Funding for new school places: who has the ultimate responsibility?

The Public Accounts Committee has just published a short report into the Department for Education and the capital funding for new school places* following anxiety about the supply of places to meet the growth in the school population. It is worth highlighting the following paragraph from the summary of the Committee’s Report:

The Department does not have a good enough understanding of what value for money would look like in the delivery of school places, and whether it is being achieved. In response to fluctuations in local demand local authorities can direct maintained schools to expand or close but do not have this power over academies or free schools. Local authorities need to have mature discussions with all parties, including the academies and free schools, to resolve any mismatch between demand and supply for their communities as a whole. We hope that discussions at local level always prove successful, but the Department needs to be clear about how it will achieve the best value for money solutions in the event that local discussions fail to achieve a resolution. This has to be in the context that Free Schools and Academies are directly accountable to central Government, but the Government has no mechanism to force them to expand to meet the demand for school places. In addition, the Department does not sufficiently understand the risks to children’s learning and development that may arise as authorities strain the sinews of the school estate to deliver enough places. The imperative to increase the quantity of school places should not be achieved at the expense of quality.

This debate was further articulated in paragraph 14 of the report. The Committee asked the Department how it would resolve matters if, for example, it would be better for an academy or free school to expand or to close in accordance with changing demand in an area, but the particular school(s) did not wish to do so. The Department told The Committee that such situations are best settled by sensible discussions between professionals in the area concerned. The DFE said that such situations are intensely local and that, as opposed to a central direction from government, it would rather see local authorities and schools working collectively to meet such challenges. The Department assured us that it monitored these matters closely and that all cases so far had been resolved properly by discussion. The Department stated that, were it not to find a solution through discussion, it would look at the individual circumstances and make decisions accordingly. The parties involved need to be confident that a process to resolve these matters exists.

The Committee’s Report commented it hoped that discussions at local level always prove successful; it added, however, we would like to receive greater reassurance about the actions the DfE will take in order to help resolve matters to achieve the best value for money solutions in the event that local discussions break down.

Now in response to what is happening in Oxfordshire, I find the DfE’s comments curious since they have side-stepped the question of what happens if the DfE sanctions a new school where there is clearly an over-supply of places in the short-term. Both the UTC in Didcot and the Studio School in Banbury are in areas where the local supply for school places in the 14-18 age range is clear sufficient for the next few years, unless there is a dramatic upturn in house building. That hasn’t stopped the DfE introducing these two new schools that will make the position in terms of overall places even worse in the short-term, as I indicated in an earlier column. Whether the capital resources would have been better applied providing additional primary school places in schools where parents want their children to attend is a moot point. Indeed, the Committee recognised that the present system might force local authorities to expand poorly performing schools, because they had no choice of an alternative.

It does seem odd that more than 140 years after the creation of State Education such a basic issue as the provision of places for every child should have caused so much confusion and anxiety. It may be fun to create new types of school, reform the curriculum, or even take on the teachers, but a Secretary of State also has a Department to run, and successive holders of that office under both the present coalition and the previous government don’t always seem to have realised their duty of care to provide a service fit for everyone who uses it, and not some of them. The next crisis in Minister’s in-trays is probably around the matter of teacher supply. Let us hope that they don’t make the same mistakes as has happened with the supply of school places. The provision of teachers is, after all, just as basic an issue as the supply of places. After 140 years we ought to be getting both right not risking serious shortcomings in both. That’s not the way to a world-class education system.

* http://www.publications.parliament.uk/pa/cm201314/cmselect/cmpubacc/359/35904.htm

Funding per pupil, spending by schools: does it give value for money

Many of the important operational financial decisions of schools are largely idiosyncratic.’ This was the finding of a DfE sponsored research project that reported in 2012. Earlier today David Laws as Minister of State issued a written ministerial statement on future funding for schools in 2014-15. In the end, whatever decisions are made about how to fund schools, the spending decisions are now taken at the school level. How idiosyncratic schools’ individual decisions are can be determined, at least in historical terms, by an analysis of the raw data the DfE now publishes on its web site

Recent data for academies allows comparisons between such schools expenditure patterns. The latest data is for the school-year 2010-11 since it seemingly takes longer for the private sector to produce accounts than for state owned schools, where data up to March 2012 has been in the public domain for some time now. It would be invidious to look at academies starting in 2010, since they would not have a full complement of pupils, and there are always extra start-up costs. However, taking four academies outside London with starting dates between 2003 and 2008 provides an interesting picture of expenditure over four different categories.

