Academies Bill [HL]

My Lords, this has been a short, interesting debate. I too support the amendments moved by the noble Baroness. In relation to funding, three issues have been raised today and in our previous discussions. First, there is a need for much greater clarity about how these financial arrangements will work. Secondly, there is the question of equity between schools. Thirdly, as the noble Earl, Lord Listowel, suggested, there is a question of whether there will be sufficient resources for the kind of special services that some schools will require. On clarity, very shortly before our debate today, I received the model funding agreement, as I am sure did other noble Lords. While it is always welcome to receive the funding agreement, in the short time available we have not been able to study it carefully. It therefore would not be amiss to have an opportunity to come back at Third Reading after we have had time consider it more fully. It is helpful to us in these debates. I am sure that the noble Lord, Lord Hill, will be aware of paragraph 17 of the model funding agreement, which relates to pupils. It starts with the statement: ""The Academy will be an all ability inclusive school"." Which of these provisions would apply to those grammar schools which select their pupils and choose to become an academy? To what extent does this model funding agreement apply to those schools? In terms of equity, it is very important that we know the answer. My second point as regards equity goes back to the point made by the noble Baroness, Lady Walmsley. We have been told: ""Funding of academies will be broadly comparable with that of maintained schools, taking into account their additional responsibilities. While converting to academy status will give schools additional freedoms, those who opt to stay within local authority control will not be financially disadvantaged"." That is a welcome statement of intent. But, as the noble Baroness, Lady Walmsley, has pointed out, there is some concern within educational circles that this may not prove to be the outcome following publication of the ready reckoner and the technical note. I am not going to bore the House by going into the details of the ready reckoner, but it is a point that the noble Lord may wish to come back to. In Committee we discussed the different approach of the seven-year arrangement with schools, and those are the arrangements that are likely to apply to free schools. The noble Lord said then that there would need to be, in a sense, a get-out clause if for one reason or another it was shown that a free school was perhaps not able to handle the funding arrangements or there were problems which meant that the Secretary of State would not want to get himself into a long-term commitment. I understand that, but it identifies a problem with the whole process of approving free schools by this route. It suggests that the Government are not confident that they will have a rigorous process in place, and that is why they are unwilling to agree to the seven-year commitment. For that reason, I strongly support the amendment tabled by the noble Baroness. Finally, I come back to the whole question of clarity. I believe that we need further clarity because these financial arrangements are complex and it is important that all schools feel that the system is fair and equitable. Further, I would remind the noble Lord of the suggestion made by my noble friend Lord Adonis that there is a case for having some kind of independent process of assessment and reporting on the overall scheme for funding academies. I know that the noble Lord has put forward his proposal for how that is to be done, but my noble friend’s suggestion of an organisation like the National Audit Office, one that stands well outside the educational establishment, would command greater confidence. Overall, however, this debate has shown that much more remains to be discussed in relation to the financial consequences of this legislation, and I for one hope that the noble Baroness might press her amendment today.