Tag Archives: funding

International Study on school funding by OECD

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The DfE has a new benchmark by which to assess the National Funding Formula for Schools. The OECD has just published a thematic review of school funding ‘The Funding of School Education: Connecting Resources and Learning’. http://dx.doi.org/10.1787/9789264276147-en

This is an ambitious report into the issues relating to funding schools across just under 20 of the economies that make up the OECD block. In one sense the issues raised here aren’t new. Funding, and the relationship between funding and the aims of an education system, has always been a matter for debate. Indeed, ever since the governments first became involved in funding education, the key questions around how and to whom have never been far from the surface of political debate. At the most basic level, this is characterised by two of the issues discussed in the OECD report. How much funding is raised locally and where that isn’t sufficient how is it topped up, and secondly, how is the success of any funding model measured and what happens when schools fall short of successful outcomes? This includes the debate about what is meant by equality and equal opportunities. Providing every learner with the same opportunity is not the same as providing them with the same funding as something as simple as the payment of a London salary weighting in England clearly demonstrated well before the notion of Pupil and Service Children Premiums were ever considered. Finally, there is the issue of the governance, where those that raise the money often don’t actually spend it on education. This involves the quality and quantity of data necessary for this task to be effective without overwhelming the system.

The OECD Review notes that as school systems have become more complex and characterised by multi-level governance, a growing set of actors including different levels of the school administration, schools themselves and private providers are involved in school funding in many OECD countries.

The Review notes that :

‘While on average across OECD countries, central governments continue to provide the majority of financial resources for schools, the responsibility for spending these funds is shared among an increasingly wide range of actors. In many countries, the governance of school funding is characterised by increasing fiscal decentralisation, considerable responsibility of schools over budgetary matters and growing public funding of private school providers. These developments generate new opportunities and challenges for school funding policies and need to be accompanied by adequate institutional arrangements.’

The OCED authors consider that to ‘support effective school funding and avoid adverse effects on equity in changing governance contexts, funding reforms should seek to: ensure that roles and responsibilities in decentralised funding systems are well aligned; provide the necessary conditions for effective budget management at the school level; and develop adequate regulatory frameworks for the public funding of private providers.’

It is disappointing that the home nations don’t form part of the review group of nations, although reference to issues and the literature arising from the Uk are to be found throughout the document, if the reader knows where to look., including  Dolton and Marcenaro-Gutierrez 2011 article in the journal Economic Policy, “If you pay peanuts do you get monkeys?

While this Review will be a mine of information to scholars researching the issue of funding, always recognising that some decisions are context bound and that, for instance, more rural economies may have different priorities than more urban and mixed economies, where the needs of the two groups compete with each other.

It is to be hoped that work will be undertaken to consider the differing actions of the four home nations with respect to funding against the issues raised in this review: the outcomes might be very illuminating.

 

 

 

Support Staff axed by secondary schools

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In the previous post I discussed the changing level of the pupil teacher ratios in schools, following the publication of the 2016 School Workforce Census, conducted last November. Of course, teachers are not the only staff employed in schools and there are a vast number of other staff either employed by the school or by third party suppliers, but working on school premises.

With the increase in pupil numbers, it is perhaps not surprising that the number of teaching assistants increased in the primary sector to 177,700. The number of administrative assistants also increased in primary schools. However, there was a reduction in the admittedly small number of technicians employed in the primary sector. I assume most of these work on IT systems?

In the secondary sector, the position was almost exactly the opposite. The sector employs less than a third of the number of teaching assistant that are found in the primary sector. However, there was a reduction in their numbers to just over 50,000; down by just over 2,000 in one year and more than 4,000 from the high point reached in 2013. By contrast, the secondary sector employs many more technicians than in the primary sector; somewhere between four and five per schools. Even here, the numbers reduced between 2015 and 2016 as they also did for administrative staff.

