Public Expenditure - Children, Schools and Families Committee Contents


Examination of Witnesses (Questions 60-79)

DAVID BELL AND JON THOMPSON

25 JUNE 2008

  Q60  Fiona Mactaggart: What would you think about a school that moved in four years from one in 20 pupils getting five A to Cs, to half of the pupils getting five A to Cs, although not all of them getting English and maths? Would you think that that school was doing well?

  David Bell: I would think that that was a school that was on a positive upwards trajectory. I would, however, ask the question about English and maths. A school can be making that kind of progress but all the students may still not be achieving—even at that threshold of 30%—English and maths. I would deduce, in the hypothetical circumstance that you describe, that that was a school that would be well placed to move through the threshold and onwards. That is why we have been quite careful in how we described the National Challenge schools. We said that they will be in different categories. Some will be on that upward movement and are expected to be through and out of the National Challenge threshold, but others will require more significant support and help.

  Q61  Fiona Mactaggart: The school that I just described was on the National Challenge list and, like every school in Slough, has a large number of children for whom English is a second language and who therefore have additional challenges in satisfying the English requirement, compared with those in other local authorities. The head teacher e-mailed me in the last two days to say that parents who had put in to join the school next year—and in many ways it is truly improving—have pulled out, and are looking for other schools, because of the way the school has been categorised by being putting in the National Challenge. How carefully do you think about that at the point of publicising it? We are, of course, a selective local authority.

  David Bell: We thought carefully about the impact, but we also thought carefully about the need to ensure that all schools achieve the 30% minimum on the five-plus A to C grades. Frankly, from our point of view, that had to be the driving motivation. I happened to visit a school recently in a London borough which had also been in the National Challenge list, where they were telling a very positive story about the improvements they were making. It sounded similar to the one that you described. They were quite close to the threshold of the five-plus A to Cs and just saw this as the next step in the progress that they are making. Speaking to that head teacher, his view was, "How can we argue against setting a minimum threshold of 30% of the youngsters achieving five-plus A to C grades, with maths? That is what they need."

  Q62  Fiona Mactaggart: That was not a school in a place with grammar schools where 30% of the children are selected out.

  David Bell: It was a selective London authority and this was one of the secondary modern schools.

  Q63  Fiona Mactaggart: Is there a London authority which is 100% selective?

  David Bell: Not 100% selective, but this was a selective school in a selective authority.

  Chairman: I am minded to call Paul on this second section of questions, but do you want to ask a quick question, Andy, on something that has transpired?

  Q64  Mr Slaughter: Further to what Fiona was saying, and to see whether I have understood the deprivation issue, a substantial proportion—quite a noticeable percentage—of the schools grant is specifically dedicated to tackling deprivation. Are you saying that once that is allocated, whatever formula you use, you have very limited controls for determining either at LA (local authority) level or at the school level whether it is being properly applied? That is the first part of my question. Secondly, the main target outcome is presumably to improve educational performance, whatever the route to that is. Even if you are not able to control how the money is spent, are you able to assess whether it achieves the results you would expect? If it does not, what do you do then?

  Jon Thompson: I will say something about funding before we deal with achievement. The national system allocates the funds. It has various safeguards. Those safeguards do not specifically relate to deprivation. The safeguards relate, for example, to the fact that at the local level, 85% of the local formula must be driven by the number of pupils in the school. At one end there are some safeguards for children with particular special educational needs, or statements, which may attract funding, but that may well depend on the local formula. Some have thresholds at 10 hours and some have higher thresholds, so there is additional funding. We come back to the principle that the policy of the double formula system is that those are issues for local decision and local discretion to decide, to give maximum flexibility to local communities and to local schools about how to use the funding to achieve for local people. That is the principle of the system. We try to provide maximum flexibility to schools to use the funding in the way in which the local leadership, governors and head teacher wish to apply it.

