Finance

45 Local authorities’ financial schemes

(1) In Schedule 14 to SSFA 1998 (revision of local authority schemes), in paragraph
2A, at the end insert—

“(4) 5The Secretary of State may by a direction revise the whole or any part
of a scheme maintained by a local authority in England as from such
date as may be specified in the direction.

(5) Before giving such a direction the Secretary of State must consult the
local authority and such other persons as the Secretary of State thinks
10fit.”

46 Payments in respect of dismissal, etc

(1) Section 37 of EA 2002 (payments in respect of dismissal, etc) is amended as
follows.

(2) After subsection (7), insert—

“(7A) 15Any amount payable by virtue of subsection (7) by the governing body
of a maintained school in England to the local authority may be met by
the governing body out of the school’s budget share for any funding
period if and to the extent that the condition in subsection (7B) is met.

(7B) The condition is that the governing body are satisfied that meeting the
20amount out of the school’s budget share will not to a significant extent
interfere with the performance of any duty imposed on them by section
21(2) or by any other provision of the Education Acts.”

(3) In subsection (8), after “maintained school” insert “in Wales”.

47 Determination of permitted charges

(1) 25Section 456 of EA 1996 (regulation of permitted charges) is amended as follows.

(2) In subsection (4), after paragraph (a) insert—

“(aa) attributable to the provision of the buildings and
accommodation used in connection with the provision of the
optional extra, or”.

(3) 30In subsection (5), for “subsection (6)” substitute “subsections (6) and (6A)”.

(4) After subsection (6), insert—

“(6A) Where the optional extra in question consists of education which is
early years provision (as defined by section 20 of the Childcare Act
2006), the cost of its provision includes the costs, or an appropriate
35proportion of the costs, attributable to the provision of teaching staff
employed for the purpose of providing the education.”

Further education institutions

48 Further education institutions: amendments

Schedule 12 (further education institutions: amendments) has effect.

Pupil referral units

49 5Repeal of provision changing name of pupil referral units

(1) ASCLA 2009 is amended as set out in subsections (2) and (3).

(2) In section 249 (short stay schools: miscellaneous)—

(a) omit subsections (1) and (2) (change of name from pupil referral unit to
short stay school);

(b) 10for the heading, substitute “Regulations about pupil referral units”.

(3) For the italic cross-heading above section 249, substitute “Pupil referral units”.

(4) In Schedule 1 to EA 1996 (pupil referral units), in paragraph 3A—

(a) in sub-paragraph (a), for “short stay school” substitute “pupil referral
unit”;

(b) 15in sub-paragraph (b), for “short stay schools”, in both places where it
occurs, substitute “pupil referral units”.

Part 6 Academies

Academy arrangements

50 20Academies: removal of requirement to have specialism

In section 1(6) of AA 2010 (Academy arrangements: characteristics of
Academy) omit paragraph (b) (curriculum to have emphasis on particular
subject area).

51 Academy arrangements: post-16 education and alternative provision

(1) 25Section 1 of AA 2010 (Academy arrangements) is amended as set out in
subsections (2) to (6).

(2) For subsection (5) substitute—

“(5) The undertakings are—

(a) to establish and maintain an educational institution in England
30which meets the requirements of any of the following—

(i) section 1A (Academy schools);

(ii) section 1B (16 to 19 Academies);

(iii) section 1C (alternative provision Academies);

(b) to carry on, or provide for the carrying on, of the institution.”

(3) 35Omit subsection (6).

(4) In subsection (7), for “a school within subsection (5)(a)(i)” substitute “an
educational institution within section 1A(1)”.

(5) In subsection (9), for “school” (in both places) substitute “institution”.

(6) In subsection (10), for “A school” substitute “An educational institution”.

(7) 5After section 1 of AA 2010 insert—

“1A Academy schools

(1) An educational institution meets the requirements of this section if—

(a) it is an independent school,

(b) it has a curriculum satisfying the requirements of section 78 of
10EA 2002 (balanced and broadly based curriculum),

(c) it provides education for pupils of different abilities, and

(d) it provides education for pupils who are wholly or mainly
drawn from the area in which it is situated.

(2) An educational institution also meets the requirements of this section
15if—

(a) it is an independent school, and

(b) it is specially organised to make special educational provision
for pupils with special educational needs.

(3) An Academy which meets the requirements of this section is to be
20known as an Academy school.

1B 16 to 19 Academies

(1) An educational institution meets the requirements of this section if it is
principally concerned with providing full-time or part-time education
suitable to the requirements of persons over compulsory school age but
25under 19.

(2) “Education” includes vocational, social, physical and recreational
training.

(3) An Academy which meets the requirements of this section is to be
known as a 16 to 19 Academy.

