SIXTH FORM COLLEGES AND ACADEMY STATUS
BACKGROUND
The Chancellor’s Comprehensive Spending Review announcement in November included a statement that sixth form colleges could apply to become 16-19 academies. Full details are, however currently lacking on the implications of the announcement and the criteria and process to become academies. For that reason, the NUT is currently reserving its position on whether it would support or oppose this course of action by sixth form colleges. Some of the outstanding issues and concerns are set out in this briefing.
NUT POLICY ON ACADEMY STATUS
The NUT opposes local authority maintained schools converting to academy status on a range of grounds. These include loss of accountability, as the local authority’s role as employer and in governance is lost or reduced; the impact of the change of employer, with academies outside the scope of statutory pay and conditions arrangements, less likely to apply local authority procedures and agreements and able to vary or end trade union negotiation and consultation arrangements; and the fact that academies are exempt from many curriculum requirements and are allowed routinely to employ unqualified teachers.
Many of these considerations do not apply to sixth form colleges in the same way. For example, they are already independent institutions, employment terms are already collectively negotiated rather than statutory, and they are not obliged to employ teachers with qualified teacher status for schools. The NUT would, however, be concerned at anyimpact of conversion on individual colleges’ ability to continue as part of the national negotiating machinery with the NUT, even though the SFCA has stated that it would not want to disrupt the national recognition agreement. The NUT will need to consider matters carefully before determining its stance on academy status for colleges.
CONVERTING TO ACADEMY STATUS
Sixth form colleges are already legally able to apply for academy status but the DfE has previously said that applications would not be successful (even though there are a small number of 16-19 academies in existence).
Clarification on the application process for conversion and criteria to be satisfied is expected to be published in January. Assuming that current procedural requirements are maintained, the college corporation would need to publish a proposal to dissolve itself as part of the Conversion process at leastfour months before the date of dissolution, inform relevant bodies and allow at least one month for consultation, publish a summary of the consultation and inform the DfE of the outcome.
It should be borne in mind that conversion to academy status is currently a one-way process - there is no provision for academies to convert back to their original legal status.
FINANCIALCONSEQUENCES OF ACADEMY STATUS
The Sixth Form Colleges Association (SFCA) has welcomed the possibility of academy status on the basis that it could save sixth form colleges about £37 million a year in VAT costs. Sixth form colleges are liable to pay VAT on all non-business expenditure, whereas schools are exempt and academies are allowed to recover VAT paid on such expenditure. The SFCA has campaigned for many years to secure concessions on VAT for colleges.
Other benefits might include access to DfE assistance with insurance premiums and pooling arrangements to reduce the impact of LGPS pension liabilities relating to support staff.
In order to convert, a college would however have to agree and sign a Funding Agreement with the DfE which would be more prescriptive than the current constraints on sixth form colleges. Academies are covered by different accounting standards, their financial year ends on 31 August and they are subject to greater regulation in terms of spending, staffing, use of land and financial reporting. A college converting to academy status would become designated as a public sector institution with certain likely consequences in terms of pensions and exit payments.
Conversion to academy status might also restrict the ability of colleges to borrow on the open market. This could be significant for some colleges. Under current provisions, sixth form colleges would need to apply to the Secretary of State for approval for any new borrowing.
OTHER CONSEQUENCES OF ACADEMY STATUS
The SFCA has recently favoured moving sixth form colleges closer to the schools sector and supports academy status as helping achieve that. The AoC has suggested that conversion to academy status might “move colleges from a perception of being marginalised to a position of greater influence”.
The DfE has suggested that sixth form colleges should consider becoming part of an established academy chain. This might allow mutual support and investment - but not all colleges will be able to identify academy chains which operate in their locality and meet the standards they would seek in a partner which could become a controlling partner. Any college which secured independent academy status might in any cases find itself required to become part of an academy chain if graded inadequate by Ofsted.
Issues have been raised with regard to adult education provision. Current legislation and guidance refers to academies being “principally” concerned withproviding full-time or part-time education for those over 16 but under 19, so colleges may not be prohibited from applying for academy status even if they provide some adult education. There may, however, be consequent difficulties with pre-16 recruitment as a 16-19 academy.
Immigration rules agreed in 2008 with the Home Office make it easier for sixth form colleges to enrol overseas students than academies which are only allowed to accept students on general student visas.
There might also be other consequences of conversion which might reduce the current autonomy of sixth form colleges and undermine their distinctive status with staff, students and parents. Colleges considering applying for conversion should not do so without obtaining full details of all possible consequences for their current rights as sixth form colleges.
The most important issue for the NUT, however, is that large scale conversion to academy status could lead to the disappearance of the distinct sixth form college sector which has served large parts of the country so well for so long. It is this which currently leads the NUT to argue that sixth form colleges should be allowed to remain part of that distinct sector and should not be required to convert to academy status simply to protect themselves against the consequences of the area review process or to secure exemption from VAT costs.
National Union of Teachers
Pay, Conditions and Bargaining
December 2015