Small and Village School Funding

Just before we start the next debate, there are a lot of colleagues here, and it would be very helpful if, through a note, those who have not already written expressing a wish to speak could let me or the Clerk know, so that I can make sure that no colleagues are disappointed.

I beg to move,

That this House has considered funding for small schools and village schools.

It is a pleasure to serve under your chairmanship, Sir David. This debate is about two things that overlap but are not the same: small schools and village schools. My focus will be firmly on primary schools. About a fifth of schools are in villages, and on average they have just over 100 pupils, compared with an average of about 400 for schools in large cities. These village schools are good schools; only about 8% are not “good” or “outstanding”, compared with 11% nationally and about 15% in towns and small cities. They are also much-loved institutions, at the heart of their community, and they are where the community gathers for special occasions. Just the other day I was at the Church Langton Primary School fête watching the children do some intense Japanese drumming. I could equally have been at the Foxton family fun day or any number of other wonderful occasions in my constituency.

Village schools are also where people meet each other and the community organises. For example, the campaign for a road crossing in Lubenham in my constituency is being spearheaded by the children of Lubenham Primary School, and I am being bombarded by their very neatly handwritten letters. It is no wonder that people feel that a village loses its heart if it loses its school.

I congratulate my hon. Friend on securing the debate. Like his constituency, Cornwall has many village schools. They make sure that our villages survive, because by having the school there, a younger generation of people come into the village, renewing its life. Without those schools, there is a real risk that those villages could become dormitory towns for second homes or for people who have retired.

My hon. Friend is completely correct. However, rural schools, partly because they are small schools, have been much more likely to close in recent years. I thank the Department for Education for the historical data it provided to me on this, and Pippa Allen-Kinross at Schools Week for helping me to analyse it. Since 2010, 61% of schools that have closed and not reopened in another form have been rural schools, meaning that rural schools have been twice as likely to shut as urban ones. Since 2000, 150 rural primaries have closed.

I thank the hon. Gentleman for bringing the debate. What he outlines in his constituency and other parts of the United Kingdom mainland is replicated in Northern Ireland. I know that the Minister does not have responsibility for this, but for the record, is the hon. Gentleman aware that since September 2010, 98 of the 230 schools that closed in Northern Ireland—42%—were rural, according to Schools Week analysis? Does he recognise the difficulties that creates for rural dwellers and socially isolated children?

The hon. Gentleman is completely correct. This challenge affects all of the United Kingdom. For rural schools that closed, the average walk to the next nearest school is 52 minutes, which in practice means driving or getting a bus. There is a cost to the taxpayer for this transport, and a cost to parents and children for driving a long way, so there are all kinds of reasons why we should want to preserve our village schools.

I will turn to small schools more generally, including those in urban areas. I am grateful to the House of Commons Library for digitising older data for me that revealed a dramatic transformation in the scale of our schools over recent decades, and a decline in the number of small schools. The number of pupils at state primary schools in England is roughly the same as in 1980, but the schools that they attend are completely different. In 1980 there were 11,464 small primary schools with fewer than 200 pupils, but in 2018 there were just 5,406. The number of such schools has halved over the decades.

In contrast, in 1980 there were 949 large primary schools with more than 400 pupils, but in 2018 there were more than 4,000, so the number of large schools has quadrupled. The number of really big primaries with more than 600 pupils increased from 49 to 780, while there are now more than 100 what I call “super jumbo” primary schools with more than 800 pupils, which often have playtimes in shifts and hundreds of staff. This is a huge change in the nature of our primary schools, and it is visible in Scotland, Wales and Northern Ireland too. In fact, since 2002 Wales has seen the most dramatic decline in the number of small schools, followed by the north-west and Yorkshire.

This huge change in our primary schools has come about without any real discussion or political choice. It seems to me a move away from the natural small scale for small children, and there is no obvious policy rationale for it. Small schools are not bad schools. Schools with 200 pupils or fewer are just as likely to be “good” or “outstanding” as other schools. In fact, schools with fewer than 100 pupils, which account for about one in eight schools, are more likely than average to be “good” or “outstanding”, so this is not about academic standards.