1C 30Alternative provision Academies

(1) An educational institution meets the requirements of this section if—

(a) it is principally concerned with providing full-time or part-time
education for children of compulsory school age who, by reason
of illness, exclusion from school or otherwise, may not for any
35period receive suitable education unless alternative provision is
made for them,

(b) it provides education for children of different abilities, and

(c) it provides education for children who are wholly or mainly
drawn from the area in which it is situated.

(2) 40“Alternative provision” means arrangements under section 19(1) of EA
1996 (exceptional provision of education in pupil referral units or
elsewhere).

(3) An Academy which meets the requirements of this section is to be
known as an alternative provision Academy.

1D Alternative provision Academies: powers to apply provisions with
modifications

(1) Regulations may provide for a statutory provision relating to
maintained schools or a description of maintained school, or to pupil
5referral units, to apply in relation to alternative provision Academies,
or a description of alternative provision Academy, with or without
modifications.

(2) Regulations may provide for a statutory provision relating to
Academies, Academy schools or 16 to 19 Academies—

(a) 10to apply in relation to alternative provision Academies, or a
description of alternative provision Academy, with
modifications;

(b) not to apply in relation to alternative provision Academies or a
description of alternative provision Academy.

(3) 15Regulations may provide for a statutory provision relating to
alternative provision Academies—

(a) to apply in relation to a description of alternative provision
Academy, with modifications;

(b) not to apply in relation to a description of alternative provision
20Academy.

(4) “Statutory provision” means a provision made by or under this or any
other Act, whenever passed or made.”

52 Consequential amendments: 16 to 19 Academies and alternative provision
Academies

(1) 25Schedule 13 (16 to 19 Academies and alternative provision Academies:
consequential amendments) has effect.

(2) The Secretary of State may by order make further changes in consequence of
section 51 to any provision of—

(a) an Act passed before, or in the same Session as, this Act;

(b) 30subordinate legislation made before the date on which this Act is
passed.

(3) “Subordinate legislation” has the meaning given by section 21(1) of the
Interpretation Act 1978.

Academy orders

53 35Academy orders: involvement of religious bodies etc

(1) Section 4 of AA 2010 (Academy orders) is amended as follows.

(2) After subsection (1), insert—

“(1A) Before making an Academy order under subsection (1)(b) in respect of
a foundation or voluntary school that has a foundation, the Secretary of
40State must consult—

(a) the trustees of the school,

(b) the person or persons by whom the foundation governors are
appointed, and

(c) in the case of a school which has a religious character, the
appropriate religious body.”

(3) In subsection (4)—

(a) at the end of paragraph (a), omit “and”;

(b) 5at the end insert “, and

(c) in the case of a foundation or voluntary school that has
a foundation—

(i) the trustees of the school,

(ii) the person or persons by whom the foundation
10governors are appointed, and

(iii) in the case of a school which has a religious
character, the appropriate religious body.”

(4) In subsection (5)—

(a) at the end of paragraph (a), omit “and”;

(b) 15at the end insert “, and

(c) in the case of a foundation or voluntary school that has
a foundation—

(i) the trustees of the school,

(ii) the person or persons by whom the foundation
20governors are appointed, and

(iii) in the case of a school which has a religious
character, the appropriate religious body.”

(5) At the end, insert—

“(8) In this section, “the appropriate religious body”, in relation to a school,
25means—

(a) in the case of a Church of England school or a Roman Catholic
school, the appropriate diocesan authority;

(b) in any other case, such body or person representing the
specified religion or religious denomination as is prescribed
30under section 88F(3)(e) of SSFA 1998.

(9) In the case of a school in relation to which there is more than one
religion or religious denomination specified, references to “the
appropriate religious body” are to be read as references to both or all of
the bodies concerned.

(10) 35In subsections (8) and (9), “specified” means specified in the order
under section 69(3) of SSFA 1998 relating to the school.

(11) Expressions used in this section and SSFA 1998 have the same meaning
as in that Act.”

54 Academies: consultation on conversion

40For section 5 of AA 2010 (consultation on conversion), substitute—

“5 Consultation on conversion

(1) Before a maintained school in England is converted into an Academy,
there must be a consultation on the question of whether the conversion
should take place.

(2) The consultation may take place before or after an Academy order, or
an application for an Academy order, has been made in respect of the
school.

(3) In the case of a school that is eligible for intervention (within the
5meaning of Part 4 of EIA 2006), the consultation may be carried out
by—

(a) the school’s governing body, or

(b) a person with whom the Secretary of State proposes to enter
into Academy arrangements in respect of the school or an
10educational institution that replaces it.

(4) In any other case, the consultation must be carried out by the school’s
governing body.

