Academies increase cash balances

Hard on the heels of the Treasury Select Committee’s Report, with its comments on government funding of education – see previous post on this bog – comes the 10th Annual Academy Benchmark Report from Kreston Global Kreston-Academies-Benchmark-Report-2022-Web.pdf (krestonreeves.com) This detailed report raises a set of interesting questions, and also offers pointers as to why the labour market for teachers in the secondary sector may have been so buoyant during January 2022.

The Kreston Report comments that

Once again, we are seeing record breaking in-year surpluses for MATs, whilst secondaries are showing a small increase and Primaries have fallen to 2019 levels. But this top level statistic hides the complex mix of variables giving rise to the surpluses. This result is likely to be a by-product of Covid-19 factors rather than an intentional result. The good news is that fewer Trusts are now in a cumulative deficit position and only 19% had an in-year deficit (2020: 25%).”

And

The size of the in-year surpluses has gone up to record levels; there are less Trusts making in-year deficits, there are less Trusts with cumulative deficits, free reserves are up, and cash balances are up.” (page 12).

The Kreston Report adds that: “From conversations we have had with our Academy clients many were budgeting for in-year deficits or to break even, and were on track for this to happen. “(page 11).

Now, does this mean that a lot of the cash for catch-up programmes is already sitting in secondary school bank accounts? Why wasn’t the saving on supply teachers and other budget heading immediately transferred into support for pupils?

To allow reserves to increase during the pandemic raises questions abut either a lack of congruence between values and budgets or a less than perfect understanding of financial affairs by school leaders? Surely, neither is the case. However, the increase in balances, even if unexpected, does raise some interesting questions about the relationship between decision-making and educational values.

Way back in the 1990s, when I first worked on Assessment Centres for would-be headteachers, this was an issue of concern. Those in education are good at talking, but do they always possess the skills to put their values into actions? What is the relationship between the values of school business managers and education leaders, especially when faced with challenges for which there is no rulebook?

One reason for high cash balances cited by Kreston in the report is my old bugbear, saving for future capital spending. The Kreston Report says this “Some MATs do have a strategy of accumulating funds within the central fund to meet the costs of future capital projects, so this could explain why there are sizeable balances carried forward in some cases.” (page 20) My view has always been that revenue spending should be for today’s pupils, not those of tomorrow, especially when the non-physical environment is so challenged as it has been during the pandemic.

The Kreston report concludes with some interesting benchmark data, but not, as far as I can see, anything on staff recruitment costs. In view of the amount schools can spend in this area, that seems like a curious admission not to extrapolate it from the measure where it is no doubt currently buried.

Taken together, both the Select Committee Report on future spending and the Kreston Report on past trends make for interesting reading for anyone concerned with the education of the nation’s young people.

Education spending: government less than generous

The House of Commons Treasury Select Committee has today published its Report on the Autumn Budget and Spending Review 2021. Normally, this blog doesn’t read Treasury Select Committee reports, but this Report did have something to say about government spending on education.

In paragraph 48 the Committee noted the evidence it received from Dr Tetlow and in paragraph 54 it made its own comment, noting that the DfE …’ , did not receive such a generous settlement’ and that ‘School funding per head has only now returned to 2010 levels following the latest Budget.’

The two paragraphs are reproduced below.

48. While the Department for Education (DfE) will have received a real-terms increase in its budget of 2.3 per cent compared to 2009–10, Dr Tetlow told us that the DfE had not done as well in the Spending Review as the sector may have hoped for, given how it had been impacted by the loss of learning during the pandemic, and the need there would be for educational catch-up: Education was clearly one of the relative losers from the Spending Review. Certainly, the £5 billion that has gone into education isn’t large enough to meet our estimate of what might be needed to catch up on lost learning. […] Poorer skills in the cohorts going into the labour market over the next few years does run the risk of having longer-term impacts on productivity.58 […] Even though the Chancellor hailed in his speech that per pupil spending would go back to its 2010 level, it is pretty remarkable to have a decade with no real-terms growth in spending in schools. That is quite unusual and not a strong signal of prioritising improved skills in the UK.

