Oral Answers to Questions

Debate between Sam Gyimah and Graham Stuart

Monday 25th April 2016 Commons Chamber

[Graham Stuart (Beverley and Holderness) (Con)]

T4. According to Ofsted, the best educational settings in the country are maintained nursery schools, of which 58% are “outstanding” and 39% are “good”. Remarkably, they perform just as well in poor areas as they do in less affluent areas. What consideration has the Minister given to allowing them to become academies if they wish to do so, in order to ensure that these great institutions continue their work?

[The Parliamentary Under-Secretary of State for Education (Mr Sam Gyimah)]

My hon. Friend is absolutely right. Although maintained nurseries provide only 3% of the places in early years, they offer excellent early-years education and, over the past few years, we have seen the structure of maintained nurseries evolve as a number have federated or joined multi-academy trusts. I know that my hon. Friend has a special interest in this area, and I would welcome the opportunity to meet him to discuss how we can promote the excellent work that those nurseries do.

School Funding

Debate between Sam Gyimah and Graham Stuart

Thursday 5th November 2015 Westminster Hall

[Graham Stuart]

My hon. Friend is right and I hope and expect that we will hear from the Minister on when the House will get the detail about what the Government propose to do.

To bring to life the example I mentioned of a relatively small secondary school with 920 pupils, the £1.9 million difference between two such schools in different areas is enough to pay the total costs—salaries and pension contributions—of 40 full-time teachers. That huge funding gap cannot be justified.

The gap is not explained by pupil deprivation. People might think that the system is designed to give more to areas of concentrated deprivation, whether urban or other. In 2011, Department for Education analysis showed that a school with 43% of pupils eligible for free school meals can receive £665 less funding per pupil than a school with less than 10% eligible pupils. Therefore, a school that serves the most deprived, as opposed to one that serves a remarkably affluent population, can receive hundreds of pounds less per pupil simply because of where it is rather than the nature and character of the children concerned, let alone their needs. Given the flat cash settlement for schools since that time, those figures will not have altered significantly.

I will give another example of the disparity that can exist between authorities. A secondary school pupil in York who receives the pupil premium, which is worth £935 this year, still has less spent on his or her education than an equivalent pupil in Birmingham who is not eligible for the pupil premium. Therefore, the child of the wealthy entrepreneur or lawyer in Birmingham receives more than the child from the poorest home in York.

Colleagues have mentioned the cross-border issue. The same applies in the relationship between Nottingham and the county that surrounds it: a 13-year-old pupil in the city gets more for their education than a disadvantaged child from the county next door, even though that child receives a pupil premium. Indeed, it is worse than that: a child who is in care in a certain area of the country and receives the pupil premium plus, worth £1,900, to reflect their needs, will still receive less than the child of a wealthy lawyer in Islington. That cannot be right. It needs to be fixed in a timely way and that is what we are gathered here today to tell the Minister.

We might think that if the disparity does not reflect deprivation, perhaps it reflects underlying performance in the system such as the quality of education in the schools, with more money going to help those areas doing less well. However, that would be wrong. Some of the best performing areas, notably in London, continue to receive thousands of pounds more per child than areas that are really struggling with education outcomes. The Royal Borough of Kensington and Chelsea receives 39% more funding per pupil under the schools block grant than my own area, the East Riding of Yorkshire, which loses out badly under the current funding arrangements.

The East Riding struggles with many of the challenges identified by Ofsted Chief Inspector Sir Michael Wilshaw in rural and coastal areas of England, where it can be hard to recruit and retain high-quality teachers, and partnerships between schools can founder because of the distance between them. We could take a coastal town and ask, “Why can’t we replicate the London challenge in East Yorkshire?” but anyone who drew a circle around Withernsea in my constituency to find all the schools that might be able to provide mutual support would find that half the circle was in the sea and the other half took in a swathe of rural East Yorkshire. That does not create easy conditions in which to build the collaborative regimes that have made such a difference in London and that is a further reason why such areas need to be fairly funded.

Contrary to any lazy misconceptions that areas such as the East Riding are rural idylls, there are areas of deep deprivation. Withernsea ranked in the top 10% of most deprived areas in England on both the income and employment indices of multiple deprivation in 2010. In a devastating speech in 2013, Sir Michael Wilshaw warned that

“many of the disadvantaged children performing least well in school can be found in leafy suburbs, market towns or seaside resorts”.

