Excerpts

Thursday 9th June 2011 Westminster Hall

[Richard Graham]

I am grateful for your remarks, Mr Davies, not least because my capacity to absorb all the points at such rapid fire is limited. My hon. Friend has rightly congratulated his local paper in Eastbourne for promoting the “100 apprentices in 100 days” campaign, which was first started in my own constituency by Gloucestershire Media. The citizen who originally launched the scheme in 2010 is now involved in a second one, which is similar to the one that my hon. Friend mentioned. The third scheme, which is not time-capped, involves 100 apprentices being taken on by companies that have never taken on apprentices before. Other Members, including my hon. Friend the Member for Worcester (Mr Walker), who have had similar successes may wish to comment on other such schemes.

[Mr Robin Walker (Worcester) (Con)]

I congratulate Worcester News on its “100 apprentices in 100 days” campaign and volunteer to sign up one of the apprentices, because all hon. Members should play a role in supporting such positive campaigns. Does my hon. Friend believe that the media has an important role in promoting the breadth of apprentices, and does he think that we should urge other hon. Members to use the media in promoting the jobs that are available for apprenticeships?

[Richard Graham]

My hon. Friend and near neighbour is absolutely right to congratulate the media in Worcester for taking forward the scheme. I congratulate him on making his commitment to take on an apprentice himself. When I outline the target that I have set for Members of Parliament, the Minister should note that we may be able to achieve it in fewer than 100 days, but I will deal with that towards the end of my speech.

My hon. Friend is right to say that the media has an important role to play. I should also stress that local radio can be extremely helpful, too. About six months ago, I held the Gloucestershire apprenticeships fair, jointly with the NAS, which is admirably represented in Gloucestershire by my friend Gina Johnson whom I was hoping to see here today. We had terrific support from Gloucestershire Media, which is something that could be replicated in Worcester, Eastbourne and elsewhere, and from Radio Gloucestershire. I strongly recommend my colleagues in the House to organise an annual apprenticeship fair; the national apprenticeship week is in February, which would be quite a good time to do so if they want to tie it in with national themes.

My hon. Friend the Member for Eastbourne also mentioned the co-operation between DWP and BIS. That is an inter-departmental question on which I will leave the Minister to comment in due course.

Schools Funding (Worcestershire)

Robin Walker Excerpts

Tuesday 1st February 2011 Westminster Hall

[Mr Robin Walker (Worcester) (Con)]

I congratulate my hon. Friend the Member for Redditch (Karen Lumley) on securing this vital debate, and on the passionate way in which she has argued her case. The minutiae of funding formulae do not make for glamorous debates, and in discussing such technical matters it is only too easy to lose the wood for the trees. It is vital to remember that the heart of this issue is a concept that is so simple but yet so central to the coalition Government—fairness.

Like my hon. Friend, I was elected with a clear mandate to campaign for fairer funding, and I am passionate about securing that aim. I have been lucky to learn from people who have far greater knowledge of such matters and who for many years have made it their main aim to achieve fairer funding—the F40 group. If, in the next few minutes, I delve into the dark byways of the funding system, I make no apology, but I ask hon. Members to bear in mind that I do so in a quest for fairness.

When I received our county council’s briefing on the impact of this year’s changes to school funding, I immediately reached for a cold towel to put over my head. The complexities of having one grant mainstreamed and another top-sliced—here a top-up, there a minimum funding guarantee—would be enough to put off all but the most dedicated funding nerd. There is nothing transparent about our current system. At last, with the help of that cold towel and some expert tuition, I was able to make some sense of the numbers.

The Government said that they have provided flat funding. That may be the case across the country, although even that is a challenge with inflation as it is. Unfortunately, in Worcestershire the mainstreaming of grants appears to have seen some reductions. Before the introduction of the pupil premium, we will see a fall of approximately £1.2 million in cash terms from last year to this. A table of per pupil funding by authority has been compiled by F40, based on the guaranteed unit of funding and cash numbers. Disappointingly, it still shows that Worcestershire is among the 10 worst-funded authorities in the country on both counts.

However, all is not lost. As my hon. Friend has noted, that small fall is more than made up for by the pupil premium. The estimated £3 million increase from that means that Worcestershire is a net winner from the Government’s changes. There is no doubt that the pupil premium marks a step in the right direction, but it is not enough. Underlying the guaranteed unit of funding figures, there is no perfect formula produced by the finest minds in the Department for Education, and no work of genius compiled to meet the needs of every school in every part of the country. Instead, we have a mess—a hotch-potch of historical errors and corrections—and an unfairness, which is based on an injustice, which is based on a mistake.

