Academies in poorly-funded areas face cash crisis
Chairman of the F40 campaign said some schools may go bankrupt
Your support helps us to tell the story
From reproductive rights to climate change to Big Tech, The Independent is on the ground when the story is developing. Whether it's investigating the financials of Elon Musk's pro-Trump PAC or producing our latest documentary, 'The A Word', which shines a light on the American women fighting for reproductive rights, we know how important it is to parse out the facts from the messaging.
At such a critical moment in US history, we need reporters on the ground. Your donation allows us to keep sending journalists to speak to both sides of the story.
The Independent is trusted by Americans across the entire political spectrum. And unlike many other quality news outlets, we choose not to lock Americans out of our reporting and analysis with paywalls. We believe quality journalism should be available to everyone, paid for by those who can afford it.
Your support makes all the difference.Academies in poorly funded areas of the country could face bankruptcy, according to a cross-party campaign group for a fairer financial system for schools.
Ivan Ould, chairman of the F40 campaign that represents the lowest-funded education authorities in England, issued the stark warning at a meeting of his executive committee earlier this month. “Problems with the EFA [Education Funding Agency] are beginning to manifest themselves, and it is not too unrealistic to anticipate school bankruptcies at some point,” said Mr Ould, according to the minutes of the meeting.
The fear is that individual, or “single converter”, academies that are not part of a wider chain nor financially linked to a local authority. Without that link, it is not clear how an academy would be rescued should it start losing money.
They could possibly turn to the EFA, which distributes money for state education, but some members of the F40 argue the body is not working properly.
For example, a Public Accounts Committee report last year found that the EFA’s work had “expanded rapidly” in recent years and had struggled to maintain “proper oversight” of whether the money is well spent.
Mr Ould said yesterday: “What happens to a single converter academy when it goes into deficit? Who bails it out? Some schools could end up operating on a deficit model.”
More broadly, the F40 has proposed changes to the schools funding model so that money is spread across the country more evenly. Mr Ould is a Conservative councillor in Leicestershire, for years one of the lowest funded local education authorities.
The Conservatives have broadly agreed to reform, and the coalition acknowledged the problem by giving the poorest schools £390m of extra money last year. Mr Ould is due to meet education minister Sam Gyimah this week to discuss potential changes
A Department for Education spokesman said: “Academy trusts operate under a strict system of oversight and accountability, which means any issues are identified and that we can take swift action.”
Join our commenting forum
Join thought-provoking conversations, follow other Independent readers and see their replies
Comments