/ PRIVATISATION UPDATE
THE LATEST NEWS AND INFORMATION ON ACADEMIES, FREE SCHOOLS AND PRIVATISATION ISSUES FROM THE NUT’S PRIVATISATION IN EDUCATION UNIT
NUMBER 30, DECEMBER 2012

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ACADEMIES

NUT reveals potential conflicts of interest with contractors hired as Department for Education (DfE) Education Advisers

Analysis by the NUT has revealed that at least four academy chain employees - two of them chief executives - work or have worked as DfE Education Advisers on academy and free school projects. And at least four of these advisers are also working as Ofsted inspectors, some in the same areas in which they act as DfE advisers.

The role of an Education Adviser is described as providing: !”Education advice to deliver the education adviser role for the Department for Education’s academies and free schools programmes.” A number of the contractors have been involved in work connected to the ‘forced’ academy programme, including working as academy brokers, charged with identifying academy sponsors for schools.

Christine Blower, General Secretary of the National Union of Teachers said:“It is quite unacceptable that a number of people are making a lot of money out of work within the Department for Education that is solely driven by the Government’s obsession with turning more and more schools into academies. Contractors such as these Education Advisers are being paid for work that includes cajoling schools into academy status, ensuring that they accept a particular academy sponsor or related activities supporting the delivery of the Government’s academy and free school programme. In some cases these individuals have connections to the schools’ inspectorate Ofsted or to academy chains that give rise to serious concern about their impartiality and objectivity.”

Sir Paul Edwards, chief executive of academy chain Schools Partnership Trust, is one of the 38 advisers contracted by the government to work on its academies and free school programme. He earns between £120,000 and £140,000 for his role overseeing the academy chain which has 31 open academies and five in the pipeline.

Another Education Adviser, Dr Caroline Whalley, is chief executive of accredited academy sponsor, the Elliot Foundation, which she founded in November 2011 - two months after she was contracted to work for the DfE. The company specialises in primary academies and says it is "building a thriving community of schools including converter and sponsored primary academies". She told the BBC she no longer worked for the DfE, but would not comment on any potential for a conflict of interest between the two roles.

Wiola Hola, of Epro Limited, works as an Ofsted inspector for Serco, a company with a contract to inspect schools in several regions of England. She is also contracted to work as a DfE adviser in several regions of England including the South West. In April 2012 she was the Lead Inspector for Kingshill C of E Primary in Nailsea, Somerset. The school received a notice to improve and is now in the process of becoming an academy. Ms Hola declined to comment when the BBC asked her about the work she carried out for the DfE, or the concerns about potential conflicts of interests.

David Bray, is also on both Serco and Tribal's list of inspectors, and carried out an inspection of Haydon Abbey School, in Aylesbury, in November 2012 having been contracted to work in a number of areas as an academy broker in the run up to the inspection including London and the South East. The inspection said the school required improvement. He told the BBC there was no conflict of interest between the roles.

At least three other education advisers are also listed as working as Ofsted inspectors through external firms like CfBT, Serco and Tribal.

Ofsted says it has a robust policy in place that insists all inspectors disclose if there are any conflicts of interest with a school. But it is now looking into the issue of conflicts of interests among its additional inspectors. It said in a statement: "Ofsted takes these allegations very seriously we are now working with Tribal and Serco to try to ascertain whether they did indeed provide consultation services to these schools and also inspect in them.”(NUT Research and BBC Report 20.12.12)

To read the BBC summary go to:

To download a copy of the full NUT Research report go to:

NAO academies’ report reveals overspending, soaring senior salaries, higher school costs and less freedom

The National Audit Office published a report on the DfE’s management of the expansion of the academies programme last month which revealed overspending of more than £1 billion and the transfer of funds from non-academy to academy schools.

The report found that between April 2010-March 2012, the Department spent ten per cent of its total school revenue spending on the academy programme - £8.3 billion overall of which an estimated £1 billion was additional cost to the Department.

Of this:

  • £49 million went on central programme administration;
  • £338 million went on transition costs;
  • £92 million on academy insurance;
  • £22 million on support for academies in deficit;
  • £68 million reimbursing academies’ VAT costs; and
  • £29 million on other grants.

The Department also chose to spend £21 million doublefunding academies and local authorities “to ensure sustainability of some local authority services” and £59 million protecting academies against year-on-year volatility in their income. A further £350 million was money the Department was not able to recover from local authorities to offset against academy funding.

The report also revealed that:

  • The number of DfE staff working on academies increased by 133 per cent, from 120 in 2010-11 to 280 in 2011-12.
  • While most converters covered by the report had been ‘outstanding’ or ‘good’ schools, some had experienced significant financial or academic decline since conversion with 12 converters rated ‘inadequate’ by Ofsted, 29 being monitored for academic risk by the Office of the Schools Commissioner and eight being monitored for financial risk by the Education Funding Agency.
  • Most converters applied for academy status to obtain greater freedom over their funding and to innovate in raising educational standards but almost half (47%) of converters felt less free from bureaucracy than they had expected.
  • Almost three quarters (71 per cent) of converters reported increased costs for accountancy/finance staff and services, including in senior leadership pay (16 per cent of respondents);back-office areas such as finance and accountancy (71 per cent);insurance costs (49 per cent);admin staff and services (33 per cent), ICT (29 per cent); education consultancy (28 per cent) and CPD (17 per cent).

