Schools Bill [HL] — House of Lords, 2022-06-13
Topic: Education
Diana Barran (Conservative, Centre-right): My Lords, I will now respond to this group of amendments, which relates principally to the academy legal framework. Amendment 41, proposed by the noble Lords, Lord Storey and Lord Shipley, pertains to the geographical spread of multi-academy trusts. I share the noble Lords’ view that this is an important matter The Government’s published guidance on building strong academy trusts states: "When considering whether to grow, an academy trust will need to consider the geographical fit of schools" Many trusts operate successfully only in their local area, but others spread their expertise beyond local boundaries, as we heard from the noble Lord, Lord Knight, establishing clusters across England. This amendment risks restricting this sort of innovation, which can enable effective school support and improvements in performance, with clear accountability and strong governance. If I understood rightly, the noble Lord, Lord Knight, suggested that it was an either/or choice between regional clusters and national MATs. I do not think it is either/or; it can absolutely be both/and The noble Lord, Lord Davies of Brixton, asked why we would not have only one MAT in an area—for example, having a single multi-academy trust in one local authority area. We believe that there should be parental choice. MATs will have different styles. There is obviously a particular risk profile if all schools in an area are in the same MAT. We think it makes for a healthier ecosystem if there are several MATs in an area. I have certainly seen examples in local authority areas where a number of MATs are collaborating extremely constructively to address some of the entrenched issues that they find in those areas Amendment 49 from the noble Baronesses, Lady Chapman and Lady Wilcox, and Amendment 50 from the noble Baronesses, Lady Blower and Lady Bennett, and the noble Lord, Lord Hunt, relate to an individual academy leaving its multi-academy trust. As we stated in the schools White Paper, we will consult on the exceptional circumstances in which a good school could request that the regulator agrees to the school moving to a stronger trust, but we do not want to pre-empt the outcome of that consultation by legislating now, not least as we expect the process to be administrative rather than legislative. I thank the right reverend Prelate the Bishop of Chichester for his reflections on the risks of destabilising the system through schools moving from one trust to another. I gently reflect back to the noble Baronesses who spoke on this that it is important that this measure works for the individual school, which both of them pointed out, but it also needs to work for the multi-academy trust, which I did not hear either of them refer to directly I turn to Amendment 55. I thank the noble Baroness, Lady Blower, for her amendment relating to academies without a religious character joining a MAT with a majority of or all academies with a religious character. The process by which an academy joins another trust is a matter for agreement between the two trusts and is subject to the approval of the Secretary of State in the person of the regional director. When considering any application for a stand-alone academy to join a trust, the regional director will consider what stakeholder engagement has taken place and take account of views expressed. It is neither necessary nor appropriate to provide specific consultation requirements in legislation. I again thank the right reverend Prelate for his clarification about church model articles I also thank the noble Lords, Lord Storey and Lord Shipley, and the noble Baroness, Lady Garden of Frognal, for Amendment 77. As the noble Lords pointed out, academy autonomy is a core principle of the academies programme. For the past decade, such powers and freedoms have been available uniquely to academies, providing them with greater freedom and flexibility in how they operate and promoting innovation and diversity in the system. As set out in the schools White Paper, our intention is that by 2030, all children will benefit from being taught in a strong multi-academy trust or with plans to form one. Therefore, all schools will be able to benefit from academy status and its associated autonomy in the near term Amendment 79A concerns the relationship between further education colleges and multi-academy trusts. Further education providers and academies are different types of organisation founded on different legal frameworks. Although that prevents them joining as a single legal entity, FE providers are still able to play a valuable role supporting academies, and this includes forming a multi-academy trust and sitting on academy trust boards. We are committed to considering what more we can do to minimise any existing barriers when further education providers work alongside academies, and we have established a working group with a group of FE providers to explore this in more detail Amendment 94, in the name of the noble Baronesses, Lady Chapman and Lady Wilcox, and Amendment 95, in the name of the noble Lord, Lord Shipley and the noble Baroness, Lady Bennett, relate to financial reporting in academy trusts. The Government hold academies to account for their financial health through the academy trust, which is the accountable body that signs the funding agreement with the Secretary of State. The department publishes a full report and consolidated accounts for the academy sector annually. It is right that academy trusts hold appropriate levels of reserves to enable investment in initiatives that will improve pupils’ educational experience, as well as supporting them to meet challenges This year, the Department for Education will collect information from trusts holding reserves equal to 20% or more of their overall income to assure us that there are robust plans in place to use them, as the noble Baronesses suggest. There is a split in reserves between what we might call core reserves, investment reserves and those that academies will need if they take on failing schools with low pupil numbers to manage the lag in their funding as those pupil numbers increase, and we need to understand that picture fully I really do not recognise the example given by the noble Lord, Lord Shipley, of rural schools feeling that they lose funding. I recognise much more the example that the noble Lord, Lord Knight, gave the Committee. The noble Lord, Lord Shipley, may have a specific example that he would like to share. Often, we see exactly the reverse—that small schools are made sustainable through the MAT.