National Funding Formula: Social Mobility Debate
Full Debate: Read Full DebateWera Hobhouse
Main Page: Wera Hobhouse (Liberal Democrat - Bath)Department Debates - View all Wera Hobhouse's debates with the Department for Education
(6 years, 3 months ago)
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I beg to move,
That this House has considered the effect of the national funding formula on social mobility.
My thoughts are with all those affected by the terrible atrocity last year in Manchester. We lived in Manchester for many years, and our children went to the arena many times. It could have been them.
A few weeks ago, I joined headteachers from Bath who had given up their Saturday to march through the city because schools are in the depths of a funding crisis that the Government are refusing to acknowledge. We are at a point where teachers are quite literally shouting in the streets, trying to get the Government to listen to them. Today, I am calling on the Government to listen—to listen to the people who are tasked with preparing the next generation for their lives to come, and to listen to them when they say they do not have enough money to do so.
The issue should not be a political football. Teachers simply do not have the resources to do their jobs properly. In 2015, schools were promised they would be funded in line with inflation. Later they were promised that
“each school will see at least a small cash increase.”—[Official Report, 29 January 2018; Vol. 635, c. 536.]
That has not happened. Schools are facing higher costs from increased pupil numbers, pensions, national insurance contributions, pay awards, inflation and the apprenticeship levy, while facing a reduction in the education services grant. By 2020, £8.6 billion will have been taken out of the system.
School budgets are at breaking point, with 55% of academies reporting deficit budgets and 75% of secondary schools saying they are spending more than their income. Some 23 local authority areas will see cuts of at least 5% by 2019-20. Some 91% of schools face real-terms cuts by 2019-20 as compared with 2015-16. As cuts continue, teachers as well as support staff are lost, because staffing forms around 85% to 90% of school budgets. In the last two years, 15,000 posts have been deleted in secondary schools.
Out of curiosity, I want to pick up on the point the hon. Lady is making and on funds being moved from one part of the country to another. Does she accept there are circumstances where some schools have historically received more funds but have perhaps had demographic changes, while other areas have also had demographic changes but need more funds? There has to be a point where a reallocation is necessary. We need that reallocation in West Sussex, for a start.
I accept the hon. Gentleman’s point, but if he will allow me, I will point out how things look for my local authority of Bath and North East Somerset, where school funding per pupil is falling in 58 schools and increasing in only 17. I would like to see local authorities where that balance is different.
In my local authority, three out of four schools are losing funding. For example, under the new funding system, one school in my constituency—Twerton Infant School and Nursery—will see a 0.5% increase next year. However, in September, it will be paying its teachers 2% more. It will also be paying its support staff between 2% and 5% more. If we add inflation on top—it is currently 2.5%—the financial outlook starts to look incredibly bleak. The school is facing a funding black hole of at least £50,000.
During Education questions last week, I asked the Minister whether school funding was rising in line with inflation. He dodged the question and suggested that the Government were helping schools by giving them advice for managing their energy bills. That very same day, the headteacher at Twerton Infants, George Samios, had been sitting with his business manager trying to find £50,000 in savings. Needless to say, £50,000 is significantly more than the school’s energy bill.
My hon. Friend is making a powerful speech. Does she agree that, while raising teachers’ pay on the main scale is very welcome, it is pointless if it is not new money coming to schools? Otherwise, that money is being taken away from the frontline—the children.
I completely agree with my hon. Friend. My school is facing a funding black hole of £50,000. I assume that the situation in her schools will be exactly the same.
Responses like that of the Minister show how far detached the Government are from schools and teachers in Bath and across the country, as well as from the impact of their decisions on our young people. Twerton Infants has already had to cut the one-to-one support it used to have for children who had experienced early adversity and trauma.
That situation is not unique to Twerton. Headteachers from schools across Bath tell me regularly about the difficult decisions they are having to make. Parents will come to the school and ask, “Where is the extra support for my child with special educational needs?” The school will answer, “We are sorry, we do not have the funds to provide that anymore.” If a school wants to put on extra support for a child with autism, that is not going to happen. If a school wants an extra member of staff to look after classes at lunchtime or to help children who are finding it difficult to transition, that is not going to happen. As one Bath headteacher put it:
“By starving our schools of funding, we are accepting that our children can get by on a cut-price education. Morally, let alone economically, this is indefensible.”