Is another problem with the national funding formula that the system of gains, caps and floors—in place for transitional reasons, which we all understand—compounds historical unfairness? While 3% of a very small budget is still quite limited, 1% of a very large budget is still quite a lot for those schools to enjoy.

I think my hon. Friend is correct, and I think we both want to see a faster transition to a fairer overall settlement. However, I want to focus on the point about the lump sum.

Leicestershire County Council was historically a strong supporter of small schools and had a lump sum of £150,000 per primary school. In the national funding formula, that is only £110,000. When consulting on the national funding formula, the DFE acknowledged that that number was lower than the average for most local authorities. As local authorities converge on the national funding formula, as they should, the pressure on small schools may intensify. The proportion of the core schools budget going through the lump sum declined in the last year, and the gap between income and expenditure is much smaller for small schools, indicating a financial pressure. In fact, larger schools have about twice as much headroom per pupil. Small schools are definitely feeling the pinch.

I hope and expect that, under the next Prime Minister, we will see a big increase in school funding. A good way of delivering that would be to increase the lump sum within the national funding formula. About a fifth of primary schools get more than 20% of their income from the lump sum, and for them an increase could make the difference between staying afloat and closing. There has been some discussion about increasing sparsity funding as an alternative, but I am a bit sceptical. Fewer than 6% of primaries get sparsity funding, and only 1% get the full amount; a number of small schools in my constituency that are under pressure would not be eligible. That is one reason why only a third of local authorities have included a sparsity element in their local formulas. Increasing the lump sum, if I could beg the Minister to do that, would be simpler and better. For a little more than £800 million, we could take the lump sum back up to £150,000 and get my village schools back to where they were.

I congratulate my hon. Friend on securing the debate. I support his last point. One of my local authorities, North Lincolnshire Council, made a policy decision not to close any small schools, so the schools in my constituency with 45 or 50 children will remain open. However, the key issue that my local authority has asked me to raise with the Minister is the core funding costs. Admin costs, in particular, for a small school of 46 or 50 children are not dissimilar to those for a school of 100 to 150 children, because the same admin function is still needed. I therefore think that the point my hon. Friend the Member for Harborough (Neil O’Brien) is making is really important, and I want to offer him my full support and say that it is exactly the same point that my local authority is concerned about.

I thank my hon. Friend. He is right and has brilliantly teed up something that I intended to say: the future for small schools and rural schools can be very bright. There are two reasons for that. One is that more and more people want to live in villages, and technology allows people to do that and work from home, rather than having to live in a major city. The other reason is the growth of multi-academy trusts—rather an ugly phrase for families of schools. The growth of those families of schools is enabling small schools in effect to combine the advantages of being a small school—the human scale and the connection to the community—with the advantages of being part of something bigger, which are being able to share resources, people and back-office functions and to learn from one another. Therefore, if we get behind them, village schools can have a really bright future.

I was in one such school just the other day in South Kilworth in my constituency. In many ways, it was a very traditional scene. I was watching the new school hall being built, thanks to school condition improvement funding, and the children were practising their maypole dancing. The fields were ripening around us and the sun was shining. It was a beautiful scene. We could have been time travelling, but that school is a modern school. It is part of a family of schools, which are helping one another to improve. It is a really good school and exactly the sort of thing that we want to keep in our communities. There are these very exciting opportunities opening up for small schools, but we need the Minister’s help to relieve the financial pressure on them if we are to fully achieve the potential of small and village schools.

Order. The winding-up speeches will start at 5.15 pm, so there is about five or six minutes per person.

It is a pleasure to serve under your chairmanship, Sir David, and I congratulate the hon. Member for Harborough (Neil O’Brien) on securing this important debate. My constituency has two secondary schools with fewer than 200 pupils, 10 primary schools with fewer than 50 and, by my reckoning, three primary schools with fewer than 30 pupils. They are all really good schools. They are small because the area that they serve is sparsely populated and we live huge distances away from one another. However, small schools are enormously vulnerable.