54. While some departments which had been significantly disrupted by the pandemic, such as the Department of Health and Social Care and the Department for Transport, received large increases, the Department for Education, which was also affected by the pandemic, did not receive such a generous settlement. School funding per head has only now returned to 2010 levels following the latest Budget.

Budget report (parliament.uk) 27th January 2022

No doubt in their defence The Treasury would point out that more children are being educated because of the increase in the birth rate and the move to all staying in education or training until age 18 than in 2010. They might also point out there are more students in higher education, but most of their costs are probably being taken on the student loan account.

Without a more generous settlement over the next few years, spending per pupil on education is once again going to be tight, and probably will fall in real terms. The DfE needs to look at the costs of running a mixed system of academies and maintained schools. Why are there several hundred Chief Executives of Academy Trusts when previously there were only around 150 Chief Education Officers in local authorities. What is the extra salary bill costing and how many more civil servants are needed to manage the Department to School budget process compared with discussing with just a limited number of local authorities? It really is time to sort out the middle tier of schooling and the extent to which there should be democratic accountability.

Finally, if I can suggest a simple cost saving measure to the DfE. Compare the cost and effectiveness of your job board for teacher vacancies with other products offering similar services and check that you are now spending more than necessary on this service.

Happy Birthday

Today is the ninth birthday of this blog! A birthday is a good time to look back at what was written in the past on the blog. One of the interesting posts came early in the life of the blog, in July 2013, when I called for action by the government and suggested that “ministers must take urgent action if we are not to see a re-run of the crisis in teacher recruitment that occurred in the early days of the Blair government.” The full quote is reproduced below and can be seen on the blog by searching the July 2013 posts.

“Coming, as this outcome does, after several years when recruitment to teacher training has largely not been an issue, the present situation is a wake-up call for all concerned, and ministers must take urgent action if we are not to see a re-run of the crisis in teacher recruitment that occurred in the early days of the Blair government.  There are two months left before the training courses start, so all is not yet lost. However, if my predictions prove accurate, some schools are going to struggle to recruit teachers next summer: good news for recruitment agencies, but probably not for some pupils. And, as I have said before, this is no way to create a world-class education system.”

Extract from

Has Michael Gove failed to learn the lessons of history?

Posted on July 2, 2013

There was a fairly swift response from Sanctuary Buildings that sparked something of a spat and the first Statistical Bulletin on the Teacher Supply Model for a while. Regular readers can make their own minds up about the extent to which I was “scaremongering” or a prophet ‘crying in the wilderness’. I wrote in August 2013 the following:

“So now I know I am officially a scaremonger. A DfE spokesperson, helpfully anonymous, is quoted by the Daily Mail today as saying of my delving into the current teacher training position that there was no teacher shortage, adding: ‘This is scaremongering and based on incomplete evidence.’

Well, the first thing to note is that I haven’t said that there is a teacher shortage, just that training places are not being filled: not the same thing. Indeed, I have said a teacher shortage is less likely than in the past in the near future because Mr Gove has mandated that qualified teachers from Canada, Australia, New Zealand and the whole of the USA can teach here as qualified teachers with no need to retrain. With an oversupply of teachers in parts of both Canada and Australia that should prevent any short-term problem developing even though another part of the government isn’t very keen on importing workers from abroad, presumably including from within the Commonwealth and a onetime colony.”

Extract from

Scaremongering!

Posted on August 14, 2013

I suspect anyone interested in the supply of teachers of physics, design and technology and business studies may have a different view about these quotes from those interested in the supply of PE and history teachers.

The DfE now controls the whole teacher supply pipeline from applications to train as a teacher to offering a job board as somewhere for schools in the state sector to place vacancies. To talk or write of a local education service these days would be as much of a misnomer as the write of a local health service rather than of the NHS.

Understanding and controlling teacher supply is important in the national interest and it is worth speculating what the landscape of teacher supply might look like in another nine years if the DfE became seriously involved in the ‘levelling up’ agenda?

Directing new teachers where to work and directing the management of promotions by specifying how MATs ought to deploy their staff might just be two of the ‘innovations’ to look forward to in the next decade if market forces are abandoned in favour of a more interventionist approach.

I am not sure that this blog will be there to chronicle those changes, but I hope to make it to its tenth birthday next year, if that isn’t tempting fate too much.

