The Pay of Academy Staff

In the same week that I asked a question of Oxfordshire’s Cabinet Member for Education about the number of employees with salaries over £150,000 in Multi-Academy Trusts operating in Oxfordshire, the Public Accounts Committee has commented on the same issue in a report published today. https://publications.parliament.uk/pa/cm201719/cmselect/cmpubacc/760/76002.htm

The Cabinet member was unable to answer my question as, not surprisingly, the county doesn’t collate the information. However, in my supplementary question, I identified five MATs, all with HQs outside the county, where there was on officer listed in their 2017 accounts as being paid in excess of £150,000. In due course, my list will appear on the county council website and I will publish the link here.

In the Public Accounts Committee Report, issued today, it is clear that the government wrote to all stand-alone academies where in their accounts up to August 2016 there was an officer paid more than £150,000 to ask for an explanation by the 15th December 2017. I haven’t seen an FOI request for the responses. The original letter from the ESFA of 4th December only went to 29 single academy trusts (i.e. academy trusts with only one school in the trust) where the ESFA could identify from the accounts that the trust was paying at least one person over £150,000 and was to ask why such large sums of money had been paid.

In February this year, the Minister wrote to all Chairs of academy trusts in England saying:

 ‘I believe that not all boards are being rigorous enough on this issue. CEO and senior pay should reflect the improvements they make to schools’ performance and how efficiently they run their trusts. I would not expect the pay of a CEO or other non-teaching staff to increase faster than the pay award for teachers. I intend to continue to challenge this area of governance. My view is that we should see a reduction in CEO pay where the educational performance of the schools in the trust declines over several years.’ DfE letter 21st February 2018 reference 35 in the PAC Report.

There has been a history of neglect over senior staff salaries dating back to the Labour government and the emergence of the Executive Head or Principal position soon after the start of the century. Such a grade was never formally recognised in the pay and conditions agreements, and once Mr Gove freed up pay for academies, with no government restraints in place, it was open season for those that wanted to see pay rise to closer to what could be earned in the commercial sector. Buying former DfE officials was also always going to be expensive, but was no doubt one of the justifications used. Using public money to pay related parties is often even less acceptable, as the PAC note in their Report.

We heard of related party transactions where the rules were not properly followed, or where there were doubts about the propriety of the transactions. For example, Wakefield City Academies Trust purchased IT services worth £316,000 from a company owned by the Chief Executive of the Trust, and paid a further £123,000 for clerking services provided by a company owned by the Chief Executive’s daughter. We similarly heard that the founder of Bradford Academy, who was a former teacher, was ordered to repay £35,000 after being sentenced to prison for defrauding the school. The founder and other former members of staff at Kings Science Academy paid £69,000 of Government grants into their own bank accounts. There have also been problems with related party transactions at the Bright Tribe Academy Trust, which resulted in schools being removed from the Trust.

Academy trusts are required to demonstrate to the satisfaction of their own auditors that related parties have not made a profit from the relationship (i.e. that transactions are at cost or below). We were concerned that determining whether a service has been delivered at cost is dependent on information from the supplier, who may have a vested interest in manipulating or inflating this information and is in a position to do so. We questioned whether there were incentives for trustees to take advantage of the system, due to the weaknesses in the system of oversight. The Department, noting our dissatisfaction with the current processes, committed to reflect on the adequacy of the current arrangements. Following our evidence session, the Parliamentary Under Secretary of State for the School System wrote to all Chairs of academy trusts to remind them of the need to scrutinise any related party transactions, and to ensure that a full and proper procurement process is following and the trust is able to demonstrate that the services have been provided at cost.

Paragraphs 10 and 11 of the PAC Report: https://publications.parliament.uk/pa/cm201719/cmselect/cmpubacc/760/76002.htm

Should local authorities be required either to provide audit services for all academies or at least to review the accounts of those academies with responsibility for schools within their locality? The LGA could apportion responsibility for MATs that cross boundaries in order to ensure that all are looked at by at least one authority that could then report to the appropriate local scrutiny committee.