(5) The consultation must seek the views of such persons as the person
carrying it out thinks appropriate.

(6) 15In the case of a federated school, references in this section to the
governing body include references to any of the members of the
governing body.”

55 Academy conversions: federated schools

(1) AA 2010 is amended as follows.

(2) 20In section 3 (application for Academy order) after subsection (5) insert—

“(6) In the case of a federated school, references in this section to the
governing body include references to members of the governing body
who—

(a) together make up a proportion of the total number of members
25that is specified in, or determined in accordance with,
regulations, and

(b) consist of or include members of any prescribed description.”

(3) In section 4 (Academy orders), in subsection (1)(a), for “the governing body of
the school make an application” substitute “an application in respect of the
30school is made”.

(4) In section 7 (transfer of school surpluses)—

(a) in subsection (6)(a), after “made available” insert “in respect of the
school”;

(b) in subsection (6), at the end, insert “This subsection is subject to
35subsection (9).”;

(c) in subsection (7), for “to a school’s” substitute “in respect of a school to
the school’s”;

(d) after subsection (8) insert—

“(9) If the school is a federated school, the questions of —

(a) 40whether the school has a surplus, and

(b) if so, the amount of the surplus,

are to be determined in accordance with regulations.”

(5) In section 17 (interpretation of Act), in subsection (2), after the definition of “the

conversion date” insert—

• ““federated school” has the meaning given by section 24(2) of EA
  2002;”.

56 Transfer of property, rights and liabilities to Academies

(1) 5Section 8 of AA 2010 (transfer of other property) is amended as follows.

(2) For subsection (2) substitute—

“(2) The Secretary of State may make a scheme (a “transfer scheme”) in
relation to—

(a) property used or held for the purposes of the school by a local
10authority or the school’s governing body, and

(b) rights and liabilities (including rights and liabilities in relation
to staff) of the local authority or the governing body which were
acquired or incurred for the purposes of the school.”

(3) In subsections (3) to (10), for “property transfer scheme” (in each place)
15substitute “transfer scheme”.

(4) In subsection (4), for “the proprietor of the Academy” substitute “a person
concerned with the running of the Academy”.

(5) For the heading substitute “Transfer schemes: other property, rights and
liabilities”.

20Academies: other provisions

57 Academies: new and expanded educational institutions

(1) For section 9 of AA 2010 (impact: additional schools) substitute—

“9 Impact: new and expanded educational institutions

(1) This section applies if the Secretary of State is deciding whether to enter
25into Academy arrangements in relation to—

(a) a new educational institution, or

(b) an existing educational institution that, if the arrangements are
entered into, will provide education for pupils of a wider range
of ages.

(2) 30The Secretary of State must take into account what the impact of
entering into the arrangements would be likely to be on maintained
schools, Academies, institutions within the further education sector
and alternative provision in the area in which the institution is
proposed to be, or is, situated.

(3) 35An educational institution is not new for the purposes of this section
if—

(a) it replaces one or more maintained schools, Academies or sixth
form colleges that have been or are to be discontinued, and

(b) it provides education for persons of the same range of ages as
40the institution it replaces (or, as the case may be, the institutions
it replaces, taken together).

(4) “Alternative provision” means educational provision for which a local
authority has made arrangements under section 19 of EA 1996
(exceptional provision of education in pupil referral units or
elsewhere).”

(2) 5For section 10 of AA 2010 (consultation: additional schools) substitute—

“10 Consultation: new and expanded educational institutions

(1) This section applies before a person enters into Academy arrangements
with the Secretary of State in relation to—

(a) a new educational institution, other than a new educational
10institution that is the subject of proposals under section 7 of EIA
2006 (proposals to establish new school following invitation
from local authority), or

(b) an existing educational institution that, if the arrangements are
entered into, will provide education for pupils of a wider range
15of ages.

(2) The person must carry out a consultation on the question of whether
the arrangements should be entered into.

(3) The consultation must seek the views of such persons as the person
carrying it out thinks appropriate.

(4) 20Section 9(3) (when educational institution not new) applies for the
purposes of this section.”

58 Staff at Academies with religious character

(1) Part 5A of SSFA 1998 (employment of teachers at independent schools having
a religious character) is amended as set out in subsections (2) and (3).

(2) 25In section 124A (employment of teachers at independent schools having a
religious character), in subsection (1), at the end insert “, other than an
Academy to which section 124AA applies”.

(3) After section 124A, insert—

“124AA Staff at certain Academies with religious character

(1) 30This section applies if—

(a) an Academy order has been made in respect of a foundation or
voluntary controlled school which is designated by order under
section 69(3) as a school having a religious character,

(b) the school has been converted into an Academy (see section 4(3)
35of the Academies Act 2010), and

(c) the Secretary of State has not made an order in respect of the
school under subsection (2).

