(1 week ago)
Lords ChamberMy Lords, I will speak chiefly to Amendment 196A in my name and to Amendment 197 in the name of the noble Lord, Lord Storey, to which I also attached my name. Given the hour, I am going to restrain myself on a lot of things. It is a great pity that we are doing this important business at this hour. The Minister, in introducing this group, talked about the need to improve the accountability of multi-academy trusts, which has not kept pace with the growth of MATs. We have heard agreement on that from right across the House. With that in mind, I am going to start with Amendment 197, which we have not yet heard the formal introduction of. I will not go through it in detail, but it looks at the remuneration of chief executives of multi-academy trusts. It includes the provision, under parliamentary scrutiny, to impose limits on that pay.
It might be a difficult job, but I think I am about to shock the House at 11.23 pm. A few days ago, the website Education Uncovered produced some figures on the pay of CEOs of multi-academy trusts—not the biggest ones but the group of the next biggest ones, ranked from 11 to 25 on the number of pupils. A £220,000 salary is becoming standard for these multi-academy trust CEOs—and you can add a pension of about £50,000. This is significantly more than the Prime Minister is paid. We have a fat-cat pay problem right across our society, but here we are talking about public funds allocated for children’s education going to fat-cat pay.
I said that the Education Uncovered figure was for 2025. For the largest trusts, I had to go back to a Schools Week investigation from last March looking at some of the highest pay, and a year ago the CEO’s pay at one of the multi-academy trusts had crossed the £500,000 a year threshold, while three more were on more than £300,000 a year. Unsurprisingly, the National Governance Association told Schools Week that benchmarking seemed to be leading to inflationary pressure—something some noble Lords here who know quite a bit about the financial sector have seen happening. It really is obscene that this is happening in our schools.
The Education Uncovered study shows that the larger trusts are spending more per pupil on these highly paid staff and less per pupil on pupils in the classroom than are smaller trusts and, particularly in England, local authorities and local authority schools. This is a huge problem of accountability, and I commend the noble Lord, Lord Storey, on bringing forward this amendment and seeking to deal with it. I cannot think of a reason why the Government would not think this a good idea.
I come now—very briefly, given the hour—to my Amendment 196. This follows attempts that I made in Committee, with the assistance of the National Education Union, to create something that would allow schools to get out of this mess when they are just fed up with it. It would allow parents fed up with multi-academy trusts that are not working—we have seen a lot of examples recently of multi-academy trusts imposing on local school communities disciplinary rules that have caused a great deal of upset, concern and fear for the well-being of pupils—a way to get schools out of this system that is not working for them.
In Committee, I brought forward the idea of an academy reversal order. It is very complex, given that schools in multi-academy trusts no longer have their own legal entity, but I made an attempt at doing that. I also attempted to say that it was a duty of the Secretary of State to produce an order like that.
Now, on Report, with Amendment 196A I am calling for the Government to create a duty for them to produce a report on the demand for, desirability of and mechanisms for the conversion of academy-run schools to maintained schools, within two years of the Act calling for a report. That would not direct anything to happen, but it asks for a direction to the Government to think again, in a Bill that already acknowledges that there are huge problems with the academy trust model, ends the presumption that all new schools must be academies and removes the duty to force schools into multi-academy trusts. We are clearly heading in that direction. Let us get ahead of the game and prepare for a future where we put schools back under local democratic control.
Lord Mohammed of Tinsley (LD)
My Lords, regarding the amendments by my noble friend Lord Storey, research has shown no correlation between the pay of the CEOs of multi-academy trusts and the schools they have responsibility for. I hope the Minister can say whether there will be a mechanism to look at the pay of some of these highly paid officials and what responsibilities they have. There could be cases where people have responsibility for eight to 10 schools but get paid more than people with responsibility for higher numbers. That does not seem fair or right. I know it is late, but I thought it important that I raise this point on behalf of my noble friend.