Select Committee on Education and Employment Minutes of Evidence


Examination of Witness (Questions 180 - 199)

TUESDAY 23 MAY 2000

RT HON DAVID BLUNKETT, MP

  180. With regard to the pay gap, you said it was not a fair choice but what do you think Vice Chancellors should do about the fact that on average women academics at all levels are paid ten per cent less? What resources can you identify for them to use to tackle that problem, if you believe it is a problem and an outrage?
  (Mr Blunkett) I think there is an issue to be addressed. I think there is an issue to be addressed whatever the settlement in the Spending Review and I have said so both to Vice Chancellors and to the AUT and NATFHE. The issue is again one of securing sufficient resources to ensure that when those decisions and priorities are made by the employers in higher education, because it is their job to do so, they do so with a knowledge that there is sufficient resource to be able to balance those priorities intelligently. Equal opportunity all the way through the system is something that is a vital part of modernising higher education and I said so at the AUT Conference in Eastbourne a couple of weeks ago. It strikes me that this is an issue that has to be addressed in terms of top level management as well. There are only five women Vice Chancellors, for instance, there are no Vice Chancellors from ethnic minority groups. The older universities have some quaint ways of appointing Vice Chancellors which I hope they will now review.

Mr Foster

  181. In Worcestershire, one of the live education issues is the review of the Standard Spending Assessment. What is your Department's input into the DoE's review of the revenue support grant distribution?
  (Mr Blunkett) As Michael Bichard will have spelt out last Tuesday, the Green Paper will be out over the summer presenting a range of options. My Department is obviously placing into that Green Paper the options and the discussion which we think is relevant to ensuring that there is fair transparent funding that ensures, firstly, that sums that are allocated actually reach the point for which they were allocated, namely the schools; secondly, that it is on a transparent and open basis; thirdly, it recognises the rights of youngsters at different key stages across the country; fourthly, that we take advantage of the historic debates that have taken place around how to assess disadvantage to try to modernise the way in which we reflect that as well as area costs or sparsity factors. We are vigorously pursuing this because we clearly get this day in, day out, not just through our postbags but in every visit that we make to schools or localities. I have to say that I have never met anybody yet who wanted to see their Standard Spending Assessment reduced in order to offer a lifeline to some other part of the country. That is probably why the Local Government Association had such difficulty two years ago in coming up with a programme of their own which would have assisted Government in making more substantial change than was possible at the time.

  182. The Chief Inspector's recent Annual Report calls for a more transparent funding mechanism. Do you think there is any educationally justifiable reason for the current wide variation in the SSA per head?
  (Mr Blunkett) There may have been historically a justification in the way in which the system developed. Your advisers will have spoken to you about the wonderful development of the system through the regression analysis and I remember it well from when I was in local government. I dug out a quote from home, not from a computer but just from an old box, which is just as effective sometimes in finding things, a quote from Tom King in 1980 who was then the Environment Minister, saying that the Standard Spending Assessment which was being introduced in its new form was not intended to be an accurate assessment of the needs of individual localities or authorities. I think 20 years on we should reflect carefully on that.

  183. Finally, there is a call for extra resources that go into education spending to be geared towards raising the bottom education authorities' SSA per head to a median level. In your input to the Treasury on the Comprehensive Spending Review have you put that forward as a suggestion?
  (Mr Blunkett) No, I have not got to the stage yet, I can honestly say, which is a great relief, of actually putting forward detailed proposals to my Treasury colleagues or furnishing the text of the Green Paper in a form that would lead me to say that at this stage. I can honestly answer your question, which is a great relief. Let me just make it clear, however, it is not as simple as simply the bottom funded authorities. In the bottom 40 least well funded authorities lie some extremely wealthy areas, just above them lie some deeply deprived areas with very, very poor per capita allocations in terms of schools' budgets. I want to try to ensure that we are fair to those who have the biggest challenges in terms of the socio-economic make-up of their area.

