Education Bill

Baroness Jones of Whitchurch Excerpts

Monday 12th September 2011 Grand Committee

[Lord Elton]

My Lords, regarding the legislation passed in the previous Session, which enabled and made necessary the identification of people suffering from dyslexia and that group of disabilities, it would be helpful if the Minister could tell us to what extent the number presenting themselves as suffering from these disabilities has increased. That would give us an idea of the workload.

[Baroness Jones of Whitchurch]

My Lords, again, I rise briefly to support the noble Lord’s amendment. Like my noble friend, when I originally read the amendment, I thought that it was self-evident. However, the more I have looked at it and listened to the debate this afternoon, the more it seems to me that, once all the other elements have been stripped out of the legislation and the provisions, we increasingly rely on Ofsted as the final fallback to guarantee standards.

The noble Lord, Lord Low, is right to say that if we are not careful SEN provision will be swept under the carpet and will not be seen as a major factor in provision within schools. Looking at this issue in the context of some of the other amendments that we will debate this afternoon, with the new emphasis on PRUs and alternative academy provision, if we are not careful there will, whether the Government had intended it or not, be a move to take a lot of pupils with specialist needs out of mainstream education into other provision, and the expertise that goes with it will be lost.

Therefore, the noble Lord’s amendment is helpful. It would be reassuring to have it in the Bill, and it would reassure people who see mainstream schools as having an essential responsibility to provide SEN provision and to make sure that it is high quality and high class. It would also reassure people about the intent in the other sections of the Bill.

[Lord Sutherland of Houndwood]

My Lords, I sympathise very much with the amendment of the noble Lord, Lord Low, but I also sympathise with the tensions expressed by the noble Baroness, Lady Morris. There are difficulties here. This is pretty much a sledgehammer amendment and I am not sure that I would want to go that far. However, I invite the Minister to say that he will take away the spirit of the amendment, as well as the comments, and look at how we can best improve the quality of SEN teaching. It is a very tall order to ask any school to be outstanding in all areas that might have to be dealt with under the general heading of SEN, and we might find a more subtle way of inviting them to apply for an outstanding rating in areas where they show expertise.

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[Baroness Sharp of Guildford]

My Lords, I shall speak also to Amendments 122BZB, 122BZC and 122BAA. These four amendments fall into two groups, which are about linked but separate issues. I shall start by speaking to Amendments 122BZA and 122BAA and shall then move on to the other two. Both these amendments propose that we do not delete the duty on further education colleges and sixth-form colleges to promote the well-being of their local area.

I have put forward these amendments because I am currently leading a commission of inquiry promoted by NIACE, the National Institute of Adult and Continuing Education, the AOC, the Association of Colleges, and the 157 Group of large further education colleges to look into the role of colleges in their communities. This follows directly from last November’s two White Papers on skills—Skills for Sustainable Growth and the accompanying strategy document. Both these White Papers proposed a considerable freeing-up of colleges from the micro-management of the Learning and Skills Council, and this is now embodied in many of the amendments to Schedule 12.

The aim is essentially to free colleges to take their own decisions. There is particular emphasis on their working for and in partnership with local employers on the one hand and individual students on the other, and on making sure that they meet the needs of these two groups. However, the White Papers also refer to colleges meeting the needs of their local communities. Implicit in the deregulation is that the needs of employers, individuals and local communities vary from area to area and, therefore, that what is required also varies from area to area. My job in chairing the commission of inquiry is to put a bit of flesh on what the notion of serving the local community might mean for such colleges. We published an interim report in July and our final report is due in November. The outcome of our inquiries has been to highlight the potential of further education colleges to play a vital role within their communities in all kinds of ways.

