Academies Bill [HL]

House of Commons

Session 2010 - 11
Internet Publications
Other Bills before Parliament

Academies Bill [HL]

Academies Bill [HL]
1

[NOTE: The words marked in bold type were inserted by the Lords to avoid
questions of privilege.]
A
Bill
To
Make provision about Academies.
Be it enacted by the Queen’s most Excellent Majesty, by and with the advice and
consent of the Lords Spiritual and Temporal, and Commons, in this present
Parliament assembled, and by the authority of the same, as follows:—
Academy arrangements
1
Academy arrangements
(1)
The Secretary of State may enter into Academy arrangements with any person
(“the other party”).
(2)
“Academy arrangements” are arrangements that take the form of—
5
(a)
an Academy agreement, or
(b)
arrangements for Academy financial assistance.
(3)
An Academy agreement is an agreement between the Secretary of State and the
other party under which—
(a)
the other party gives the undertakings in subsection (5), and
10
(b)
the Secretary of State agrees to make payments to the other party in
consideration of those undertakings.
(4)
Academy financial assistance is financial assistance given by the Secretary of
State under section 14 of EA 2002 on terms that require the other party to give
the undertakings in subsection (5).
15
(5)
The undertakings are—
(a)
to establish and maintain an independent school in England which—
(i)
has characteristics that include those in subsection (6), or
(ii)
is specially organised to make special educational provision for
pupils with special educational needs;
20
(b)
to carry on, or provide for the carrying on of, the school.
(6)
The characteristics are that—

Bill 57
55/1

Academies Bill [HL]
2

(a)
the school has a curriculum satisfying the requirements of section 78 of
EA 2002 (balanced and broadly based curriculum);
(b)
if the school provides secondary education, its curriculum for the
secondary education has an emphasis on a particular subject area, or
particular subject areas, specified in the arrangements;
5
(c)
the school provides education for pupils of different abilities;
(d)
the school provides education for pupils who are wholly or mainly
drawn from the area in which the school is situated.
(7)
Academy arrangements in relation to a school within subsection (5)(a)(i) must
include provision imposing obligations on the proprietor of the school that are
10
equivalent to the SEN obligations.
(8)
“The SEN obligations” are the obligations imposed on governing bodies of
maintained schools by—
(a)
Chapter 1 of Part 4 of EA 1996 (children with special educational
needs), and
15
(b)
regulations made under any provision of that Chapter.
(9)
Academy arrangements must include terms imposed for the purpose of
securing that no charge is made in respect of—
(a)
admission to, or attendance at, the school, or
(b)
(subject to any exceptions specified in the terms) education provided at
20
the school.
(10)
A school to which Academy arrangements relate is to be known as an
Academy.
2
Payments under Academy agreements
(1)
Payments under an Academy agreement may be in respect of capital or current
25
expenditure.
(2)
So far as payments under an Academy agreement relate to current
expenditure, the agreement must provide for them to continue (subject to other
requirements of the agreement being fulfilled)—
(a)
for at least 7 years, or
30
(b)
indefinitely, but terminable by the Secretary of State giving at least 7
years’ written notice.
(3)
If an Academy agreement makes provision for payments in respect of capital
expenditure, the agreement may provide for the repayment to the Secretary of
State, in circumstances specified in the agreement, of sums determined in
35
accordance with the agreement.
(4)
An Academy agreement may provide for indemnifying a person, in the event
of the Secretary of State terminating the agreement, for expenditure—
(a)
incurred by the person in carrying out the undertakings under the
agreement, or
40
(b)
incurred by the person (otherwise than by virtue of subsection (3)) in
consequence of the termination of the agreement.
(5)
In Schedule 1 to the School Finance (England) Regulations 2008, after

Academies Bill [HL]
3

paragraph 8 insert—
“8A.
Where a child is a registered pupil at an Academy, expenditure in
respect of services for making provision for pupils with low
incidence special educational needs or disabilities.”
(6)
Where a local authority fails to secure satisfactory provision for pupils with
5
low incidence special educational needs or disabilities, the Secretary of State
may make alternative arrangements.
Conversion of schools into Academies
3
Application for Academy order
(1)
The governing body of a maintained school in England may apply to the
10
Secretary of State for an Academy order to be made in respect of the school.
(2)
In the case of a foundation or voluntary school that has a foundation, this is
subject to subsections (3) and (4).
(3)
The governing body of a foundation or voluntary school that has a foundation
must consult the foundation before making an application under this section.
15
(4)
The governing body of a foundation or voluntary school that has a foundation
may make an application under this section only with the consent of—
(a)
the trustees of the school, and
(b)
the person or persons by whom the foundation governors are
appointed.
20
(5)
Expressions used in subsections (2) to (4) and SSFA 1998 have the same
meaning as in that Act.
4
Academy orders
(1)
The Secretary of State may make an Academy order in respect of a maintained
school in England if—
25
(a)
the governing body of the school make an application under section 3,
or
(b)
the school is eligible for intervention (within the meaning of Part 4 of
EIA 2006).
(2)
An Academy order in respect of a school is an order for the purpose of enabling
30
the school to be converted into an Academy.
(3)
A maintained school is “converted into” an Academy if Academy
arrangements are entered into in relation to the school or a school that replaces
it.
(4)
If an Academy order is made in respect of a school, the Secretary of State must
35
give a copy of the order to—
(a)
the governing body and head teacher of the school, and
(b)
the local authority.
(5)
If, after an application has been made under section 3, the Secretary of State
decides not to make an Academy order in respect of a school, the Secretary of
40
State must inform the following of the decision and the reasons for it—

