House of Commons - Explanatory Note
Education Bill - continued          House of Commons

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School Meals and Milk

433.     We estimate that the maximum expenditure required to extend free school meals to eligible children in maintained nursery schools that do not also provide primary education would be £1.2 million and the maximum cost to extend entitlement to eligible children receiving Government funded nursery education in settings outside the maintained sector would be £1.1 million. Costs of implementing (from 2004) will be met from resources then available.

434.     The removal of free school meal entitlement for children who attend nursery education for part of the day, but who are not in attendance over the lunch period, will result in savings to LEAs.

Schools Forums

435.     The Bill provides for the creation of Schools Forums. There will be additional costs involved to LEAs in that schools Forums do not exist at present (though some LEAs have unofficial arrangements which have similarities). These will not be extra costs to the public sector because in practice the estimated annual figure of £43,000 per LEA will be a first charge on the Schools Budget (the size of a typical Schools Budget is £100m to £200m per annum).

Admissions Provisions

436.     In many cases admissions forums and coordinated admissions systems already exist. Based on evidence from LEAs, we estimate that where they do not these provisions will be cost-neutral. The initial start up costs will be balanced by the efficiency savings made through operation of schemes.


437.     The provisions will have very few manpower implications. There will be minimal change to the current framework of LEAs and schools. There may be small additional administrative costs to LEAs in the cost of running new competitions and the setting up of schools forums but it is not anticipated that these will involve the employment of extra staff. The effects of the new grant-making power will be neutral in manpower terms.

438.     We estimate there will be a need for up to five full-time equivalent staff for the Student Loans Company Limited in administering the repayment of teachers' loans.

439.     We do not at this stage envisage Ofsted's own staff numbers increasing as a result of the extra inspection work arising from the new rights of entry and the extension of the inspection of independent schools. This will fall to members of the independent teams who conduct contracted-out inspections and are employed by Ofsted's contractors. There is likely to be an increase in the number of inspection days (the costs of which are reflected in the section above on Effects of the Bill on Public Sector Finances), but not, at this stage, of inspectors themselves.

440.     The new SEN Tribunal for Wales will require up to five staff.

441.     The provisions on paying grant should lead to some reduction in the need for public sector manpower, in both central government and local government, if administrative mechanisms for the payment of grant can be streamlined. The anticipated audit requirements may lead to a small reduction in the audit effort required in LEAs as audits commissioned by schools under this provision will give initial assurance relating to all schools.


442.     A full Regulatory Impact Assessment of the costs and benefits of the Bill is available to the public from the Department for Education and Skills, Sanctuary Buildings, Great Smith Street, London, SW1P 3BT. The Bill will have minimal financial impact on the private, voluntary, and charitable sectors. The two main elements involving additional regulation are inspection of work-based learning and the regulation and monitoring of independent schools. Estimated costs are around £1million per annum inspection charges for those independent schools which do not belong to a professional association affiliated to the ISC, and £48,000 per annum for providers of work-based learning.


443.     Substantive provisions dealing with five subjects will come into force on Royal Assent. These are the powers of the Secretary of State to form companies, exclusions from PRUs, application of pay scale, student loans and LEA functions relating to qualifications.

444.     Clause 210 identifies the clauses which only the Secretary of State may commence (either because they only apply to England or because they are matters such as teachers pay and conditions where delegated powers have not been devolved to the NAW). It also identifies the clauses which only the NAW may commence (because they only apply in Wales). All other clauses may be commenced by the Secretary of State in relation to England and the NAW in relation to Wales. Commencement Orders (which do not require any parliamentary procedure - see clause 204(4)) may make general or specified provision, different provision for different purposes, and may contain transitional and savings provisions.


445.     Section 19 of the Human Rights Act 1998 requires the Minister in charge of the Bill in either House of Parliament to make a statement, before Second Reading, about the compatibility of the provisions of the Bill with the Convention rights (as defined by section 1 of that Act). The Secretary of State for Education and Skills has made the following statement:

     In my view, the provisions of the Education Bill are compatible with the Convention rights.


ACCAC      Awdurdod Cymhwysterau, Cwricwlwm ac Asesu Cymru

          (Qualifications, Curriculum and Assessment Authority for Wales)

ALI          Adult Learning Inspectorate

CA          Children Act 1989

CCTA          city college for the technology of the arts

CFR          consistent financial reporting

CST          Care Standards Tribunal

CTC          city technology college

EA 86          Education 1986

EA 96          Education Act 1996

EA 97          Education Act 1997

EAF          Education Action Forum

EAZ          Education Action Zone

ERA           Education Reform Act 1988

EU          European Union

EYDCP     Early Years Development and Childcare Partnerships

FE          further education

FHEA          Further and Higher Education 1992

GTC          General Teaching Council

HE          higher education

HMCI          Her Majesty's Chief Inspector

HMI           Her Majesty's Inspector

IEB           interim executive board

IST           Independent Schools Tribunal

LEA          local education authority

LSA          Learning and Skills Act 2000

LSC          Learning and Skills Council

NAW          National Assembly for Wales

NCETW      National Council for Education and Training (In Wales)

Ofsted          Office for Standards in Education

POCA          Protection of Children Act 1999

PRU          Pupil Referral Unit

QCA          Qualifications and Curriculum Authority

QTS           qualified teacher status

RE          religious education

SEN          special educational needs

SENDIST      Special Educational Needs and Disability Tribunal

SIA          School Inspections Act 1996

SLC           Student Loans Company Limited

SOC          School Organisation Committees

SSFA          School Standards and Framework Act 1998

STPCA      School Teachers' Pay and Conditions Act 1991

STRB           School Teachers' Review Body

THEA          Teaching and Higher Education Act 1998

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Prepared: 26 November 2001