Judy Mallaber

  184. Secretary of State, following on from those questions, in principle would it be possible to have one factor, such as a standard level of spending per pupil, say at the current median level, outwith the regression analysis and other factors that will be taken account of in the rest of the SSA formulae, so that at least there is a base level of funding?
  (Mr Blunkett) Yes, it would be perfectly feasible to do that. You would have to make a judgment as to how much money was going into that uplift compared with targeted resources in achieving other goals, including the ones that we have already established for schools and for education authorities. The difficulty then arises as to whether you are competing with the top-up in terms of deprivation or area costs, or whether you are competing with a general uplift in education and schools spend generally. There is going to be a cost to this and it is a balance as to how far you go and how much that takes away from your potential for doing other good things within the system.

  185. Are you able to give any estimate, putting you on the spot here, of what that cost would be, say on bringing authorities up to the current median?
  (Mr Blunkett) No, I am not.

  186. If you can send that to us it would be helpful.
  (Mr Blunkett) I will take a look at how that affects the— Yes, I will write to you.

Mr O'Brien

  187. Good morning, Secretary of State. I represent a Cheshire seat which of course sits very low in the table you have just been referring to. Apart from the easy headline that it is a third per capita spend on each pupil of, say, Tower Hamlets, it is also a fifth less of equivalent counties. That is causing great concern because there is a widespread belief among schools and teaching staff that there is an in-built bias under the Standard Spending Assessment, particularly when you take into account the serious pockets of deprivation in catchment areas around schools, such as I have in parts of Winsford. One of the questions is how much can the review take account of school catchment areas rather than simply being measured by the areas which reflect political and administrative authorities?
  (Mr Blunkett) Of course there are two elements to this. Firstly, the distribution within authorities and what flexibility they are currently using to respond to those pockets of deprivation, to use your term. The second is a question of how hands-on and centralist we should be in picking up the discussion we have just been having in terms of a per pupil entitlement and how that might then be uplifted in terms of schools or school communities with the deprivation. It does vary enormously. You will recall this very well, that when I came to the by-election I went to the most wonderful school that had a swimming pool. They were doing very well and they took a very large number of special needs children but they did so because the head and the staff were committed to doing that, not because anyone was directing them to, it was a gesture of commitment on their part. I wonder, given that the councillor who is in charge of the Local Government Association's finance education picture is here this morning because I met him as I came through the door, just how much that would take into account pressure on authorities to be much more imaginative about how they share resources that are available to them between schools?

  188. I know the school you are referring to and there are some issues about the refusal of a Lottery application to do just that, to try to improve school facilities so they belong much more in their community.
  (Mr Blunkett) I claim no control over the Lottery.

  189. I fully accept that, Secretary of State. The concern that is coupled with all that is the rise in the Standard Spending Assessment in real terms is at a lower rate as announced by Government than the rise in the overall Departmental budget because of the amount that has been kept under central control. The Local Government Association Report, being published this week, criticises the Government for its bureaucratic and inflexible approach to this. Certainly in many of the visits I am making to schools in my constituency, teachers are feeling that a lot of this grant bidding approach is very much on a whim, ad hoc and often too late for them to take full advantage of it. Are you aware of these difficulties and tensions that are penalising what many schools feel is their ability to access what are announced new funds?
  (Mr Blunkett) Yes, I am aware of the pressures and the need for change and I will address those. There were two reasons why we felt that it was important to develop the Standards Fund. Firstly, because it enabled us to overcome the historic inequity of the distribution factors within the SSA, which we have just spent quite a few minutes addressing, and enabled us, therefore, to be able to target resources where they were most needed. Secondly, it enabled us to ensure that the agenda for raising standards and, therefore, the focused attention on literacy and numeracy on the one hand, inclusion for instance on the other, would be achievable because we would be able to put the resources in directly in a way that would not be possible through other funding mechanisms. I make no apology at all for the Standards Fund. However, I do accept that there is a need to address the issues around the way it is administered, the bidding system and its subsequent distribution, so that we can slim it down. I will be addressing that shortly. I have to say, and Members may not be aware of this, there are fewer bidding channels now under the Standards Fund than there were under the former GEST Programme—the Grants for Education, Support and Training. It is interesting that whilst the issue of bureaucracy and pressure is understandably and rightly on the agenda, it is worth taking historic looks at what actually was happening in the past rather than people simply taking a snapshot of the present.
  (In the absence of the Chairman, Mr Barry Sheerman was called to the Chair

  Mr Sheerman: Secretary of State, we are not trying to confuse you but it is Barry Sheerman in the Chair for the moment. I am going to call Charlotte Atkins.

