Free Childcare for 3 and 4-year-olds

Sam Gyimah Excerpts

Tuesday 12th July 2016 Westminster Hall

[The Parliamentary Under-Secretary of State for Education (Mr Sam Gyimah)]

I thank the hon. Member for Bristol South (Karin Smyth) for securing this important debate. Successful implementation of the extended free childcare offer is a key priority for the Government. Childcare was included in the Queen’s Speech for the first time after the last election, and the Childcare Act 2016 shows how much of a priority our manifesto pledge on childcare is for the Government.

At a time when there is austerity and a lot of other Departments face budget cuts, the Government have made a strategic decision to continue to invest in childcare, as a result of which an extra £1 billion investment will be made in the three and four-year-old offer from 2019-20, taking the amount going into the early years free entitlement to £6 billion a year. That is more than we have ever spent on childcare in this country. I reassure the hon. Lady that delivering on our pledge continues to be a high priority for the Government, and the passage of the 2016 Act shows that we are well on our way to turning that pledge into a full commitment for parents.

The hon. Lady mentioned the availability of information for parents about the offer. The high take-up rates for current three and four-year-olds indicates that parents are already highly aware of the free entitlement, but it is worth mentioning that we are not necessarily increasing demand but extending an offer. A lot of parents already use 30 or more hours of free childcare. The Government offer encourages those who do not get it to do so, but those who are already using the 30 hours of free childcare will get a subsidy from the Government rather than having to pay for it all themselves.

That principle is particularly important to understand because a lot of the criticism of the 30-hour entitlement, whether it is about workforce, places or whatever, seems to assume that somehow no parent in the market is already taking 30 hours of childcare and that, suddenly, from 2017 every parent will do that. The truth is a lot of parents already take more than the free 15 hours of childcare. By giving them an extra 15 hours, the Government are subsidising the additional hours they buy. We are therefore not necessarily increasing the demand, but extending the entitlement.

That principle is particularly important because it has a bearing on information and how we need to make parents aware of it. A section in the Childcare Act, which the hon. Lady will be aware of, asks local authorities to publicise information about the childcare available in the local area. The new statutory duty in the Act requires local authorities to publish information about childcare services in their local area, which will increase the information available to parents.

We have not stopped there. The Department has provided funding to the largest website in the country on childcare places—childcare.co.uk—to develop an innovative digital solution that will make it easier for parents to find information. Further, in my experience, generally when something that is otherwise quite expensive for people when they pay for it themselves is free, they tend to find out about it. I am very confident that, given the statutory duty, the innovative solutions we are taking and the fact that 98% of four-year-olds and something like 94% of three-year-olds already take 15 hours, parents talking to early years settings will realise that they can get that extended entitlement.

There will be a communications campaign before launch. I chair a cross-Government taskforce with the Minister for Employment, and at the right time we will launch a campaign alongside a new Government website to alert parents. I hope I can assure the hon. Lady that parents will be able to find out about this fantastic offer, delivered by a Conservative Government.

The second issue the hon. Lady raised was about workforce planning. As I said, the Department will launch a workforce strategy later on this year alongside the introduction of the 30-hour commitment. The quality of the workforce is already good and has been improving. Between 2008 and 2013, the proportion of full-day care staff with at least a level 3 qualification—equivalent to A-level study—grew from 75% to 87% and the proportion with a degree or higher increased from 5% to 13%. However, we are not complacent. We want to continue to attract quality staff into the early years and support those already working in the sector to progress. That is why we will publish the workforce strategy to which I alluded—it will be on how the sector can attract and retain people. That is something we are focused on.

When the hon. Lady made the point about workforce, she also talked about places, and places in maintained settings in particular. One thing to be aware of when we discuss childcare is that no one size fits all. It is easy for us in Government to think that every parent should do this, but some parents want only the 15 hours of early education for their children. That is free, and they can continue to get it. Some might want 20 hours and some might want 30-plus hours.

The strength of the childcare sector is that there are different providers to deliver different types of childcare. We have full day-care nurseries that deliver all-day childcare; nurseries in schools that, as the hon. Lady mentioned, will do three hours in the morning and three hours in the afternoon, which are focused on early education; childminders who deliver excellent childcare; and sessional providers operating from, say, church or village halls that offer 15 hours a week.

The strength of the sector is that there is diverse supply to suit different parents’ needs, which is important. We should not try to impose one model of childcare on parents. However, for parents who have been using a nursery in a school, for example, that currently offers only the first 15 hours, there is capital available to enable those schools that want to expand their provision to do so. One of the interesting things we have seen in innovative local authorities such as York, as my hon. Friend the Member for York Outer (Julian Sturdy) mentioned, is the bringing together of childminders and school nurseries to offer a one-stop shop for parents, so that the child can be in the school nursery for a time and then be picked up by a childminder if that is what works for the parent. We will look for a number of different solutions to be available not just to increase the supply of places but to ensure that parents get the childcare solution that fits their working lives.

[Karin Smyth]

I am grateful for that assurance. I agree that diversity of provision is important and valuable—I took great advantage of that when my three children were younger. Will the Minister comment on the security of income for providers? Although I do not have data to verify his assertion that the people who take 15 hours are the same as the people who might take 30 hours—I would be interested in such data—income that gives struggling providers security is important. Choice for parents is welcome, but equally providers need security of income.

[Mr Gyimah]

That is an important and relevant question. We want the childcare sector to be sustainable and we want providers to be able to deliver this offer. That is why in November we published the most comprehensive review of the cost of childcare ever. In order for the Government—we will become the biggest buyer of childcare in the UK—to set a price for the sector, it made sense for us to work out what the unit cost of providing childcare was and set a price that allows providers to deal with increased cost pressures such as the national living wage, which the hon. Lady mentioned, and, given that 80% of the sector is in private and voluntary settings, to enable the sector to make a profit. That was the purpose of the review, which was described by the National Audit Office as “thorough and wide-ranging.” Those are not the Department’s words, so I hope she is reassured that the detailed work that underpins how we will decide the funding rate for providers is there.

That is what underpinned the spending review settlement. The Government’s commitment of an additional £300 million a year to increase the national average funding rates paid for the free entitlement was based on that research. We are also committing £50 million of capital funding to create an additional 4,000 early years places. More money is going into the system than ever before, but we need to ensure that it is distributed fairly. That is what we saw in York. The issue is not just the quantum of money. Because the funding formula is based on local authorities and history, we have a situation where some local authorities are getting £9 an hour per child and others are getting something like £3.50 a child. There is therefore no point in increasing the funding pot without reforming how the money is distributed to local authorities and, in turn, how it goes from local authorities to providers.

[Thangam Debbonaire (Bristol West) (Lab)]

I am grateful to my hon. Friend the Member for Bristol South (Karin Smyth) for securing this important debate. The Minister has made several references to the need to be sure about such and such, and my hon. Friend mentioned that the full roll-out will take place soon after the pilot, so will the Minister comment on how lessons will be learnt in time for the full roll-out?

[Mr Gyimah]

What I can say firmly is that the Government will bring about funding reform imminently to create a system that is transparent to local authorities and fair to all early years providers. Part of the package introducing the 30 hours will be wholesale reform of early years funding. That was mentioned in the spending review and the autumn statement, and that reform is imminent. We will consult on that to seek views on our proposals from across the early years sector. We already listen to the sector in a number of other ways to ensure the funding works. Our red tape challenge is looking at bureaucracy and barriers. We have consulted on ensuring that providers are paid on time, which has been raised specifically by childminders in many areas, and on making local authority contracts with providers more consistent across different parts of the country.

We are looking at the local authority role in building on the success of the existing 15-hour entitlement. Rolling out that manifesto commitment is an opportunity to improve the way the system works on the ground. We received over 1,300 responses to our recent consultation on key elements of the operation and delivery of the extended 30-hour free entitlement from a wide range of childcare providers, local authorities and parents. Crucially, those views will help to inform how the 30-hour entitlement will be delivered at local level. We will publish our response to the consultation in the autumn ahead of affirmative debates in the House and the other place on the regulations of the Childcare Act 2016.

I hope I can assure the House first that a record amount of funding is going into the sector. Secondly, in terms of how that funding is distributed, we are looking at wholesale reform and will be publishing our intentions, on which we will be consulting the sector, imminently. Thirdly, we are looking to reform how local authorities work with providers and will consult on that as well. Much of the disquiet around the 30-hour commitment and its implementation is from a number of people who are assuming that we will be following through with the system as it is, but we are going to reform the entire system to underpin the fact that, if the Government are going to be the biggest buyer of childcare, the old system will not work. That is because it was based on just 15 hours a week, which was a limited offer. If we are to move to 30 hours a week, we need to ensure the system we are operating in is fit for purpose.