  David Bell: If I follow the logic of the argument, it is for individual schools with their delegated budgets to decide how best to spend them, and our accountability mechanisms, principally through performance tables and the Ofsted system, will enable us to know how well they are doing. So that we are clear about it, the schools do not get into the kind of detail that you may have been hinting at, where you would ask, "What is the absolute connection between the amount of money spent and the outcomes achieved?". They tend to focus largely on the outcomes. We have measures of both the absolute outcomes—in other words, the percentage of children who are achieving 5 or more A to C grades—and the progress that the students have made. That is how the system works, from national Government right down to the level of the local school's accountability.

  Q65  Mr Slaughter: So you are trusting LAs to comply with Government targets, although LAs may have a completely different philosophy for using a substantial proportion—10% or so—of a school's grant. If they decide to use it in other ways, which clearly they sometimes do, there is not much that you can do about it. Is any frustration showing, for example, in the recent decision to give extra money to secondary modern schools? If you are going to give extra money to those schools, presumably on the basis that they are disadvantaged compared with grammar schools in their area, you could look at other areas that do not have that formal spilt, but where there clearly is a two-tier education system, perhaps between voluntary aided and community schools or simply due to the way that the LA has decided to organise itself, and you could do the same thing.

  David Bell: I have two quick comments, Mr Chairman. We are not trusting in a naive sense. We are trusting in the best sense. We are saying that those are the decisions that have to be made at local level, and that the various interests represented in the schools forum will get us to a position, we hope, where the funding is allocated according to the local priorities. At an individual school level, it has to be right, with our principles of delegation, that decisions about the allocation of funding are left to governors and senior staff. We would fund particular kinds of schools in particular circumstances through the National Challenge grant. The more general review of schools' funding arrangements is ongoing and, as I suggested to the Chairman earlier, that may be a subject for further discussion, once some ideas begin to emerge.

  Q66  Paul Holmes: To return briefly to what Fiona started asking you, the Institute for Fiscal Studies says that half the money that you allocate for children in poverty does not get to them in their schools, and your figure is a third. Either way, a significant chunk of money, which you think needs to be spent on children in poverty, is not getting to them. Both of you defend that by saying that it is important to have local flexibility in allocating funds, yet you go over the heads of those local authorities by providing all this extra money for the National Challenge and saying that those poor schools need lots of extra money.

  David Bell: We are saying in the National Challenge that we want all the local authorities working with the schools concerned to bring back their plans and ideas about how those schools would best be supported through the threshold and beyond. I think, as I said in response to Ms Mactaggart, that some schools will probably be very close to the threshold and will probably need very little additional support or other kind of intervention, while others will need substantially more intervention. I do not think that that is inconsistent with what we have done with previous programmes to support schools. We accept that there is a mechanism for funding the base level of every school in the way that we have described, but sometimes, in different circumstances, there will be a requirement for support over and above that. The two are not incompatible.

  Q67  Paul Holmes: But as a Department you say that you want lots of schools in every local authority area to come out of the local system altogether and be Academies or trust schools, totally independent and managing their own finances and all the rest. On the one hand you think it is important that local authorities and local schools work together and allocate the money, and on the other you say that you want as many school as possible to get out of that system.

  David Bell: I have two or three comments to make on that. First, those are going to be local decisions that schools will make. For example, we know that in a number of trusts and Academies there is an interest in partnership, with the local authority looking at its strategic role and saying, "What kinds of schools do we need in our area?", alongside the needs of particular institutions. I do not think, again, that it is an either/or. It is entirely consistent with our view that local authorities should not be principally concerned with direct provision. The leadership, management, day to day accountability and responsibilities lie at school level. What the local authority should be thinking about is how best to secure its basic responsibility, historically, to provide a sufficient number of places, and the much more modern responsibility that it now has to secure the best kind of education. I think that that is compatible. What we have done at the national level is to give local authorities, schools and others in local areas the choice of a variety of ways to organise themselves to achieve the best results for the youngsters in that area.