Teaching

All academies with Key Stage 4: National median expenditure £3,544

The 4 academies  £2,047  £3,512  £3,700  £4594

Cleaning

All academies with Key Stage 4: National median expenditure £29

The 4 academies  £65  £72  £99  £123

Staff Development

All academies with Key Stage 4: National median expenditure £71

The 4 academies  £24  £53  £81  £92

Educational Supplies

All academies with Key Stage 4: National median expenditure £603

The 4 academies £602  £779  £880  £885

On every element there is a wide range of expenditure between the four academies. It is important that boards of directors of academies do these sorts of comparisons just as much as governing bodies of community schools so that they can justify the use of what is still in the final analysis public money.

The new funding arrangements for 2014-15 may be the last before a major reform that will grapple with the vexed question of regional funding levels, as well as those at the individual school level. The greater flexibility for the funding of small schools in rural areas highlighted in the ministerial statement will no doubt be welcomed by many in the shire counties and unitary authorities in rural areas, but the approach could mean the end of some small urban primary schools unless they have relatively low overheads and staffing costs towards the lower end of the range. There won’t be many TLRs in those schools, and the new pay arrangements might mean these were the first schools to face the staff with the choice of an increment or the closure of the school.

School funding arrangements will never please everyone, but it is clear that value for money benchmarks that governors and directors of schools can benchmark their own schools against might be a useful aid to constructing budgets and helping ministers decide the funding mechanisms for the future.

Good schools for all or just for some?

Should society concentrate on making entry to good schools fairer rather than trying to expand the number of good schools? The Sutton Trust Report published earlier today about eligibility for free school meals at the top state schools seemingly opts for supporting the former approach. That’s not surprising since it paints a dismal picture where in the top 500 comprehensive schools the overall rate of pupils eligible for free school meals is half the national average, and only 40 of the 500 top comprehensive schools have higher free school meals than the national average. Indeed, since the Sutton Trust first looked at the issue of the number of pupils on free school meals in top performing schools little has changed, except that more pupils are entitled to free school meals as a result of the recession.

Top State Schools            Local Area of school       National Average

2005 Study          3%                                          12.3%                                    14.3%  Mostly selective schools

2006 Study          5.6%                                      13.7%                                    14.3%  200 comprehensive schools

2013 Study          7.6%                                      15.2%                                    16.5%  500 comprehensive schools

Schools in the top 500 are, according to the Sutton Trust study, more likely to be faith schools; single sex schools; converter academies; voluntary aided schools. Some schools may fall into more than one of these categories. All of these types of schools control their own admissions policies.

The alternative approach, making all schools good schools, is the driver that underpins the coalition’s Pupil Premium policy of adding extra revenue support to pupils on free school meals. The top 500 comprehensive schools won’t see much of this money. The Pupil Premium policy tackles the issue of where children are now, not where the authors of the Sutton Trust study might like them to be. Interestingly, the study is silent about what would happen to pupils displaced from the top 500 schools by those on free school meals? Is it assumed that their parents would lead the drive to improve the schools their offspring ended up at?

Ever since the attempts in the 1960s and 1970s to create a rational secondary school system to replace a system designed for an age when the majority of pupils left school at 14 to join the workforce, secondary schooling has all too often been about social segregation in the urban areas, rather than a force for greater social cohesion. The philosophy inherent in the Sutton Trust report seems to be that of offering an escape route to better education for the deserving poor rather than accepting the view that being poor should not mean having to accept a lower standard of schooling from the State for your children.