The hon. Member for Bristol South also mentioned the high cost of childcare. The Family and Childcare Trust is the guru when it comes to childcare costs. I look forward to its childcare costs report with a degree of trepidation every year because I know I will have to tour the TV studios if the report says the cost of childcare is getting out of control. The most recent report showed that childcare costs, which had risen for the best part of a decade, are stabilising and only rose in line with inflation in 2015.

The principle here, and the reason why the Government are introducing the 30-hour commitment, is precisely to help parents with the cost of childcare, but the available support to parents does not only come in the form of the 30 hours. We will be introducing other childcare measures such as tax-free childcare, which will give parents 20% off the cost of childcare up to £10,000. If they spend £10,000 they will get £2,000 off the cost of childcare, so a parent buying in excess of 30 hours of childcare will get 30 hours free and 20% off for anything over those 30 hours—obviously, that is for three and four-year-olds. Other parents on the lower end of the income scale will get additional support through universal credit.

I hope the hon. Lady will appreciate that a substantial amount of support goes to parents for childcare, but she is right that we need to make it simple for parents. The issue is that there are multiple areas of support for childcare that are parented by different Government Departments and there is a need to stitch those together. That is what the cross-governmental childcare taskforce is looking at, so that parents do not have to go to three or four different places to try to figure out which childcare offer works best for them. There will be one portal and one port of call from which they will be able to access childcare.

The issue of cross-subsidisation was also mentioned and it is particularly important from the provider perspective. A lot of providers have been content with the free 15 hours almost as a lead generation aspect of their business, so parents get 15 hours free and then have to buy additional hours for which the providers can charge a lot more. One of the things the funding reform will specifically look at is to price this in such a way that there is every incentive for providers to actually offer parents free hours, rather than thinking that they will opt out of it. The truth of the matter is that providers do not have to offer that, but parents will be looking around for providers that can. The Government have to set a price that brings the buyers and sellers in that market together and the cost of childcare review gives us a strong basis from which we can and, I am sure, will, get that right when the funding review is published. It is an issue that we are alive to.

Another point is that, with so much subsidy going into the sector—

[Mr Charles Walker (in the Chair)]

Order.

Early Years Development and School-Readiness

Sam Gyimah Excerpts

Tuesday 12th July 2016 Westminster Hall

[The Parliamentary Under-Secretary of State for Education (Mr Sam Gyimah)]

I am pleased to serve under your chairmanship, Mr Evans, and I congratulate my hon. Friend the Member for Kingston and Surbiton (James Berry) on securing this important debate.

I agree that improving the life chances of our children is important to all of us, so I will first strike a note of consensus. In this country, we have strong cross-party consensus on the importance of the early years and the need to invest in them. The free entitlement offer was started by the most recent Labour Government, with 12.5 hours of free childcare for all three and four-year-olds. The coalition Government extended that to 15 hours, and the Conservative Government are doubling the entitlement to 30 hours.

In addition, the coalition Government introduced a free early education offer for the most disadvantaged two-year-olds, recognising that we have to start even earlier with disadvantaged children. We also introduced the early years pupil premium, extending the pupil premium in schools to the early years so that disadvantaged three and four-year-olds can get extra funding for reading and intellectual stimulation. I will come on to the detail of that later.

There is therefore cross-party consensus, and the direction of travel in policy is broadly similar. Sometimes, however, in such debates as today’s, some Members seem to have an interest in making out that what is happening is really bad. I am not saying that we can afford to be complacent, but some good work is still going on in early years, in which we lead many parts of the world. For example, the entitlement to free early education for three and four-year-olds, which has an average take-up of about 96%, is unique in the OECD. We have achieved what many other countries in the OECD have not: a universal early education offer. We should be proud of that.

[Alex Cunningham]

I praise the Minister for his work on childcare, but although putting in all those resources is tremendous, universities are still withdrawing their early years teaching courses, because, as I said in my speech, they cannot attract applicants. The Public Accounts Committee has stated that the Department for Education has no “robust plans” to ensure that there are

“enough qualified early years staff so that providers can continue to offer high quality”

education. What will he do about that? We can throw as many resources as we like at the problem, but if we do not have enough people being trained to do the job, we will not be able to deliver his ambition and mine.

[Mr Gyimah]

I will come on to the workforce strategy in more detail, but the simple point is that from 2019-20 we will be investing £6 billion a year in the free entitlement in this country, which is more than we have ever invested before. If we fund providers, they will be able to pay the quality staff that they need so that they can attract and retain them.

For the early years, we do not have a system such as we have in schools, in which the Government try to control the number of staff going in. Most of our early years sector consists of private or voluntary providers, so we need to ensure that they are adequately funded to be able to attract and retain high-quality staff. That is why the Government made a strategic choice to invest in early years provision even at a time when many other Departments were having to have their budgets retrenched.

[Alex Cunningham]

As I said, we have all those resources being poured in, but if people are not applying to go to university for the necessary training, how on earth do we get people in? How do we incentivise them further to get them into the profession, so that we can—I repeat—deliver his ambition and mine?

[Mr Gyimah]

As I said, later this year we will be publishing a workforce strategy to go along with the introduction of the 30 hours of free childcare for three and four-year-olds. The strategy will focus on removing barriers to attracting, retaining and promoting staff. However, I point out to the hon. Gentleman that 87% of the workforce are qualified to level 3 at the moment, compared with 81% in 2010. The proportion of graduates is steadily increasing, with 13% holding at least level 6 qualifications, compared with 8% in 2010. There is still a lot to do, but the direction of travel is positive.

My hon. Friend the Member for Kingston and Surbiton rightly mentioned the take-up of the free entitlements, in particular by the most disadvantaged. The three-year-old offer is a huge success, with 93% of families taking it up, and 97% of families are choosing to take up the offer for four-year-olds. In the case of the two-year-old entitlement, which is for the most disadvantaged 40% of families, 70% are taking up the offer. It is worth remembering, however, that the take-up of those entitlements is voluntary. Parents do not have to enrol their children, so it is remarkable that we have that many parents doing so.

My hon. Friend made a good point about how we market offers to parents, especially the two-year-old offer. We knew that a lot of disadvantaged families were suspicious of having to send their children to school that early, which was how some perceived it. Or if the mother was at home looking after the child—it was often the mother—they wondered why they should send their child to a nursery. The fact that the Government were involved made some of them nervous, so we did a lot of work in the Department to find new and innovative ways of marketing to those parents, even recognising that changing the colour of an envelope would make it more likely that it would be opened. To some families, brown envelopes looked like they came from the Government, so they would not open them at all, but if we made the envelopes more interesting they were more likely to open them. We are conscious that we need to drive take-up, and we need to look constantly at innovative ways to do so.

[Julie Cooper]

The Minister is making some important points about encouraging parents to take up the offer. Does he recognise the real concerns of nursery school headteachers that are driving them to come down to Parliament in numbers with their governors—they are coming again tomorrow—to express concerns that they are no longer able to fund qualified teaching staff? That is particularly important in deprived areas.

[Mr Gyimah]

Nursery schools do a fantastic job. We will publish a reform of early years funding to go with the 30 hours’ free childcare. I have had meetings with those people and understand their concerns. I can give an assurance that we recognise the important work that they do, particularly in disadvantaged areas, and I certainly want it to continue and will do what I can to ensure that it does.

[Chloe Smith]

An extremely brief factual question: will the Minister give us the results of his consultation and the funding formula he referred to before the summer recess, or should we await that a little later on?

[Mr Gyimah]

All I can say is that we want to provide that as soon as possible, because we understand the need for providers to prepare so that they can deliver the full 30 hours in 2017—it is in the “urgent” in-tray at the moment.

I will develop my points further and answer some of the questions that have been asked. On take-up, we will publish a workforce strategy shortly. Speech and language is absolutely important. If a child arrives at school and cannot communicate or recognise that those squiggly things on a page are words, and that words are used to form sentences, they have got a problem. One of the things the early years pupil premium is there for is for those disadvantaged kids to get extra funding—about £300 a head—and the nurseries can make a discretionary decision on how to spend that to ensure that those kids do not arrive at school already behind.

[Melanie Onn]

Will the Minister give way?

[Mr Gyimah]

I will not take any more interventions, because of the time.

We have introduced reforms to improve the standard of literacy in the early years, which has included awarding grants, for instance through the National Day Nurseries Association’s literary champions programme, which supports practitioners to provide a high-quality, literacy-rich experience for all children. In 2015, 80% achieved the expected goal in communication and language, compared with 72% in 2013.