Where is the understanding from Government of how our young people learn and progress? Where is the commitment to our children’s futures? The Government say there is more money in the system than ever before, but there are more pupils in the system. The Government hide behind deliberately complex figures and funding streams and obfuscate the real picture.
I have recently become a trustee of a multi-academy trust in Bath. The trust’s main concern is that it no longer has the funds to employ support staff, because its budgets are becoming tighter every year and it has no more reserves. The local authority in Bath, which used to support schools, is making staff redundant, especially those in welfare roles. The Government expect trusts to take over those functions, but the trusts do not have the money to do so.
What further increases the pressure and creates a vicious cycle is that good and experienced teachers are leaving the profession in growing numbers. Teaching is already a difficult job, but it is becoming so hard that many teachers find it impossible to cope. My academy trust in Bath finds it increasingly difficult to recruit qualified teachers, and it is worried about the de-professionalisation of teachers. Trusts, although not my particular trust, are employing teachers without qualified teacher status. That cannot be right.
I know the teaching profession very well. I taught secondary school children modern languages. An already difficult job became even harder when the resources were not there and class sizes were heading towards 30. It is our young people who suffer. Good classroom practitioners know that during a lesson they cannot just engage with the five pupils at the front or the five at the back. With large class sizes, it is the 20 pupils in the middle who are the most difficult to reach. What happens if teachers do not reach those young people? Those young people lose out, and an awful lot of them are losing out. If children do not receive the right support, they do not reach their full potential.
I congratulate the hon. Lady on securing what I would call a timely debate. In Coventry, I have visited 12 to 15 schools out of probably just over 100. Each of those schools is losing £275 a year per pupil. Nationally, probably about 3,000 youth clubs have been closed, which needs to be taken into consideration. The Government say that they have put more money in, but we should not forget that they cut £4.5 billion over the last couple of years, and put in £1.5 billion. Is it any wonder that schools are in the state they are? Certainly in Coventry there is very serious concern about rising numbers in classrooms. Does the hon. Lady agree?
I very much agree with the hon. Gentleman. It is not just about what happens in our classrooms; it is about what happens outside them. He makes a very powerful point. It is about the importance we place on our young people and their future. It is not only about schools, but about youth services, support and, as we are discussing today, social mobility and how we help people from disadvantaged backgrounds to thrive fully.
I would not normally intervene at this stage in a debate, but I wanted to point out to the hon. Lady that when the national funding formula is fully implemented, funding for schools in Bath and North East Somerset will rise by 8.8%. That is one of the largest rises of any local authority. In her own constituency, it will rise by 7.1%, and the funding for the school she mentioned—Twerton Infant School—will rise to £5,457 per pupil, compared with the national average of £4,189.
I thank the Minister for that intervention, but it is very clear that talking in percentages hides the real picture and does not tell us the per pupil funding. My headteacher in Twerton is absolutely clear that per pupil funding is going down, year on year, and the pupils who are particularly suffering are those who need extra support.
I am listening to my headteacher, who has given me the numbers. If he gets a 0.5% increase, but has to pick up increases in teachers’ pay and in support staff, his overall funding is going down. If the Minister is happy to meet with me and that headteacher, we can probably discuss it at an individual level.
If children do not receive the right support, they do not reach their full potential, which is a national tragedy, because we lose out as a country. We lose out on the nurses and teachers of the future, the software engineers and the hospitality professionals—the list is endless. We deprive Britain of the people who will continue building its prosperity. The worst thing is that the loss of opportunity particularly affects children and families from poorer areas.
In my maiden speech, I said that whenever I mention that I am the MP for Bath, people go, “Ooh, Bath, how beautiful!” It is, but like almost every other place in the country, Bath suffers from serious inequality. One fact illustrates that perfectly, and it is well known in Bath, but perhaps not outside it. Twerton Infant School, which I mentioned, lies on the number 20A bus route. Three stops on from Twerton, life expectancy increases by seven years. Let that sink in for a second—seven years’ difference over a five-minute bus journey. The so-called “fair funding” formula eradicates the extra funding that used to go to schools in catchment areas with high levels of deprivation.
