The Public Accounts Committee (PAC) has today published its latest annual report into the academies sector. Academies Sector Annual Report and Accounts 2019-20 (parliament.uk)

The Committee accepts that the government wants all schools to become academies, but doesn’t yet see a clear path for some types of schools to be able to do so. Such a move to full academisation would remove local democracy from the school system and make it much more like the NHS, with limited accountability, and no guarantee of local accountability. This does not strike me as a good move for democracy. Hopefully, the government’s plans will be set out in the forthcoming White Paper.

Also, of interests, was the PAC’s views on the financial management of academy trusts. Unlike local authorities and maintained schools, Trusts can aggregate funds and do not have to publish accounts for each school separately. Trusts could move funds between schools and create capital for new buildings at one school by levying other schools in the Trust.

The PAC said:

 ‘Academy trusts have been set up as charitable companies, with more freedoms and responsibilities than maintained schools, including being responsible for managing their own finances. There is a tension between this autonomy and the oversight role by the centre via the Education & Skills Funding Agency which is required to provide assurance to the Department who hold ultimate responsibility for the delivery of education in England. The Department provided additional financial support of £31 million to 81 academy trusts in 2019/20 to support financial recovery, build capacity, facilitate a transfer of academy schools triggered by financial or educational factors, or as a short-term advance. Of this, £21 million has been provided as non-repayable funding. The Education & Skills Funding Agency has reported that £10 million of debts held by academy trusts have been written off in 2020–21, including £5 million for one trust. We are concerned that there is a risk that a trust becomes too big to fail and could therefore see large sums of public funds being pumped into it to keep it afloat.’ (Page 7)

Writing off £10 million of debts in one year means cash that could have been spent on children’s education probably disappeared in a manner not possible with local authorities.

Of more concern is the lack of control over senior staff salaries in Trusts. To quote the PAC again;

‘17. The number of academy trusts paying at least one individual above £150,000 increased to 473 trusts (17% of trusts) in 2019/20, from 340 trusts (12%) in 2018/19. Almost two thirds of trusts (1,772; 64%) in 2019/20 reported paying at least one individual between £100,000 and £150,000, compared with just over half (1,535; 53%) in the prior year.’ (Page 14)

This is not a new issue, as my blog from 2018 highlights: CEOs pay: what’s happening? | John Howson (wordpress.com) If there were just 160 local authorities with Directors of Education, how much more cash might be available to schools that is currently disappearing due to the diseconomies of scale inherent in the model of academisation established by Michael Gove in the hurry to pass the 2010 Education Act.

So, no democratic control, high salaries for some, but pay freezes for workers. Not a good structure for our school system when we cannot even recruit enough teachers.