For example, the provision of youth activities might be seen as important in relation to the riots that we saw this summer. Some colleges link up with local authorities to provide imaginative and extensive youth activities, ranging from sport and motor mechanics to drop-in clubs. These bring young people into the college to see the facilities and use the canteen. They then learn that the college is not such a frightening place. The evaluation of these experiments is that they have been very positive in reducing the number of local NEETs, drug-taking and youth crime. Likewise, in some areas colleges play a major part in outreach activities for ethnic minorities. They provide English classes for speakers of other languages, parenting, home-making and cookery classes, and classes in basic numeracy and literacy. These lead to other college courses and often to higher qualifications, so that many people in these communities move from being dependent on welfare benefits to sometimes quite substantial jobs.

On a different tack, some colleges run consultancies for small and medium-sized businesses, helping them with business planning, financial management and even a limited amount of R&D. The activities vary from community to community, depending on local needs. Many are run in partnership with other organisations. We have coined the phrase “colleges as a dynamic nucleus within their communities”. They are proactive, forming partnerships and companies and leading consortia. The Minister of State for Skills and Further Education, Mr John Hayes, is anxious to see colleges pursue this role, particularly in disadvantaged communities, to provide a focus for regeneration and generate a sense of pride in their local communities. Therefore, from the point of view of my commission, I am very anxious that this duty to promote well-being in a local area should remain. The best of our colleges do it already but it is very useful that there should be a statutory obligation to promote well-being to put pressure on those colleges that do not. I know that the Association of Colleges took the view that any good college would do it. Yes, good colleges do it, but it is those that do not that we want to put pressure on.

I turn now to Amendments 122BZB and 122BZC, which concern a different issue. The passage of the Apprenticeships, Skills, Learning and Children Act 2009, with which many of us around the Table were involved, established sixth-form colleges as separate entities. On examining the Act, the Office for National Statistics decided that both sixth-form colleges and further education colleges had been wrongly classified back in 1992 as being part of the non-profit sector, rather than as public sector institutions, and that the right classification for them was as public sector institutions. The deciding factor was that it is the Secretary of State who ultimately agrees and sets their articles of governance and has the right to dissolve them. If further education colleges are, however, classed as public sector, they will be required to obey all kind of Treasury rules about managing their finances. This effectively stops them from doing all the enterprising things—like setting up subsidiary companies and forming partnerships in their communities—that I would like to see them doing, in order to satisfy my remit in leading this commission, and in order to get things moving after that. The Office for National Statistics is sympathetic to this, and has allowed time for the legislation to be amended in this Bill, so that further educational colleges remain, as they have been, classed as non-profit institutions. The purpose of these two amendments is to have a shot at doing this, by helping to change their status.

Amendment 122BZB is about altering the articles of governance. The present legislation gives the Secretary of State—in the form of the Skills Funding Agency, the appropriate authority—powers to modify the articles of governance. The amendment shifts the ultimate decision-making power to the corporation itself, and makes the SFA’s role merely that of having to be consulted. Likewise, Amendment 122BZC places the ultimate decision on winding up the corporation on the corporation itself, although the Secretary of State, through the SFA, may have considerable influence on that decision, not least in refusing funds.

I am aware that these two amendments are not sufficient in themselves. My aim was to get this issue on to the agenda, because I am anxious that colleges should have the power to go ahead and be entrepreneurial in their own right. I beg to move.

[Baroness Jones of Whitchurch]

First, my Lords, we accept the Government amendments which have been tabled. As the Minister set out in his letter to me, they correct what ended up being an unintentional consequence of previous legislation, as it affected voluntary sixth-form colleges. On the presumption that these amendments have been the subject of consultation with the Catholic Education Service, which raised the concerns in the first place, if it is now content with the proposed changes, we echo that contentment.