We all agree that funds must be there to support those most in need. Personally, I welcomed the national funding formula’s emphasis on ensuring that children who come from deprived backgrounds, or who have English as a second language and need extra support, get that targeted support. That is in addition to the pupil premium, which was a great triumph of the coalition. I think the hon. Lady is being a little unfair on the national funding formula.
I thank the hon. Gentleman for his intervention. I go by what I see on the ground. I have just explained that I am a trustee of a multi-academy trust. We are facing a problem with the loss of local authority staff, particularly in welfare and support roles. Trusts are meant to pick up those roles. They cannot, because they do not have the money, so staff who are helping young people with difficulties are not supported. That is the tragedy.
The important point is that the schools that most need the support are losing the most money. However, as we know from an announcement last week, the Government have found some extra money—£50 million for grammar schools. To me, that clearly demonstrates that the Government are committed to inequality. Inequality has no place in our society. Every child has the right to achieve their full potential, and should receive the support and education to do so. That costs money, and the state has a duty to provide it.
Schools are in a funding crisis. I very much appreciate the Minister’s being here today. I urge him to listen not just to me, but to teachers and headteachers across the country.
I am most grateful to the hon. Lady for her intervention. [Interruption.] I hear whispers from the direction of the Minister, so I am certain there will be an answer about per pupil funding of schools in Peterborough. I hope there shall be.
We have to look at where we were before the NFF came in and at what brought me and my colleagues here. The first meeting I had in this place as an MP was with the then Secretary of State for Education to insist that we push through the NFF, because we needed it. Historically, the allocations were all over the place, but data from about 2000 to 2005 revealed genuine demographic changes, meaning that funding should be better allocated.
Disparities between parts of the country remain—the Minister knows I think this—and over time they need to be addressed, but the NFF was a proper step in the right direction of allocating funds according to the need of individual pupils. We need to have a basic amount of funding per pupil, and we need to make certain that we get that right. Beyond that we also need to allocate according to the need or characteristics of individual pupils.
Will the hon. Gentleman not acknowledge that if we simply say, “We will increase per pupil funding,” but do not take into consideration inflation and other pressures on school budgets, such as teachers’ pay rises and so forth, that does not give the proper picture?
I totally accept the hon. Lady’s point about significant cost pressures. Some of those have been through the system—we have gone over a hump in cost pressures in relation to pensions in particular—but she makes a valuable point about staff pay. That will need to be addressed, but I am sure we shall hear wise words on funding teachers’ pay rises as they come through.
I recognise the issue of costs, but the debate is about funding and the NFF, and my county will get an extra £28 million as a result of the fully implemented national funding formula. West Sussex needed that funding, and that it received it was right. My secondary schools will get an increase of between 7% and 12%. There are increased costs, and I recognise those pressures, but the NFF is a fairer way of allocating funds than was previously the case.
Similarly to the hon. Lady, I have schools that have not done as well out of the NFF. Some of my primary schools are experiencing significant cost pressures, and I have talked to them and to the county about how to mitigate the impact of cost increases as they affect primary schools. I also have other issues, as the Minister knows. I would like more focus on the high-needs bloc, and I think the ASHE—the annual survey of hours and earnings—formula for allocating local costs of living in different areas could be improved. If I find a better way of doing it, I shall beat a path to the Minister’s door, because areas such as Horsham have very high costs of living, and I am not sure that that is properly reflected in the ASHE formula, which may need some attention.
The motion, however, was about the national funding formula and social mobility. At core, yes, we must make certain to have the right level of per pupil funding throughout the country to ensure that our excellent teachers can deliver the curriculum to the best of their ability and give our kids the head start in life that they need and that we all want for them. However, the NFF is right to go beyond that: we also need to allocate according to the characteristics of the pupils, be that speaking English as a second language, being in receipt of free school meals or having low prior attainment.
Education is part of the answer to help the country achieve better social mobility—it is only part of the answer, but it is an important part. Surely an NFF approach through which we recognise the individual characteristics of pupils is the right approach. The NFF is not the perfect answer, and I shall continue to work on it and to bend the ear of the Minister, but it is a step in the right direction, and the Government were right to introduce it.