Third Party employed support staff increased in number in the primary sector, but fell in the secondary sector. Again, the difference in pupil premium cash per pupil between the two sectors may well account for some of the trends. I think it fair to say that secondary school budgets, even when helped by rising rolls from 2016 onwards, will likely cause pressure in many of these areas in years to come.

How the National Funding Formula is introduced, if indeed it is introduced in its present iteration, will undoubtedly shape the future spending patterns, even if there are floors and ceilings introduced. I suspect that teaching jobs will be protected at the expense of other staff in schools, but that the possible reductions in the number of minority subjects on offer may well affect the employment possibilities of teachers in those subjects.

In a latter post, I will examine the trends in qualified teachers employed in different subjects across the last few years, along with trends in entry and departure rates from the profession. But it is worth noting that the average age of teachers in secondary schools is higher than in primary schools, with 605 of secondary school teachers being in the 30-50 age grouping compared with 55% in the primary sector. Only 22.6% of secondary school teachers are aged under 30 compared with 28.4% in the primary sector. This difference may have an impact on employment patterns.

In terms of gender balance, four out of five employees in the school sector as a whole are now women.  With the largest grouping of men being the 37.5% of teachers employed in the secondary sector. This compares with just 15.4% of male teachers in the primary sector. Over 90% of teaching assistants are women.

 

 

PTRs worsen in 2016

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The DfE has today published its first results from last November’s School Workforce Census https://www.gov.uk/government/statistics/school-workforce-in-england-november-2016 With an ever changing landscape across the school sector, it is sometimes difficult to discern the longer-term trends. However, it does seem as if the years of plenty are being replaced by more challenging times as the head teachers across southern England told the parents at many primary schools yesterday.

It is worth recalling the current environment. Pupil numbers have been rising for some years now in primary schools but falling in secondary schools. September 2016 market the first school year where the number of pupils in secondary schools started increasing. The DfE analysis comments that

The nursery & primary school population has been rising since 2009 and reached 4.50 million children in 2016. Based on 2016’s pupil projections the rate of increase is forecast to slow and the population is projected to stabilise in 2020 at 5 4.68 million children. The secondary school population rose to 2.76 million in 2016 (the first rise since 2005) as the increased births from 2002 reached secondary school age. The secondary school population is projected to continue increasing to 3.04 million by 2020 and further until 2025 when it is expected to peak at 3.33 million.

If pupil funding remains constant and there are no additional cost pressures, pupil teacher ratios should remain stable. Worsening, PTRs i.e. higher numbers of pupils per teacher, often indicate cost pressures on schools, although not always if a school has spare capacity and fills up existing spaces without the need to create new classes.

The best PTRs in recent years for all primary state funded schools in England were recorded in 2014 in at 20.9, while rolls were rising. By 2016, the primary PTR for qualified teachers was 21.3, a deterioration of 0.4 pupils per teacher. However, some of this difference may have been made up by unqualified teachers on School Direct and Teach First salaried schemes. The PTR is still far better than the 23.3 recorded in 2000, when schools were still suffering from the funding crisis of the 1990s.

In the secondary sector, the best year for PTRs was 2013, when it reached 15.5. It has always been better in the secondary sector than in the primary sector. By 2016, secondary PTRs had reached 16.4, a deterioration of 1.1 pupils per teacher despite the falling rolls during this period. I suspect that the change may have been greater in 11-18 schools because of the driving down of funding for the post-16 sector during the period since 2010 and the relative difference between Pupil Premium funding in the primary and secondary sectors.

Looking further ahead, it seem difficult to see the increase in pupil numbers helping the PTR to improve in the secondary sector in many schools; indeed, the prediction may be for the rate to continue to worsen back towards the 17.2 recorded across maintained secondary schools in 2000.

State funded special schools also recorded their first pressure on PTRs for many years, although their overall pupil adult ratio remained constant for the third year running.

Of course, as the mix of staffing changes in schools the use of a single ratio such as a PTR may become less significant than the wider pupil adult ratio.