Secondly, going back to the intent of the changes set out in Schedule 12, I have a number of concerns which I want to share with noble Lords today. First, on the issue of promoting economic and social well-being in their areas, I agree with the points made by the noble Baroness, Lady Sharp—there is a strong argument for sixth-form and FE colleges to play a role in their wider communities, and to link with local youth services. I was very interested in her concept of colleges as a dynamic nucleus in the community, a concept which I think is worth exploring. As she identified, one of the lessons of the recent riots is surely that those areas with the strongest embedded youth provision, providing positive alternatives to gang culture—something in which colleges can play a part—can be the most resilient to unrest and destruction, as they were over the summer. FE colleges have worked hard in recent years to develop robust partnerships with employers in their areas, knowing the local employment market, and tuning the curriculum offers to the needs of local employers. As the noble Baroness, Lady Sharp, says, a number of them already do that, but if we start to remove this provision of promoting economic and social well-being, there is a danger that we will be sending the wrong message: rather than encouraging that development, it will become a licence for colleges to turn inward and insular again, instead of embracing that new role.

Furthermore, on acquiring land and borrowing money by using existing property as collateral, while I would not claim to be an expert on the issues that the noble Baroness, Lady Sharp, was raising, I do have concerns about some of the provisions set out in Schedule 12. I am concerned about the consequences of some of these new freedoms. It is not absolutely clear to me where the demand for this is coming from. It seems to me that the managers of FE colleges have many skills, but intervening in money markets is probably not one of them. My fear is that some well meaning college leaders will quickly find themselves out of their depth.

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While I am reassured that the PRU funding itself is ring-fenced, I should like to ask the Minister if the local authority funding takes account of how many academies there are in an area in the allocation of PRU funding to compensate for this distortion. It seems wrong that the deliberately meagre funding allocated to local authorities for their essential strategic services such as PRUs should be penalised simply because many of their schools have chosen to convert to academies. I beg to move.

[Baroness Jones of Whitchurch]

My Lords, we have three amendments in this group that I should like to address.

First, on the Question that Clause 49 stand part of the Bill, this clause was introduced during Commons Report stage and has not been properly scrutinised. It aims, as I understand it, to give PRUs more autonomy over their budgets and staffing. It also enables a majority of pupils to be referred by schools rather than local authorities. I acknowledge receipt of the Minister’s letter to my noble friend Lady Hughes but, nevertheless, we have a number of concerns that I hope the Minister will be able to address convincingly—particularly regarding the new management and funding arrangements, and whether they will perhaps be perverse incentives for pupils to be kept at PRUs far longer than is in their educational or personal self-interest.

Will the Minister clarify what safeguards will be put in place to stop these autonomous PRUs from keeping hold of the young people for as long as possible, rather than seeking to return them to mainstream education? Secondly, what safeguards will exist to prevent schools from referring to the PRUs children who would not previously have met the criteria for referral by local authority? Does the Minister acknowledge that there was a risk within a federational chain of schools that financial drivers could lead to more pupils being referred to PRUs. Thirdly, to avoid the danger of perverse incentives to keep pupils over-long in PRUs, will the Government ensure that there will be incentives, including financial incentives, for PRUs to help young people back into mainstream education, which I hope is what we should all hope would be their ultimate goal? Finally, can the Minister explain how the funding flows will work, particularly where there is dual registration of a pupil at their old school and the PRU? How will the funding be allocated and who will hold the ultimate responsibility for the expenditure?

We remain concerned that the transfer of power to schools to decide whether pupils should be sent to PRUs will lead them too easily to become dumping grounds for children with behavioural problems or complex disabilities, and we seek reassurance from the Minister that the appropriate checks and balances will be put in place to prevent this happening.

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[Baroness Jones of Whitchurch]

My Lords, I turn to Amendment 124A. Clause 52, among other things, allows for the creation of alternative provision academies, which are defined as institutions,

“principally concerned with providing full-time or part-time education for children of compulsory school age who, by reason of illness, exclusion from school or otherwise, may not for any period receive suitable education unless alternative provision is made for them”.

Currently, pupil referral units perform that role, so the Bill effectively allows them to become academies.

Our concerns about these new proposals echo those that we raised in previous debates relating to excluded pupils; for example, the repeal of the duty of schools to enter into behaviour and attendance partnerships and the removal of appeals panels that can reinstate wrongly excluded pupils. They also mirror our concerns regarding Clause 49.