  Q68  Paul Holmes: I still do not see how that answers the point that I was making. You say that it is important for the local family of schools to divvy up the money according to local decisions, but you want hundreds of schools across the country, and many within each local authority area, to opt out and become self-managing financial trusts or Academies with no role to play within the local divvying up of money, because they have taken their cash and gone.

  David Bell: It is important to say—the National Audit Office confirms this—that we do not provide any significant advantage to schools in any particular category. Trust schools within the maintained system will obviously still be in the Schools Forum discussions and so on, but the budget shares relevant to Academies have to be tied to the decisions made locally. They cannot skew all that funding because of the choices that they have made. Some of them have not made such choices. Becoming an academy, obviously, is less of a choice than a self-governing school or a trust school would have, but nobody gets an added advantage by being in a particular category.

  Q69  Paul Holmes: Some of the figures on funding for Academies do not agree with that. Academies certainly get more per pupil in the first five years, when funding is protected. However, we will leave that for the moment. If, for example, a grammar school becomes a trust—if it now takes its own cash out of the pot and does what it likes—how will you ensure that it works in partnership with local secondary moderns? It is a trust. It is there to manage itself. Its only interest is looking after itself.

  David Bell: A number of schools, grammar schools included, already work with other schools. We have been quite clear that the trust arrangements are a mechanism by which schools in one area—perhaps stronger schools, but sometimes not—will work with each other to provide the best kind of education. A number of grammar schools that were historically grant-maintained schools have now become foundation schools. They get their funding fair share, but as we said, under National Challenge—as we said in a number of our recent programmes, we want to move increasingly to a system where schools feel a responsibility to work with other schools in what they do. There are many hundreds of examples of schools working together, whether they are grammar schools working with other schools in the area, comprehensive schools working together, Academies or whatever. There are many examples of schools working together, whatever the circumstances.

  Q70  Paul Holmes: But there is no way that you can require that. Once the trust or the academy is up and running, you cannot require it to do anything.

  David Bell: Certainly, in terms of the approval of trust arrangements and the funding agreements for Academies, we are clear about the responsibilities to others, but the same would be true of maintained community schools. In the end, we cannot sit in central Government and say, "If you're a community school in a particular area, you are required to do the following." Again, it goes back to the principle of local choice. The vast majority of head teachers have their first responsibility towards the pupils in their own school, but they want to look outwards. They want not just to assist the students in their own school but, as part of their local leadership role, to support other students in what they are doing.

  Chairman: David has been very noble in holding back on his question about National Challenge, because we want to look at efficiency savings and productivity. Because of time constraints, I now call Graham on that.

  Q71  Mr Stuart: I am trying to square your opening remarks to the Committee with the facts in front of us. Since 2000, there has been a massive increase in expenditure on education, yet the Chief Inspector of schools tells us that standards have pretty much stalled since then. I do not see how we can square those facts with your opening remarks, which seemed to suggest that significant and satisfactory progress was being made.

  David Bell: The Chief Inspector, of course, is right that we have not seen the rate of progress that we saw in the earliest period. However, it is worth pointing out that last year we saw the best ever achievement by youngsters at 16 in their GCSEs, and we saw the highest ever level of attainment among 11-year-olds. The Chief Inspector rightly pointed out that the rate of progress has been slower, and it is easy to try to explain that away, although I would not. Some would say, "Of course, it gets more difficult if you set higher and higher targets. You move into circumstances under which more children might find it harder to achieve." We set those ambitious targets partly because if all schools achieved even what the top half achieve, we would be close to, or exceeding, our targets. We have not plucked them out of the air. We recognise that in recent years we have not made the progress that we should have made, or at the same pace, which is why a number of programmes are in place to keep pushing the pace. But let us not undermine the significant efforts and continuing improvements of recent years.