All of that sits in the broader context of life chances. School-readiness cannot be divorced from the broader discussion of life chances. Earlier this year, the Prime Minister set out his vision for improving life chances, and the Government want to transform the life chances of the poorest in our country and offer every child who has had a difficult start the promise of a brighter future.

We are already transforming lives. Since 2010, there are 449,000 fewer children living in workless households. The early years foundation stage framework is improving the quality of early education and care for young children, and our most recent results show that 66% are achieving a good level of development at that stage. A number of hon. Members touched on that point. It is worth noting that 66% is an increase of 14.6 percentage points in the past two years. The quality of settings continues to improve, with the highest proportion ever—86% of settings—judged good or outstanding in their most recent Ofsted inspections.

We know that some of the poorest children are already behind their peers by age three, before they start school. Such children miss out in the number of words they speak, as my hon. Friend the Member for Kingston and Surbiton pointed out, although the proportion of school children eligible for free school meals who achieve a good level of development is increasing—it was 51% last year, compared with 45% the year before. However, I will be the first to admit that we still have a long way to go.

Obviously, in considering school-readiness and life chances we also need to take into account what happens in the health sector. A number of hon. Members touched on that. All children aged from two to two and a half are offered a universal health and development review by a health visitor, which includes checking a child’s communication development and referring families to more specialist support if necessary. One thing that I introduced when I became the Childcare Minister was an integrated review for children who are not in early years settings, so that health visitors could recommend and introduce parents to other support services that they might need.

To touch on a point raised by the hon. Member for Southport (John Pugh), we also published “What to expect, when?” so that parents know what they can do to support their children’s development in the early years. It is easy for Government to think that we have all the answers, but children, especially in their early years, spend a disproportionate amount of time at home with their parents, so parents need to understand what good development is and what they can do to influence it. That is what our guide is meant to achieve.

[Alex Cunningham]

I am particularly interested in the role of health professionals and others who go into homes in the most deprived communities. What are the Minister’s policy ideas and instructions to encourage them to play a greater role in directing families to the childcare and literacy support we want them to have?

[Mr Gyimah]

A lot of home visits are done by health visitors, which is incredibly important. Health visitors are trusted by parents and do a great job. The previous Government and this Government have continued to invest in increasing the number of health visitors. I would like to see more joined-up activity between health and education in the early years. There are a number of great programmes out there, such as the Lambeth Early Action Partnership, which are successful because they join up health and education in early years interventions.

My hon. Friend the Member for Norwich North (Chloe Smith) rightly touched on assessment. Obviously Ofsted is one way of holding nurseries accountable and assessing what they do—as I said, 86% of settings are rated good or outstanding—but the early years foundation stage profile is another way of ensuring that individual children reach a good level of development. That will become non-statutory in September, but we are looking at ways of ensuring that we continue to have such evaluation. She therefore raised a relevant and important point.

The point was made that we should differentiate between childcare and early education, especially when we talk about the 30 hours of childcare. I completely agree that childcare arranged for the purposes of parents’ employment is completely different from early education. That is why the first 15 hours of the offer is universal—so that every three and four-year old in the country is entitled to 15 hours of free early education. Why 15 hours? Evidence from the effective pre-school, primary and secondary education longitudinal study, carried out over 13 years, suggests that children at that age need a little bit of education every now and again. They need little and often, not the equivalent of a school week at the age of three and four. The eligibility for the second 15 hours—the employment offer—is based around parents’ work.

[Alex Cunningham]

Perhaps the Minister can give us a few seconds on workforce development.

[Mr Gyimah]

I have made it clear that we will publish the workforce strategy, which will look at workforce development.

Finally, my hon. Friend the Member for Brigg and Goole (Andrew Percy) asked whether I would consider the bid by the Imagination Library. That bid is interesting, so I will take that on board and look at it.

Question put and agreed to.

Resolved,

That this House has considered children’s early years development and school readiness.

Oral Answers to Questions

Sam Gyimah Excerpts

Monday 4th July 2016 Commons Chamber

[Victoria Borwick (Kensington) (Con)]

10. What plans she has to ensure that reform of the school funding formula does not have a negative effect on schools in London.

[The Parliamentary Under-Secretary of State for Education (Mr Sam Gyimah)]

I thank my hon. Friend for raising this issue and for contributing to the recent debate on education funding in London. The second stage of our consultation will detail the impact of the formula on schools. I understand the importance of giving schools stability and budget security, but in advance of that consultation it would not be appropriate to speculate on the specific impact of the formula. That would be unfair to schools and parents.

[Victoria Borwick]

As a long-term governor, and having visited the outstanding Bevington school in Kensington this morning, can I ask the Minister to talk about the area school cost adjustment in respect of meeting the higher costs and vulnerability of schools in London?

[Mr Gyimah]

My hon. Friend makes a very important point. That is why in the first stage of the consultation we propose to include an area cost adjustment in the national funding formula—an increase for schools facing extra costs from higher wages, which will be important for London schools. We have also protected the pupil premium at current pupil rates, so every school knows that they will receive that funding on top of their core budget. London receives over 20% of the whole pupil premium budget.

[Wes Streeting (Ilford North) (Lab)]

Educational standards improved dramatically in London under the previous Labour Government, a timely reminder of the virtue of Labour winning elections. In the Minister’s attempt rightly to increase funding to levels needed across the rest of the country, will he confirm that school budgets in London will not suffer, thereby setting back the enormous progress that has been made?

[Mr Gyimah]

The hon. Gentleman is absolutely right: educational standards and attainment have improved dramatically, in London in particular, over the past decade or so thanks to teachers, parents and pupils in London. As my right hon. Friend the Secretary of State made very clear, the purpose of the funding formula reforms is to fund need, so where there is need in London it will be funded on the same basis as need in other parts of the country.

[Ruth Cadbury (Brentford and Isleworth) (Lab)]

Is the Minister aware that schools in my constituency in west London are already having to implement the biggest cuts to their budgets they have ever made? Will he assure the head teachers I met this morning that there will be no further cuts when fair funding comes in?

[Mr Gyimah]

My right hon. Friend the Secretary of State made it very clear: the core education budget of £40 billion is the highest amount ever invested in education. We are supporting our schools to achieve educational excellence everywhere. We are reforming the funding formula to ensure that that excellence can be delivered across all schools, rather than it being determined by a postcode lottery, as it is at the moment.

[Dr James Davies (Vale of Clwyd) (Con)]

12. What steps her Department is taking to improve schools in parts of the country where there has been persistent underperformance.

--- Later in debate ---

[Karin Smyth (Bristol South) (Lab)]

17. What progress the Government have made on providing 30 free hours of childcare per week for three and four year-olds.

[The Parliamentary Under-Secretary of State for Education (Mr Sam Gyimah)]

We are delivering at great pace on our commitment to provide parents with 30 hours of free childcare for three and four-year-olds. With cross-party support, we have already taken the Childcare Act 2016 through Parliament. We announced in the November spending review that we would invest an additional £1 billion a year into the system from 2019-20—more than ever before—and we are not waiting until 2017 to deliver on our commitment: around 5,000 children from eight areas will get their 30 hours a year from this September.

[Karin Smyth]

The Public Accounts Committee, of which I am a member, highlighted the danger that the Government will be unable to deliver their pledge to give three and four-year-olds 33 hours of childcare a week. In view of all our findings, what is the Minister doing to ensure that local authorities manage their childcare markets effectively or intervene if necessary?

[Mr Gyimah]

The hon. Lady asks an important question. I am in contact with a lot of local authorities, and the Department has the local authority working group. In addition to the increased funding we have provided, we are working to ensure that local authorities have the capital they need—an extra £50 million—to create places in their local areas where there is a need.

[Patrick Grady (Glasgow North) (SNP)]

T1. If she will make a statement on her departmental responsibilities.

--- Later in debate ---

[Bob Blackman (Harrow East) (Con)]

T3. One of the concerns about the fairer funding formula is what happens to sixth-form students. Can Ministers confirm that fairer funding will apply to sixth-form students in particular, and clarify what is proposed for sixth-form colleges?

[The Parliamentary Under-Secretary of State for Education (Mr Sam Gyimah)]

My hon. Friend will be aware that in the spending review, my right hon. Friend the Chancellor confirmed funding of £4,000 per pupil for post-16 education, and that remains the case. Obviously, where there are school sixth forms, reforming the national funding formula will impact on the whole school budget. I do not what to pre-empt what the consultation will say, but I am sure we can have a discussion once we have published it.