The government probably won’t do much about education

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Such is the position the government finds itself in that education was relegated to little more than a paragraph in today’s Queen’s Speech. As might be expected, the government, through Her Majesty, said;

“My Government will continue to work to ensure that every child has the opportunity to attend a good school and that all schools are fairly funded. My Ministers will work to ensure people have the skills they need for the high-skilled, high-wage jobs of the future, including through a major reform of technical education.”

In the briefing there is little more by way of amplification. Does a good school mean a selective school where pupils already attend such schools and pupil numbers are on the increase or does it mean no expansion of selective schools? On funding, does it mean that the manifesto amplification that no school will lose money under the new funding formula holds good or will the formula be implemented as consulted upon?

Just saying, “we will deliver on our manifesto commitment to make funding fairer” isn’t really helpful.

The primary schools that sent letters home to parents today would certainly like to know where they stand. As would employees that can see the need for pay rises above 1% in the very near future.

It was interesting that the average cash balance for maintained schools in Oxfordshire dropped from £77,895 in March 2016 to £75,419 in March 2017. I don’t have data for academies and there are too few secondary schools to make the figures at all meaningful. I suspect that this is the first decline in average balances for quite a long time and even so hides the loss of a number of posts, with more to go this September.

The briefing note also explains that “we will continue to convert failing maintained schools into academies so that they can benefit from the support of a strong sponsor, and we are focused on building capacity across the system to enable this, including through growing new multi academy trusts.” In Oxfordshire, we still have a primary school that has waited for more than a year for a sponsor after having been inadequate, so here is some way to go with this promise.

The longest section is reserved for technical education. This oft overlooked sector does need serious attention and there is an interesting note about the introduction of Institute of Technology. Where will they fit in the landscape of UTCs, studio Schools and FE colleges?

Of course, not all developments in education will need legislation. My aim to ensure all looked after children can receive a school place within two weeks of being taken into care should be possible within existing legislation. I already have interest from Conservative and Lib Dem MPs in Oxfordshire and I hope they will be joined by the county’s Labour MP as this isn’t a party political issue, but rather a case of rectifying an unintended wrong created with the development of academies and free schools.

From TeachVac’s http://www.teachvac.co.uk point of view, the lack of any mention of a vacancy portal was interesting. As a way of saving schools money it might have featured in the paragraph on saving money and government tools.

Of course, if the vote next week were to be lost, who knows what will happen then?

Plenty still to do for the Education Secretary

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So, Justine Greening stays as Education Secretary. This is probably not a great surprise given the hand the Prime Minister had to play with after the general election. Any expansion of selective schools seems likely to disappear from the agenda in fairly short order, except perhaps for allowing grammar school places to increase in areas with selective schools in line with the growth in pupil number.

This may allow some space for other less contentious issues to be moved up the agenda. Here are three of those that matter to me. Firstly, children taken into care that need a new school should be guaranteed a place within 10 working days of arriving in care. It is unacceptable that some in-year admissions can take months for these vulnerable, but often challenging young people.

Secondly, I would iron out all the financial anomalies that have been allow to creep into the system. Whether it is the Apprenticeship Levy; Business Rates or VAT, all schools should be dealt with on the same basis. And as I mentioned in the previous post, the status of school funding should be quickly make explicit. Will no school now lose out under the new formula?

Thirdly, school playgrounds and other outside areas represent some of the most under-used assets in the country. Many are covered in heat retaining black asphalt or acres of green grass. These could be ideal spaces for a low cost renewable energy drive to make use of the space that for 99% of the year isn’t fulfilling its primary purpose.

On an equally big scale, the Secretary of State needs to tackle the teacher supply crisis, by both stemming the rate of departure of existing teachers and finding ways to attract new entrants, such as through a graduated loan forgiveness scheme, although it wasn’t a great success last time it was tried.

A cross-party efficiency drive to seek out areas where schools can save money might help identify cost savings, such as in recruitment through the adoption of free sites such as TeachVac that don’t cost the government or schools anything.