Pupil referral units which become academies could grow more isolated from other schools and be cut off from current partnership working, including with local authorities. I ask the Minister again how he thinks this will help excluded pupils to re-enter mainstream schools as soon as possible.

Our Amendment 124A would provide a fallback position whereby pupils could not stay in alternative provision academies for more than six months. If the Minister is going to argue that a time limit of this kind is overly rigid, what alternative safeguards will he propose to stop children being referred early or inappropriately and returned to the mainstream late? How long will they be left to languish in units because it is financially desirable for the institution concerned that they do so?

A different issue is covered by our Amendment 124C. As it stands, the clause includes a Henry VIII provision which gives the Secretary of State a wide-ranging power to amend by order any legislation passed prior to this legislation to achieve the objective of establishing the two new types of academy; that is, 16-19 academies and alternative provision academies. It appears that the Government have not thought out the necessary consequential amendments for introducing 16-19 academies and are relying on a Henry VIII provision to do so. As I am sure noble Lords around the Room will agree, such powers should only ever be used sparingly and in exceptional circumstances. When does the Minister envisage the provision being used and for what purpose?

The amendment, which would remove the Henry VIII provision, is probing. Colleagues tabled a similar amendment in the Commons but, as the Minister there was unable to give a full account of the reasons for the provision, we have tabled it again here. In the Commons, Nick Gibb explained that the power would be used to make provision for which bits of existing legislation would apply to these new models of academy and which would not. He went on to say:

“How the new educational institutions will fit into the existing legal framework is complex”.—[Official Report, Commons, Education Bill Committee, 5/4/11; col. 893.]

In short, it is not yet clear which legislation will apply to these new types of academy, yet we are being asked to pass the Bill regardless.

Nick Gibb also promised to provide more details of the Government’s proposals as the Bill passed through the House. Since then, we have had a number of government amendments tabled and a letter from our own Minister on the subject. However, as his letter confirms, despite the extra information that the Government are now able to provide, the Henry VIII provision remains necessary for the making of further amendments by order. The letter explaining the government amendments is not an explanation of each amendment but more a background note on the Government’s general approach. This is not the right way to go about making and scrutinising legislation.

If the proposals are too complicated for the Government to bring the details before us now, surely there is a real danger that they will be too complicated to be implemented effectively. We should have the complete legislation before us today so that we have the chance to debate and amend it with the thought and diligence that this Committee has already demonstrated.

I am not sure that the Henry VIII provision was ever intended to provide a way out when the Government had not got all their amendments written in time for the passage of the Bill. I therefore hope that noble Lords will support our amendment to delete the Secretary of State’s powers in Clause 53 to this effect.

[Lord Hill of Oareford]

My Lords, we know that at any one time around 40,000 to 70,000 pupils are in some form of alternative provision. We know that there is an iron-clad correlation between those who are excluded, those who attend alternative provision, those who come into the youth justice system and those who go on to offend and reoffend in their adult lives. No one here accepts that it has to be like that. Alternative provision should provide an opportunity to support more young people to turn their lives around. That is why we are taking a number of steps to help to achieve this, including the changes in Clause 49. The Secretary of State has asked the department’s behaviour adviser, Charlie Taylor, to conduct a review to identify what further changes may be needed.

We are keen to give PRUs more of the freedoms that other schools enjoy to allow the professionals who run them to drive their own improvement. This clause will allow PRUs to manage their own budgets in a similar way to mainstream schools. Through regulations we are also giving PRU management committees powers over staffing similar to those that school governing bodies already have. Professionals working in PRUs have welcomed these changes.