If a school with a decent-sized population to serve has a bad Ofsted report or a difficult period of leadership, or if there is a dip in the birth rate, that does not kill it, but if a small village school that is absolutely vital experiences any one of those things, that could be the end of it, and the damage to the community is immense. Just two summers ago, we lost Heversham Primary School, which had once had 60 kids. It had a period of difficulty, went down to 11 or 12 kids and was closed. The ongoing damage to that village and its community is huge. Small schools are vulnerable, yet utterly vital.

In my time in Parliament, and in my time as a parent, a local school governor and what have you, and as somebody who worked in education, in teacher education, for many years, I have never known schools’ budgets to be as tight as they are today, particularly for small schools, because they do not have the wherewithal to get through difficult periods. I think that what happens is that because headteachers keep quiet, the Government take advantage. Headteachers keep quiet for two reasons. First, teachers do not like to get overly political by talking about the level or lack of funding that their school has to cope with.

Also, headteachers do not want to risk any competitive advantage that they have. If I, as a headteacher, say that I have had to sack three teaching assistants this year, pupils or parents looking at my school will think, “Well, I’ll go somewhere else instead.” I think that all of us, but particularly the Government, take advantage of headteachers’ perfectly understandable reticence about talking about the state of play at the schools they serve so admirably.

It is a pleasure to serve under your chairmanship, Sir David. I congratulate my hon. Friend the Member for Harborough (Neil O’Brien) on securing this important debate. Access to a high-quality, fulfilling education should not be based on geography. Children do not choose where they live and grow up, so it should never be a barrier to their fulfilling all their ambitions.

The Government have taken important steps to level the playing field through the national funding formula. I recognise that. It moves us towards rebalancing some of the disparities in the old system. We are moving away from more than 100 different funding models across the country, which meant that there was little fairness and no transparency whatsoever. The national funding formula allocates an increase in funding for every pupil in 2018-19; and for the historically underfunded schools, such as those in West Sussex, increases could not have come sooner.

The changes to the funding model will ensure that funding is provided in a more balanced way across the country, not least because for the first time the money that schools receive is comparable across counties and local authorities. However, a key challenge for rural schools, both in West Sussex and across the country, is pupil numbers. This is a more precarious funding model for rural small schools, as there can be significant annual variation in the number of children coming into each year. Some schools have become very worried when just one family are moving out of the area, as they rely on every single child for income.

In areas where there are armed forces personnel, such as my constituency, it can be a real problem if, when they are deployed overseas or sent to different parts of the country, the family moves from a small school. It seems very unfair, when people are serving their country and doing the right thing, that the primary schools are adversely affected in that way.

That is a very good point. I had not thought of it, but of course in that kind of area there will be a massive impact as children move from place to place.

I am aware that, for the most isolated schools, the new funding formula has a sparsity factor that aims to provide some funding certainty for rural schools, but as my hon. Friend the Member for Harborough said, very few schools actually qualify for that. It does not cover the financial needs of these schools.

The fixed sum for primary schools in West Sussex has dropped from £150,000 to £110,000, so each rural primary school needs to find more than 12 new pupils to keep the same level of funding as they had. That is incredibly difficult, because it is not possible to get 12 new pupils from these areas. The challenge is on top of the fact that the Chichester district is the fifth lowest funded local authority for primary and the sixth lowest funded for secondary. In the Chichester district, many of our schools fall within the South Downs national park, where new homes are not being built; they are few and far between. That only exacerbates the pressures on our precious rural schools. At Harting Church of England Primary School, the headteacher now predicts the future intake based on families living in the village and surrounding areas, and it will continue to decrease. That is a problem.

I understand that many rural small schools are now taking on a greater quantity of children with special educational needs and complex behavioural issues who have often been excluded from other schools. They do that to bolster numbers, because each child brings with them a pocket of funding. Although that funding allows schools to keep their doors open, it does not cover the subsequent additional support that these schools need from teaching assistants.

I recognise that funding for special educational needs has risen from £5 billion in 2013 to £6.3 billion this year. However, schools still face challenges in addressing the rising levels of special educational need, not least in West Sussex, where 13.5% of all pupils require SEN support, which is well above the national average of 11.6%.