In 2011/12, secondary academy principals earned around £6,600 more on average than maintained secondary head teachers with:

•Ten per cent of secondary academy principals having salaries above the maximum point on the leadership pay scale in their region, compared to just four per cent of maintained secondary head teachers; and

•Six senior leaders in multi-academy trusts earning over £200,000.

Responding to the Report, Margaret Hodge, Chair of the Public Accounts Committee said: “The decision to change fundamentally the nature of the programme away from one solely directed at struggling schools is up to the Government, but taxpayers have the right to expect a more considered and controlled approach to public spending than the department has so far displayed. The significant cost will have to be considered alongside the performance of academy schools when it comes to judging the overall success of the programme.”

(Managing the Expansion of the Academies Programme, National Audit Office, November 2012.) Available to download at:

Six figure salaries for academy chiefs

Academies are paying dozens of senior staff six-figure salaries, with six managers earning at least £200,000 and one on £320,000.

Sir Dan Moynihan, who runs the Harris Federation of academies which recently took over two Haringey forced academies, Downhills and Coleraine Park, earned £317,999 in 2010-11, up 31 per cent on the previous year, with employers’ pension contribution on top.Harris paid £140,000 or more to five others, who are heads or managers.

A second academy chain, E-ACT, paid director-general Sir Bruce Liddington £280,816 in 2010-11 plus £18,303 for his pension and £16,707 in expenses. The Academies Enterprise Trust paid a senior employee in the bracket £240,000 to £249,999; and the Richard Rose Trust, with two academies in Cumbria, paid a senior employee up to £209,999. Basildon Academies, also with two schools, paid a senior employee between £220,001 and £230,000.

Academy accounts, published on the Department for Education’s website also reveal that more than £206,000 was paid to disgraced head Richard Gilliland in 2010-11.He ran four Priory federation schools in Lincoln and Grantham but quit after auditors uncovered extraordinary purchases, including sex aids delivered to school offices. (Daily Mail, 08.12.12)

Academy chain does not know its chief exec’s pay – but NUT does!

The United Learning Trust (ULT) which runs 22 academieshas told the Information Commissioner that it does not hold any information on the pay of its chief executive Jon Coles, who was previously a senior civil servant in the DfE.A freedom of information request was made earlier this year asking ULT about the pay and employment packages for its chief executive and other senior managers. When the academy chain did not provide the information the requestor complained to the Information Commissioner’s Office. United Learning told the Commissioner that its senior management were actually employed and paid by a charity, the United Church Schools Trust. They argued that this is a separate but linked charity which is not publicly funded and therefore does not come under FOI. In a decision issued on 10 December the Commissioner upheld United Learning's argument.

But the NUT has looked at the charity’s accounts on the Charity Commission website and can reveal that in the year ending 31 August 2011, the highest paid employee, likely to be the chief executive, earned between £220,000-260,000.The accounts also show an operating surplus of £2.8 million – showing the profit potential when Michael Gove allows organisations to run schools on a profit-making basis. (NUT research and BBC News, 10.12.12)

Primary SATs improvements “nothing to do with academy status”

The Local Schools Network (LSN) analysed the results of the recent primary league tables and concluded that the big improvement in the number of primary pupils achieving level 4 or above in KS2 SATs had nothing to do with academy status.

The LSN found that less than one per cent of strongly improving primaries were academies. The breakdown showed that:

  • 156 primary schools increased their results by at least 40 percentage points. None of these were academies
  • 464 primary schools increased their results by at least 30 percentage points. Just three of these were academies; and
  • 1,540 primary schools increased their results by at least 20 percentage points. Just 14 of these were academies

Councilscriticiseacademy conversion costs

Conservative controlled Kent County Council (KCC) has written to Education Secretary Michael Gove complaining over the costs of arranging for schools to become academies, saying it is leaving the authority out of pocket. The council estimates it has spent about £1m on academy conversions, but unlike the schools has received no money to do so. Conservative councillor Roland Tolputt told a meeting of KCC's education cabinet scrutiny committee: "I believe the figure that Kent has chalked up is £1m. I am horrified that the county council cannot be repaid... it is most unfair."

The county council's education director Patrick Leeson said: "Our legal costs are significant to work through the process and it is quite complicated work. Schools are provided with money but we are not. It is a bone of contention." (Kent Online, 23.11.12)

In West Berkshire, schools converting to academies have cost the council £400,000, according to a report presented to the council’s resource management working group by the head of service for education, Ian Pearson. Mr Pearson said that every time a secondary school converts to an academy – the number of which currently stands at five of the district’s ten – it costs the council £50,000.If all secondary and primary schools converted to academies, it would cost the council anestimated £1million, as the local authority would lose £2million in government funding but would only save £1million in expenditure. (Newbury Today, 20.11.12)

Autumn statement signals more money for academies and free schools

Chancellor George Osborne's announced plans to invest an extra £5 billion in new schools and other "shovel-ready" capital projects over the next two years, partially funded by cuts in day-to-day spending by other Whitehall departments and with up to £3 billion funded by under spending in Departments that have cut spending rapidly in the last two years. The sum includes £1 billion to build or expand up to 100 new academies and free schools. Osborne said the cash would be directed at areas experiencing a shortage in classroom places. (Guardian, 05.12.12)

OPEN ACADEMIES

On 1 December 2012 there were2,543 open academies.

