Thursday 5th June 2025

(2 days, 18 hours ago)

Commons Chamber
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Neil O'Brien Portrait Neil O’Brien (Harborough, Oadby and Wigston) (Con)
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I thank the Minister for advance sight of his statement.

The truth is that the families benefiting from today’s announcement are the same ones who are paying for it, because the same group of people are hit hardest by Labour’s national insurance increase. Labour promised not to increase national insurance, but it broke that promise, and someone earning just £13,000 a year will now take home £500 less as a result of the tax increase. Someone on just £9,000 a year—the exact sort of person who is supposed to benefit from this policy—will lose 5% of their income.

The Government want to talk about the impact of the money they are giving today on poverty, but they do not want to talk about the impact of the much larger sum of money they are taking away. Disgracefully, they have not done any distributional analysis of the £25 billion that they are taking away, which is particularly targeted at low-income households. Will the Minister say how many households that will push into poverty? Will he finally admit what the figure is?

While free school meals are obviously welcome, the things that are being cut to pay for them are much less welcome. For example, the Government broke their promise to fully fund the national insurance increase for schools, and some have been short-changed by 35%. They also broke their promise to fully fund the pay award. According to the Institute for Fiscal Studies, that leaves a £400 million funding hole for our schools. Under the last Government, although there was an increase in achievement across the board, the biggest increase was in the lower half of the income distribution. That is much harder to achieve when the Government have taken £400 million out of our schools.

What else is being done to balance the costs? We already know that the Government have cut support for maths, science, physics, Latin, computing and cadets in schools, and got rid of the successful behaviour hubs. We know that nurseries, which the Minister talked about, are saying they are on the brink because of the national insurance increase. In fact, the Early Years Alliance says the situation is “catastrophic”. We know that the Department for Education recently announced a real-terms cut of 10% to university teaching grants, and it has abolished 90% of higher apprenticeships—funnily enough, they announced that during the recess. Now the education press are saying that the next cost-saving measure to pay for announcements like this will be to abolish education, health and care plans for everything other than special schools. Will the Minister rule that out today? If he does not rule it out, the whole House will hear, and we will know exactly what is going to happen next.

Turning to the numbers, what is the real net effect of all this? Transitional protections were established in 2018 to ensure that pupils who gained FSM would not lose them while universal credit was being rolled out. That has roughly doubled the proportion of pupils who are eligible from 13.6% to 25.7%. However, the Department for Education has announced that those protections will now end in September 2026, when the new policy comes in. By how much will the end of those transitional protections reduce the number of children who are eligible for FSM? Am I right in thinking that it is by 1.2 million? Will the Minister agree—he is looking away—to finally publish a figure? How many children who have been on transitional protection will lose their free school meals when they change phase of education? Will the Minister finally admit to the figure?

There is another sting in the tail today, because school budgets are going to be hit—that is how this policy is being paid for. That is because FSM is the gateway to pupil premium funding. The pupil premium is a great achievement of the Conservative-Liberal Democrat coalition Government, and it is worth £1,480 per pupil in primary schools and a bit over £1,000 in secondary schools. As a result of today’s decision, schools are going to lose that funding. With 1.2 million pupils on transitional protection, bringing with them about £1,200 each, schools are going to lose the £1.5 billion currently going to them in pupil premium funding.

Will that funding be replaced by this announcement? No, because today the Government have for the first time broken the link between FSM eligibility and pupil premium funding. On one side of the ledger, £1.5 billion has been lost, and on the other side of the ledger, schools are not getting it back. I had wondered where all the money was coming from, and now of course we know. I ask the Minister to spit it out: how much will this decision cost schools, and how much is it saving the DFE?

On a similar point, will the Minister confirm that the Government will apply the same approach to holiday activities and food, which would also not trigger an increase in that funding? Is the same also true of home-school transport, and how is this all being paid for? I think we need a little more detail.

Opposition Members have become rather cautious about positive-sounding announcements from this Government. For example, the other day Ministers were here to announce that they would continue the adoption and special guardianship support fund, but it must just have slipped their mind to mention that it was being cut by 40%. That is why we like to know the detail when we get positive announcements.

I will end by asking some questions about the facts. Will the Minister agree to publish information on how many children are currently on transitional protection and how much the end of that protection will reduce entitlement to free school meals? Will he agree to publish how much pupil premium funding schools will lose overall as a result of breaking the link between FSM and the pupil premium? Just to ask again, so that the whole House hears the answer, will he rule out abolishing EHCPs outside special schools—yes or no?

Stephen Morgan Portrait Stephen Morgan
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I cannot believe that I did not hear the Opposition spokesperson welcome our announcement. It is a shame that when the Conservatives were in government tackling child poverty was not considered a priority. I feel a little sorry for the spokesperson, who claims to care about education, given that his only policy is to give private schools a tax break. Indeed, on the Conservatives’ watch, child poverty grew to record highs and they wore the increasing numbers in child poverty as a badge of honour. Frankly, that is shameful.

This increase in free school meals is fully funded, and that is possible thanks to the difficult decisions that this Government and the Chancellor have had to take to get the economy growing and put the public finances back on a stable footing. I am excited to hear the Chancellor set out more details next week. That is despite the mess we inherited from the Conservatives. Why has the spokesperson not taken the opportunity today to say sorry for his Government’s shameful record on child poverty? He has nothing to say on education for our country. Unlike them, we will not sit by and watch more children fall into poverty. Unlike them, we are not offering a tax break for private schools. We are delivering positive change for our country. We are giving children back the opportunity to achieve and thrive. With this announcement, we are ensuring that every child, no matter what their background, gets the best start in life. [Interruption.]