Charlotte Atkins

  190. Secretary of State, following on from that answer, is it possible to break down total school spending by pupil as with the SSA? If that has been done, does it demonstrate that those LEAs disadvantaged by the SSA are compensated by other Government monies, like the Standards Fund? Has that exercise been done by the Department?
  (Mr Blunkett) That exercise is being done at my request by the Department taking into account the specific funding, for instance, the 50 million that I allocated from our own internal savings that was added to this year's schools budget as well as the earmarked funding of the 296 million from the Budget in March as well as the development and delivery of the Standards Fund which, if my memory serves me correctly, forms eight per cent of the total. Added to that, of course, will be the specific funding for the teachers' pay uplift from this autumn. All of these items together make quite a complicated assessment of how individual schools and their host education authority have benefited, because it does vary between schools within authorities as well as between education authorities. For the reason that was enunciated a moment ago, there are substantial pockets of deprivation and challenge that are receiving extra funding in areas of relative affluence.

(Mr Derek Foster resumed to the Chair)

  191. Will those figures be published and when can we expect them?
  (Mr Blunkett) I am happy to publish the figures when they are available. I have got no problem in terms of open government on that front.

  192. When can we expect them?
  (Mr Blunkett) I cannot give you an answer to that. I will write to you and give you an indication.

  Charlotte Atkins: Thank you.

Valerie Davey

  193. The discussion we have just had on the Standards Fund and on direct allocation seems to leave a huge question mark over the future of LEAs. Can you tell us where in your Department the future of LEAs is being considered and is it being done in the context, as you mentioned earlier, of transparency in funding or in raising of education standards?
  (Mr Blunkett) It is being taken collectively by myself and ministers together with our colleagues in DETR and, of course, at No.10 where undoubtedly a period of tranquillity is allowing a great deal of reading and thinking to take place at this very moment.

  194. Concern about education perhaps.
  (Mr Blunkett) Education is critical. The future of education authorities is critical to their contribution to the role of the authority as a whole. I spelt out some principles at an Education Network Conference a couple of weeks ago that received virtually no publicity, just to show that we do not spin everything, although they have put the speech on the Internet so Members undoubtedly will be rushing out desperate to read it. The principles are that if we did not have education authorities we would have to invent them but we would invent them for the 21st Century, not for the beginning of the 20th, and we would do so in terms of the changes that have taken place over the last 15 years with the introduction of a national curriculum, with the development of local management of schools and its further refinement under this Government, the way in which schools clearly control schools and are responsible for the delivery of their targets. Clearly they would be responsible, and will I hope in the future be clearly responsible, for issues which cannot be dealt with, whatever speeches are made by politicians or others, by individual schools, such as the development and delivery of special needs education or, for that matter, school transport, which in rural areas would be in complete chaos if there was not an overall organisation. We learnt a lot from the Funding Agency for Schools, a lot of good things and a lot about what an agency based nationally cannot do or is unable to do in terms of operating not 1,100 but 24,000 schools. We will want to take that into account in working with the Local Government Association and others in terms of ensuring we get it right. Getting it right means that the education authority of the future, the education service, has to be a vehicle for both delivery of support to schools but also in terms of being able to co-ordinate and work on initiatives. It may well be that authorities would want to facilitate the availability of a service and not necessarily, as was the case in the past, consider that they had lost their role or their purpose or their status if they did not deliver it themselves. For instance, Shropshire and Telford share the delivery of some of their services consequent on local government reorganisation, so one undertakes special needs for both authorities, the other undertakes the library and the development of the information and communication technology services for both authorities. There are authorities now directly providing services to schools in other authorities, which is an interesting development. There are schools in Islington buying services from Cambridgeshire.

  195. I am encouraged by what you say. How can we get this positive debate going and not simply have something subsumed in the Green Paper this summer on finance?
  (Mr Blunkett) I think the debate is out there and I understand that all parties are about to engage with it, so it should make it an interesting few months. I would like to do so in a way that actually addresses the needs of pupils and the school community and the broader role in terms of Lifelong Learning, the contribution that will be made alongside the Learning and Skills Councils, because the development of family learning and of adult learning is now re-emerging from a dark period, so that we recognise what is taking place around a school and in co-operation with a school can have an impact on the effectiveness of the teaching in the classroom, which is the central feature of raising standards. There had been a drift away from the recognition of both, I hope we can get that balance right.