[Stephen Timms (East Ham) (Lab)]

As the Secretary of State knows, there are already examples of academies ignoring the concerns and views of parents, and removing the requirement to have a parent-governor or parent-governors will make matters worse. The White Paper proposes that parents should be able to petition to have their academy moved from an under-performing multi-academy trust to a different MAT, will she tell us how that will work?

--- Later in debate ---

[Kevin Foster (Torbay) (Con)]

T6. The principal of Paignton academy, Jane English, recently received a lifetime achievement award for teaching and inspiring generations of students, yet the school has been held back by having some elderly buildings that urgently need replacement. Can the Minister update me on when funding will be made available to do this?

[Mr Gyimah]

First, may I take this opportunity to congratulate Jane English on her lifetime achievement award? She has done a tremendous job. The condition improvement fund was three times over-subscribed this year, which is why the school was unsuccessful—there were a lot of quality bids. I can give my hon. Friend the reassurance that the next fund will be opening in autumn 2016.

[Mr Kevan Jones (North Durham) (Lab)]

Durham county council is part-way through the legal process of merging South Stanley infant and junior schools to form a primary school, but on Friday the Department issued a notice that the infant school will now be part of Greenlands junior school as a new academy, completely ignoring any consultation with local parents. How does that fit with what the Minister has said about the involvement of parents in these decisions?

Education Funding in London

Sam Gyimah Excerpts

Wednesday 4th May 2016 Commons Chamber

[Stephen Timms (East Ham) (Lab)]

I congratulate the hon. Member for Bromley and Chislehurst (Robert Neill) on securing this debate and on how he introduced it. I also congratulate him, together with my hon. Friend the Member for Croydon North (Mr Reed), on how they chair the all-party parliamentary group for London. They are absolutely right that this is a crucial issue for the future of the capital.

I am worried about the process the Government have gone through to get us to this point. As we have heard, a consultation document was published in March. In the run-up to the consultation, meetings were held that, as far as I can tell, were exclusively with representatives of the F40 group of authorities. According to the F40 group website, its representatives met with the Department on 21 January 2015, 15 June 2015, 9 September 2015, 9 December 2015 and 7 April 2016 to discuss these proposals. As far as I can establish, no representatives of any London councils were present at any of those meetings. I am worried that because of the unbalanced process the Government have gone through, we will end up with an unbalanced proposal.

[The Parliamentary Under-Secretary of State for Education (Mr Sam Gyimah)]

I can reassure the right hon. Gentleman that my door is always open to every Member or representative of any local authority who wants to discuss school funding or any other concerns within my portfolio.

[Stephen Timms]

I am grateful to the Minister. The worry, however, is that up until now, the Department’s door has been open only to this particular group. The hon. Member for Beverley and Holderness (Graham Stuart) champions F40. Nobody can object to representatives of that group of local authorities lobbying and promoting their own interests; it is worrying, though, that it has had this exclusive access up until now.

A version of the minutes of the September meeting with the F40 quoted an official from the Department offering to share “emerging proposals” with the F40 group “in confidence”. Proposals should not be shared in confidence with one particular set of authorities. I note that the minutes have now been altered, so they do not say that any more, but no such offer should ever have been made. My deep worry is that we are heading towards a woefully unbalanced proposal as a result of the privileged access given to that group.

I am grateful for the Minister’s reassurance about his door being open, but I want him to give us a commitment that when the numbers are put into the structure in the consultation document published in March, there will be the constraint that there should be no cuts in school funding for pupils in the most disadvantaged areas of the country.

As we have heard, my right hon. Friend the Member for Barking (Dame Margaret Hodge) has pointed out that the Conservative manifesto certainly sounds as though it is saying that there will be no cuts for any individual students; I hope that that commitment will be maintained. I particularly want to press the Minister on this point: there should be no cuts to schools funding for pupils in the most disadvantaged areas. Indeed, the Government have recognised the need for additional schools funding for disadvantaged students through the pupil premium, so it would surely be quite perverse to slash the same funding through this formula.

As I mentioned earlier, if the F40 proposals were put straight into effect, it would result in the 30 most disadvantaged local authorities in the country losing £245 million per year and the 30 most affluent authorities in the country gaining more than £218 million per year. That would be a straightforward switch of hundreds of millions of pounds from the most disadvantaged authorities to the most affluent ones. I hope that the Minister can reassure us that that kind of switch, as advocated by the F40 group—understandably; it is in the group’s interests to do so—will not happen.

My authority, the London Borough of Newham, made a freedom of information application for the Department’s modelling or analysis of the likely impact of the new formula. The request was refused. Officials said that they had the information, but its release was refused on the grounds that it related to the formulation or development of Government policy and was therefore exempt from freedom of information obligations. As I have said, however, there has clearly been a lot of access for representatives of the F40 authorities. The Minister has given us a commitment that his door will always be open, and I ask him release that information to the other authorities as well, so that everyone can see where we are heading. As things stand, some authorities have been taken into the Government’s confidence and others have not. Indeed, some of those others have been refused information relating to what has been going on. That information should be released.

A cursory glance at the F40 proposal published in 2013—it is on the F40 website—and at the consultation document published by the Government in March shows an uncanny resemblance between the two. Clearly, the F40 group has been very influential. I feel particularly strongly about this, because modelling suggests that my local authority will be among the biggest losers. Analysis of the F40 proposal shows that seven of the 10 biggest cash losers under the proposals will be in London, while none of the 10 biggest cash winners will be in the capital. That is the direction of the F40 group’s proposals. Of course it is advancing its own interests, but it should not have special access to Ministers in doing that. That is not a fair way for policy to be made.

I want to pick up on one point of detail that has already been touched on. The point was made in responding to the consultation document that the extent of pupil mobility in London has a big influence on school costs. Mobility has been used in school funding formulae up till now, but it is not used in the F40 proposal. Nor is it in the Government’s proposal. That is a very troubling omission. The hon. Member for Bromley and Chislehurst rightly underlined the point that high levels of mobility in London add significantly to the cost of running schools here, and that fact should be picked up in the formula.

Research published by the Fischer Family Trust this year estimates that a student who moves in-year will perform 10% less well than the average for their class, and that if three or more students join a class mid-year, attainment for the class as a whole will suffer by one to two percentage points. It estimates the combined cost of pupil mobility to schools and local authorities in London at £35 million a year. That should not be excluded from the formula, although the consultation document proposes excluding it. I understand that mobility is generally low in the authorities of the F40 group, and that they do not want it reflected in the formula, and the Department immediately put that into its version of the formula. Authorities such as mine, where mobility is high, will unfairly lose out on funding if that view prevails, so I hope that it does not.

I am worried that the process that has taken us to this point has been flawed, which is leading to an unfair proposal. I hope that the Minister will accept that schools funding for pupils in disadvantaged areas should not be cut as a result of the new formula, and that factors such as mobility, which have such a big impact in London, should be included in the formula, so that the damage is not inflicted on schools in London.

--- Later in debate ---

[The Parliamentary Under-Secretary of State for Education (Mr Sam Gyimah)]

I thank my hon. Friend the Member for Bromley and Chislehurst (Robert Neill) for securing this important debate, and I commend all the contributions, which have been hugely informative about education funding. As constituency MPs and parents, the subject is close to all our hearts.

For our country to grow stronger, fairer, wealthier and more secure, we need good schools and a well-educated population. Investing in education is an investment in the future of our children and our nation as a whole. That is why the Department is committed to delivering educational excellence everywhere—not just in London, but everywhere in the country—so that irrespective of where a child grows up, they can expect the best education possible.

There is no doubt that we are investing in education. The spending review confirmed a real-terms protection for the core schools budget. Throughout this Parliament, the money available for our schools will increase as pupil numbers increase. This will mean more than £40 billion next year, including pupil premium funding worth £2.5 billion a year targeted at the most disadvantaged pupils. That is also protected and will be maintained at current rates.

The right hon. Member for East Ham (Stephen Timms) made the point about who had been engaged in making the case for funding reform. He is normally assiduous and careful in how he puts his points across, but on this occasion I would like to disabuse him of the notion that the cross-party F40 group has somehow had special access. I met a range of stakeholders both before and during the consultation, including the Local Government Association, while London councils have met either me or my officials in the Department, and that will continue. I have also met a number of Members of all parties to discuss specific funding needs in their constituencies, and I have a number of union representatives on speed dial as far as this issue is concerned.

[Stephen Timms]

I do not think that the Minister would deny that there have been many discussions. I read out a list of the dates of the meetings, set out on the F40 website, between F40 representatives and the Department. I think he would accept that there has been much more discussion with that particular group than there has been with the others to which he has referred.

