Free schools are the flawed heart of Gove's permanent revolution

Too often founded where they are not needed, the schools are unaccountable to the public and perpetuate the inequalities they are meant to eradicate.

Michael Gove's seemingly permanent revolution continues. Earlier this week, the Education Secretary announced his new-look, 'tougher' GCSEs as the latest stage of his reforms. Within these reforms, the flagship policy is the introduction of free schools, a scheme which has recently expanded again. But they are, in many ways, the flawed heart of Gove’s project and a wider educational failure.

Free schools are paradoxical in nature, on paper billed as part of Gove’s democratisation of education - anyone can get involved and set up a school - they also create a democratic deficit. In what ways are these schools accountable to the public? They're outside of local authority control, so local elections have no influence on their actions or policies. There is always the possibility of joining school boards or becoming a governor but those positions are often the preserve of the very people that set them up in the first place. It’s fine for Gove to give local people the power to shape their area’s education, but how do we make the few who decide to do so accountable to the many in their communities? This problem is even harder to address when it comes to a charity or faith schools.

Early on, there were fears that schools would only ever be set up by middle class parents, or by people with unchecked self-belief in their own ideas about education, with Toby Young the most obvious example. There's nothing wrong with people having theories about what education should look like, or what is best for their area; everybody does. But what qualifies someone to be given state money and the opportunity to set up a school? Obviously, there is a vetting process and Gove can turn down proposals (such as the military style academy, which had its first attempt turned down and its second attempt approved). There are also many examples of well-qualified teachers and educational organisations setting up schools. But  how accountable are these decisions to us, as voters and as taxpayers?

Then there are the funding problems. In a recent piece for Left Foot Forward, a school governor lamented that London faced the danger of running out of school places in certain areas. In this context, then, it's shocking that 20 per cent of free schools are set up in areas with a 10 per cent surplus in school places. This will contribute to a concentration of and perpetuation of the cultural capital of the middle classes and erode education’s potential for social change and movement. How democratic is it that certain areas are ignored, while free schools are established where they aren’t needed? Particularly when, as the coalition is so fond of reminding us, we are in an age of austerity.

One of Gove’s most vicious attacks on Labour is that, in not supporting his reforms, they are opposed to excellence and success. This is as offensive as it is typical. The left, contrary to Gove, does not hate success, but wants it for everyone, rather than a privileged few. There is a large difference between a universal access to, and standard of, education and Gove’s vision. 

Another implicit criticism is that the left does not support specialisms and so favours mediocrity. There's a whole separate and important debate about grammar schools and universalism, but Gove’s pursuit of free schools is detrimental to access to excellence and social mobility. It's not a wholly bad thing that institutions such as the National Autistic Society have set up schools, but are free schools the best way to widen access?

Over the past few months, Gove's political prowess and resilience have become clearer: his public, if lyrically strange, attack on Ed Miliband, his relentless pursuit of reform and his pugnacity when heckled at the head teachers' conference. Gove is a ruthless operator, seemingly emulating Reagan’s ‘Teflon’ status and is widely tipped as a future Conservative leader. But none of this should stop anyone from pointing out the deep democratic and educational flaws in his policies. In his pursuit of a better and more open education system, Gove has achieved the opposite and, in doing so, has lost the trust of thousands who work in it. 

Pupils at the West London Free School. Photograph: Getty Images.

Dan Holden is deputy editor of Shifting Grounds

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Stability is essential to solve the pension problem

The new chancellor must ensure we have a period of stability for pension policymaking in order for everyone to acclimatise to a new era of personal responsibility in retirement, says 

There was a time when retirement seemed to take care of itself. It was normal to work, retire and then receive the state pension plus a company final salary pension, often a fairly generous figure, which also paid out to a spouse or partner on death.

That normality simply doesn’t exist for most people in 2016. There is much less certainty on what retirement looks like. The genesis of these experiences also starts much earlier. As final salary schemes fall out of favour, the UK is reaching a tipping point where savings in ‘defined contribution’ pension schemes become the most prevalent form of traditional retirement saving.

Saving for a ‘pension’ can mean a multitude of different things and the way your savings are organised can make a big difference to whether or not you are able to do what you planned in your later life – and also how your money is treated once you die.

George Osborne established a place for himself in the canon of personal savings policy through the introduction of ‘freedom and choice’ in pensions in 2015. This changed the rules dramatically, and gave pension income a level of public interest it had never seen before. Effectively the policymakers changed the rules, left the ring and took the ropes with them as we entered a new era of personal responsibility in retirement.

But what difference has that made? Have people changed their plans as a result, and what does 'normal' for retirement income look like now?

Old Mutual Wealth has just released. with YouGov, its third detailed survey of how people in the UK are planning their income needs in retirement. What is becoming clear is that 'normal' looks nothing like it did before. People have adjusted and are operating according to a new normal.

In the new normal, people are reliant on multiple sources of income in retirement, including actively using their home, as more people anticipate downsizing to provide some income. 24 per cent of future retirees have said they would consider releasing value from their home in one way or another.

In the new normal, working beyond your state pension age is no longer seen as drudgery. With increasing longevity, the appeal of keeping busy with work has grown. Almost one-third of future retirees are expecting work to provide some of their income in retirement, with just under half suggesting one of the reasons for doing so would be to maintain social interaction.

The new normal means less binary decision-making. Each choice an individual makes along the way becomes critical, and the answers themselves are less obvious. How do you best invest your savings? Where is the best place for a rainy day fund? How do you want to take income in the future and what happens to your assets when you die?

 An abundance of choices to provide answers to the above questions is good, but too much choice can paralyse decision-making. The new normal requires a plan earlier in life.

All the while, policymakers have continued to give people plenty of things to think about. In the past 12 months alone, the previous chancellor deliberated over whether – and how – to cut pension tax relief for higher earners. The ‘pensions-ISA’ system was mooted as the culmination of a project to hand savers complete control over their retirement savings, while also providing a welcome boost to Treasury coffers in the short term.

During her time as pensions minister, Baroness Altmann voiced her support for the current system of taxing pension income, rather than contributions, indicating a split between the DWP and HM Treasury on the matter. Baroness Altmann’s replacement at the DWP is Richard Harrington. It remains to be seen how much influence he will have and on what side of the camp he sits regarding taxing pensions.

Meanwhile, Philip Hammond has entered the Treasury while our new Prime Minister calls for greater unity. Following a tumultuous time for pensions, a change in tone towards greater unity and cross-department collaboration would be very welcome.

In order for everyone to acclimatise properly to the new normal, the new chancellor should commit to a return to a longer-term, strategic approach to pensions policymaking, enabling all parties, from regulators and providers to customers, to make decisions with confidence that the landscape will not continue to shift as fundamentally as it has in recent times.

Steven Levin is CEO of investment platforms at Old Mutual Wealth.

To view all of Old Mutual Wealth’s retirement reports, visit: products-and-investments/ pensions/pensions2015/