The East Riding also faces the additional costs associated with needing to run small, rural schools because of its geography. There is a limit to how far we can expect children to be bused, so it needs to run small schools, which are necessarily more expensive. It therefore has higher natural costs, and greater challenges in delivering high-quality education.

On top of that, the East Riding targeted as much funding as possible at its schools. Various blocks make up the dedicated schools grant, and historically the East Riding chose to stick most of the money for special educational needs in the schools block—it was entirely free to do so. It said to schools, “Use your budget to deliver that.” There was practically nothing in the high needs block, because that money had been put into the schools block. When the dedicated schools grant came in, which was based on what had been spent at that time and how it was accounted for, the East Riding received among the lowest levels of SEN funding in the whole country. That was not because there was a lack of challenge, but because of how the accounting had been done.

Our high needs funding is now the lowest in England, so the East Riding has had to move funding over to try to compensate for that. The situation was unfair already. Then we moved to the £390 million the Government came forward with last year to help lower-funded authorities, but that was distributed on the basis of the schools block, one of the three blocks that make up the dedicated schools grant, and as my local authority had its money in the schools block and not the high needs block, it ended up receiving a very much smaller share of the cake.

[The Parliamentary Under-Secretary of State for Education (Mr Sam Gyimah)]

I thank my hon. Friend for bringing this debate to the House, and I look forward to all the contributions. He mentioned the £390 million that the Government put into schools’ funding to help make the funding formula fairer. I want to clarify that that has been done twice: it was done for 2014-15 and it is being done for 2015-16. We are taking, and have already taken, steps to make the funding formula fairer. In response to the point about timing made by my hon. Friend the Member for Warrington South (David Mowat), that shows our intent.

[Graham Stuart]

I am grateful to the Minister. I am also grateful for the £390 million, which was a significant amount to find to help the lowest-funded authorities. A method for distribution had to be found and, under his predecessor, a decision was taken on that, which led to certain discrepancies, though overall there was certainly an improvement.

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[Mr Gyimah]

It is in the baseline.

[Graham Stuart]

Listeners might have thought that it might not appear next year, and I would not want anyone to have that misapprehension.

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[Mr Gyimah]

As the right hon. Gentleman knows, there has to be a referendum for a council tax increase of more than 1.99%. We are talking about how central Government deal with revenue funding for schools. We have got to the point where schools’ capital needs are based on need. If the schools in a constituency have serious problems, we have a thorough process for identifying their needs and allocating funding appropriately, but we do not have a similar process on the revenue-funding side.

It is patently unfair that Knowsley receives nearly £750 less per pupil than Wandsworth, given that more pupils in Knowsley are entitled to free school meals. It is unfair that a secondary pupil with low prior attainment would attract more than £2,000 in Birmingham but only £35 in Darlington. In four local authorities they would not attract any funding at all. That is not right. The hon. Member for Stockport (Ann Coffey) spoke very clearly about that injustice.

In the previous Parliament, we took a big step. To those who say that the Government should be brave, I say that we have been brave. In an era of austerity, we invested £400 million to help level the playing field.

[Graham Stuart]

The £390 million is in its second year, and that will be the baseline. Will the Minister consider looking at the allocation again, because only a little more than half of it went to the lowest-funded authorities? If those that should not have had it have only recently received it, their pain in losing it will be less. The £390 million could be repurposed to lift up the lowest-funded authorities together. That would remove the outliers, even before we get to the national funding formula.

[Mr Gyimah]

I thank my hon. Friend for that point. I agree with the hon. Member for North West Durham that this is a complicated area. What happened with the £390 million is that local authorities whose spending was low on the high needs block but high on the schools funding formula did not see the full benefit, because the £390 million was allocated purely on the basis of schools funding. That means that any reform in this area has to take into account the different blocks of the dedicated schools grant: schools funding, high needs and early years. Some local authorities shift money among those different budgets, so we must look at this in the round.

Let me return to the difference that the £400 million has made. Buckinghamshire received a further £80 million and Cambridgeshire received more than £23 million, or £311 for every pupil. Bury, Surrey, Shropshire, Salford and more than 60 other authorities benefited from additional funding for their schools. Money was not being shuffled into Conservative areas from other local authorities. The beneficiaries of the £400 million, which is now the baseline, are underfunded local authorities. We looked at underfunding based on characteristics; we did not pick an arbitrary number.