(2) The Secretary of State may by order provide that this section does not
apply to a school specified in the order.

(3) 40Where there are more than two teachers at the Academy, the teachers
must include persons who—

(a) are selected for their fitness and competence to give religious
education in accordance with the tenets of the religion or the
religious denomination specified in relation to the Academy in

the order under section 69(3) (as applied by section 6(8) of the
Academies Act 2010), and

(b) are specifically appointed to do so.

A teacher employed or engaged at the Academy in pursuance of this
5subsection is a “reserved teacher”, and any other teacher at the
Academy is a “non-reserved teacher”.

(4) The number of reserved teachers in the Academy must not exceed one-
fifth of the total number of teachers, including the principal (and for
this purpose, where the total number of teachers is not a multiple of
10five, it is to be treated as if it were the next higher multiple of five).

(5) In connection with the appointment of a person to be the principal of
the Academy, in a case where the principal is not to be a reserved
teacher, regard may be had to that person’s ability and fitness to
preserve and develop the religious character of the Academy.

(6) 15Preference may be given, in connection with the appointment,
promotion or remuneration of reserved teachers at the Academy, to
persons—

(a) whose religious opinions are in accordance with the tenets of
the religion or the religious denomination specified in relation
20to the Academy in the order under section 69(3) (as applied by
section 6(8) of the Academies Act 2010), or

(b) who attend religious worship in accordance with those tenets,
or

(c) who give, or are willing to give, religious education at the
25Academy in accordance with those tenets.

(7) Regard may be had, in connection with the termination of employment
or engagement of any reserved teacher at the Academy, to any conduct
on the part of the teacher which is incompatible with the precepts, or
with the upholding of the tenets, of the religion or religious
30denomination specified in the order under section 69(3) (as applied by
section 6(8) of the Academies Act 2010).

(8) No person, other than a reserved teacher, is to be disqualified by reason
of their religious opinions, or of their attending or omitting to attend
religious worship—

(a) 35from being a teacher at the Academy, or

(b) from being employed or engaged for the purposes of the
Academy otherwise than as a teacher.

(9) A non-reserved teacher must not be required to give religious
education.

(10) 40A non-reserved teacher must not receive any less remuneration than
any other non-reserved teacher, or be deprived of, or disqualified for,
any promotion or other advantage available to other non-reserved
teachers—

(a) for the reason that the teacher gives, or does not give, religious
45education, or

(b) for reasons related to the teacher’s religious opinions or to the
teacher’s attending or omitting to attend religious worship.”

(4) In consequence of the amendments made by subsections (2) and (3)—

(a) in the title to Part 5A of SSFA 1998, for “Employment of Teachers”
substitute “Teachers and Staff”;

(b) in section 138 of SSFA 1998 (orders and regulations), in subsection
(2)(a), after “111(3)(a)” insert “, 124AA(2)”;

(c) 5in paragraph 4 of Schedule 22 to the Equality Act 2010 (educational
appointments etc based on religious belief), at the end insert—

“(d) section 124AA(5) to (7) of that Act (religious
considerations relating to certain teachers at
Academies with religious character).”

59 10Academies: land

Schedule 14 (Academies: land) has effect.

60 Academy admissions arrangements: references to adjudicator

(1) Chapter 1 of Part 3 of SSFA 1998 (school admissions: admission arrangements)
is amended as follows.

(2) 15In section 88 (admission authorities and admission arrangements)—

(a) in subsection (1), omit the “and” at the end of paragraph (a);

(b) in that subsection, at the end, insert “; and

(c) in relation to an Academy, means the proprietor of the
Academy.”;

(c) 20in subsection (2), omit “maintained”.

(3) In section 88H (reference of objections to adjudicator)—

(a) after subsection (1), insert—

“(1A) This section also applies where admission arrangements for an
Academy have been determined by the proprietor of an
25Academy under Academy arrangements.”;

(b) for subsection (6), substitute—

“(6) In subsection (2), “appropriate person” means—

(a) in relation to an objection about the admission
arrangements for a maintained school—

(i) 30a body or person within any of paragraphs (a) to
(e) of section 88F(3), or

(ii) any person prescribed for the purposes of this
subsection;

(b) in relation to an objection about the admission
35arrangements for an Academy, any person prescribed
for the purposes of this subsection.”

(4) In section 88I (other functions of adjudicator relating to admission
arrangements), in subsection (1)—

(a) after “determined” insert “—

(a)”; 40

(b) at the end insert “, or

(b) by an admission authority for an Academy.”

(5) In section 88K (sections 88H and 88I: supplementary)—

(a) in subsection (4)(a), after “England” insert “or an Academy”;