Start Recruiting now

This is the stark warning to schools across much of Southern England that may need staff this September and especially to secondary schools. TeachVac www.teachvac.co.uk data has shown that the first three weeks of January have witnessed a continuation of the trend at the end of 2021 with a considerable increase in vacancies recorded.

TeachVac hasn’t changed its vacancy collection methods since 2020 but it has seen vacancies listed in the first 19 days of the month in 2022 increase by 14% over the recorded numbers recorded in early January 2020 pre-pandemic, and by a whopping 135% over the depressed level of last January.

As reported in a previous post, design and technology staff will be especially hard to recruit in 2022. Already in 2022, vacancies recorded are 48% up on the same period in 2020. Vacancies for teachers of music are up by an eyewatering 73% on 2020 vacancies in early January.

All these vacancies mean that the pool of new entrants will be reducing at a faster rate than in previous years. High quality trainees will be offered vacancies by schools that understand these trends and are aware of the state of the pool of trainees, either because they run school-based programmes or because their mentors have told them what higher education providers are saying.

TeachVac’s low-cost service can keep school up to date with trends for as little as £100 and a maximum of £1,000 per year that includes listing and matching all the school’s teaching vacancies with TeachVac’s growing pool of register users.

Registration also provides access to far better data than on the DfE site and also intelligence on the state of the recruitment round for trainees for September 2022 and hence the labour market in 2023.

Signing up today at www.teachvac.co.uk and the tab matching service will also bring a free copy of TeachVac report.  Message me if you want more information or use the comment box.

London attracts would-be teachers

The DfE has now published the data on both applications and applicants for postgraduate teacher training courses recruited through their portal up to the 20th December 2021. As they helpfully point out, the data are not always directly comparable to that provided in previous rounds by UCAS. However. The general direction of travel is discernible enough to provide a measure comparison with previous UCAS data.

Apart from the data on applicants and applications – applicants may make a number of applications – data on those offered a place and those accepting the offer can be determined from some of the tables. In the case of that data the subjects do not aways align with those previously used by UCAS.

So, what to make of the data? A previous blog looked at the data early in December, the data considered here is for the month as a whole, up to the Christmas holiday break, and are best compared with 2019 data rather than 2020, as 2019 was the last year before the pandemic distorted the data.

Of most interest is the number of applications made in secondary subjects. Here the comparison with 2019 reveals a mixed picture. 43% of applications are for three subjects: PE (21%) English (13%) and history (9%). Add in biology (5%), and those four subjects account for almost half the applications for secondary subjects. Of course, as the courses in those subjects fill their places, their percentages will fall and those for other subjects will increase. Indeed, PE now takes a smaller share than in early December, demonstrating the early demand to train as a PE teacher despite the relative lack of teaching posts for those that do train as a PE teacher.

With language teaching in the news this week, it is interesting to see the subject accounts for just five per cent of applications, compared with the 13% each for English and mathematics that may account for a similar amount of curriculum time. Only 146 offers have been made in languages. However, this is one subject where comparison with UCAS isn’t really possible because of the change in method of recording the subject.

Compared with December 2019 data, in terms of offers, mathematics is doing well, as is design and technology, but from a very low base, and not yet offering the prospect of the subject meeting its target.

Applications for primary courses appear much healthier than they were in 2019, and the data would suggest there will be few problems in this sector. London still appears to be a good source of applicants with almost 17% of candidates. However, offer rates are much lower than in the north West. Maybe the timing of applications was later in London, and hasn’t yet allowed enough time for processing. However, this is something to watch as the recruitment round unfolds.

Overall applications are ahead of December 2019, by around some 2,000 with applicants domiciled in England around 500 ahead of December 2019 once applicants from outside England are removed from the total. This data reinforces the importance of the London region as a source of applicants.

Compared with December 2019, there are both more male and female applicants. The increase is spread across most of the age groups, with notable increases from those in the over-40 age-groups, including 29 candidates over the age of 60.

There is a regrettable lack of a breakdown by phase between the different types of courses. However, it is obvious that the School Direct salaried route is still out of favour, no doubt being partially replaced by the apprenticeship route.