The underlying formula has not changed. Instead, the so-called dedicated schools grant has ossified—it is tweaked from time to time, but every year the underlying mistakes are repeated and magnified. Each year, as the Labour party spent the golden legacy that it inherited, money was fired off on a flawed formula that is widely understood to favour big cities over rural counties. That formula targets deprivation on the broadest levels, but misses it in the many pockets where it truly exists. It fails to reflect activity in schools, which hurts places such as Worcestershire the most, due to their very diversity.

Worse still, the constant use of spend-plus has magnified those effects. I do not need to repeat my hon. Friend’s arguments, but I can set out the picture in Worcester, where a number of wards are in the top 5% for deprivation in the country. They are wards served by schools such as Gorse Hill primary, where I used to help with reading, and secondary schools, including the outstanding Christopher Whitehead language college, which caters for the Dines Green estate. Between them, Bishop Perowne college and Tudor Grange academy look after Tolladine and Warndon.

Those are all fine schools, and in the past their good performance has been used as a reason why they did not need fairer funding. Now, in a time of austerity, the same case cannot be made. Those schools will benefit from the pupil premium, but that does not undo the legacy of decades in which the formula worked against them.

As the Government White Paper accepts, and as the Leader of the House confirmed last week,

“the system of school funding is unfair and needs reform.”—[Official Report, 27 January 2011; Vol. 522, c. 457.]

Who am I to argue with the Leader of the House?

I welcome the steps that Ministers have already taken. I was pleased when my noble Friend Lord Hill met me with the leadership of F40 to discuss the broad case for reform. I am delighted with the impact of the pupil premium and look forward to the benefits that it will bring to schools that have waited too long for their due. I urge the Government to deliver on their commitment as soon as humanly possible to develop a clear, transparent and fair national funding formula based on pupils’ needs.

In the audience for the debate today are pupils from Bishop Perowne college, a very fine school in my constituency. In their interests, in the interests of Worcestershire and in the interests of fairness, I commend this cause to my hon. Friend the Minister.

--- Later in debate ---

[Mr Gibb]

Yes, I am happy to respond to my hon. Friend’s question. I recognise the concerns about using free school meals as a measure, but they are the only available method that can correlate deprivation at pupil level, rather than at postcode or area level, so they are the most accurate reflection of deprivation. There is quite a lot of academic evidence that free school meals accurately reflect the levels of deprivation in an area. However, we will continue to look at the issue, and we might in future include a measure of, for instance, whether pupils ever qualified for free school meals during a period of, say, six or three years. In that way, those who qualify for free school meals for just one year, then no longer qualify, will be eligible for the pupil premium.

The other thing that is happening as a consequence of policy on free school meals is that local authorities are pressing schools and parents to apply for free school meals, which they might not have done in the past. That will have a double benefit, in that more pupils will qualify for the pupil premium, as well as being able to have a meal at school.

The flat-cash settlement means, of course, that it will take time to move to the fairer funding system that I have been talking about. However, funding reform will be introduced in such a way as to minimise disruption and ensure that schools’ resources are not subject to sudden and dramatic change.

Our priority for 2011-12 is the introduction of the pupil premium. I have said before, and make no apology for repeating, that closing the attainment gap between those from the wealthiest and the poorest backgrounds is central to our education policy, and that was reflected in the speech by my hon. Friend the Member for Redditch.

[Mr Robin Walker]

Does the Minister agree that a key issue in closing the attainment gap is early intervention to give people the best chances and the best start in their education? Another issue that needs to be prioritised, therefore, is the early intervention grant. Disappointingly, however, it is likely to go down in Worcestershire over the next couple of years. Will the Minister look into that to see how we can concentrate resources in the right places to prioritise early intervention as the Government address these issues?

[Mr Gibb]

My hon. Friend makes a good point. That is why we have allocated £2.2 billion to the early intervention grant. It is vital to intervene early to catch problems before they become more systemic in a child’s life. My hon. Friend is right, and I will look into the issues he raises to ensure that there is not some undue unfairness in the allocation of the grant in Worcestershire. I will write to him shortly.

Although the exact amount of the pupil premium will depend on the number of children known to be eligible for free school meals, as recorded in the January 2011 census, which is not yet finalised, the numbers recorded in 2010 give an indication of the numbers for Worcestershire. On that basis, schools in my hon. Friends’ local education authority area will receive about £3.8 million of additional funding from April 2011 to help them tackle deprivation.