Public money, especially in a time of austerity, should be spent in the most effective way. TeachVac has cost the government nothing, but demonstrate how a low cost recruitment site works for the benefit of all. The notion of ‘public service’ and not ‘profit from public funds’ must once again be to the fore.

 

 

 

 

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It’s all relative

The UCAS data on applications to postgraduate ITT courses measured a the 20th March 2018 was published earlier today. I thought for a change we would start with the good news: applicants holding offers are higher than at this point last year. In March 2017, there were 1,080 applicants holding offer out of 27,770 applicants in total. This March, there were 1,380 applicants holding offers, out of 22,430 applicants. Sadly, that about as good as the new gets.

The 22,430 figure for total applicant numbers is scary. The TSM figure issued by the DfE for post graduate trainees required, even allowing for the removal of Teach First numbers, was an expectation of a need to recruit 30,476 trainees across both primary and secondary courses; so the system is still some 7,500 applicants short of requirements, even if every applicants was offered a place. The TSM identified a need for 12,200 primary postgraduates and we currently have 41,530 applications or less than four applications per place. In secondary, the need is for 18,300 trainees and we currently have 40,440 applications: not many more than two applications per place, without allowing for disparities between subjects.

Equally scary is the fact that between March 2017 and the final figure in September of 41,690 applicants in September 2107, only around 14,000 applicants were recruited during the remainder of the 2017 cycle after the March data had been processed. Project than number forward, and hope for a bit better in 2018, and even 15,000 more applicants only takes the total for 2018 to 37,500 or so, against a need of just over 30,000 trainees: not much room for worrying about quality levels in these numbers.

There is still a real problem in primary and a range of secondary subjects including art, religious education, physics, music, chemistry, design & technology and mathematics that are all recording new lows since before the 2013/14 recruitment round and the introduction of the present system of counting numbers of applicants. Business studies and IT are at the same level as the lowest number reached in March since 2013/14. There is better news in English, MFL, PE, history and geography were the number of offers made is above the total for the worst year since 2013/14. In most cases that doesn’t mean it is anywhere near the previous highest number reached in March during this period.

Applications remain down across all age groups and for most types of courses. There were less than 340 offers for the identified 4,554 places on secondary School Direct Salaried allocations by March. That’s less than 10% even if all the offers are held by a different individual. There is better news in the primary sector, where there are 1,210 offers for the 2,166 School Direct Salaried allocations, but even that number is 250 down on last March.

Looking just at London, a region that needs many new teachers each year, applications are down from 15,630 across both sectors in March 2017 to 11,420 this March. Only 110 applicants have been placed (160 last March); 2,040 have been conditionally placed (2,550) and 360 are holding offers compared with 320 last March – the one bit of good news. Overall, there have been 11,420 applications to London providers, compared with 15,630 in March 2017.

With the TV advertising campaign in full swing, the government may need to decide on something more dramatic if schools are not going to face a really challenging recruitment round for September 2019 that is unless applications take a real turn for the better during the remainder of the recruitment round.

 

 

Moving forward without compromise

Is the climate changing about how the education system should be governed? I have been to three different events over the past week where there has been discussion about the different places of local authorities and the academy sector in taking our school system forward to new levels. Mostly, the academy debate has focused on Multi-Academy Trusts rather than single converter academies, but the issue affect all schools.

I think that there is growing recognition of the point made here previously that ‘place’ is important in the provision of high quality education, and especially schooling. There are three key areas to consider; planning the local system within a national framework; operating the system for the benefit of all and ensuring high quality provision for all by both monitoring outcomes and through the effective deployment of resources.

Sadly, the present arrangements seem to fall down on all of these three key areas needed for a fully functioning high quality education system. As a politician, albeit only a local opposition spokesperson, I am aware that politicians have ideas, but that these needed to be challenged. We need a return to the ‘Yes, Minister, but’ culture within our officer core, rather than a ‘Yes Minister’ outlook where everything a politician says is immediately policy.