There are no doubt many other areas of procurement where savings can be made to allow the 1% salary cap to be raised, at least for young teachers. Action on workload would also help to make teaching look more attractive as a career. Perhaps the Secretary of State could invite the Local Government Association to take the lead on a cost saving drive as part of a recognition that municipalisation offers better prospects than just leaving decisions to the private sector.

A drive to revitalise professional development for teachers, from new entrants still learning the ropes of the profession to school leaders taking on the most senior roles is something that would gain the Secretary of State much respect and would not be politically controversial.

Finally, looking at how the teaching profession will celebrate the 150th anniversary of the 1970 Education Act and plan for the next 50 years of change would be a potential feel-good and low cost exercise that could create positive headlines. Such headlines will be needed if, as some expect, we might face another general election in the autumn, as in 1974.

Who would have thought it?

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Education has suffered some high profile losses in the general election. Not only has Neil Carmichael, the chair of the Education Select Committee in the last parliament lost his  Gloucestershire seat, but Flick Drummond, another Tory MP with an interest in education, also lost her Portsmouth South seat to a surprise Labour victory. Edward Timpson, the Tory MP with a strong interest in the Children’s Services part of the DfE brief also lost his Cheshire seat to a Labour education activist.

Sarah Olney, given the education brief for the Lib Dems after John Pugh retired from parliament, also narrowly lost the Richmond Park seat she had so recently won in the by-election.  Sir Ed Davey once held the education brief for the Lib Dems, but he may be earmarked for another role this time around. Layla Moran, the new Oxford & Abingdon MP might be a possible Lib Dem spokesperson, but she has little or no experience of the State school system except in relation to the examination system.

Now that the Conservatives have returned as the largest Party at Westminster, to be once again called Conservatives and Unionists after their success in Scotland and with the need to rely upon the Northern Irish DUP for a working majority at Westminster, where does that leave the manifesto? Much, I suspect, will depend upon the make-up of the ministerial team and their preferences and support for different policies.

I have already written about how TeachVac www.teachvac.co.uk can cheaply and quickly fulfil the idea of a national vacancy portal and almost certainly at a much lower cost than anyone else can offer. That would be a quick win on savings to offset possible issues of further pay restraint. I suspect that industrial action over pay won’t be far off if the government sticks to the one per cent limit on pay rises.

Although, I suspect, the DUP may favour selective schools, I find it difficult to see the spread of new selective schools really taking hold in such a finely balanced parliament. After all, some Tories were not greatly in favour of axing successful comprehensive schools in their constituencies and can be expected to remain sceptical of the idea that has been so strongly associated with the Prime Minister.

Even more urgent, and top of the new Secretary of State’s agenda, may be sorting out the effect of the -U- turn on funding announced during the election campaign. Is the National Funding Formula dead in the water or will money be found to compensate the losers and still allow the formula to go ahead as planned? This will require some fast footwork between the DfE and The Treasury and it might be that the present arrangements will continue for another year, much to the displeasure of the F40 Group.

Personally, I would like to see the role of the local authority strengthened and a cap on the pay of Chief Executives and other senior staff in MATs in line with the pay of local government officers carrying out similar functions. But, that might be a bit too radical.

We are in a new era, whether it last a full five year parliamentary term looks very doubtful at present, but the Conservative won’t be keen to offer Labour a second chance anytime soon, unless they are forced to by circumstances.

 

Transfer at 14; good idea, badly executed?

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Schools Week has been running a story about the failure of many UTCs and Studio Schools to attract pupils for September. Their latest news is that Plymouth UTC will now not take any pupils at 14 this coming September http://schoolsweek.co.uk/troubled-utc-plymouth-pauses-recruitment-at-14/ Here in Oxfordshire the news on that front is better, with two of the three UTC/Studio schools fully subscribed. Indeed, the Didcot UTC has made 120 offer for 120 places equal to its Planned Admission Number and the Studio School in Bicester exceeded its PAN of 50 with 53 offers to the 60 applicants. Now, whether or not they all turn up is another matter, and we won’t know until parents have considered issues such as how much it will cost to transport their child to the school.