[Mr Gyimah]

Ministers cannot be criticised on the one hand for not listening, and then be criticised on the other for listening too much. The truth is that my door is always open, and I am happy to meet whoever knocks on my door to discuss the issues as often as is necessary to address them.

There is an important need to address the funding system. There is a risk that the current system will not deliver the outcomes that we want for our children. For too long, schools have struggled with funding systems that are both unfair and, as my hon. Friend the Member for Bromley and Chislehurst suggested, opaque. The amount of money that schools receive is now an accident of history, not a reflection of the needs of their pupils or of children.



Local populations have changed over the past decade. For example, the proportion of children receiving free school meals in Manchester has fallen by 31% since 2005, while in Blackpool it has increased by 19%. However, schools funding has not kept up. The distribution of funding today cannot reflect the needs of our children if it has not changed in more than 10 years. The key question is not about levelling up or levelling down; it is about whether funding is addressing the individual needs of children.

The impact of the current funding system is hugely unfair. Let me look closer to home for the benefit of those who have spoken today. A child who is sent to school in Bexley will attract £4,635, but in next-door Greenwich, that suddenly becomes £6,020. Different local authorities also make different decisions about how to fund their schools. In 2015, Brent chose not to allocate any funding to pupils receiving free school meals, whereas Ealing chose to allocate nearly £1,700 to each primary pupil in exactly the same position.

We are committed to fixing that. I am proud to say that last month we launched the consultation referred to by the hon. Member for Scunthorpe (Nic Dakin), on new, fair, national funding formulas for schools and high needs. Our aims are clear, and I hope that Members in all parts of the House will agree that they are worthy. We want to create a formula that is fair, objective, transparent and simple. It should be clear how much funding is following each pupil, and that should be the same wherever they are in the country. Headteachers or academy trusts should know that if they move to take over underperforming schools, no matter where they are, their budgets will be fair and their schools will have the opportunity to excel.

Allocation is also important. We must allocate funding for high-needs provision, which has not been dwelt on today, on a fair and transparent basis. For too long, funding allocations have varied without reason. Parents and children with high needs deserve to know that the funding they require will be there, irrespective of where they choose to live. They deserve that security; they deserve that equality.

[Robert Neill]

I am grateful for what the Minister is saying. Will he assure me that he will present direct proposals to deal with the issue that was raised by our friend and colleague Councillor David Simmonds on behalf of the Local Government Association—the need to protect the high-needs element within any new arrangement for the formula?

[Mr Gyimah]

As my hon. Friend knows, what has taken place so far is the first stage of our consultation. The next stage will come up with detailed allocations for local authorities, but it will also make clear how each block within the dedicated schools grant would function within the system, and will certainly take account of my hon. Friend’s concerns about the high-needs block.

[Stephen Timms]

Will the Minister pay particular attention to the question of whether the schools block should include, as many have argued today, an element that would recognise the mobility within local authorities that we have been discussing?

[Mr Gyimah]

That is an important point. We will, of course, consider how the issue of mobility can best be addressed in the funding system. There are a number of ways of doing that, but it is certainly a priority in our determination of the new formula, along with in-year growth, population growth and so forth.

Despite the clear principles behind our national funding formula, there are still some myths about the potential impact on London, some of which we have heard about today. I want to take the opportunity to put those myths to bed. There is, for instance, the myth that the national funding formula is about London versus the rest of the country. There are two grounds on which that is simply wrong. First, the funding formula will deliver fairness to all parts of the country, whether they are urban or rural, shire or metropolitan, north or south. Secondly, London is not a homogenous area. At this moment, a parent who moved just a few miles from Haringey to Hackney—this point was made by the hon. Member for Hornsey and Wood Green (Catherine West)—would increase the funding for their child by £1,000. We heard about areas such as Croydon—the hon. Member for Croydon North (Mr Reed) made an interesting speech in this respect—that are struggling to recruit teachers because they cannot pay as much as better funded areas just up the road. We need a fairer funding system within London, just as much as we do across the whole country.

The second myth I want to dispel relates to funding for pupils from disadvantaged backgrounds, on which the right hon. Member for East Ham wanted a specific answer. I hope I can assure him that where pupils have additional needs, we will provide extra funding. This is a fundamental principle of the national funding formula to ensure that such pupils can overcome entrenched barriers to success.

[Ruth Cadbury]

I thank the Minister for his willingness to listen and the depth of his investigation into all the different issues around the funding formula. In the context of disadvantaged pupils, he just talked about “additional needs”. What does he mean by that? Is he talking about special needs or the issues that Opposition Members have been raising about the inherent disadvantages experienced by children living on very low incomes in many of our communities?

[Mr Gyimah]

The hon. Lady raises a good point. I am talking about additional needs in both respects, and during my speech I will address them. Obviously, some additional needs are addressed within the school system, and some within the high-needs block, but I will touch on both of those.

As our recent consultation made clear, the formula should contain a significant element of additional funding for pupils from disadvantaged backgrounds, and there should be funding on top of the basic per-pupil amount for pupils on free school meals, pupils with low prior attainment and pupils who speak English as an additional language. The higher the level of need in a school, the higher the funding will be. I could not be clearer on this point, and anyone who engaged with the consultation will have seen that set out in black and white.

Some have suggested that the national funding formula will not take into account the higher costs faced by schools in London. Again, our proposals could not be clearer. We consulted on a proposal for an area cost adjustment—a general increase for schools facing extra costs from higher wages—which will be important for schools in London. Our second consultation will detail exactly how this would work.

The final myth I would like to address is that so-called cuts in London will undo the huge improvement in standards in recent years. Schools in London have improved tremendously in recent years. It is testament to the hard work of teachers, headteachers, pupils and their parents. There are schools up and down the country, however, that are still getting excellent results in spite of the funding system, not because of it. The national funding formula will put funding where it is needed, so that all schools have the best opportunity to deliver a world-class education for their pupils.

As hon. Members have made clear, London’s schools are thriving and continue to thrive. Moreover, in the last 10 years, the percentage of pupils eligible for free school meals has dropped from 27% to 18%, and the number of pupils living in highly deprived areas has also dropped dramatically, but of course challenges remain. The funding system will recognise the challenges in London. That is why London will continue to benefit from the pupil premium, receiving £436 million this year—nearly 20% of the total across the country. This is vital. We can see excellent examples across London of pupil premium funding being used to ensure that disadvantaged students receive the best opportunities for their education.

As for future funding, as I have said, we will publish proposals on the details for schools and high needs in the second consultation. In the meantime, hon. Members will understand why it would not be appropriate for me to speculate on the specific impacts of the new formula in London; suffice it to say that the new formula will reflect the responses to the consultation, rather than the specific requests made by the cross-party F40 group. The consultation so far has been very important, because there were several issues on which we needed answers in order to do the detailed modelling.

[Mr Steve Reed]

I understand why the Minister cannot give more detailed responses now, but will he agree to meet officers of the all-party group for London, when we reach the next phase, to go into more detail, when the information is available, so that we can discuss with him whether it meets the concerns raised in this debate?

[Mr Gyimah]

I would be delighted to meet the all-party group to discuss these issues before, during and after the consultation.

We still have a big and difficult job ahead of us. Reorganising £40 billion of schools funding is not an easy task, and it is one that we should carry out carefully and thoughtfully. We need to think through the transitions, as the hon. Member for Scunthorpe (Nic Dakin) so eloquently said. I continue to find encouragement from the wide support that exists for these reforms across the country, throughout the sector and between political parties. I am grateful to my hon. Friend the Member for Bromley and Chislehurst for putting this matter on the agenda again in the Chamber. Providing educational excellence everywhere is a key part of our mission, and it is something that we need to do very carefully. After all, this is about this country’s future. A number of important points have been raised in the debate, and they will be reflected in the consultation and in the formula. I look forward to engaging with Members across the House to ensure that we have fairer funding for all our schools and all our children.

Oral Answers to Questions

Sam Gyimah Excerpts

Monday 25th April 2016 Commons Chamber

[Graham Stuart (Beverley and Holderness) (Con)]

T4. According to Ofsted, the best educational settings in the country are maintained nursery schools, of which 58% are “outstanding” and 39% are “good”. Remarkably, they perform just as well in poor areas as they do in less affluent areas. What consideration has the Minister given to allowing them to become academies if they wish to do so, in order to ensure that these great institutions continue their work?

[The Parliamentary Under-Secretary of State for Education (Mr Sam Gyimah)]

My hon. Friend is absolutely right. Although maintained nurseries provide only 3% of the places in early years, they offer excellent early-years education and, over the past few years, we have seen the structure of maintained nurseries evolve as a number have federated or joined multi-academy trusts. I know that my hon. Friend has a special interest in this area, and I would welcome the opportunity to meet him to discuss how we can promote the excellent work that those nurseries do.