  Q72  Mr Stuart: Nobody would want to undermine the significant efforts, but let us combine the chief inspector telling us that standards have stalled with the progress in international reading literacy study and programme for international student assessment showing that we appear to have fallen down, at a time of an astonishing explosion in expenditure on education stewarded by your Department. I still struggle to understand how you work out that overall the Department's performance has been good. Undeniably there has been great political will on the part of the Government to put in place the resources and to see outcomes, but I and the Committee, I think, struggle to see how the Department has delivered a real return on the vast increase in expenditure put in place by Ministers.

  David Bell: I could demonstrate that in a number of ways. For example, about a decade ago, the percentage of 11-year-olds achieving the required level was in the high 50s, but last year it was in the high 70s. The number of schools failing was well into four figures, but we are now well below that—in the low 100s. The attainment of 19-year-olds, at Level 2—the five-plus A to C equivalent—has improved substantially.

  Q73  Mr Stuart: There are questions about whether you are measuring the same things. We have just written a report on testing and assessment suggesting that the narrowing of the curriculum and the teaching to tests has led to an apparent improvement, but that is not the same as a real improvement, although no one, least of all this Committee, would deny that there have been improvements in a number of areas. Owing to the high stakes and pressures on institutions, they have had to deliver and have learned how to work the system so that statistically their schools and institutions meet the supposed higher standards, without necessarily improving the learning experience

  David Bell: I obviously read with great care your report on Testing and Assessment, and we shall respond in due course, although I hope not at 7.20 pm on the day before a sitting. The issue about testing is slightly separate, and I would challenge the argument that we might have achieved those improvements by narrowing the curriculum. The vast majority of schools use the greater curriculum flexibility now available to organise the curriculum to meet the needs of students. Furthermore, we should not apologise for students being better prepared for achieving more, whether at aged 11 or 16. The argument goes that youngsters are being taught to the test at age 11. Clearly, if that resulted in a complete narrowing of the curriculum, it would be worrying, but we know that if a child achieves Level 4 at age 11—the expected level for an 11-year-old—they have a far greater chance of achieving the five A to C grades later on. It is important, therefore, to maintain that focus on student attainment. On the statistics, the measures on English and mathematics were introduced partly in recognition of the fact that, despite the undoubted achievements and qualifications that youngsters were acquiring in other areas, English and maths form an important bedrock of future success. We have tried to adapt and change our requirements. Some people call that raising the bar, but perhaps for the reason you just cited in relation to international comparisons, we have to keep raising the bar, we have to keep demanding more if we are to ensure that our youngsters are well educated.

  Q74  Mr Stuart: Yet at a time of massive increase in expenditure—education, education, education, as the Chairman of the Committee said, is the leading light of the Government—we have fallen down the league tables, our performance standards have stalled and huge revenues have been spent. I find it impossible to square those facts with your opening remarks. Has there been a fall in productivity from 2000 to 2007?

  David Bell: According to the ONS survey, there was a 0.7% fall in productivity.

  Q75  Mr Stuart: Each year from 2000 to 2007?

  Jon Thompson: As the Chairman said earlier, between 2000 and 2006, the ONS conclusion was that productivity fell by 0.7%

  Q76  Mr Stuart: I think it was 2007, so it was a long time. There was a year on year productivity fall at exactly the time that massively increased resources were put in. In the private sector, you would expect the exact opposite. You would expect, when you get a major investment opportunity, to deliver accelerated productivity improvement. How is it that your Department and its predecessor so significantly failed to deliver on what we would naturally expect?

  Jon Thompson: As I understand the maths of the national statistics survey, it says that for the significant increase in inputs, there has been an almost matching significant increase in outcomes—as David said, significant rises in GCSE results and at age 11 and so on. The two are very closely linked, but when you do the exact maths, what you find is that productivity falls, but the graph essentially shows both increasing at a substantial rate. The productivity, therefore, remains pretty flat.

