Apprenticeship Levy

In the bizarre world that is education under the present Tory government, stand-alone academies with a payroll of less than £3 million are exempt from paying the new Apprenticeship Levy; all schools in any MAT with a payroll of over £3 million across the MAT will pay the levy, even if they are a small primary school; voluntary aided schools are probably exempt as the local authority is the de facto but not de jure employer so long as the school payroll is below £3 million, but all maintained schools will pay the levy regardless of the size of their payroll because the local authority is the employer, even though in these days of delegated budgets it has no control over spending by the schools.

This is a shambles that does a great discredit to the governance of education. If this is currently the position, it should be rectified forthwith. Either it is a tax on all schools or it isn’t. My position is that the government already takes out of education a sum needed to fund the training of new teachers and it should pray that cash in aid to the Treasury in order to have all state-funded schools exempt from the Levy. I don’t mind if the larger private fee-paying schools contribute since they often employ teachers whose training has been paid for initially by the State, but paid back by individuals through the tuition fee repayment schemes in operation since the late 19990s.

If the schools are not exempted from the Levy, then they should make full use of benefits. Sadly, these are by employer, so a large county council with many maintained schools will pay a large sum in levy but receive little back through the pay-out arrangements.

School budgets face enough other pressures at the present time, including for many small primary schools the loss of part of their block grant under the new funding formula arrangements. In Oxfordshire, the loss per schools equates to several thousands of pounds and may make the difference between survival or closure for village schools with less than 150 pupils.

I don’t know whether it is this government’s intention to redraw the map of primary schooling in England, but it could be well on the way to doing so if the combined effect of budget cuts and cost pressures make such schools unable to breakeven financially.

As I have hinted before, one solution is to downgrade the leading professional in small schools from a head teacher to a head of site paid on a lower salary. The risk is that any savings are then spent on a salary for an executive head teachers paid more than value of the savings. Whether deputy head teachers and other experienced teachers would be willing to take on the role of site leader for less money than the current head teacher will, I suspect, depend upon the terms and conditions offered, especially in the smallest of schools. However, unless some savings can be made, I fear for the future of many primary schools. Hopefully, I am being alarmist, but removing the Apprenticeship Levy from all school budgets would be a start.

 

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