More cash likely; but please don’t forget the FE sector

The House of Commons Education Select Committee has today published the report of their inquiry into funding in schools and further education. https://publications.parliament.uk/pa/cm201719/cmselect/cmeduc/969/96903.htm#_idTextAnchor000

It is worth reporting their key proposals in full in the light of the excellence of the Report.

  • urgently address underfunding in further education by increasing the base rate from £4,000 to at least £4,760 (amounting to around £970 million per year), rising in line with inflation;
  • increase school funding by raising the age-weighted pupil unit value;
  • increase high needs funding for special educational needs and disabilities to address a projected deficit of at least £1.2 billion, and ensure any funding uplift takes proper account of the costs of providing Education, Health and Care plans up to the age of 25;
  • implement the full roll-out of the National Funding Formula as soon as feasible; make the various funding formulae more forward-looking and less reliant on historical factors; and investigate how best to account for the individual circumstances of outliers;
  • develop an official statistics publication for school and college funding to provide greater clarity on the data and trends;
  • grant Ofsted the powers to conduct inspections at MAT level, and require MATs to publish more detailed data on their financing structures;
  • ensure all eligible students attract Pupil Premium and overcome existing barriers to automatic enrolment as a matter of priority;
  • secure from the Treasury the full amount of estimated Pupil Premium money that has not been claimed because students did not register for free school meals, and allocate this money to disadvantaged children;
  • extend Pupil Premium to provide for 16–19 year olds; and
  • set out the timetable for providing apprenticeship transport subsidies, as per the Government’s manifesto commitments.

It is good that further education tops the list, even though it is school funding that has made the headlines. The Committee concluded that

… total school spending per pupil fell by 8% in real terms between 2009–10 and 2017–18. Per pupil funding for 2019–20 is expected to be similar to 2011–12 levels. Teachers, unions and parents have described to us in detail the scale of the impact this has had on children and young people, and on those working in the education sector.

Further education has been hit the hardest. Participation in full time further education has more than doubled since the 1980s, yet post-16 budgets have seen the most significant pressures of all education stages. Per student funding fell by 16% in real terms between 2010–11 and 2018–19 – twice as much as the 8% school funding fall over a similar period. This funding gap is the result of policy choices that now need to be addressed urgently. The social justice implications of the squeeze on further education colleges are particularly troubling, given the high proportion of disadvantaged students in these institutions.

It is a shame that these two paragraphs were not reversed in order, to ensure that FE funding issues were fully recognised. This is not to belittle the crisis in school funding, but to emphasise that funding in FE, and for the 16-8 age group that affects both sectors is in a state of real crisis.

The idea from the Committee for a ten year plan for funding, while headline grabbing, is unlikely to find favour with The Treasury, and would seem to be unrealistic in the context of a government that cannot even manage a three year financial settlement this year.

Finally, it is interesting that this report appeared on the same day that ministers appear to have accepted the evidence of a need to increase public sector workers’ pay, at least where they are review bodies. Noise in the media that schools may also receive extra funding also suggests a degree of realism now inhabit Sanctuary Buildings but, please ministers, don’t forget the FE sector: their needs should be first in the queue for additional funds.

 

 

Review of Post 18 Education and Funding

The Augar Report was published this morning. When generating a set of principles, this Review manages to be both potentially regressive and progressive at the same time, but for different groups in society.

The better news is mainly on the further education side, and the recognition of the importance of part-time study for some in society. However, even here, the Commission established by Sir Vince cable might have some better proposals for lifelong learning.

On higher education, the mixture of funding changes, wider government interference in planning through extending the range of subjects where government grant will be available, and general tinkering with the system seems likely to please almost nobody. If grant is available for Group 3 subjects, but not Group 4, and universities can only charge £7,500, how will the subjects in Group 4 fare? Will universities cross-subsidise, increase teaching groups, and reduce contact hours or just eliminate these subjects from their offer as uneconomic. I suspect much will depend upon the relative cost to income ratio at present.