The Space Studio School in Banbury follows the trend identified by Schools Week, with 16 offer for the 75 places available. But, located as it is in the grounds of the town’s largest academy it has always seemed to me to be a bit of an oddity.

Despite these good recruitment numbers, there remain for the schools in Oxfordshire the same issues rehearsed before in this column. Existing Oxfordshire secondary schools will lose the funding of 173 pupils if all those offered places move to the Didcot and Bicester schools. That’s the best part of £700,000 in one year. Over four years it would amount to not far short of £3 million pounds after allowing for inflation. Put this drain on income on top of the 8% the Institute for Fiscal Studies suggested might be the cuts to school budgets over the rest of this decade and you have the potential for financial problems at other schools.

To make the most of a system, you need a degree of planning or unlimited funds. We don’t have either at present and we don’t seem to have a government that understands that in times of austerity you need to make the most of the resources that you do have available.

The issue in Oxfordshire is, what will be the consequences for schools losing pupils at 14 and 16, whereas elsewhere the consequence is the opposite. What happens to the schools that don’t attract enough pupils to pay their bills? The silence from the Regional Schools Commissioners and the National Commissioner on the need for a rational approach is of concern. These civil servants must not be high priced rubber stamps approving new academies without understanding the consequences.

In the end, it will be the much maligned local authorities that will have to sort out ant mess. It may be no surprise that the Plymouth UTC operates in a selective school system. In such a system, few pupils will leave a selective school at 14 making it even harder to recruit from the remaining schools with the pupils that didn’t take or pass the selection process.

It is probably time to look at how the transfer of pupils at 14 is going to work in the longer-term: leaving it to the market isn’t really an option.

Funding formula to go?

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There are reports that the National Funding formula is to be abandoned. I received this from the Lib Dem press office just a few moments ago.
The Liberal Democrats have responded to reports that the Conservatives are to bow to massive backbench pressure and abandon their proposed shake-up of school funding.
Liberal Democrat Education spokesperson John Pugh said:
“Finally, the Conservatives have been forced to re-think their deeply flawed funding formula, which would see savage cuts to schools in most areas of the country. Their proposals were utterly cynical, taking from some areas to give to others, rather than committing to give all schools the additional funding they need.”I am surprised to hear this even being discussed during purdah as it amounts to a change of policy already under consultation.

Locally, if it proves to be true and not just electioneering, I am both glad for the rural primary schools, 100 of them in Oxfordshire, where the cash for the school was going to be cut (see earlier posts), but sad that Oxfordshire and the other F40 authorities will have to wait longer for a fairer distribution of funds to schools.

However, I am not surprised at the possibility of an announcement. Trying to reform school funding in the middle of the largest increase in pupil numbers in almost half a century was always going to lead to electoral disaster. One wonders why the Tories backbenchers waited until the day before the local elections to put on the pressure as any announcement has surely come too late to influence the voters in the shire counties voting tomorrow.

Then there is the issue of where the Conservatives now stand on funding schools? Unless they can come up with something better than just a U-turn on their formula they will still be leaving school looking at a funding shortfall over the life of the next parliament. Reciting the mantra of strong leadership on school funding just looks silly in the circumstances.

Finally, it doesn’t look like good government to change your mind in this way. There will certainly need to be some clarification of the government’s position. And, what next, a change of mind over selective schools?

 

Debt hike for teachers

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PGCE students to pay 6.1% interest on loans from the day that their courses starts. That’s not what you want to hear, but what the government has announced as likely from September if there isn’t a loud and sustained public outcry starting at the teacher association conferences this Easter. If the same rate of interest also applies to those on the school-based fee routes as well as undergraduates training to be a teacher then BREXIT is seriously bad news for trainee teachers. The reason is the hike in inflation to 3.1% last month, an increase partly fuelled by the post referendum slump in Sterling as a currency. Add to the inflation increase the 3% fee on top that the government charges plus the fact that interest starts accumulating as soon as the loan is taken out and we are talking serious money and an annual rate of 6.1%.