[Graham Stuart]

Westminster was a beneficiary, was it not? I may have got that wrong. Clearly, the money was not always going to the lowest-funded authorities. Only a little more than half went to the lowest-funded authorities. There is a real opportunity to look at this again.

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[Mr Gyimah]

As my hon. Friend knows, we are having this debate because the Government want to go further than £390 million. The changes in some hon. Members’ constituencies over the past 10 years have been significant. In Dorset, the funding schools receive does not reflect the proportion of pupils eligible for free school meals, even though that proportion has almost doubled. In Lincolnshire—this relates to the point made by my hon. Friend the Member for Louth and Horncastle (Victoria Atkins)—the proportion has doubled, but the funding has not changed at all. In other areas, the number of children eligible for free school meals has gone down by 40%, but the authority still receives the same amount of funding. The distribution of funding today does not reflect the needs of our children, so it has to be changed.

It is widely recognised that the impact of the distribution is hugely unfair, as many hon. Members have said today. A child who goes to school in Trafford will attract £4,228, but in next-door Manchester they will attract £5,081. At the extremes, Wokingham—my right hon. Friend the Member for Wokingham (John Redwood) is no longer in his place—receives £4,151 for every school pupil, while Tower Hamlets receives £7,000, or 70% more. Of course, we have to ensure that Tower Hamlets receives the funding it needs, based on the characteristics of its pupils, to enable its schools to do their job, but a discrepancy of 70% or more shows that rooting the funding formula in the historical allocation has allowed things to get out of kilter.

As I said, we have made some progress, and many schools that are doing an excellent job are benefiting. I want to draw hon. Members’ attention to York, because my hon. Friend the Member for York Outer (Julian Sturdy) is here. It is one of the lowest-funded authorities in the country, yet 86% of its primary pupils and 93% of its secondary pupils are in good or outstanding schools. I congratulate the teachers in York on the excellent work they are doing. However, schools in York could do even more to help us in our mission to build a world-class education system if their funding matched the schools’ and pupils’ needs.

A system in which a school can get 50% more money for providing the same education to the same pupils just by moving from Barnsley to Hackney is not fair to schools, parents or children. To be fair to taxpayers at a time of austerity, we need to ensure that we get the most out of every pound we spend on our schools. Although we have protected the schools budget overall, we will not make the most of it until it is targeted where it is needed.

[Graham Stuart]

Perhaps the Minister is about to move on to what I am going to ask him. Can he set out the principles that will be used, so that we have some idea of the parameters that will be used to determine allocation? This will be politically challenging, so it is important that the terms on which it is done carry the widest possible support across the House.

[Mr Gyimah]

I thank my hon. Friend for his third intervention so far. The good news is that there is consensus on the need for reform, and support for how we plan to get there. Devising the new system will be a big, difficult job. There is no other way of describing it. We are being encouraged to move quickly, but also to listen; the best thing to do as we set out our proposals, soon after the spending review, is consult carefully and widely with local authorities and schools. That will be our approach.

Also, I received the letter sent to the Prime Minister from over 100 Members, led by my hon. Friend the Member for Beverley and Holderness.

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[Mr Gyimah]

What I can say on timing is that, whatever the changes, schools need enough time to adjust and plan; I have heard that from a lot of schools. That will guide us in implementing any reforms.

[Graham Stuart]

2017-18?

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[Graham Stuart]

It has been a pleasure to serve under your chairmanship, Sir David. What a delight this is! It was 10 years ago when I first asked a question about F40 funding to a Labour Minister, and I got a singularly inadequate reply. It was in March 2006 when I got my first debate on this subject. I called for an urgent debate in January 2007, and secured one in May 2007. This has been going on for a long, long time. The Minister and the Government are committed to delivering fair funding for our schools; that is long overdue and very welcome.

I think colleagues would like to hear more about the principles; we will perhaps do so when the Minister comes forward early in the new year—certainly by the end of January—with proposals to be consulted on.

[Mr Gyimah]

No timings.

[Graham Stuart]

We need more on the timing, because while consulting widely and seeking consensus is credible, the Government are committed to this. It does not require consensus; it requires the implementation of the manifesto promise. Seeking consensus is entirely right, but requiring it is a different matter altogether.