[Caroline Flint (Don Valley) (Lab)]

On 20 April, the Comptroller and Auditor General, Sir Amyas Morse, provided an adverse opinion for the second year running on the truth and fairness of the Department for Education’s group financial statements. Sir Amyas said:

“Providing Parliament with a clear view of academy trusts’ spending is a vital part of the Department for Education’s work—yet it is failing to do this.”

How will the Secretary of State ensure that Parliament will be able to see whether extending academies is giving the taxpayer good value for money, when that clearly is not happening now?

Condition Improvement Fund

Sam Gyimah Excerpts

Thursday 24th March 2016 Written Statements

[The Parliamentary Under-Secretary of State for Education (Mr Sam Gyimah)]

Today I am announcing the outcome of the Condition Improvement Fund 2016-17, which provides funding for the improvement and expansion of existing academy and sixth-form college buildings.

I am announcing funding of £435 million for 1,276 projects across 1,030 academies and sixth-form colleges, which will help to ensure that children across the country have access to world class schools. Ensuring that there is a good local school place for every child, and that all children are being taught in safe and fit for purpose school buildings which help unlock their full potential, is of highest importance to this Government.

The Government announced at the spending review in November that they are investing £23 billion in schools infrastructure between 2016 and 2021. This money will support the opening of 500 free schools, the provision of over 600,000 additional school places, the rebuild and refurbishment of schools and will address essential school maintenance needs. In addition to the funding for expansion of good and outstanding academies and colleges that we are announcing today, we are also making over £200 million capital funding available to support the expansion of special education needs provision and the creation of new special schools. We will say more about how this will be distributed later this year.

We know that being taught in school buildings that are in poor condition can have an adverse effect on pupils and staff and that is why we are continuing to invest in improving our estate. Today’s announcement follows on from the announcement in February of the allocation of £200 million of devolved formula capital to schools and the school condition allocations to local authorities, voluntary aided schools and larger multi-academy trusts.

Details of today’s announcement are being sent to all applicants and a list of successful projects will be published on www.gov.uk. Copies will be placed in the Library of the House. We will look for opportunities to fund further high scoring applications from this year’s bidding round should additional funding become available.

[HCWS649]

School Places

Sam Gyimah Excerpts

Thursday 17th March 2016 Written Statements

[The Parliamentary Under-Secretary of State for Education (Mr Sam Gyimah)]

My hon. Friend, the Parliamentary Under-Secretary of State for Schools has today made the following ministerial statement.

Today I am announcing £1.15 billion of capital funding for 2018-19 to support the creation of the new school places needed by September 2019.

Ensuring that every child is able to attend a good or outstanding school in their local area is at the heart of the Government’s comprehensive programme of reform of the school system and vital for delivering educational excellence everywhere. We know that our growing population means that new school places are needed in many parts of the country and the Government are committed to providing capital investment to ensure every child has a place at school. The previous Government more than doubled funding for new places to £5 billion in the past Parliament. We are committed to investing £7 billion in this Parliament, and delivering 500 new schools. By May 2015, this investment had already helped to create nearly 600,000 additional school places since 2010, with 150,000 delivered in 2014-15 alone. Many more places are in the pipeline and still to come—with local authorities already having firm plans for 260,000 more places. This progress follows a decrease of 200,000 primary places between 2004 and 2010.

Today we are announcing £1.15 billion of funding for local authorities in 2018-19. This is in addition to the £3.6 billion already announced for 2015-18, taking total investment through this Parliament to £4.8 billion. In doing so, we continue to recognise that good investment decisions require certainty. Announcing allocations for 2018-19 today means local authorities can plan years ahead with confidence, and make good strategic investment decisions to ensure they deliver good school places for every child who needs one.

In making these allocations, the Government are continuing to target funding effectively, based on local needs, using data we have collected from local authorities about the capacity of schools and forecast pupil projections.

Most local authorities are successfully delivering additional school places as the nearly 600,000 new places created since 2010 clearly demonstrates. However, where authorities are not delivering for parents, we will not hesitate to intervene.

Details of today’s announcement will be sent to local authorities and be published on the gov.uk website. Copies will be placed in the Library of the House.

[HCWS628]

School Places (Barking and Dagenham)

Sam Gyimah Excerpts

Thursday 17th March 2016 Commons Chamber

[The Parliamentary Under-Secretary of State for Education (Mr Sam Gyimah)]

I congratulate the hon. Member for Dagenham and Rainham (Jon Cruddas) on securing this debate. I also congratulate him and the right hon. Member for Barking (Dame Margaret Hodge) on speaking so passionately about the educational opportunities available to young children in their constituencies. This debate is timely as it allows me the opportunity to set out clearly the Government’s position on the provision of sufficient quality school places across the country as well as, more specifically, in Barking and Dagenham. I agree with the right hon. Member for Barking that this is about not just the availability of places but the quality of the school buildings.

First, I want to take the opportunity to reiterate that ensuring that every child is able to attend a good or outstanding school in their local area is at the heart of the Government’s comprehensive programme of reform of the school system. We know that our growing population means that new school places are needed in many parts of the country, so the Government are absolutely committed to providing capital investment to ensure that every child has a place at a school.

We have already shown the strength of our commitment to ensuring that good quality places are available, and we are investing a further £7 billion to create new school places between 2015 and 2021. We are also investing £23 billion in school buildings to create 600,000 new school places, open at least 500 new schools and address essential maintenance needs. This is on top of the £5 billion we allocated to local authorities to invest in school places in the last Parliament, which was over double the amount spent in the equivalent four-year period between 2007 and 2011. Today, we released new data showing that nearly 600,000 additional pupil places were created between May 2010 and May 2015, with many more delivered since then and in the pipeline; 150,000 places were delivered between 2014 and 2015 alone.

The hon. Member for Dagenham and Rainham mentioned the Budget, and referred to the absence of commentary on school places. I want to draw his attention to an announcement that we have made today. We are announcing £1.1 billion of funding for local authorities in 2018-19 to create the school places needed by the 2019-20 academic year. I know that he is concerned about that matter. This is part of the £7 billion that I referred to earlier and, alongside our investment in 500 new free schools, we expect this to deliver a further 600,000 new places by 2021. In making these allocations, the Government are continuing to target funding effectively, based on local needs, using data we have collected from local authorities about the capacity of schools and forecast pupil projections. Those are the announcements that we have made today, and I will definitely ask the hon. Gentleman and the right hon. Lady to look at the detail.

Returning to the central point of the debate, ensuring that every child has access to the benefits of a good-quality education is a fundamental responsibility of everyone across the education system. As the hon. Member for Dagenham and Rainham knows, the statutory duty for providing school places rests with local authorities. Our financial commitment is therefore a concrete demonstration of the level of importance that the Government attach to the provision of places and of our wider commitment.

Our manifesto referred to the creation of 500 new free schools, and 40 applications have been approved since the election in May, with many more entering the process. We continue to encourage businesses, cultural and sporting bodies, charities, community groups and parents to come forward with their proposals for new schools, adding to the nearly 400 schools opened since 2010 and the more than 190 currently in the pipeline.

It is important that local authorities across the country seek to capitalise on the opportunities presented here. The free schools programme is working alongside local authorities to create the school places we need in order to provide a good education for all our children, and many authorities are choosing to work actively with the Government to meet the challenge. I pay tribute to all those in authorities and in schools who have helped to deliver the significant progress of recent years. The task is not yet done, however, as the increase in the number of pupils moving through the primary phase is now beginning to be felt at secondary level. Local authorities and schools must rise to that additional challenge. We should not pretend that that will be easy, which is why we are committed to helping through funding and through establishing new schools directly under the free schools programme.

London’s situation is unique, and the unsurprising surge in pupil numbers has been mentioned. As a thriving global city, London has a large part to play in meeting that challenge. Some 34% of new places delivered by 2015 were in London, and the capital will clearly have a big part to play in coming years. As the hon. Gentleman will know, the London borough of Barking and Dagenham has played its part in that regard. The local authority has effectively created places to meet demand, but it will face, as he pointed out, further challenges as pupil numbers continue to rise and larger primary cohorts transfer into the secondary sector. Rising pupil numbers in neighbouring local authorities will also reduce the number of pupils able to take up places outside Barking and Dagenham, further increasing the challenges to be managed.