Academies Bill [HL]
4

(a)
the governing body and head teacher of the school, and
(b)
the local authority.
(6)
Despite section 568(1) of EA 1996 (orders to be made by statutory instrument)
(as applied by section 17(4) of this Act) the power of the Secretary of State to
make an Academy order is not required to be exercised by statutory
5
instrument.
(7)
An Academy order may include incidental, consequential, supplemental and
transitional provision.
5
Consultation on conversion
(1)
Before a maintained school in England is converted into an Academy, the
10
school’s governing body must consult such persons as they think appropriate.
(2)
The consultation must be on the question of whether the school should be
converted into an Academy.
(3)
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.
15
6
Effect of Academy order
(1)
This section applies if an Academy order has effect in respect of a school.
(2)
The local authority must cease to maintain the school on the date (“the
conversion date”) on which the school, or a school that replaces it, opens as an
Academy (“the Academy”).
20
(3)
If the school is a selective school, section 1(6)(c) (requirement to provide
education for pupils of different abilities) does not apply in relation to any
Academy arrangements to be entered into in relation to the school or a school
that replaces it.
(4)
For this purpose a school is a “selective school” if its admission arrangements
25
make provision for selection of pupils by ability, and—
(a)
its admission arrangements are permitted to do so by section 100 of
SSFA 1998 (permitted selection: pre-existing arrangements), or
(b)
the school is designated under section 104 of SSFA 1998 (designation of
grammar schools).
30

Section 99(5) of SSFA 1998 applies for the purposes of this subsection as it
applies for the purposes of Chapter 2 of Part 3 of SSFA 1998.
(5)
The relevant independent school standards are to be treated as met in relation
to the Academy on the conversion date.
(6)
“The relevant independent school standards” are the independent school
35
standards (as defined in section 157(2) of EA 2002) that are applicable to the
Academy on the conversion date.
(7)
Subsection (8) applies if the school is a foundation or voluntary school which
is designated by order under section 69(3) of SSFA 1998 as a school having a
particular religious character.
40
(8)
The Academy is to be treated, on the conversion date, as designated by order
under section 69(3) of SSFA 1998 as an independent school having that
religious character.

Academies Bill [HL]
5

(9)
Nothing in any of the following provisions applies in a case where a local
authority cease to maintain a school as a result of an Academy order—
section 30 of SSFA 1998 (notice to discontinue school);
sections 15 to 17 of EIA 2006 (procedure for discontinuance of schools).
7
Transfer of school surpluses
5
(1)
This section applies if—
(a)
an Academy order has effect in respect of a school,
(b)
the order was made following an application under section 3, and
(c)
the school is to be converted into an Academy.
(2)
The local authority must determine—
10
(a)
whether, immediately before the conversion date, the school has a
surplus, and
(b)
if so, the amount of the surplus.
(3)
The local authority must pay any amount determined under subsection (2)(b)
to the proprietor of the Academy, subject to the provisions of regulations under
15
subsection (4).
(4)
Regulations may make provision in connection with the determination and
payment of the amount of a surplus under this section.
(5)
Regulations under subsection (4) may in particular include provision—
(a)
requiring the local authority to inform the proprietor of the
20
determinations under subsection (2);
(b)
authorising the proprietor to apply to the Secretary of State for a review
of those determinations;
(c)
about the procedure for, and the Secretary of State’s powers on, any
such review;
25
(d)
about the effect of any such review on the amount required to be paid
by the local authority to the proprietor (including provision requiring
repayment of sums by the proprietor or the payment of additional
sums by the local authority);
(e)
about the time limits for doing anything required or permitted to be
30
done under this section or the regulations.
(6)
For the purposes of this section—
(a)
a school has a surplus immediately before the conversion date if, at that
time, there is an amount made available by a local authority to the
school’s governing body (under section 50 of SSFA 1998 or otherwise)
35
that has not been spent by the governing body or the head teacher;
(b)
the amount of the surplus is that amount.
(7)
For the purposes of subsection (6), the amount which, immediately before the
conversion date, has been made available to a school’s governing body must
be calculated taking into account any relevant redetermination for the funding
40
period in which the conversion date falls.
(8)
In subsection (7)—
“funding period” has the meaning given by section 45(1B) of SSFA 1998;
“relevant redetermination” means a redetermination of the school’s
budget share which is required in accordance with regulations under
45
section 47 of that Act.