Let me cite some examples. Oxfordshire has a good track record of building additional schools where there is new housing developments, but cannot control the process in the same way where the need is in an established built-up area. This is especially true where there is an accepted free school bid on the table from a local academy chain. As a result, I was told at the county council  meeting held yesterday that these new school buildings will probably be two years late. Extra cost and disruption to pupils, but who takes responsibility for this outcome?

In terms of operating the system, in-year admissions remains a minefield, as I have pointed out in relation to children taken into care. These are some of our most vulnerable youngster, but schools can stall on offering those pupils places. In some cases, schools can also encourage inappropriate home schooling in Years 10 and 11 instead of working across the locality to solve the underlying issues creating the original situations. Finally, the disbanding of local advisory services and SEND teams was an important mistake that teaching schools have not fully been able to rectify. CPD is not only about the needs of the system, but also the needs of individual teachers. Sometimes these needs are not in the interests of the schools where they are working. But, that shouldn’t mean that such needs are ignored.

Returning responsibility to local authorities with the power of central government to insert Commissioners when the authority clearly isn’t fulfilling its duties would be one model. It has the benefit of being based upon the concept of democratically elected bodies. Unelected Boards at a much finer grain than the present RSC regions is another, NHS style, approach. There may be other models based upon say, Growth Boards or any other justifiable set of boundaries that work.

What is needed is the will to take the best of recent reforms and dump the bits that don’t work. Whatever the choice, we need a service that is just that, a cadre of professionals working for the good of all and prepared to make hard choices.

School places still needed

Pupil place planning is at the core of a successful education system. The DfE has recently published a new Statistical First Release about school capacity 2017: academic year 201/2017. https://www.gov.uk/government/statistics/school-capacity-academic-year-2016-to-2017

The headline is that 825,000 places have been added to the school estate since 2010, a net increase of 577,000 primary places and 248,000 secondary places. Between 2016 and 2017, 66,000 primary places and 23,000 secondary places were added. As is generally known, the pupil population has been increasing and that increase has now started to reach  the secondary sector after a period where rolls in secondary schools had been declining: indeed, they still are a the upper end of some schools.

Whether or not new schools are needed to cope with the growth in pupil numbers depends upon the degree of spare capacity in the system: hence the DfE’s capacity surveys. However, that capacity has to be in the places where it will be needed, otherwise it is of little use. During periods of reducing pupil numbers canny local authorities always used to try to close their worst schools whether selected on performance grounds or because of the state of the buildings. They know that when pupil numbers started increasing again someone, usually central government, would have to pay for a new school. The decline in local authorities’ power and influence in education rather put a stop to this practice, but a couple of academy chains have closed schools that were uneconomic because they couldn’t attract enough pupils.

The DfE latest finding was that the number of primary schools that are at or over capacity has remained relatively stable since 2015, following a long term increase. The number of secondary schools that are at or over capacity has increased slightly since 2016, following a long term decrease. This suggests that the growth in the primary school population may be nearing its peak, at least at Key Stage 1. The DfE confirms this, by stating that local authority forecasts suggest primary pupil numbers may begin to plateau beyond 2020/21. Secondary pupil numbers are forecast to continue to rise as the increase seen in primary pupil numbers arrives in the secondary phase. Indeed, secondary school rolls will continue to increase well into the next decade. This is good news for anyone thinking of secondary school teaching as a career.

I have some concerns that the capacity in the secondary sector may not be increasing fast enough to meet the demands of the known increase in the school population. While it is still easy for a local authority to work with a developer over the creation of a new primary school for a housing estate, few estates are large enough to generate a developer provided secondary school. Asa result, the DfE will almost always have a bigger role to play in the development of new secondary schools.

At least in Oxford, the track record of the Education and Skills Funding Council in ensuring enough secondary places is mixed. All new schools must be ‘national’ schools under the free school and academy badges. County place planning identified a need for a new secondary school in Oxford City by 2019. An academy chain offered to sponsor a new school –call it a free school or an academy, it doesn’t really matter – finding a site was always going to challenge the local authority and the EFSC has now reached a position where the school seems unlikely to open in 2019. Such a situation is unacceptable to me. If the local authority had failed, parents could take the feelings out on local councillors at the next election. Civil servants in Coventry are protected from such democratic action, but I suppose might risk their jobs if local MPs felt affected. In this case, there are no Tory MPs in the City of Oxford and indeed, at present no Conservative councillors at any level of government.

