Tag Archives: ESFA

Bye-bye ESFA: Hello ESFA

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Yesterday, the DfE published the outcome of the review into the Education and Skills Funding Agency led by Sir David Bell plus its response to the review and the resulting changes from 1st April 2022.

Review of the Education and Skills Funding Agency – GOV.UK (www.gov.uk)

There are a lot of detailed proposals, but some that struck me of more general interest are these – with the government’s response below the recommendation.

We recommend that further work is done as part of school system reform to create a more strategic and shared understanding of responsibilities between DfE, ESFA, and Ofsted, and that the outcomes of this work are communicated widely

Agreed.

We recommend that the department should have a unified directing voice at a regional level. We have contributed to the current Future DfE project which is bringing together functions in the regional tier, and which will resolve the form and nature of that directing voice

Agreed. Assessing the functions and approach to post-16 regional work will be taken forward as part of developing the Further Education, Higher Education and Employers work set out above and be led by the Director General. We will benefit from learning from the experience of establishing the pre-16 regional tier.

We recommend that, in keeping with our finding that ESFA should focus on funding delivery, the functions in Academies and Maintained Schools Directorate not linked to the funding delivery role, and not required by ESFA’s Accounting Officer to provide assurance, should move to DfE. This means that the non-financial regulatory functions for academies and the functions related to school/trust governance should move to DfE’s pre-16 regional tier, as should new trust and free school activity, UTC engagement, and networking events.

Agreed.

We recommend DfE considers bringing the complaints functions for maintained schools and academies together in a fully centralised complaints system within the department

Agreed.

We recommend that ownership of the Academy Trust Handbook should move to DfE’s School Systems, Academies and Reform Directorate, unless the focus of the Handbook is narrowed back towards a tool for financial management only.

Agreed.

The ESFA had become rather unwieldy over time and these changes will move it back towards its original core function relating to the handling of the financing of the school system.

More interestingly is the re-alignment of the school system with the wider government regional framework. With the levelling up agenda being a cross-department exercise in government, this re-alignment makes sense. However, it doesn’t fit with the boundaries of Headteacher boards and Regional School Commissioners. Could the days of this unelected post be numbered? After all, might there be some cash savings to be made and, if all schools were academies of one sort or another, then one key function would have disappeared.

The DfE still has to work out the 16-18 phase where some students are in the school sector, but more are in the further education sector. There still seems to be room for overlap or avoidance of difficult issues unless the protocol of responsibilities between the directorates is made clear.

One interesting side effect of all schools becoming academies would be the shift in financial year for all schools back to a unified position. However, the financial year would be totally uncoupled from the municipal year, but aligned to the higher education funding rounds.

This review helps sort out the framework for the ‘top’ tier. Now it remains to work out the framework for the middle tier. That will probably be more of a challenge.

CEOs pay: what’s happening?

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A recent Chartered Institute of Personnel Development survey found that median pay for bosses of the UK’s biggest companies hit almost £4m last year – up from about £3.5m in 2016. https://www.bbc.co.uk/news/business-45183881

That set me thinking about the work the DfE undertook earlier this year in relation to the pay of CEOs of Multi Academy Trusts and whether or not the findings had been published anywhere?

Readers will recall that Eileen Milner, the chief executive of the Education and Skills Funding Agency, wrote in February to the chairs of 87 MATs employing individuals earning more than £150,000, asking them to explain their rationale for doing so by early March and to justify paying these salaries.

The intervention comes two days after the Department for Education minister, Lord Agnew, said that no MAT boss should receive a larger pay increase than their teaching staff and that CEOs should have their pay cut if there is a downturn in the performance of their schools. It follows a similar letter sent in December 2016 to single-academy trusts paying leaders more than £150,000. Lord Agnew’s February letter can be accessed at https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/683075/Lord_Theodore_Agnew_letter_to_chairs_of_academy_trusts.pdf

Further letters appear to have been written to some MATs in April and July seeking more information. These can be found at https://www.gov.uk/government/publications/letters-to-academy-trusts-about-levels-of-executive-pay 28 letters were sent in December 2017; 88 in February 2018 and a further 96 letters in either April or July 2018. With a final return date of 20th July, the EFSC should now have sufficient information to publish a report on the state of the most highly paid staff in the public education service.

There may be an issue relating to pensions should those not undertaking any teaching or direct site leadership of a school remain in the Teachers’ Pension Scheme. In the past, when becoming local authority staff most would have moved out of the TPS into the relevant LGPS for their authority. I don’t’ know how LGPS scheme managers and trustees, of which I am one for Oxfordshire’s scheme, would approach the arrival of such highly paid staff so near pensionable age, but the DfE does need to make clear the boundary for who can belong to the Teachers’ Pension Scheme even if they aren’t actually in a school?

The level of salaries paid to senior staff in the school system is clearly a matter that won’t go away. After all, perhaps 100 MATs paying more than most local authorities pay their Director of Children’s Services must be of concern in term of expenditure, especially once pension and other on-costs are added to the basic salary.

The problem really dates back to the Labour government and the development of Executive Headteacher roles without the government making it clear how such professionals should be paid. However, the seeds of that confusion date even further back into the early 1990s and the refusal to police the upper end of the Leadership Pay Scale for large schools facing recruitment difficulties. Failure to deal with a problem doesn’t always make it go away; sometimes it allows it to grow into a serious issue that is much harder to tackle as is now the case with the pay of CEOs of MATs.