Then there is the element of ambition. How far are the Government prepared to go? I think it was a Treasury official who said, years ago, “Minister, the people you make happy, you never make as happy as the people you make unhappy, unhappy.” That is the problem. When we finally get the proposals, we and our constituents will grunt and say, “About time,” but there has to be redistribution; it is unfortunate that the Opposition spokeswoman, the hon. Member for North West Durham (Pat Glass), was not prepared to say that. As it is, there has been a 7% increase in the education budget in this Parliament because of the number of pupils. Given the context, there has to be redistribution. Some people will lose, which means looking them in the eye and explaining why it is fair and right that they should do so. That takes courage, but if we are going to do it, we could do with both sides of the House joining in and accepting that principle. I welcome Labour’s support for fairer funding, but it needs to be followed by the recognition of the need for redistribution.

In my final seconds, I want to comment on the contribution of the hon. Member for Glasgow North West (Carol Monaghan), the Scottish National party spokeswoman. It seems that the free university education of middle-class children, who are predominantly the most likely to go to university, has been funded at the expense of working-class kids in further education colleges, who have had their vocational opportunities stunted as a result. I do not think that the SNP has much to teach us about that, although they do seem to have more equal funding of schools, per pupil. It seems a good principle to have pretty much level funding, except when the reasons not to are overwhelming, such as higher teaching costs in London. That does not mean, however, that we need have the gross discrepancies that we see today.

It has been a great debate, and I thank all my colleagues for being here. I look forward to the Minister coming forward with proposals as soon as possible.

Oral Answers to Questions

Debate between Sam Gyimah and Graham Stuart

Monday 1st December 2014 Commons Chamber

[Mr Graham Stuart (Beverley and Holderness) (Con)]

9. What assessment she has made of the potential merits of allowing nursery schools to become academies.

[The Parliamentary Under-Secretary of State for Education (Mr Sam Gyimah)]

Many maintained nursery schools are delivering high-quality early education, often in disadvantaged areas where that provision can make the greatest difference. Our aim is to improve parent access to high-quality early-years provision, enable a diverse market and ensure that nurseries are part of that market. However, the current legislation does not allow maintained nursery schools to become academies, but we will keep that under review.

[Mr Stuart]

I welcome the Minister’s response—or I think I do—that this is going to be kept under review. Too many maintained nursery schools—centres of excellence anchored, for the most part, in the poorest communities in the country—have been lost under successive Governments. Would not academy status give them the opportunity to ensure that they continue to help the Government in raising standards for all and, most importantly, closing the gap between outcomes for rich and poor?

[Mr Gyimah]

I welcome the enthusiasm of the Chairman of the Education Committee for maintained nurseries. I have visited Pen Green maintained nursery in Corby, which is an excellent example. He mentioned harnessing their quality. We have invested £5.5 million in teaching schools so that maintained nurseries can spearhead this and help to spread quality across the sector. He is right to indicate that 4,000 schools have benefited from academy status. As I said, we will keep the situation under review as opportunities arise to reconsider the legislative framework for maintained nurseries.

Nursery Schools

Debate between Sam Gyimah and Graham Stuart

Tuesday 9th September 2014 Westminster Hall

[Mr Gyimah]

I thank the hon. Lady for making that point. I am very aware of the Education Committee’s recommendations and I will come to some of the points in a moment. As the hon. Lady rightly said, we should not just look at what other countries do, but remember to praise the good practice in this country. There is great practice and some excellent and visionary practitioners in this country. There is a lot to be proud of.

We have universal provision for three and four-year-olds in this country so every three and four-year-old is entitled to 15 hours of child care. That is a tremendous achievement. The latest “Education at a Glance” report from PISA—the programme for international student assessment—puts us in the top 10 of OECD countries, which we can be proud of. More than 90% of three and four-year-olds in this country receive 15 hours of free child care at the moment.

On targeting, the Government have introduced the free early-years entitlement for two-year-olds, which will benefit 260,000 two-year-olds from the least advantaged families in the country who will receive 15 hours of care a week. We should be proud of that, but we must be targeted in how we use finite resources.

We have also introduced the early-years pupil premium, which is £300 a year for three and four-year-olds. I assure hon. Members that maintained nursery schools will receive the early-years pupil premium from 2015 and I hope that private voluntary independent organisations and maintained nurseries will use that to help to boost their ability to attract higher-quality staff for children in nurseries.