The way we provide funding for new places is based on local authorities’ assessments of the number of pupils that they expect to have, taking local factors into account. That approach has helped the Government to allocate Barking and Dagenham a further £6 million, taking the total to £167 million in funding for school places from 2011 to 2019, on top of more than 3,300 places in free schools that we have funded centrally. The funding has been put to work. By May 2015, there were 7,450 more primary places and 4,450 more secondary places than there were in 2010, with plans to create many more when they are needed in the coming years. Barking and Dagenham has four open free schools, including an all-age special school. In addition, it has a university technical college and a further secondary school is due to open in 2017.

Of course, providing sufficient quality places is about not only capital investment, but ensuring that revenue money for schools gets to where it is needed most. The hon. Gentleman was bang on the money when he talked about the likely consequences of the national funding formula for Barking and Dagenham. In the spending review, we delivered on our manifesto pledge to maintain per pupil funding for the core schools budget for the duration of the Parliament, providing an overall real-terms protection. That includes protecting the extra funding for our most disadvantaged children through the pupil premium, worth over £2.5 billion this year. Next year, we will be providing over £40 billion of schools funding, the highest ever level of any Government.

We also committed in the spending review to introduce a national funding formula for schools and for pupils with high needs from 2017 to ensure that funding reaches the places where it is needed. I believe these reforms will be transformative and the biggest step towards fairer funding in more than a decade.

The current funding system is unfair and out of date. It means that a primary pupil with low prior attainment in Barking and Dagenham attracts £800 to his or her school, but in neighbouring Newham the same child would attract nearly £1,800. The situation is similar for pupils with high needs—funding is not correlated to need and there is wide local variation in the way children’s needs are assessed. Earlier this month, we launched the first stage of our consultation on proposals to end this postcode lottery and to put in its place a funding system that gives every pupil the same opportunities in education; where children with the same characteristics and the same needs are funded at the same rate, wherever they live; and where there is one, consistent, fair formula, instead of 152 local variations.

Across all our proposals for a national funding formula, we want to deliver three key priorities: to allocate funding fairly and get it straight to the frontline; to match funding to need, so that the higher the need, the greater the funding; and to make sure that the transition for such significant reforms is smooth. The proposals in our consultation include arrangements for funding schools with significant growth in their pupil numbers, and I look forward to the response to the consultation from the Barking and Dagenham local authority. This Government are committed to long-term investment in education. We have already protected revenue funding for this Parliament and we are acting now to make sure this money is allocated equitably for all pupils, wherever they are in the country. I am grateful to the hon. Member for Dagenham and Rainham for raising this important issue today.

Question put and agreed to.

Oral Answers to Questions

Sam Gyimah Excerpts

Monday 7th March 2016 Commons Chamber

[Oliver Colvile (Plymouth, Sutton and Devonport) (Con)]

16. What progress the Government have made on implementing provision of 30 hours of free childcare for working parents.

[The Parliamentary Under-Secretary of State for Education (Mr Sam Gyimah)]

We are delivering on our commitment to provide working parents of three and four-year-olds with 30 hours of free childcare. To ensure providers can deliver high quality childcare, we will increase funding for childcare by more than £1 billion by 2019. The Childcare Bill has cleared its parliamentary stages. Twenty five local authorities will be piloting the programme in the summer, ahead of full delivery in the summer of 2017.

[Karen Lumley]

Will my hon. Friend join me in congratulating St George’s in Redditch for the fantastic work it already does? Does he agree that the 30 hours of free nursery education will make such a difference to one of the most deprived parts of my town?

[Mr Gyimah]

My hon. Friend is absolutely right. Families in deprived parts of Redditch will see £5,000 a year as a result of the 30 hours of free childcare. If they need further support, they can get it through the child tax credit system. The 30 hours of free childcare will help families with the cost of living, enable them to work more hours and give children the best start in life.

[Julian Sturdy]

I very much welcome the fact that one of the pilot schemes is in York. I congratulate the Minister on all his work on that. As the Minister knows, there is some concern among nursery providers over the future funding levels, driven by the disparity between the amount local authorities pay. Will the Minister consider future ring-fencing to avoid top-slicing by local authorities? Will he also consider visiting nurseries in my constituency to see how the pilot is working?

[Mr Gyimah]

I should like to reassure my hon. Friend that later this year we will be consulting on an early years national funding formula. As part of that, we will set a firm expectation on local authority top-slicing to ensure that the record investment being made in childcare is allocated fairly and reaches providers on the frontline. I am particularly impressed by the innovation in childcare brought about by the local authority in York, which is why we chose it as one of our early implementers. I would be delighted to visit again.

[Oliver Colvile]

Has my hon. Friend made an assessment of the number of nursery places in Plymouth, and of whether there is enough provision and capacity?

[Mr Gyimah]

My hon. Friend asks a very important question. The key point is that doubling the entitlement of free childcare is not the same as doubling the demand for childcare. Many parents already buy more than 15 hours and there is spare capacity in the system. The £6 billion funding going into childcare each year should incentivise more providers to enter the market. Where there are specific local difficulties, £50 million has been made available through the spending review to tackle capacity constraints.

[Joan Ryan (Enfield North) (Lab)]

I have heard nothing today to assure me that when parents seek the 30 hours free childcare they will be able to find them. I do not know if the Minister is aware that in Enfield since 2010 482 early-years childcare places have been lost and 114 providers have disappeared. When parents are looking for those places, I would be very surprised if they are there on the ground. What will the Minister do to ensure that he can meet the promises his Government have made?

[Mr Gyimah]

I am afraid I have to disagree with the right hon. Lady. In the previous Parliament, the childcare sector created 230,000 new places. I am confident that with record investment the sector will rise to the challenge of delivering the 30 hours. It is about time that we stopped talking down the childcare sector and recognise the continued growth of the industry.

[Wes Streeting (Ilford North) (Lab)]

At recent constituency surgeries, I have had representations from both private providers and state maintained nurseries telling me that the funding simply will not be there. It is no good blaming the sector or blaming local authorities for the fact that the Government have a model that is half-baked, underfunded and running behind time. What is the Minister going to do to make sure that the pledge the Conservatives made to parents at the general election is made real through the availability of places and, crucially, the funding to go with it?

[Mr Gyimah]

Let me puncture the hon. Gentleman’s question with a dose of reality. The Government are investing more in childcare than any previous Government. At a time when other Departments are facing financial constraint, the Government have made childcare a strategic priority. That is why we undertook the first ever cost of childcare review to ensure that funding is fair to providers and sustainable for the taxpayer.

[Carol Monaghan (Glasgow North West) (SNP)]

The National Audit Office report published last week raised concerns about how the 30 hours of childcare for some three and four-year-olds could impact on current provision for disadvantaged two-year-olds. What steps will be taken to ensure that increased provision for one group will not impact on the good work being done with disadvantaged two-year-olds?

[Mr Gyimah]

The hon. Lady asks a good question, and the answer is that there will be no adverse impact on the offer for two-year-olds. We were the first Government to introduce 15 hours of free childcare for disadvantaged two-year-olds, and that will carry on. We have increased the hourly rate for the funding for two-year-olds and ensured that the early-years pupil premium continues, so that two, three and four-year-olds who are particularly disadvantaged do not fall even further behind.

[Chloe Smith (Norwich North) (Con)]

The Minister is right to talk about incentivising providers to come forward, and this is a big opportunity, but may I urge him to take into account the needs of different types of provider—childminders, as well as nurseries and all the other types of setting—all of which should be able to take part in this larger and exciting opportunity?

[Mr Gyimah]

I totally agree with my hon. Friend. One of the great things about the UK childcare market is the diversity of provision—childminders, nurseries, school nurseries—available to parents, as it means we can meet all parents’ needs, especially when it comes to work. We will make sure that flexibility for parents is at the heart of how the 30 hours is delivered.

[Jenny Chapman (Darlington) (Lab)]

It really is all about delivery. The Minister talks about meeting all parents’ needs, but already 59 local authorities say they do not have the places to meet current obligations to three-year-olds, never mind the additional hours. What is he going to do?

[Mr Gyimah]

Once again, I shall give a dose of reality: 99% of four-year-olds and 96% of three-year-olds are accessing the existing 15 hours of childcare. I am happy to compare our record with that of the previous Labour Government. After 13 years in office, it had provided 12.5 hours of free childcare. In half that time, the Conservative party has provided 30 hours of free childcare. Labour never offered anything for disadvantaged two-year-olds; we have a programme for disadvantaged two-year-olds. We are investing more than any previous Government. It might not like it, but it must accept it: the Conservatives are the party of childcare.

[Jenny Chapman]

My party introduced Sure Start. There was no Sure Start and there were no children’s centres—no universal offer for any kind of childcare—prior to the Labour Government in 1997. The test of this will be how many families actually use the additional hours and who those families are. How has the Minister managed to concoct a system where a household with an income of £200,000 a year benefits from the additional hours, whereas 20,000 single parents on the minimum wage will not be eligible? How has he managed to come up with something so deeply unfair?