Career changers would almost certainlybe better off raising an extra mortgage on their house than paying these rates and younger intending teachers not eligible for bursaries should probably consult their parents to see whether they will do the same. Those starting work as teachers in September may find that their take home pay is below what it would have been in earlier years due to the rise in interest rates.

Whether intending teachers wanting to work in state funded schools should be expected to pay for their training is a moot point. Readers of this blog will know I don’t believe any trainee teachers should pay for the privilege of training to be a teacher. Few others, except would-be journalists and possibly fashion models pay for their training; until recently nurses also benefited from a scheme created by Frank Dobson when Blair’s Labour government first introduced tuition fees. The scheme for graduate trainee teachers, introduced in the early 2000s, was expensive, but fair to all trainees. The present situation is confusing, and at these rates of interest and a public sector annual pay rise of probably just one per cent, potentially off-putting to trainees in many subjects. Whether it deters the best or just those most likely to find other work, I leave others to judge.

One solution would be to employ all graduate trainees as part of a national trainee pool that also provided for their pension contributions and with an agreement to pay-off their undergraduate students loans at the rate of 25% of the outstanding interest and principle from the end of year two of teaching. They would be employed form the central pool by schools, so that the schools didn’t have the extra cost of writing off the loans for new teachers. This should be a central cost if loans are to continue. By involving the State directly in the employment of teachers it would allow the DfE to understand directly what was happening with both recruitment and retention. It would also make the DfE responsible for the consequences of mistakes with the Teacher Supply Model. Some PE and maths trainees won’t find jobs in teaching this year, but will still be faced by the increase in interest rates on their loans.

For maths trainees, with bursaries, the pain will be slight: for PE teachers this is punishment for choosing the wrong subject to train in as a teacher.

 

 

Another aspect of the funding problem

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What happens if a large secondary school at the centre of a multi-academy trust comprising a mix of both primary schools and a secondary school goes bust, perhaps because the original founders made some unwise decisions and there was then a drop in applications from local parents to send their children to the secondary school, aware that teachers were leaving the schools and concerned that standards might slip as a result? Or because there was an outflow of EU nationals from the area now Article 50 has been triggered.

Does the failure of the secondary school bring down all the primary schools in the MAT as well or can they survive on their own. At what point should the trustees decide to cut a financially unviable school adrift and will the Education Funding Agency allow them to do so if there are other assets in the MAT that might keep the school going for longer?

I am sure that there are civil servants in Coventry thinking about these types of scenario and perhaps role-playing them with Regional School Commissioners. How far have they progressed in their thinking should the MAT has a faith base and all the schools within it belong to the same faith or Christian denomination?

Sitting in the wings is the local authority, with whom the ultimate authority for providing every pupil with a school place still resides. What happens if the school that has just become financially unviable is in a rural area and the places at other schools require a large increase in the school transport bill? Who picks up the tab?

Obviously, the ideal solution is for the school buildings to open under a new administration, but will the government allow that to happen if it means writing off the debts of a school. To do so might encourage other schools to run up large deficit budgets, secure in the knowledge that the government will bail them out. One answer might be for the government to replace the trustees. But at what point? As soon as a deficit budget position is reached? When the deficit going forward looks as if it will reach a pre-determined percentage of current turnover after taking any falling rolls and thus falling income into account? If the financially unviable school is a faith school, can a new faith school replace it? To do so might well save on transport costs, but a replacement school that wasn’t faith-based might allow for transport savings. Of course, much will depend upon who has the ownership of the buildings?

With the demise of several UTCs and studio schools, plus a small number of other academies, these scenarios are no longer in the realm of the unthinkable. But, does there need to be a level playing field with some clear and open guidelines that don’t encourage schools to create deficits on their revenue spending.

At present, there is the ‘financial notice to improve’ from the EFA, but, the issue is what happens when the school or MAT doesn’t do so for reasons beyond its control? Time to re-read the Academies Financial handbook.