Schools White Paper: Every Child Achieving and Thriving

Baroness Thornton Excerpts

Tuesday 24th February 2026 Lords Chamber

[Baroness Smith of Malvern (Lab)]

This is not about how we cut the money that is available for disadvantage; this is about how we ensure that it is spent in a way that recognises that not all disadvantage is the same. We will be maintaining—in fact, we have increased—spending on the pupil premium. In relation to the overall review of the funding formula and the way in which we allocate the pupil premium, all of that will be subject to consultation, which will be starting this summer.

[Baroness Thornton (Lab)]

My Lords, I welcome this initiative and the document—they are brilliant. However, I want to ask about the children who might have to attend a special school because of their particular needs and the challenges that they face. As somebody has already mentioned, one of the problems that local authorities face in the overspend on this concerns some of the special schools that we already have, which are profit-gouging. They are overcharging huge amounts of money for our most vulnerable children. We know that there are excellent special schools in the sector run by charities, social enterprises and, indeed, some of the private enterprises, but it is clear that those making vast profits need to be dealt with. I welcome the investment that has been proposed, but I would like to ask my noble friend the Minister about the transition that will happen. Will new powers be needed for local authorities and others, to make sure that we do not leave children and parents vulnerable because of the schools that are having to be dealt with?

[Baroness Smith of Malvern (Lab)]

My noble friend is absolutely right. There is excellent work going on in our special schools, in the state sector and the independent sector. However, it cannot be right that there is a differential of three times between that which is charged in independent special schools and that which is charged in state special schools. Where that reflects highly specialised provision, that is legitimate, but where it is feeding private equity and, as my noble friend says, focused on profit, it is wholly wrong. That is why we will improve the regulation of independent special schools and, using the specialist packages that we are developing, create price bands indicating what local authorities will pay for children to go there. We can then be clearer that the money we are spending is delivering outcomes for children and not profits for private equity.