It is a pleasure to serve under your chairmanship, Mr Walker.
I thank the hon. Member for Bath (Wera Hobhouse) for securing the debate and for her eloquent and detailed speech outlining the key issues facing our schools and the negative impact that some of the Government’s decisions are having on our children. I also thank the hon. Members for Eastbourne (Stephen Lloyd) and for Horsham (Jeremy Quin) for their contributions, and other Members for their interventions.
It is safe to say that there is a consensus in the Chamber: we all agree that our system of school funding should be designed to improve social mobility. Sadly, that is probably where the agreement ends, because everything the Government do flies in the face of improving social mobility—from their inaction on low pay and insecure work to their punitive welfare reform measures, which led the Joseph Rowntree Foundation to conclude that almost 400,000 more children have been plunged into poverty in the past four years and that the number of children in poverty is due to soar over the next few years to a record 5.2 million. The new schools funding system is no different: it will not achieve social mobility.
Children should never be denied the same opportunities in life just because of the place they were born. Yet in the north, two to three-year-olds are less likely than their London counterparts to reach the expected standard of development when starting school, and the National Education Union has said schools in my part of the world—the north-east—face the biggest cuts, with one school due to lose nearly £8,000 per pupil. Success in life should not be the result of a postcode lottery, but under this Government it is.
I think I can pre-empt what the Minister will say. He will tell us that there is funding for children in disadvantaged areas, for children with low prior attainment and for children eligible for free school meals. That is correct, and it is welcome, but it is simply not good enough. It is not good enough, because it ignores the wider issues facing schools in terms of the implementation of the funding formula and the impact of the first cuts to school budgets in a generation.
Does the hon. Lady agree that headteachers are not just making that up? For example, a headteacher in a deprived area in my constituency is not laying off support staff because he enjoys doing that; he is laying off support staff and those who help vulnerable children because he does not have the money.
I agree. I have had representations from headteachers, staff and support assistants in my constituency as well. That problem faces schools throughout our country—they are put in an intolerable position because their funding has been cut and cut.
The Education Secretary and the Chancellor of the Exchequer have both said that every school in the country will receive a cash-terms increase to their funding. We know, however, that that is simply not the case, as do the independent Institute for Fiscal Studies and the UK Statistics Authority, which has repeatedly told the Government that that claim is not accurate. Perhaps the Minister will get it right this time. I am sure that by now his Department has received the local funding formula for every local authority in the country. Can he tell us how many schools will face a real-terms cut to their budgets, and is he able to tell us where those schools are?
The Minister has told us of the local authorities that have written to his Department to seek permission to top-slice their budgets to fund additional high-needs support. How many schools across the country will see their block funding cut as a result of those decisions? Such cuts should not be necessary. Schools and councils should never be forced to choose between funding the day-to-day expenses of their schools and getting the high-needs funding that is vital to so many of their pupils’ needs.
I thank the hon. Lady for that intervention. A recent local ombudsman report said that the picture of ECHP plans across the country is dire, and local authorities are often spending more money on tribunals to rectify decisions they made in the face of cuts, rather than actually implementing the plans in the way they should be implemented in the first place.
The fact is that school budgets have been slashed for the first time in a generation. The National Audit Office found that, since 2015, £2.7 billion has been lost from school budgets in real terms. If the Government were not making cuts to school budgets, it would be possible to introduce a new funding formula in a way that was equitable and sustainable and that could actually improve social mobility, but the Government are failing to do that. When the revised funding formula was put forward after the snap general election, one of the major changes was the introduction of a minimum funding level per pupil in secondary schools. Given the way that the formula allocates funding and the extent to which it allocates more funding to disadvantaged pupils, a minimum funding level would be particularly helpful to schools that take a very small number of pupils from disadvantaged backgrounds—in other words, grammar schools.
When the £4,600 minimum per secondary school pupil was announced, the Government committed an extra £1.3 billion to schools over two years. How much of that additional funding will find its way to grammar schools? It seems to us in the Labour party that finding extra funding to go to grammar schools—most of them in areas represented by the Minister’s colleagues on the Conservative Back Benches—is not a policy that will increase social mobility. In fact, it will do the opposite and focus resources more and more on the pupils who need it least, while those who need the additional support and additional funding will simply not have access to it.