The pupil premium will be worth £625 million in 2011-12 and build to £2.5 billion in 2014-15. That is significant spending to help the most disadvantaged children in society. To ensure that the premium is introduced as smoothly as possible, we have made the indicator for next year known eligibility for free school meals, which my hon. Friend the Member for West Worcestershire mentioned. In future, we aim to include those who have previously been eligible for free school meals so that not only the value of the premium but the number of children eligible for it will rise year on year. Overall funding for the pupil premium will rise from £625 million this year to £2.5 billion in three years’ time.

My hon. Friend the Member for Redditch will appreciate that I am unable to pre-empt the findings of the funding review, and I know that she will be disappointed about that. However, I hope that she and my hon. Friends will take in good faith a commitment from me carefully to study the issues that they have raised in the context of the school funding review and in our consultation later this year.

Question put and agreed to.

Oral Answers to Questions

Robin Walker Excerpts

Thursday 13th January 2011 Commons Chamber

[Mr Davey]

We had this debate yesterday and I answered that very question. I made it clear, as did Ministers in the previous Government, that it is impossible for a Minister to say that no post office anywhere in the country will close, because 97% of them are run by private individuals, who may decide to sell up or retire. That cannot therefore be required. However, we will not repeat the major closure programmes of the previous Government.

[Mr Robin Walker (Worcester) (Con)]

I recently met the management of the Black Pear credit union in Worcestershire, who warmly welcomed positive noises from the Government about the idea of credit unions working with post offices. Will the Minister update us on the progress that the Government are making with that idea and on the other opportunities he sees for post offices to expand their business in future?

[Mr Davey]

We are certainly doing that, as we set out in our post office policy document last year. There is a pilot in Glasgow and south Lanarkshire in which pay-out technology is being used in co-ordination with credit unions, and guidance has been given to sub-postmasters about how they can work with their local credit unions.

Outdoor Learning

Robin Walker Excerpts

Wednesday 15th December 2010 Westminster Hall

[Mr Robin Walker (Worcester) (Con)]

I congratulate my hon. Friend the Member for Carmarthen West and South Pembrokeshire (Simon Hart) on securing this debate on such an important subject. I also congratulate other hon. Friends on their contributions.

Many children and teachers in my constituency and in the county of Worcestershire benefit from outdoor education. As my hon. Friend made clear, the benefits are substantial. We do not live in a classroom, and it is vital that education provides children with the tools and skills they need for real life. Outdoor education recognises the fact that we live, not in the controlled environment of a classroom, but on a living, breathing planet. As we seek to give future generations a better understanding of issues such as climate change and pollution, learning outdoors gives children a greater appreciation of the importance of our natural environment. Crucially, some skills, such as teamwork, leadership and an appreciation of risk, are far more effectively developed through outdoor education than they ever can be in a classroom.

Coming from an urban constituency in a rural county, I know that outdoor education has a further advantage for the children of my city of Worcester. It teaches them to appreciate the wonderful countryside around them and to understand better the way in which it works and the opportunities that it offers. For centuries, Worcester has been a county town, and the interaction between city and countryside was automatic. In the age of supermarkets, television and video games, however, things are not always that way. Without outdoor education projects, many children in my constituency who live within a mile or two of wonderful woods and fields would quite literally never visit them. The Wii Fit and “The X Factor” are a powerful draw away from the benefits of the outdoors, and parents who are themselves working flat out to support their families are not always able to take their children into the countryside as much as they would like.

Fortunately, Worcestershire long ago realised the benefits of outdoor education and was an early adopter of the forest school scheme, which is enjoyed at many of our primary schools. Having talked to pupils and teachers at schools from Cherry Orchard and Perry Wood to Dines Green, Gorse Hill primary and Lyppard Grange, I have heard countless stories of the enjoyment and benefit that the scheme brings. More important than the stories, however, is the experience itself. In the case of outdoor learning, seeing really is believing. Seeing the excitement of children who are taken out of the classroom and into the natural environment for the first time, one can see how outdoor learning helps to engage some of the most difficult and easily distracted pupils. Seeing the way in which children learn new respect for teachers who can show them physical skills and relish the opportunity to escape the confines of the classroom, one can immediately understand why forest school status is an important tool for retention at many local primaries.

However, outdoor learning is not, and should not be, restricted to the primary sector. At Tudor Grange academy, in the heart of Warndon, outdoor learning is being developed as a key tool and a key opportunity for engaging students. This new academy serves a large population that will benefit from the pupil premium. It replaced a school that struggled for many years to engage its students and to deal with truancy, apathy and high levels of special needs.

[Jim Shannon]

Does the hon. Gentleman agree that today’s young people, whether in primary or secondary school, have great awareness of the environment, climate change, litter control, recycling and such things? Does he agree—I think from his remarks that he would—that more needs to be done, and what is already happening needs to be continued?