NUT Region / Secondary academies (converter & sponsored) / Primary academies (converter & sponsored) / Others / Total Open
Yorks/Midlands / 214 / 192 / 9 / 415
South West / 183 / 180 / 20 / 383
South East / 200 / 107 / 6 / 313
North West / 124 / 44 / 6 / 174
Northern / 72 / 56 / 13 / 141
Midlands / 206 / 129 / 16 / 351
London / 207 / 74 / 18 / 299
Eastern / 264 / 152 / 51 / 467
TOTAL / 1,470 / 934 / 139 / 2,543

NOTE: The others includes all age, 14-19, all through, alternative provision, middle deemed secondary, special schools, PRUs etc.

FORCED ACADEMIES

Almost 500 primaries face forced academy status

The Daily Mail reports that up to 500 primaries will be targeted by the DfE for forced academy conversion following the release of this year’s KS2 SATs results. The results for 15,000 primaries showed huge overall improvement in test results with 75 per cent of pupils achieving a level four in reading, writing and maths compared to 67 per cent in the previous year. The number of schools failing to meet the Government’s target for performance fell by more than half, from 1,310 to 521. Of these 521, 45 had already been shut down or turned into academies but the remaining schools face being forced to take the academy route. (Mail, 13.12.12)

Secondary league table changes could lead to more forced academies

The Telegraph has reported that GCSE league tables are to be reformed to stop “cheating teachers” abusing the system. The changes are expected to be announced early in the newyear. The newspaper reports that “sources close to the minister” say he is determined to act after Ofqual, the exams watchdog, disclosed that teachers were “over-marking” some pupils in order to boost their own schools’ league table position and were focussing too narrowly on C/D borderline students.

The new system would give schools points for exam grades and produce an average of the points achieved by each pupil for up to eight GCSEs. An average point score would then be published for each school – as is currently done for Alevels results. (Telegraph, 16.12.12)

Widespread opposition across all parties to Gove’s forced academy expansion plans

MPs, Council leaders, including prominent Tories, teachers, head teachers and union leaders have all reacted angrily to letters sent by Education Secretary Michael Gove to MPs in parts of the country where he claims there are large numbers of ‘failing’ primary schools. In the letter, Gove called on MPs to help him turn these schools into academies.

Lancashire County Council’s Conservative leader Geoff Driver, who represents Preston North on the county council, refuted Gove’s claims that Lancashire’s education system is ‘failing’, stating: “I simply do not recognise Mr Gove's description of Lancashire schools - it is not accurate in any sense. Far from 'underperforming', Lancashire schools consistently perform better than the national average and improve year on year. Our view remains that the decision to move to academy status should be left to school governors and staff. But the proof of the success of the partnership between Lancashire's schools and the county council is amply demonstrated by the fact that nearly three quarters of the county's schools are rated good or outstanding by Ofsted."

In a letter to the education secretary he called on Gove to instruct his officials to "become far less confrontational", and said: "I am singularly unimpressed by … bully boy tactics and I would be really interested to know what you think you have achieved by this latest action and how you think it will improve the education and life chances of Lancashire's children and young people."

Margaret Lund, former head of Shakespeare Primary School in Fleetwood, Lancs, called on parents to ‘resist’ government pressure, adding: “Primary Schools need to be connected to the local community, they need to be accountable to it. Local links are important and academies destroy this. There is no provision for academies to return to the local authority system if they find it doesn’t work out.”

Lancashire NUT officials pointed out that Ofsted data revealed that despite having fewer primary schools than Lancashire, and being a much more affluent area, Mr Gove’s Surrey constituency has four times as many ‘failing’ primaries.

In Staffordshire, Bernadette Hunter, NAHT vice president and head teacher of Stretton’s William Shrewsbury Primary School, has written in response, saying the cabinet minister’s claims were politically motivated and aimed at pressuring more schools into applying for academy status.(Blackpool Gazette, 19.12.12;Lancashire Telegraph 24.11.12;Guardian, 28.12.12;Burton Mail, 29.11.12)

FE colleges urged to take over forced primary academies

Colleges are being offered hundreds of thousands of pounds to sponsor 400 ‘underperforming’ primary schools that the Government is seeking to forcibly convert to academy status over the next year. The Office of the Schools Commissioner (OSC) believes colleges could be seen as a “friendly option” by struggling schools.Commissioner Elizabeth Sidwell told the Association of Colleges (AoC) annual conference in Birmingham earlier this month that its members “have the trust of your local communities” and could play a key role in tackling “chronic underperformance” in the primary sector.