We do not object to the principle of a minimum level of funding per pupil. However, it is worth remembering how the Conservative party arrived at that policy. When the funding formula was first devised, the Government did not believe that there should be a minimum funding level. Only after their Back Benchers—particularly those representing schools with more affluent intakes—raised concerns that they did not see enough extra funding in the formula did the Minister come to believe in the policy.
Although we welcome the belief in the minimum amount to which every single pupil should be entitled, I wish the Government would do this properly. Instead of finding a fraction of the funding that our schools need by making cuts elsewhere in an effort to buy off their own Back Benchers, why did the Minister not push to end the cuts to school budgets and increase per pupil funding in real terms for every single child, not just a minority of children?
Despite there being some elements of the funding formula that we welcome, the funding that goes to the most disadvantaged pupils is being cut in real terms year after year. Despite the rhetoric from the Government, the pupil premium has been falling in real terms every year since 2015. They have failed to increase the funding in line with inflation, which has led to the funding falling in real terms. In fact, it has fallen by £140 million.
A recent article in the press noted:
“A Department for Education source confirmed that in real terms the amount per pupil spent on the pupil premium specifically has fallen.”
Will the Minister confirm today that the per pupil spending on the pupil premium has fallen in real terms? Will he also tell us why, in reducing the funding formula, the Government have not ensured that that vital funding is protected?
The hon. Lady is very generous for allowing me to intervene again. Does she agree that the pupil premium introduced by the coalition Government was a powerful thing because it followed every single pupil around? The fact that funding per pupil is now being cut is a tragedy and is counter to what was radically introduced during the coalition Government.
I thank the hon. Lady for that intervention. It will come as no surprise to her that I am a big advocate of the pupil premium and pupil premium plus.
Does the Minister really believe that the funding formula can truly support social mobility when it has not included meaningful protection of funding for the most disadvantaged students in our schools? He might say that the funding formula does not distribute pupil premium funding, but it would be disingenuous to act as though the two issues could be meaningfully separated. The issue of school funding and how it is allocated includes the pupil premium, whether the Minister considers them to be the same issue or not.
I sincerely hope that, in answering our questions and after listening to today’s debate, the Minister will show some appreciation of the fact that it is simply not possible to really improve social mobility when the Government have cut school budgets for the first time in a generation and are slashing the funding that goes to the most disadvantaged pupils year after year. Frankly, Minister, our children deserve better.
Under the national funding formula no school will see a cut in funding this year or next year. They will all receive, through the national funding formula, the money that is allocated to local authorities, which will be a rise of at least 0.5% for every school in the country and up to 3% this year for the lower-funded schools. How those local authorities allocate the funding to the schools this year and next year—we are allowing local discretion as we transition towards the national funding formula—will be for them to decide, but every local authority is receiving sufficient cash to pay at least a 0.5% increase to every single school in their area.
Can the Minister explain to me how advice increases funding? Advice is not the money that the schools need. In Bath, which has definitely not had a particular drop in population, 58 schools are losing and 17 are gaining. Almost three out of four schools are losing funding. How can the Minister explain that loss in funding?
Perhaps I may turn to schools in the hon. Lady’s constituency. Funding for Bath and North East Somerset will rise by 8.8% once the national funding formula is fully implemented. That is an increase of £8.4 million under the national funding formula. As my hon. Friend the Member for Horsham (Jeremy Quin) said, it is one of the largest increases for any area. To take some individual examples of schools in the hon. Lady’s constituency, Bathwick St Mary Church of England Primary School will have a rise of 9.5% once the national funding formula is fully implemented, and there are large increases for other schools in the constituency. She cited Twerton Infant School, whose funding level is £5,457 once the funding formula is fully implemented. That is significantly higher than the national average for a primary school of £4,189. In the move to a national funding formula, there will be schools that do not get as big an increase as schools in, for example, Horsham, or, indeed, other schools in her constituency that were underfunded, according to the formula. She happened to pick the one that was receiving a smaller increase than others, but that is because its per pupil funding of £5,457 under the formula is significantly higher than the national average.