  Q77  Mr Stuart: A fall of 0.7% each year for seven years is a significant fall. When we look at the bigger issue outcomes, picking up on Fiona's remarks earlier, many of us are interested in those who, because of deprivation or for other reasons, have historically been failed by the system. We want to see opportunity genuinely delivered to all. Looking at outcomes, we would look at NEETs, for instance. We want to get around possibly manipulable or alterable examination results. Maybe standards have been diluted, or maybe they have not. It is hard to tell. Let us look at real outcomes, at those at the bottom who end up not in education, employment or training. At a time of a strong economy and vast expenditure on education, how is it acceptable and how is it compatible with your opening remarks, to see that, if anything, the number of people in that position between 16 and 18 has increased, and certainly not dropped, in the 12th year of this Government?

  David Bell: You are absolutely right to comment on the data in the report, but recently published statistics have shown a recent fall. That is not encompassed by the report.

  Mr Stuart: In one quarter.

  David Bell: There is no denying the fact that youngsters who are not in employment, education or training present a very substantial demand. One reason we have tried to enhance what we have done, for example in the September period, the so-called September guarantee, is to give them the best opportunity possible. It is interesting to do the analysis. When you look at the breakdown between 16 and 18, not surprisingly there are more 18-year-old NEETs than there are 16 and a half or 17-year-olds. That gives us grounds for optimism, because it suggests that the majority of youngsters in that category are not choosing to opt out of any kind of education or training immediately after they leave school. What is happening is that the right kinds of opportunities may not be sustained for them. I cannot pretend that this is a straightforward, simple issue at a time when the economy is tightening and when there are all sorts of labour market pressures, but we are seeing some fall in the number of youngsters in that category, not reported, as you point out, in the Departmental Report. There is very vigorous activity on our part, in local government, in the Connexions service and others to find the best opportunities, so we do not end up with those young people as NEETs.

  Q78  Mr Stuart: I suppose that what I am trying to get at is that, regardless of the percentage of people getting GCSEs, the major effort and focus has been to try to deliver for those at the bottom and tackle deprivation, because they were not getting a fair crack in life. If you look at whether young people have been given the skills and confidence to succeed, that bottom group has not moved a whit at the end of this sustained period and vast amount of expenditure. If you wanted to look at one measure of the results for your Department, particularly for those from deprived backgrounds, would NEETs not be a pretty good one to look at?

  David Bell: That is a good measure to look at. It is moving in the right direction, but it is moving slowly. I do not think that anyone—

  Q79  Mr Stuart: It is not moving in the right direction overall, is it? It might have done in the last quarter, but it went up in 2006 and down slightly in 2007. That is the general picture, at a time of high employment and before the credit crunch and all the rest of it bites. Do you have an estimate of where we could go if we have a tough time for the next two years? I feel for those who are Labour Ministers if, at the next general election, after spending all that money for the people whom they most wanted to help—those at the bottom, on the basis that the bright kids from the best family backgrounds generally get on okay anyway—for the people for whom they really wanted to deliver a change, they end up with much worse statistics. That has got to be at least possible if there is a downturn at the bottom. If that were the case, would it not be a devastating indictment of the performance of your Department?

  David Bell: If it were the case that the figures continued to go upwards, you would be right in your conclusion. We are trying to ensure that for those youngsters who are in the most difficult circumstances, having left school not ready to progress into something else, we are doing all that we can to provide the right kinds of opportunities for them at the age of 16, through a range of projects and programmes. It is interesting that one of the consequences of more youngsters doing well in the system is that for those who do not do well, it almost becomes sharper and more extreme. If you look back over the last decade or so, what can be described as the entry-level requirements for almost any occupation have increased. We know that that situation is going to get better—or worse, depending on how you look at it. It gets better the more youngsters acquire more qualifications, but worse for those who do not have them. Trying to capture those youngsters in the September, before they fall out and get into the habit of falling out and staying out, is therefore important. This is not an issue that can move quickly or easily. That is why it is very important that the commitment to raise the participation age is there, to enable all the youngsters to benefit from further education and training.



 
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