As a means of boosting some STEM subjects, these proposals could provide incentives, but assumes there is a pool of potential undergraduates wanting to study these subjects, but not able to secure a place under the present system. One unintended consequence could be a glut of biological scientists, possibly with environmental approaches in their degrees, but no more physical scientists or engineers.

On apprenticeship, I was disappointed that Augar didn’t look at the funding pressure the levy places on small primary schools forced to pay the Levy by a quirk of fate. By suggesting eliminating permission for funding second qualifications, Augar would prevent these schools funding senior staff development through the Levy, as some are now starting to do under present arrangements. This is an area that the DfE needs to take notice of, as councils start repaying unpaid Levy back to The Treasury, including the cash collected from their primary schools.

The part of the report receiving the most attention is that concerning higher education tuition fees and repayments. A cap on total repayments is a good idea, but for public sector workers, subject to pay review bodies, the notion of paying postgraduate training fees is still a burden that Augar didn’t address.

As readers will know, I would require the government to either pay the fees of all trainee graduate teachers or offer all teachers full debt repayment for a period of service in public sector schools. Until then, I think the Pay Review bodies should comment on the effects of their recommendations on the teacher’s loan repayments under each of the different schemes in operation that year along with any proposed changes.

Aguar has a table suggesting that a modern language trainee teacher with a four year degree and a one-year training fee might amass some £117,000 of debt at the start of their career.

Finally, it would have been helpful for Augar to also have suggested better careers advice for pupils in schools to help them make informed choices

As a closing note, I hope this review, if implemented, doesn’t spell the end for philosophy, sociology and classical studies in our universities.

 

Publishing Augar is only the first step

In more ‘normal’ times we might expect a report of the main features of the Augar Report into FE & HE to appear in the Sunday Times this weekend. However, these are anything but normal times in UK politics, so who knows.

Some of the possible suggestions as to what might be in the Report have been widely rehearsed already, including a possible cut to tuition fees; more cash for adult further education and a minimum point score for access to an honours degree course.

Whatever Augar suggests will have to be accepted by the then government, and then translated into action as part of the discussions on the next Spending Review. Of course, it could go the way of the famous Tomlinson Report and be rejected out of hand by the Prime Minister of the day, whosoever that is. More likely is a battle within the DfE.

Bringing back FE and HE into the DfE makes good education sense, but not good sense for either sector where they inevitably play second fiddle to the vastly larger schools’ sector within the Department.

Imagine the Permanent Secretary from the DfE at The Treasury during negotiations for the Spending Review either this autumn or in early 2020 that we know will be tough, as George Osborne always said it would be in the second half of this decade without tax increases.

So, the Permanent Secretary is asked, what are your funding needs: well we have lots more pupils in secondary schools over the next five years and we cannot recruit and retain enough teachers, so more cash for schools is the immediate reply; but FE funding has taken a hit, and we needs to reskill the labour force and, sadly, the Apprenticeship Levy has flopped, so more cash for FE and especially part-time study.

Is that all, queries the Treasury Mandarin? Of course not, replies the DfE official, there is also higher education, where we need to cut tuition fees and fund research while keeping the sector going through the dip in the number of eighteen year olds for the next few years.

The Treasury might then ask, if you cannot have everything what would be your priority order? Schools must come first, would undoubtedly be the reply. There are more votes in parents than students or employers, and the teacher associations have done a great job in convincing everyone that schools are both underfunded and a special case alongside the NHS. FE might come next, as some of the pain felt by schools could be alleviated by upping the unit of resource for 16-18 year olds across both schools and FE. That leave the university sector in third place.

Fees might be cut, because of misguided belief that it would protect the student vote for the government, especially if Labour campaigned on an end to fees completely. The risk to universities would be that The Treasury would not make up the loss in fee income, except in a few STEM subjects.

Could one of the unintended consequences of such an outcome be universities opting for lower cost, mostly classroom-based courses, while spending more on marketing to attract students? An astute government might suggest the price of lower fees would be fewer separate institutions with campuses linked to a central site with a single set of support services and associated cost savings.

Now we know the departure date for Mrs May, will Augar be published before she goes or not? Either way, the funding issues won’t go away