Figures are figures, and can be turned one way or the other. I said in my speech that the funding increase received per pupil is 0.5%, but the extra pressures, which have been acknowledged, are mounting up to 4.5%. That is a lot of pressure—more than the extra funding. I worry about schools that are getting even less, because the head teachers in Bath do not lay people off for the fun of it. They do it because they do not have the necessary resources any more. Figures and percentages will not take that away. Will the Minister explain why headteachers have to lay off staff?
In circumstances where headteachers feel they have to do that, it is because they need to manage their funding within their budget. Funding for schools goes up and down depending on the number of pupils. If they have fewer pupils, they will of course receive less money per pupil and the overall budget will be less. That sometimes means planning for staff not to be replaced.
I will give way once I have finished this list, which I have to say is rather long. Hayesfield Girls’ School in the constituency of the hon. Member for Bath will receive an 8% increase, equal to £335,000, once the national funding formula is fully implemented, and Oldfield Secondary School will receive a 9.4% increase of £414,000. Saint Gregory’s Catholic College will receive an 8.2% increase once the funding formula is fully implemented, equal to £293,000.
With the national funding formula, we have been able to allocate funding to schools that historically have been underfunded. We listened carefully to the f40 campaign, of which my hon. Friend the Member for Horsham was part, and we want to deal with the historical unfairness of schools that have been underfunded year after year. We are addressing that, and the examples I have given show that we have a national funding formula from which schools in the constituency of the hon. Member for Bath are benefiting. Bath is getting one of the biggest increases of any local authority in the country, and I had hoped that she would come to this debate to congratulate the Government on taking a brave stance in implementing that funding formula.
The Minister is generous in giving way. I am grateful on behalf of any school that receives extra funding, but that extra funding should not come at the expense of other schools that most need more funding. To me, a fair funding formula should be based on the biggest need. As I said earlier, every child from whatever background should receive the education they deserve, but if we are to address social mobility, we must focus on those who need the most support. In Bath, schools in the most deprived areas are losing out, which is not acceptable.
But those schools are funded at significantly above the national average for schools, and if we are moving towards a national funding formula, that will be the consequence. We addressed that in our 2017 manifesto when we said that no school would have a cut in funding to get to the national funding formula position, but we changed that when we came back after 2017 and secured extra funding of £1.3 billion. That enabled us to introduce this minimum funding from which many schools in the hon. Lady’s constituency have benefited and to ensure that no school will have a cut in funding, since the worst that can happen is a 0.5% increase in each of those two years.
It has been a pleasure to serve under your chairmanship, Mr Walker. I thank everybody who has contributed to the debate, including my hon. Friends the Member for Eastbourne (Stephen Lloyd) and for Oxford West and Abingdon (Layla Moran) and the hon. Members for Peterborough (Fiona Onasanya) and for South Shields (Mrs Lewell-Buck).
I thank the Minister for his response. He has been eloquent in telling me how much funding the schools in my constituency have received, and I am sure that on an individual basis, some schools have increased their funding. But the overall picture is that of a funding crisis. I would not have been on the march that I mentioned at the beginning of the debate if headteachers were not so very desperate about the situation they are in. I agree with my hon. Friend the Member for Eastbourne that this is the first time that people from the profession have gone directly on to the streets to shout about that. I urge the Minister to listen to the professionals—to the headteachers and the teachers across the country—who say that they are in crisis. I urge him to listen to the trust of which I am a trustee. We are very worried, because our reserves are running low and we cannot support schools, particularly in our more deprived areas in our multi-academy trust, because the funding is not there.
If we really are committed to social mobility, it is important that we look particularly at the schools in our more deprived areas and make sure that they receive extra support, rather than support being taken away from them. I will take him up on what he said about extra funding for high needs areas, and I will scrutinise that. I am not quite certain whether that is new money. I agree fully with Members who have said today that we need new money. The 0.5% extra money per pupil that has been put into the system does not make up for the pressures from extra pension contributions, inflation and pay rises. Whatever figures we are bandying around, I believe what I see on the ground. I listen to the parents and the teachers, and I look at the young people in my constituency. We should do so across the country, and make sure that young people do not lose out.
Question put and agreed to.
Resolved,
That this House has considered the effect of the national funding formula on social mobility.