Why Labour should not embrace free schools

Andrew Adonis is wrong to argue that free schools do not favour the better off.

Andrew Adonis’s argument in the New Statesman last month that Labour should embrace free schools is selective, outdated and, in part, simply wrong.

In reality, free schools do not have the comprehensive and inclusive intake he claims. The catchment areas of the first 24 free schools tend to favour the better off, and consequently are populated by "middle class suburban people” according to research by the market analysts CACI. All of them take fewer children on free school meals than surrounding schools. At the West London Free School, for example, 23 per cent of pupils are eligible for free lunches, compared with 32 per cent in the five neighboring schools.

This is not an accident – it is inherent in the free schools model. The pattern has also emerged in Sweden, which pioneered free schools, where evidence suggests that free schools increase social segregation because they are, according to the Swedish Education Minister “generally attended by children of better educated and wealthy families making things even more difficult for children attending ordinary schools in poor areas.”

This backdoor selection is sanctioned by the Secretary of State, who says free schools must adhere to the admissions code, but allows "agreed variations", which have only been made public in response to freedom of information requests.

The problem with focusing only on free schools, as Adonis has done, is that schools are not islands. Tony Blair said a school “belonged to itself, for itself.” But schools are part of their community and what happens in one has an impact on children in another. Adonis ignores the enormous impact free schools have on other children, based on a model of surplus places, where good schools flourish and expand while others wither and die. This is great news for children, unless you happen to be stuck in a school with spare places and reduced funding while it is allowed to wither on the grapevine.

Similarly, the amount spent on free schools cannot fail to impact on other children. The amount spent per pupil in the first free schools is well above average, in part because the schools are smaller and because they are running at reduced capacity for the first few years. The West London Free School, for example, received £12,416 per pupil in its first year, compared to an average of £7,064. In addition, the set up costs are huge. The first round of capital funding amounted to £50 million which included £14 million for just one school building. Total capital costs for just the first 24 schools will range from £100-£130 million whilst nearly 100 civil servants are working on the free schools initiative in Whitehall. At a time when other schools are facing a real terms cut to their budgets over the next 3 years this seems shockingly unfair.

Adonis rightfully acknowledges the importance of teachers, as most politicians do, but is anyone actually listening to them? He argues for more centrally driven change, but visit any classroom across the country and teachers will tell you they are sick and tired of central reform.

The international evidence is clear, that autonomy and accountability work. But that points us away from Michael Gove’s free schools model which has taken away local accountability in the form of the local authority and centralised power in the hands of the Secretary of State.

We should be handing more power to teachers, not to Gove, increasing, not reducing local accountability and improving collaboration, not competition for places, so that children – particularly the most disadvantaged - are not left behind.

In practice this would mean teachers having more flexibility to decide what, how and when they teach. They might, for example, choose to teach by ability not year groups, and other forms of innovation that should be possible in any school, regardless of structure. It should be coupled with investment in lifelong learning and serious thinking about what happens to children outside the classroom, which matters above all to the children who most need our help.

Adonis looks to Singapore for lessons, but on a select committee visit to the country this year, ministers told us they were keen to learn from Britain about how to better equip their children for life and for the workforce. Similarly, Finland, which we visited last year, succeeds because of the status, pay and conditions of teachers, yet free schools can use unqualified teachers and are not required to adhere to national pay and conditions agreements. Michael Wilshaw, who Adonis cites as a champion of this model, was critical of the use of unqualified teachers at a recent appearance before the education select committee.

Adonis seems to have bought into Gove’s vision – that introducing competition, taking away "bureaucracy" and pursuing a relentless academic vision allows the brightest young people to do well, regardless of background. Gove ignores - and indeed has removed help for - the enormous practical barriers that exist for those children.

Free schools are part of that vision. To paraphrase Andy Burnham, it’s a vision for some children, and some schools, not all children and all schools. Labour can do better than that.

Lisa Nandy is the Labour MP for Wigan.

Read Toby Young's response: "Free schools are not divisive".

Mayor of London Boris Johnson with author Toby Young and Headteacher Thomas Packer at the opening of the West London Free School. Photograph: Getty Images.

Lisa Nandy is the MP for Wigan, and Shadow Secretary of State for Energy and Climate Change.

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I was wrong about Help to Buy - but I'm still glad it's gone

As a mortgage journalist in 2013, I was deeply sceptical of the guarantee scheme. 

If you just read the headlines about Help to Buy, you could be under the impression that Theresa May has just axed an important scheme for first-time buyers. If you're on the left, you might conclude that she is on a mission to make life worse for ordinary working people. If you just enjoy blue-on-blue action, it's a swipe at the Chancellor she sacked, George Osborne.

Except it's none of those things. Help to Buy mortgage guarantee scheme is a policy that actually worked pretty well - despite the concerns of financial journalists including me - and has served its purpose.

When Osborne first announced Help to Buy in 2013, it was controversial. Mortgage journalists, such as I was at the time, were still mopping up news from the financial crisis. We were still writing up reports about the toxic loan books that had brought the banks crashing down. The idea of the Government promising to bail out mortgage borrowers seemed the height of recklessness.

But the Government always intended Help to Buy mortgage guarantee to act as a stimulus, not a long-term solution. From the beginning, it had an end date - 31 December 2016. The idea was to encourage big banks to start lending again.

So far, the record of Help to Buy has been pretty good. A first-time buyer in 2013 with a 5 per cent deposit had 56 mortgage products to choose from - not much when you consider some of those products would have been ridiculously expensive or would come with many strings attached. By 2016, according to Moneyfacts, first-time buyers had 271 products to choose from, nearly a five-fold increase

Over the same period, financial regulators have introduced much tougher mortgage affordability rules. First-time buyers can be expected to be interrogated about their income, their little luxuries and how they would cope if interest rates rose (contrary to our expectations in 2013, the Bank of England base rate has actually fallen). 

A criticism that still rings true, however, is that the mortgage guarantee scheme only helps boost demand for properties, while doing nothing about the lack of housing supply. Unlike its sister scheme, the Help to Buy equity loan scheme, there is no incentive for property companies to build more homes. According to FullFact, there were just 112,000 homes being built in England and Wales in 2010. By 2015, that had increased, but only to a mere 149,000.

This lack of supply helps to prop up house prices - one of the factors making it so difficult to get on the housing ladder in the first place. In July, the average house price in England was £233,000. This means a first-time buyer with a 5 per cent deposit of £11,650 would still need to be earning nearly £50,000 to meet most mortgage affordability criteria. In other words, the Help to Buy mortgage guarantee is targeted squarely at the middle class.

The Government plans to maintain the Help to Buy equity loan scheme, which is restricted to new builds, and the Help to Buy ISA, which rewards savers at a time of low interest rates. As for Help to Buy mortgage guarantee, the scheme may be dead, but so long as high street banks are offering 95 per cent mortgages, its effects are still with us.