If the government cannot take front-line responsibility for school place planning and the delivery of these places, then it should be fully returned to competent local authorities across England.

Are Education exports slowing?

Last August I wrote a piece on this blog about UK Education’s contribution to the export drive under the title ‘Buy British Education’. This followed a research report from the DfE. https://johnohowson.wordpress.com/2017/08/04/buy-british-education/

Recently, the DfE has updated the figures to include those for 2015. https://www.gov.uk/government/statistics/uk-revenue-from-education-related-exports-and-tne-activity-2015 This remains a good news story for UKplc. Our higher education sector accounts for two thirds of the revenue stream in 2015, up from 60% in 2010. Further Education, presumably following the crackdown on colleges and visa infringements, has seen a two thirds drop in income to around £320 million. It had been looking in 2010 as if the FE sector would break the Billion pound barrier.

Happily, the independent school sector has increased income by 44% between 2010 and 2015, and brought in some £900 million in 2015.How they might be affected if further sanctions on are imposed on Russia is an interesting question. Despite a fall in income generated between 2010 and 2015, Language schools still brought in nearly £700 million more than independent schools.

As I predicted last summer, publishing is now being affected as the marketplace adaptation to new technologies gathers pace. Although income has increased by six per cent between 20-10 and 2015, that figure looks derisory compared with achievements elsewhere.  Qualification Awarding Bodies did exceptionally well, increasing revenue by 73% over the period between 2010 and 2015, and brought in £250 million that year.

Taken overall, total education exports and transnational educational activity that earned revenue for the UK saw a 22% growth in revenue between 2010 and 2015 to reach £19,330,000,000.

Of course, all the income flows aren’t in one direction and it would be interesting to assess how much net contribution education makes to UKplc after cash flows in the other direction are taken into account. During the period 2010-2015 that great British institution, the TES, was bought by an American Group and if were it making profits they would presumably be flowing overseas along with some of the company’s contribution to its debt pile.

TeachVac, the company where I am chairman, hope to start making a modest contribution to these export figures through www.teachvacglobal.com our recruitment site for international schools. As it is based in England, our income can be regarded as part of the export drive.

However, there are some worrying signs behinds the headline numbers. The DfE point out in the latest Bulletin that between 2014 and 2015 total education exports and TNE activity grew by 3.0%, 1.7 percentage points lower than the rate of growth seen between 2013 and 2014. This reflects the slightly lower growth rate in total education related exports which grew at 2.4% between 2014 and 2015, compared to 4.4% in the previous year.

We must now await the outcome of the UK’s departure from the EU to see whether or not it affects income, especially fee and research income received from overseas by our universities. Perhaps, if overseas students had been excluded from the immigration figures, some who voted leave might have felt differently about the referendum: or perhaps not.

Probably none left?

Yesterday, Friday 16th March, Business Studies turned negative on TeachVac’s scale that compares vacancies for main scale teachers with trainee numbers. I wrote on this blog a few weeks ago predicating this would happen soon, and it has duly come to pass. Next to turn negative will be Design and Technology, probably sometime in April, if the present rate of progress is maintained and allowing for the Easter break.

Now, it is interesting to compare the date these subjects effectively ran out of trainees and turned negative in each of the past three years as well as this year.

Date where TeachVac recorded enough vacancies to provide a teaching post for all trainees in the relevant ITT Census

Year Business Studies Design & Technology
2015 15th April 20th May
2016 22nd April 30th September
2017 31st March 2nd June
2018 16th March Before end of April?

Source: TeachVac

Both subjects are likely to have seen enough teaching posts created by schools in England to absorb all trainees at a ratio of two recorded vacancies for every one trainee at an earlier point this year than in any of the previous three years. Of course, Business Studies may be propped up by some schools being prepared to recruit economists to teach Business Studies and TeachVac doesn’t publish data on the number of posts in economics, although the data is collected. However, the warning signs apparent when the DfE ITT census was announced of a failure to fill all training places available has come about.