With an overall buoyant labour market, and many areas of the public sector running TV advertising campaigns at the present time, teaching as a career for graduates will need to continue to do everything possible to attract applicants, especially in a wide range of secondary school subjects. 2022 may be hard work.

Design and Technology: End of a road?

The end of the second week in January is usually a bit early to be making predictions about the state of the teacher labour market for September. However, in the case of design and technology, the signs of a really difficult job market for schools have been there for some time, and certainly since the publication of the DfE’s Census of Trainees in December 2021. Those signs are now backed up by early data on jobs being advertised.

Using exclusive data from TeachVac, based upon an analysis of recorded job adverts in the first two weeks of January 2022, there are sign of an early increase in demand for such teachers.

Datejobs 2015jobs 2016jobs 2017jobs 2018jobs 2019jobs 2020jobs 2021jobs 2022
Week 110251916792958
Week 220525047417167164
Week 320877787103156123
Week 440110120105183244183

Source: TeachVac

Now, this may just be prudence on the part of schools in bringing forward vacancies, rather than a growth in real demand for such teachers. We won’t know the answer to that question until at least the end of January, and possibly not until even the end of February.

However, with this level of vacancies it is possible to demonstrate by matching vacancy levels to the potential supply of new entrants into the profession for September 2022 that schools may have to rely upon sources of supply other than new entrants much earlier in the recruitment round for September than they might either expect to or like the idea of doing.

TeachVac’s exclusive formula suggest that the ‘free’ pool of new entrants is already lower than at any point at the end of Week 2 of the year since at least 2015.

Date 20152016 2017 201820192020 2021 2022
Week 1368412.5371217219343580231
Week 2363399356201202312561178
Week 3363381.5342181191270533
Week 4353370321172131226503
Vacancy index – lower the number the more challenging filling vacancies will be

Source: TeachVac

The data also shows that compared with 2020 and 2021 the pool is lower than at the end of January by last Friday and week 2. Should the end of January 2022 number be lower than the end of 2019 number, then the remaining recruitment round may be grim for schools looking to recruit a design and technology teacher of any description.  January 2023 vacancies don’t even bear thinking about.

Schools that have signed up for TeachVac’s new matching service at  TeachVac Reports – The National Vacancy Service for Teachers and Schools can have access to this type of data for a range of subjects.

What are the implications for schools unable to recruit qualified design and technology teachers? Staffing the curriculum is the obvious problem. What are the longer-term effects of young people not studying this subject? That’s for others to say, and the DfE to act as it sees fit.

‘A drop in the ocean’

Much has been made of the government’s campaign to recruit ex-teachers back into the classroom as supply teachers to help out during the latest phase of the covid pandemic.

Here is the actual wording from the DfE about the success of the campaign by early January 2022:

Findings

• There were at least 585 ex-teachers coming forward to either Teach First, or 47 of the estimated 400-500 teacher supply agencies, between the 20th December 2021 and 7th January 2022.

• Of this total, over 100 expressions of interest have been reported by Teach First.

• A further 485 sign-ups of ex-teachers were reported by the 47 supply agencies who responded to the DfE survey.

• Given this survey response only covers a small number of agencies, this will not reflect the true total as other agencies not surveyed, or which did not respond, are likely to also have had sign-ups, and the call for ex-teachers to return is still ongoing. The true number of sign-ups since the call was launched will be larger.

Number of ex-teachers coming forward to join the school workforce (publishing.service.gov.uk) 12th January 2022

Interestingly the government doesn’t so far seem to have spent much money on the campaign. In answer to a written Parliamentary Question Robin Walker, the DfE Minister replied that:

As of 5 January, the spend relating to marketing and communications in support of the national appeal for former teachers to return to the profession is £3,882.69. This amount consists of:

  • Design work for a toolkit of assets to be used by partners of the department: £2,227.80.
  • Paid Search Advertising: £1,654.89.

Written questions and answers – Written questions, answers and statements – UK Parliament

To their credit, the government recognises that the 485 sign-ups don’t account for the whole total. Now assuming the 10% response rate can be grossed up, the national figure might be around 5,000. (The DfE footnote to editors said that ‘We estimate this number of responses represents around 10% of the agencies operating in the market. This figure is based on estimates provided by trade bodies. Agencies will vary in size and so this figure should not be taken as an indication of market share.’)