  Chairman: Secretary of State, we are going to turn our minds to some questions on Public Service Agreements now.

Mr Sheerman

  196. Secretary of State, I wonder if I can push you a little on the whole emphasis in the Department on measurable targets. I know in the past your Department has been very keen on measurable targets and I understand that, my management interests suggest that the mantra of "if you cannot measure it, you cannot manage it" applies to education as it does to much outside education. How helpful is measurement? Do you think measurement takes you away from some of the essence of what education services ought to be delivered?
  (Mr Blunkett) I like the old adage "we should learn to measure what we value and not just value what we can measure", I think that is quite a neat way of summing up how I feel about it. The importance of service agreements is to have very clear bench marks as to what it is we are aiming to achieve and the calculations on the level of resources to make that possible. I am entertained by the agonies which officials in Government Departments and the Treasury go through in order to be able to prove their own particular point of view. One day, subject to the 30 year rule of course, memoirs will deal with such esoteric matters in great detail. It does strike me that the emergence of both PSAs and Service Development Agreements, so there are internal and clear routes and targets, are focusing minds in a way which is extremely helpful both in terms of making people think through what it is they are trying to do but also in terms of trying to assess whether they have delivered it.

  197. Is there a sense out there that the Department does not really trust LEAs to measure accurately enough for your purposes and in fact, and I have heard this out there, what the Department is building up is an alternative delivery of measuring the system through the Learning and Skills Council that into the 21st Century might be the alternative to using LEAs?
  (Mr Blunkett) I just want to make it clear, so there is no doubt, we are not establishing Learning and Skills Councils to deliver education authority services. We are developing Learning and Skills Councils to provide a co-ordinated, coherent route for funding, planning and delivering of skills for post-16 and for the nation as a whole. To take the central point, historically there has been very poor data collected in terms of its relevance to standards. There was lots of data collected within education authorities and for central Government, but not a lot of it related to the requirements internally. For instance, asset management plans, which are now being developed as part of the overall Education Development Plan, are actually for the first time in some authorities assessing the real need for investment in property and in the environment in which people do their jobs. The Rainbow Pack, which was developed by the Funding Agency for Schools, and we had long discussions with those who were involved with it when we were first elected, was a very, very good piece of work in terms of what was required to understand what was happening in the school and the need for support. I have now got the alternative, the update of the Rainbow Pack, out through education authorities and my next step is to get education authorities to use that pack with schools in an effective fashion. This is not some sort of tirade or centralist approach, it is desperately trying to get what is best practice applied across the country so that, for instance, authorities providing specifications for contracts do not feel that they have to have multiples of particular elements to assess the type of grass or the size of a tree, so we can get a bit of sense into all of this and people do not feel it to be a threat.

Mr St Aubyn

  198. Secretary of State, may I apologise for being slightly late coming to the meeting.
  (Mr Blunkett) I thought I had missed your dulcet tones.

  199. Regrettably I was detained by my health authority with the latest health cuts imposed by this Government. May I ask the Secretary of State, you say we should measure what we value, but how much importance do you attach to the skills gap?
  (Mr Blunkett) I attach extreme importance to it. It was with great regret that I discovered when I first went into the Department, consequent on the dismembering of the Manpower Services Commission and then the changes that subsequently took place, that the Department did not even have a unit dealing with the development of skills and the work that needed to be done. We now do have that and we will have a Basic Skills Unit in place in the next few months as well specifically geared to this approach. The Learning and Skills Councils will enable us, with business, to be able to focus directly on the gap that exists in particular sectors and particular regions and localities. We will be able to direct resources to where they are needed, we will be able to stimulate from providers the modern up-to-date forward looking approach which trains people for the years of the 21st Century rather than historically, which is to train people for things that are just going out. I remember the Treaty of Paris arrangements for the coal and steel areas which were very imaginative and trained people just in time for something that was just about to make thousands of people redundant in the same area.


 
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