There is a lot to be proud of, and the Government have a plan and clear priorities for the early years. However, funding for maintained nursery schools is obviously an issue, and we fund that provision through local authorities to enable them best to make decisions for parents and children. Some 49 local authorities do not have any maintained nursery schools and 43 have only one or two. Therefore, a funded approach that treats maintained nursery schools differently would not be fair to those areas. Many areas of high deprivation have good inspection results in early-years foundation stage profile outcomes. Some make use of maintained nursery schools as part of local provision, but others are doing that with high-quality nursery classes in primary schools and private providers, not large numbers of maintained nursery schools.

Maintained nursery schools play an important role in many areas, but our approach, including that to funding, must ensure that parents retain a choice of early education provision that meets their needs and, whatever their choice, that they can be assured of high-quality provision. Maintained nursery schools are more costly than other providers, but it is for local authorities to determine funding levels. There are often good reasons for higher funding levels and many local authorities have chosen to retain them with their single funding formula, indicating that most deliver excellent value for money, but they are not the only solution.

Many primary school nurseries and private and voluntary providers offer high-quality, affordable early-years provision that is good value for money, and that provision must also be funded fairly. We must ensure the highest-quality provision across the board and our policy approach and funding decisions should reflect that.

[Mr Graham Stuart]

In their response to the Select Committee’s report, the Government noted the engagement in teaching school alliances of nursery schools and said that it was collecting and sharing best practice. Can the Minister add anything now or write to me about that and whether he thinks that involvement through teaching school alliances could help by sharing that expertise with others and whether funding could be provided to allow continuation of the high-quality services we get from nursery schools?

[Mr Gyimah]

My hon. Friend the Chairman of the Select Committee makes an excellent point, and I will write to him on that specifically. He alludes to quality and we know that a large proportion of maintained nurseries deliver outstanding provision, and in areas where maintained nursery schools rightly remain part of the answer, we want local authorities to work with them to ensure they spread their expertise. We are seeing that already. Nineteen maintained nursery schools are designated teaching schools and a further 109 are members of a teaching school alliance. I will write to the Chairman of the Select Committee with the details of how that is working. In Bristol, for example, where maintained nursery schools are linked to local primary schools and private sector providers in a teaching school alliance, they can share and disseminate best practice. That is an important way to guarantee the continued success of our best, high-quality maintained nursery schools.

Qualified teaching status and early-years teachers were mentioned by the hon. Member for North West Durham. I believe, as do all hon. Members here, that there is a need to raise the status and quality of the professionals in the early-years sector. We cannot say that early years are critical to a child’s development and not do everything we can to attract the best people into the sector. There are several ways of doing that. For example, one of my first decisions as Minister was to look at the early-years educator level 3 qualification. On literacy and numeracy, staff who qualify for level 3 must have GCSE level A to C in maths and English. We phased that in for the first year and it will be on exit, but after 2015, they will have to have that on entry to start a level 3 early educator course and to qualify.

A broader issue is attracting graduates to early-years education. QTS is one way to do so, but not the only one. We cannot set pay expectations for all early-years providers. The private voluntary independent sector is significant in the early-years sector, so we must think of ways of attracting the best graduates into the sector.

[Mr Gyimah]

The shadow Minister makes an excellent point. If people believe they were misled about a course, the first solution is to ensure that the details are communicated clearly to people when they sign up. On the broader issue of discrepancy in pay, we must look at that as it applies to the whole early-years sector, not just between primary school teachers and early-years teachers. The problem can be addressed in several ways. However, there is a more fundamental point. I was speaking to Andreas Schleicher, who presented to the Department on the PISA rankings yesterday, and raising quality is not just a question of increasing the salary; we need to ensure that we have the right sort of career progression. If we look at other countries where teachers are very motivated and excited, they have career progression built into the system as well. It is a knotty issue to get around, but it is in my in-tray and I am looking at it.

[Mr Graham Stuart]

The central ask is that having set out the aspirations so clearly, the Government need to come forward with a strategy. The Minister said that what we are discussing can be done in a number of ways and that there are knotty issues, but they need to set out a strategy for how the proposals can be implemented. At least, we can then discuss it. Will he commit to producing a strategy to bring about the true integrated nought-to-18, or nought-to-19, work force the Government say they want?

[Mr Gyimah]

I thank my hon. Friend for another forceful point. As I said, it is in my in-tray. It is something that I am looking at, and at the appropriate moment, I will let him know what my thoughts are.

Ofsted assessments were also raised, I think, by the hon. Member for North West Durham. I assure her that from September 2014, Ofsted will give primary schools a separate assessment for their early-years provision.