A good school for all has always been the standard I want our education system to strive for. Looking at what has happened in London over the past decade shows what can be done. I believe it starts with good quality primary schools for all. As a nation we aren’t there yet, and indeed we are often too fixated about the secondary sector. I firmly believe that good primary education will mean more good secondary schools, and ease the debate about admissions policy. After all, those children who live in really rural areas generally have no choice in the matter about where they go to school: they deserve to go to a top school as much as any other child.

Planning School Places: More than just about the numbers

On Friday 15th March the National Audit Office issued what can be seen as a critical report about capital funding for primary school places in England http://media.nao.org.uk/uploads/2013/03/10089-001_Capital-funding-for-new-school-places.pdf

The media, as might be expected, latched on to the fact that 250,000 extra places will be needed by September 2014, with a further 400,000 required by 2018, rather than the more technical discussion about the manner in which places are funded, and the value for money associated with the process. The figures for pupil places required are not new, although the shortfall still remains too large, and until recently hasn’t been treated with any degree of urgency at Westminster.

More important than the numbers is what can be read into the Report about the two competing ideologies in British politics – on the one hand, the market as a mechanism for solving all problems; and on the other some form of state planning. The post-war period has been marked in many parts of the public sector by a shift from a planning-based approach to public policy to a more market-based approach. The current generation of think-tank and policy research probably don’t realise that in September 1939 when DORA was introduced overnight (Defence of the Realm Act), using the experiences gained during the first World War, Britain became one of the most controlled and planned societies in the world: today planning is a concept that often seems to have a bad name in public sector policy, especially in education. However, the NAO Report ought to mark a reappraisal if not a turning point in the debate.

In the private sector, future planning is an integral part of every successful business. Just consider the fate of either those retailers that didn’t plan for the effect of the internet on their customers or the train operators who have failed to cope with a record growth in passenger numbers. Without planning comes not just chaos, but also inefficiency and public disappointment that eventually can lead to a sense of dissatisfaction with politicians. Now of course, planning isn’t an exact science, and bad planning can result is poor outcomes for society. But, planning for school places ought to be a basic part of the management of our education service.

Part of the reason for the failure in dealing with provision for the current upswing in the birth rate is undoubtedly the breakdown of the arrangements for controlling schools that stared a quarter of a century ago with the Education Reform Act, and site-level  management of schools. When the Labour Government invented sponsored academies to take over failing schools they destroyed many of the remaining education planning frameworks without making clear what would replace them. With Westminster and Town Hall both either unable or unwilling to take on the responsibility, there has been a sense of drift and ‘passing the buck’ rather than of co-ordinated planning: hence the NAO’s concerns about both numbers and value for money.

One outcome will be that parents in many areas are now faced with Hobson’s choice over what school they can send their child to, and the notion of parental choice will become, like the red squirrel population, restricted to ever smaller areas of the country, at least for the next decade.

Those parents whose children are starting school in locations where selective education still divides children at eleven might also want to consider how their secondary school system will cope with the increased numbers, and whether a system designed in the Nineteenth century for the few fits the educational needs of the many in the Twenty First century, one where all students will be expected to remain in learning until they are eighteen, irrespective of parental income or status.

From my perspective, however we procure the school places, and that might be through a market based approach, the State has a duty to ensure all pupils have a school place available to them that is not an unreasonable distance away from their home and doesn’t demand they attend a school that has an ideology or teaching methodology objectionable to their parents. To fail in planning for this basic task, while still requiring parents to send children to school, if not educated elsewhere, under pain of the criminal law, is a basic failure of government that is unlikely to go unpunished at the ballot box; although whether the right tier of government will shoulder the blame only time will tell.

If the provision of school places isn’t at the top of Minister’s agendas at present then it ought to be. There may be more fun tasks, but concentrating on the basics must now be top of both Ministers and officials ‘to do’ lists. History will judge a Secretary of State harshly if he or she as steward of our state education system fails to provide enough school places during the next decade.