In addition to these freedoms, our exclusions trials, in which schools will retain responsibility for excluded pupils, will assess how a new approach to managing exclusions could contribute to improving standards in alternative provision. I hope that this point answers a number of concerns raised by the noble Baroness, Lady Jones of Whitchurch. If schools retain responsibility for the education and outcomes of excluded pupils, PRUs and AP providers will need to be more responsive to demand from schools for high-quality education. That should help to deal with the perception, raised by the noble Baroness, Lady Jones, that there are perverse incentives. We do not want perverse incentives for schools to exclude. We want, as I know she does, the right kind of provision to be made in a way that is suitable for individual children. By allowing for the creation of alternative provision academies and free schools, we also aim to bring the benefits of the academies and free schools programmes to the alternative provision sector.

Turning to Amendment 124A, I agree with the noble Baroness that returning a child to a mainstream school as soon as possible is, in most cases, the best thing for a pupil attending alternative provision. Like her, I do not want alternative provision to be seen as a dumping ground where children are put out of sight and out of mind. We know that some of the best PRUs have a strong focus on reintegration. They constantly monitor and review when it is appropriate for a pupil to be supported to return to mainstream education. We want to see all AP providers, including alternative provision academies and free schools, learning from this kind of good practice. However, in some cases it is possible that a longer period in alternative provision may be appropriate. For example, continuity can be important at key stage 4. A young person whose education has been disrupted or who has become disengaged might benefit from a longer period in AP, especially if they are responding well to this provision. Therefore, we argue, as the noble Baroness predicted, that professionals managing and delivering alternative provision, including in AP academies and free schools, are best placed to make judgments about the best time for a pupil to return to mainstream education. There should not be an arbitrary cut-off date that cannot take account of individual circumstances or that would trump the judgment of professionals who know the needs of pupils in their care.

My noble friend raised points about funding and her desire to make sure that academies and free schools are funded on a comparable basis. As she pointed out, PRUs are centrally funded within the local authority’s dedicated schools grant. When a maintained school converts to academy status, no funding for PRUs is taken from the local authority’s DSG and the academy receives no additional funding for this function. Therefore, maintained schools and academies are on the same footing in this respect. If a pupil is excluded permanently from a maintained school or an academy, the local authority is responsible for securing suitable education for them. Schools—maintained schools and academies—are responsible for securing full-time education for a pupil from the sixth day of a fixed-term exclusion. Some providers of alternative provision also provide early intervention places for pupils with behavioural issues. Local authorities and schools can agree between them how places in PRUs may be made available for pupils who are the responsibility of schools. This would include if and how the authority would charge schools for places, and we would expect them to do that on an equitable basis for all schools. With regard to safeguards on referrals by schools, I set out the position in detail in my letter of 8 September.

On the government amendments, I recognise the concerns that the noble Baroness, Lady Jones, raised about the powers contained in Clause 53. They allow us to make changes to primary and secondary legislation that we think are needed in consequence of the creation of new types of academy under Clause 52. In the light of the concerns expressed in the other place, we have drafted and tabled as many of the amendments to primary legislation as we can, and I have written to try to explain those amendments in detail.

These are complex legislative issues and I concede that we have not resolved them all. We think that we need to take a residual power to amend primary and secondary legislation by order. The exercise of that power is subject to the affirmative procedure, so both Houses of Parliament would have the chance to debate the legislation when an order was laid. There is a precedent for taking this approach—there is a much broader power to make consequential amendments in Section 265 of the previous Government’s Apprenticeships, Skills, Children and Learning Act 2009.

In addition, we have tabled minor amendments to Clause 52 of the Bill. Amendments 123A and 123B amend new Section 1A so that an academy school cannot be an alternative provision academy. Further amendments give the Secretary of State flexibility to apply legislation to this diverse sector.

Overall, as is the case for the noble Baroness, Lady Jones, we are keen to ensure that alternative provision meets the needs of the vulnerable children that it serves. It is important that funding should be on an equitable basis. With some of the assurances that I have given about the changes we are making, the funding and the Government’s intentions, I hope that my noble friend will feel able to withdraw her amendment.