I think that this is the amendment the noble Baroness was thinking about. I shall speak also to Amendment 273A, which is a technical amendment to bring the substantive amendment into force two months after Royal Assent. These amendments clarify the law in relation to the Secretary of State’s power to intervene in failing local authorities under the 1996 Education Act and the Children Act 2004.
In most cases, as noble Lords will know, government intervention in local authorities rests on the use of non-statutory improvement notices or, less often, on statutory directions to ensure that locally led improvement is effective. There are currently five local authorities in England under statutory direction, and 20 subject to improvement notices. The Secretary of State’s ability to remove functions entirely from a local authority is essential only in exceptional cases of persistent underperformance that put at risk the welfare of vulnerable children over an extended period.
Parliament agreed that those powers were necessary when it passed important provisions in the Education Act 1996 and the Children Act 2004. That legislation allows the Secretary of State to direct that where a local authority fails to perform its children’s services functions to an adequate standard or at all, those functions can be exercised directly by the Secretary of State or by a third-party nominee. For these powers to be exercised effectively, it is essential that the Secretary of State or the third-party nominee can fulfil all the functions required to keep vulnerable children safe and intervene to improve their life chances.
However, although this legislation is in place and its intention is clear, it leaves room for potential legal argument over how the courts would view a direction under subsection (4A). This is because, in introducing the provisions in the 1996 Act and the 2004 Act, Parliament did not clarify in legislation all the powers that are consequential upon those provisions. It is not clear beyond doubt, for instance, whether the family court would feel able to recognise a third-party nominee as if it were a local authority in care or adoption proceedings. There might also be some doubt as to whether the chief inspector had the powers necessary to inspect and report on a nominee’s performance of the local authority’s functions.
We propose, therefore, to clarify the relevant legislation to put these questions beyond doubt. This is important to enable the Secretary of State to intervene not just where the most serious social care failures occur but in the interests of certainty for children who may be taken into care or placed for adoption. In order that these powers can be exercised effectively, the new clause makes it clear that where functions are being exercised directly by the Secretary of State himself or by a third -party nominee, the Secretary of State or his or her nominee would, for example, be able to apply for or be named in care orders under Section 31 of the Children Act 1989; exercise the functions set out in Section 92(2) of the Adoption and Children Act 2002; and exercise certain other court-related functions in the same way that the local authority can. This is clearly the intention and purpose behind the provisions in the Education Act 1996 and the Children Act 2004, but in such an important area that is critical to the safety of children it is essential that there is no room for uncertainty. This new clause therefore clarifies existing powers. It does not seek to expand them.
The amendment also makes it clear that, following a direction that local authority functions be exercised by the Secretary of State or a third-party nominee, other relevant references in legislation to a “local authority” should be read as references also to the Secretary of State or a nominee. For example, in relation to the chief inspector’s inspection functions and powers, such as under Sections 136 to 141 of the Education and Inspections Act 2006, the amendment will ensure that the performance of these functions by the Secretary of State or his nominee should also be subject and open to inspection in the same way as when those functions are performed by a local authority. We do not want to leave any uncertainty over Ofsted’s power to inspect children’s services in whatever form they might be delivered. I beg to move.