Now, we don’t know the geographical spread of these new supply teachers. We don’t know whether they are willing to work in both primary and secondary schools. We don’t know whether they will work five days a week or just for a couple of days.

We can assume that like other teachers the normal stock of supply teachers are affected by covid in the same way as the rest of the population. The 2020 School Workforce Census identified that there were 11,574 ‘occasional teachers’ in schools at the time of the census. So, and additional 5,000 to the stock is clearly a useful number. But, with a teaching force of 461,000 it only takes just over one per cent of the workforce to be absent due to covid to use up the whole of the possible new recruits to supply teaching.

Could the government have done more. Certainly, the cash spend seems low compared to other campaigns. What of unemployed history and PE teachers that completed training last summer, but couldn’t find a teaching post. Has the government worked with training providers to identify those still wanting to enter teaching and offered some support to help them do so even on a temporary basis?

No doubt as this term unfolds more information will become available about how successful the government was at helping schools to stay open, and the part the national campaign played in achieving that end compared with the actions taken locally by schools, Trusts and Local Authorities.

Recruitment 2022: a rough ride to come

Can you tell anything about the 2022 recruitment round for teachers in England based upon just four days of vacancy data? One of the advantages of a job board such as TeachVac www.teachvac.co.uk is the it has sufficient cumulative data on vacancies that can be allied with data about the numbers of teachers on preparation courses to be able to provide some helpful comments on the labour market, even after just four days of data.

For those that are sceptical of such a claim, consider sampling theory. A simple example is to assume a bowl of soup. A small spoonful will tell you whether or not the bowl if full of hot soup. Now scale up to a vat size container. Will a small sample tell you the same answer for the whole? Now purists might maintain that the bottom of the vat could be hotter than the top; I would agree. Taking that comment to vacancy data means that the comments for England as a whole might well include differences across the regions. Such an objection is true, and that is why each month TeachVac produces regional data for most secondary subjects and the primary sector. But it doesn’t invalidate sampling as a useful tool.

Anyway, back to our sample of 2022, and what I think it tells schools about the recruitment round this year. The first point is that it confirms what was being said at the end of 2021, appointments for September 2022 will be more of a challenge almost across the board as the 2020 bounce in interest in teaching as a career drops out of the supply side.

How bad will 2022 be? Well, nothing of concern in art, PE and history. Indeed, schools might well be starting to consider whether they can make use of an extra history teacher and perhaps an extra PE teacher to make use of the best of the trainees with second subject expertise in the pool of jobseekers.

At the other end of the scale, the usual suspects of design and technology where there will be real issues with recruitment have been joined this year by geography, modern languages and English. In the case of the latter two subjects this is partly because of the number of trainees on courses that will either already have placed them in the classroom or make it likely that they won’t be looking on the open market for a teaching post. Independent schools should take especial note of this fact when considering how easy it will be to recruit a teacher.

Most of the other subjects have seen the size of their ‘free pool’ decline this year compared with 2021, and that will have implications for January 2023 appointments. Such vacancies may be hard to fill in many subjects in those parts of England where recruitment is a challenge; namely London and the Home Counties.

Schools that have signed up to TeachVac’s £1,000 maximum annual recruitment package will receive regular updates on the state of the labour market, including local knowledge. On registration, and at no cost, schools receive a detailed report on the labour market.

Recruiters tell me that TeachVac is ‘too cheap’ to succeed because nothing that cheap could be any good. My principle in founding the job board was to show that recruitment advertising need not cost a lot of money. I still believe that to be true. Do you?

TeachVac welcomes new tes owners

This is an interesting way to start 2022. Just three years since the tes last changed hands, its ownership looks to be on the move again. This would make the third set of owners of the tes since TeachVac was set up in 2013 to challenge the high cost of teacher recruitment in a changing world, where technology should have been driving down costs and thus reducing prices to schools. www.teachvac.co.uk According to the press release 86c854e3-7a1d-4402-9f20-32868488d2c6 (gcs-web.com) dated the 7th December the new owners should be the current management team at the tes and ONEX, a Canadian Venture Capital Group. My best wishes to them.