The position in a portmanteau subject such as Design and Technology is more complex. The ITT Census does not breakdown the categories of specialism with the subject, so there may already have been more vacancies for say, teachers of textiles, than there are trainees, but still relatively more trainees in another aspect of the subject. TeachVac collects the data from advertisements about specific knowledge and skills required, but does not make it public. For anyone with a genuine reason to want the data, TeachVac is willing to discuss what might be made available. But, clearly even with timetables being adjusted downward in the subject, the failure to fill more than a third of training places was always going to have a severe impact upon schools looking to recruit design and technology teachers.

So, what are the effects of this situation? Well, it is likely to mean that some schools will find recruiting teachers in these subjects challenging. As the recruitment round heads towards its conclusion in November and December for January 2019 appointments, any school with an unexpected vacancy might well start by considering it won’t be just a matter of placing an advert and waiting for applications to arrive. The number of returners, for whatever reason, is always unpredictable, as is the wastage rate of teachers leaving the profession. Existing teachers may well see whether other schools are offering incentives for current teachers to smove to them? Whether the new subscription model being operated by the TES makes this more likely is an interesting question. Free services such as TeachVac and the one currently being worked upon by the DfE might face the charge that by reducing recruitment costs they increase opportunities for churn among the teaching force. Such a situation is always possible under a market-based model of teacher recruitment, but is only replacing state planning of where teachers are to be sent with acceptance of the laws of supply and demand.

 

 

Parents endorse better pay for teachers

Last week, the Varkey Foundation published a report following their Global Parents’ Survey. The report was picked up by the BBC and their take on the results can be found at: http://www.bbc.co.uk/news/education-43316741

One point to note is that the findings are for the United Kingdom and so, presumably, include parents from all four of the home nations, and those with offspring in both state and private schools. The survey work was conducted by MORI using on-line methods and it refers to countries with limited rural on-line access, including Peru where in my experience access can be quite good even in some rural towns. In view of the broadband problems in parts of the United Kingdom, I wonder whether that caveat should also have been added to the Uk’s findings?

Most heartening for teachers was the 70% of respondents, the second highest behind the 76% of parents in Germany, choosing more pay for teachers as one of their three top choices from a list of options. Buildings featured lowest in the list in terms where parents in the UK placed the item in their top three choices. Generally, the more developed countries in the list had higher percentages of parents selecting more or better pay for teachers as one of their top three picks. Japan and Italy were exceptions, with only around 44% of parents’ selection this item as one of their top three choices. In both countries extracurricular activities scored highest.

As the BBC noted, UK parents didn’t fare well in comparison with their international counterparts in relation to the amount of time they spent helping their children with their education. Interestingly, Finland, lauded for its good school system, had the lowest percentage of parents spending seven hours a week or more with their children and the highest percentage recording no time helping their children at almost one in three parents (31%) that responded to the survey: food for thought there.

Parents across the UK generally rated the quality of teaching at their children’s schools as fairly good or very good (87%) with only four per cent rating teaching as fairly poor or very poor. Such a percentage, if confirmed in other surveys, should inspire the government to lay off teacher bashing and start talking up the profession again to aid teacher recruitment. This is especially the case since 68% also rated government-funded schools as fairly good or very good. Finnish parents that don’t help at home gave their government schools a 90% fairly good or good rating. If the schools are that good, presumably you don’t think you need to help out at home. UK schools scored relatively well in parents’ views on how they were preparing pupils for the future world beyond 2030. Interestingly, parents in India produced the top score on this question, of 88%. If this reflects what is happening in on-line savvy households in India, then the future economic growth of that country may well be interesting to watch.

Finally, the Labour and Conservative Parties having battled over funds for universities might like to know according to the Varkey Survey only 32% of parents in the UK though young people needed to attend university to achieve the most in life. As I have said before, the cash spent on capping tuition fees and raising repayment levels might have been better spent on our schools and early years’ settings.