16
Accepted
When we examined academy schools’ finances in March 2018, we were concerned that some academy...
Conclusion
When we examined academy schools’ finances in March 2018, we were concerned that some academy trusts appeared to be using public money to pay excessive salaries. We recommended that the Department should challenge all academy trusts that were paying 32 Q 92 33 Q 64; Committee of Public Accounts, Financial sustainability of schools in England, Forty-Second Report of Session 2021–22, HC 650, 4 March 2022 34 Academy schools sector in England: Consolidated Annual Report and Accounts for the year ended 31 August 2020, page 7 35 DfE guidance, Coronavirus (COVID-19) workforce fund to support schools with costs of staff absences from 22 November 2021 to 18 February 2022, January 2022 36 DfE guidance, School funding: exceptional costs associated with coronavirus (COVID-19) for the period from March to July 2020, December 2020 37 Q 59; Academy schools sector in England: Consolidated Annual Report and Accounts for the year ended 31 August 2020, page 18 38 Q 61; AAR0001 – Academies Sector Annual report and Accounts 2019–20, Catholic Education Service, 24 January 2022 14 Academies Sector Annual Report and Accounts 2019/20 excessive salaries and take action where these could not be justified.39 In its response, the Department agreed with our recommendation and explained that the ESFA continued to challenge where high salaries were awarded to ensure a robust evidence based approach had been followed.40
Government Response Summary
The government agrees with the implicit recommendation to address concerns about excessive salaries. It commits to new regulations under the Skills and Post-16 Education Act 2022 to prevent unsuitable trust leaders from moving, will launch a regulatory review in May 2022, and will provide a full response by September 2022.
Government Response
Accepted
Government Response
Accepted
HM Government
Accepted
6.1 The government agrees with the Committee’s recommendation. Target implementation date: September 2022 6.2 There is already a robust regime in place for prohibiting unsuitable individuals from participating in the management of independent schools, including academies. The government will also be making regulations under section 19(7)(c) of the Skills and Post-16 Education Act 2022 to prevent trust leaders judged to be unfit from moving to elsewhere in the education system. Where an individual is currently subject to a direction prohibiting them from participating in the management of an independent school they are also excluded from accessing a range of ESFA funding in accordance with the published Funding higher risk organisations and subcontractors policy. 6.3 In that document, the department has continued to improve its mechanisms for assessing the risk of trust failure. Furthermore, the Schools White Paper sets out plans for the better regulation of trusts, including a set of statutory standards underpinned by new intervention powers. The White Paper announced the launch of a regulatory review in May 2022 looking at all aspects of trust accountability and regulation. In conducting the review, the department will have regard to the issues raised by the Committee. The department will write to the Committee by September 2022 with a full response.
Source
Committee
Public Accounts Committee
Report
Forty-Seventh Report - Academies Sector Annual Report and Accounts 2019/20
25 Mar 2022
HC 994
Addressee Bodies
HM Treasury
Timeline
Recommendation age
4.3 yrs
Report published
25 Mar 2022