[Mr Gyimah]

Let me explain the policy to the hon. Lady. She should be familiar with it by now. Our eligibility criteria make absolute sense. To get 30 hours of free childcare, someone needs to be in work and earning more than £107 a week and not more than £100,000 a year—it does not matter if they are a lone parent. That means that if anybody in the family earns more than £100,000 a year, they will not be eligible. I know that Labour Members do not want to hear it, but Labour’s childcare voucher scheme meant that parents earning more than £1 million could get childcare subsidies but the self-employed could not. We are not allowing that to happen in our childcare scheme.

[Derek Thomas (St Ives) (Con)]

3. What steps her Department is taking to support provision of STEM subjects in schools.

--- Later in debate ---

[Rebecca Harris (Castle Point) (Con)]

10. What progress the Careers & Enterprise Company has made on improving careers education and inspiring young people about the world of work.

[The Parliamentary Under-Secretary of State for Education (Mr Sam Gyimah)]

The Careers & Enterprise Company has made excellent progress in its start-up year. It is opening up schools to the world of work and opening up the world of work to schools, which, as all experts agree, is a key ingredient of high-quality careers education and guidance.

[Craig Tracey]

I was delighted to meet representatives of the Careers & Enterprise Company recently in my role as chairman of the all-party women and enterprise group. What steps will be taken to ensure that great models and mentors are provided to supplement the company’s work, and that students from all backgrounds are aware of the wealth of opportunities that are available to them once they have left education?

[Mr Gyimah]

That is an excellent question. In the past, too much emphasis has been placed on one-to-one careers advice, which is often provided too late and not delivered effectively. That is why £70 million has been made available over the current Parliament to fund careers services, including a new national mentoring scheme that will focus on the most disadvantaged. My hon. Friend is absolutely right about mentors, especially for young girls, and especially in relation to STEM subjects and professions.

[Rebecca Harris]

Does my hon. Friend agree that the old careers service is all too often regarded as a source of mild and gentle humour by people when they remember their schooldays, perhaps because they were approached too late? Is it not enormously important for businesses and, indeed, employers throughout all sectors to offer work experience—and not just to young people, to whom I know many Members offer that here in the House?

[Mr Gyimah]

My hon. Friend is absolutely right. Careers advice has long been the punchline for a joke, and many people found that the advice that they were given did not make sense to them at all. In our careers strategy, we are focusing on real, practical employer interactions so that the world of work can go into schools, and so that children can see what is out there, have their passions roused, and work out what is best for them.

[Mr Gordon Marsden (Blackpool South) (Lab)]

The Minister will be delighted, because he has lost the punchline for his joke. He should go easy on the self-congratulation, given that the Government have presided over the disintegration of careers services for young people. Cuts have decimated council-led youth support and Connexions, and the Department has failed to include work experience in the curriculum. No wonder the CBI told it that the careers service was broken. Young people will need that help from the Careers & Enterprise Company to start repairing five years of damage. Will the Minister tell us what resources will be given to volunteer enterprise advisers—after all, only £17 million a year is going to the company—and just how many of them there will be for the thousands of schools and further education colleges that need them?

[Mr Gyimah]

The hon. Gentleman talks as though there had once been a golden age of careers advice and service, but anyone could tell him that there has never been such a golden age. The missing piece in careers advice and guidance was employer interaction, and that is what the excellent Careers & Enterprise Company is setting up. As part of its strategy, it is rolling out enterprise advisers, and 30 local enterprise partnerships have signed up to be part of that. Every school will have an enterprise co-ordinator to link it to the world of work.

--- Later in debate ---

[Rachael Maskell (York Central) (Lab/Co-op)]

9. What plans she has to expand the Priority School Building programme.

[The Parliamentary Under-Secretary of State for Education (Mr Sam Gyimah)]

The Priority School Building programme was established to rebuild and refurbish those schools in the very worst condition across the country. The £4.4 billion programme is targeting funding to address urgent condition need at 357 schools. The Department has made no decision in relation to a third phase to the programme.

[Rachael Maskell]

The Priority School Building programme, which was downgraded in the last Major Projects Authority report, has resulted in just one school in York being earmarked for repairs, rather than addressing the urgent needs of 10 schools, including three overdue rebuilds. It is costing the local authority £1.23 million just to keep those schools open. Will the Minister meet me to discuss the urgent need for funding for school buildings in York? Will he also review the Education Funding Agency’s condition survey, given that the data collected do not provide the comprehensive evidence base necessary to match local authority priorities?

[Mr Gyimah]

I would be delighted to meet the hon. Lady to discuss the issues in York. Just to give her an update, two schools are being rebuilt or refurbished in York Central under the Priority School Building programme. Carr Infants School is under construction as part of PSBP phase 1, and Badger Hill Primary School will have its condition need met under PSBP phase 2. A total of seven schools have applied for both phases and are being considered, but I would be happy to meet her to discuss these matters.

[Kevin Foster (Torbay) (Con)]

I recently visited Paignton Academy, which serves my constituency and that of my hon. Friend the Member for Totnes (Dr Wollaston). Some of its buildings are in quite poor condition, with many of them dating from the 1930s. Will the Minister agree to meet me, my hon. Friend and a delegation from the school to assess what can be done to get a rebuild on track?

[Mr Gyimah]

I did not realise that this was going to be a diary session, but I am of course happy to meet the Minister and other members of his local authority to discuss their funding needs. As I have said, the Priority School Building programme is for schools in urgent condition, and schools in his area could also apply to the condition improvement fund.

[Mr Speaker]

The hon. Gentleman himself is the Minister. “Know thyself” is quite a useful principle in politics, as it is more widely in life.

[Margaret Ferrier (Rutherglen and Hamilton West) (SNP)]

What steps is the Department taking to promote the installation of fire suppression systems while repair work is being done to schools as part of this programme?

[Mr Gyimah]

The hon. Lady has bowled me a googly. I shall have to look into this and write to her.

[Ben Howlett (Bath) (Con)]

Will the Minister join me in welcoming the news that the Comenius Trust has just been selected to build a brand new primary school at Endsleigh in Bath? This will help to plug a growing hole in the primary school numbers in our city, which is ever popular with young families.

[Mr Gyimah]

I join my hon. Friend in welcoming that news. It is good to hear positive news about school places, because there is too often a lot of scaremongering about places and place need.

[James Cartlidge (South Suffolk) (Con)]

11. What steps the Government are taking to support the educational attainment of young people from disadvantaged backgrounds.

--- Later in debate ---

[Mims Davies (Eastleigh) (Con)]

Given the strong link, in some cases, between early-age cannabis use and future mental health issues, what is the Minister’s assessment of efforts by schools to tackle and deter illegal drug use?

[The Parliamentary Under-Secretary of State for Education (Mr Sam Gyimah)]

The Government have taken steps to tackle behaviour and discipline in schools, and teachers’ powers to search pupils for prohibited items, including illegal drugs, have been strengthened. They have the power to discipline pupils for misbehaviour and to confiscate, retain or dispose of a pupil’s property as a disciplinary penalty where reasonable to do so. A school’s behaviour policy should set out its approach to confiscating prohibited items.

School Estate

Sam Gyimah Excerpts

Thursday 11th February 2016 Written Statements

[The Parliamentary Under-Secretary of State for Education (Mr Sam Gyimah)]

The Parliamentary Under-Secretary of State for Schools (Lord Nash) has made the following written statement.

Today, I am announcing £1.4 billion of funding allocations to maintain and improve the condition of the education estate. Investing in our school buildings is a key part of the Government’s long-term economic plan to secure Britain’s future. It will help to ensure children across the country can learn in schools that are safe and in good condition.

For the financial year 2016-17, the Department for Education is allocating £200 million of devolved formula capital to schools and £1.2 billion to local authorities, voluntary aided partnerships, multi-academy trusts and academy sponsors, to invest in their own condition priorities. This includes funding for the repair and refurbishment of academies and sixth-form colleges through the condition improvement fund, the outcome of which we will announce later this year.

Good investment decisions require some certainty and stability of funding, which is why in February 2015 we announced three-year indicative allocations covering 2015-16 to 2017-18. The allocations we are announcing today, for 2016-17, update those allocations to reflect how the school system has changed, with schools opening and closing and more schools becoming academies. We have implemented these changes with minimal variation to the approach we set out last year. These updated allocations are also indicative of funding for 2017-18.

Details of today’s announcement will be published on the gov.uk website. Copies will be placed in the Library of the House.

[HCWS529]