When the Providence Group bought the tes in 2018, I expressed surprise at the purchase, so I am not now surprised that after slimming down the business by: exiting the supply teacher market; ending coverage of the further education sector; shifting its office functions out of London and axing the print edition among other changes, Providence finally put the business up for sale.

Based on the cost structure of TeachVac, there is a profitable company lurking inside the tes, but not while it is saddled with a large slug of overhanging debt that needs to be serviced. The terms of the expected change of ownership are not revealed in the press release, but too much debt will cripple the success of the new venture. Still, it is good to see the management team taking a share of the risk, and bringing at least a part of the ownership back into the UK from North America.

Today’s Sunday Telegraph business section has an article by Matt Oliver discussing the problems the tes faces when government tries to do the same job through its own free web site for vacancies. This blog discussed such an issue in relation to both TeachVac and the TES in April 2019 DfE backs free vacancy sites | John Howson (wordpress.com) I am sorry that Matt Oliver didn’t either mention TeachVac or try to speak with me about the way the market operates, as other journalists have done on a regular basis.

Perhaps either the Education Select Committee or the Public Accounts Committee at Westminster will use Matt Oliver’s article as a reason to mount an inquiry into the teacher recruitment market. After all, the later, using National Audit Office data, called for the DfE to reduce the cost of teacher recruitment: the very reason that TeachVac was established and has flourished. Does Nationalisation always work? | John Howson (wordpress.com)

This blog has always asserted that schools have been paying too much for recruitment advertising and has been prepared to back that judgement with the development of the successful TeachVac job board. The apparent lack of interest on the part of professional associations and others connected with education to address the means of removing unnecessary expenditure from schools by slashing recruitment advertising costs has been an enduring disappointment to me. Perhaps 2022 with be the year that all this changes?

Take Care Seriously

Anne Longfield, the former Children’s Commissioner has published an important report on children in the care of local authorities entitled ‘Out of Harm’s Way. https://thecommissiononyounglives.co.uk/wp-content/uploads/2021/12/OUT-OF-HARMS-WAY-CYL-DEC-29-2021-.pdf?utm_source=HOC+Library+-+Current+awareness+bulletins&utm_campaign=834a4dd143-Current_Awareness_Social_Policy_E_29-12-2021&utm_medium=email&utm_term=0_f325cdbfdc-834a4dd143-103730653&mc_cid=834a4dd143&mc_eid=ae5482b5b9 the report by the Commission on Young Lives should be essential reading for all Councillors, Teachers, Social Workers and Emergency Service personnel, and members of police forces across the country.

The report starts with the case of Jacob, a teenager failed by authorities and who eventually took his own life. I wrong a blog about his case when the Serious Case Review was published back in January Time for Jacob’s Law | John Howson (wordpress.com) But Jacob sadly isn’t the only child let down by a system that is overloaded and under-funded. Not only are children in the care of local authorities suffering but, as seen recently in the outcome of court cases, young children below school age are dying at the hands of those supposed to love and care for them.

But for Jacob and for many children in care one of the key issues is the support they receive from the education system. The pioneering work by the TES more than a decade ago that helped with the creation of virtual schools to oversee the education of children in care on behalf of the ‘corporate parents/guardians’ must not be undermined by an education system that is still too geared to satisfying the needs of able middle-class parents who can make full use of a market-based schooling system.

In my post in January, I called for a Jacob’s law to ensure no child was left without a school place following a move either in care or for any other reason during the school year. Since then, I have heard of too many examples of children, often with complex educational needs, where a family move has meant the child has been denied a school place for far too long. We can debate home schooling when at the behest of the parents, but ‘no schooling’ because of the failure of some part of the state, whether a local authority, a diocese or an Academy Trust, is just not acceptable.

I hope that many Councillors and activists will read this report from The Commission on Young Lives and take action ahead of local authority budgets being set in February to ensure everything possible is done to improve the lot of these young people.

Some children do need to be moved away from their ‘home’ area for safety reasons, but these moves should be exceptional and not routine. No child of secondary age should be moved from a comprehensive system to a selective system where they have no access to selective schools regardless of their perceived ability levels.

We must care for the most vulnerable of our young people in a fit and proper manner and not as an afterthought.