Alternative Provision Academies (Consequential Amendments to Acts) (England) Order 2012

My Lords, I am grateful for those comments and for the support expressed for the development of alternative provision academies. I can tell my noble friend Lady Walmsley that in the first round we had a number of proposals for alternative provision free schools. I hope that they will be able to open this September and that, in the round for 2013 that closed at the end of February, there will be more application for alternative provision free schools. There is a lot of enthusiasm for them. My noble friend is right that there are questions about this. In some ways, they link to the points raised by the noble Baroness, Lady Hughes of Stretford, about the referral mechanism. Unlike with mainstream schools where, as it were, parental choice is the determinant of the placement, it is still the case with alternative provision free schools that the local authority or a school is the referral mechanism. That leads to some questions that we need to work through about when some providers want to set up in areas where a local authority may be less keen on a more varied landscape. If the local authority is not prepared to make that referral, there are issues for us to think through. I know those issues are very much in my noble friend's mind. Let me do my best on the thrust of the points raised by the noble Baroness, Lady Hughes. If there are some things that I do not pick up, I will follow them up. On the accountability of alternative provision academies to the local community, their funding agreements will require them to be at the heart of their local community. They will be accountable through their performance, which will be published in the same way as other schools. They will be inspected by Ofsted like other academies. There are a number of accountability mechanisms. They are obviously accountable through the funding agreement that they sign with the Secretary of State. On funding, currently they will be funded through interim arrangements. The noble Baroness referred to an earlier announcement that we made, saying that the funding would come out of what is called the higher needs block. The principle of that, as she knows from other areas of academy funding, is to have equivalence with the funding that would go to a PRU. That is what we want to replicate. We want an AP academy to get the same funding that it would have received as a maintained PRU. We have put interim arrangements in place to make sure that that happens. The longer-term answer to the noble Baroness's question will come out of our response—which we will publish before too long—to the consultation, which has ended, on our broader reforms to the funding system. As part of that, we will set out our longer-term thoughts on how funding for alternative provision academies and other parts of what one might call higher needs funding—such as special needs funding—will be dealt with going forward. I hope that we will be able to make that clear before too long. I was asked another question on the role of the local authority. As the noble Baroness said, local authorities will retain their Section 19 duties to arrange suitable full-time education. That relationship with a converted PRU would obviously change a bit over time in the sense that the local authority role would move from being the direct provider to a commissioner of services, along the lines that I think were set out in the schools White Paper of 2005. An important contextual point in all this is that we all want as few children as possible to go into alternative provision, and the earlier we can pick them up and put support in place, the fewer will end up doing so. Therefore, as part of the broader context, we are running trials based on the very good work that went on in Cambridgeshire to give schools responsibility, including budgetary responsibility, for an excluded child. That gives a school an added incentive to make sure that the child is looked after as well as possible and reintegrated as quickly as possible, if that is the right course of action. As I have already touched on, pupils will be referred to AP academies in the same way as they currently are to PRUs. Under the new system, we would expect schools to work closely with professionals to ensure that pupils get the provision which best meets their needs. We do not think that we should be more prescriptive than that at this point. The noble Baroness, Lady Hughes, asked me whether AP academies will be obliged to accept a pupil. Again, the referral mechanism will be the same as now, so the success of an AP academy will depend on its ability to meet the needs of its local community. If a local authority or other commissioner does not think that the alternative provision academy is doing a good job, it will not want to refer pupils to it, and I think that that will act as a discipline for the schools to make sure that the children are properly looked after. It will therefore be in the interests of AP academies to have strong links with the local authority and with local schools. I hope that I have dealt with the main points. I shall obviously read the noble Baroness's comments and, if I can add anything further, I shall write to her. With that, I hope that we can accept the order.