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Page Published: 09 June 2010
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The Education Leader's Guide to... Academies

Signpost to Academy

Susan Young answers your questions on academies.

Heads whose schools have outstanding Ofsted ratings will have had a letter from Michael Gove, Secretary of State for Education, inviting them to consider applying for Academy status.

Although the Academies Bill was only introduced in the House of Lords on May 26 by Lord Wallace of Saltaire and will not get its Second Reading and first debate, (again in the Lords), until June 7, the Government is serious about getting eligible schools signed up as quickly as possible. It is assuming 200 may make the jump in each of the next four academic years.

The Department for Education website already has an area for schools to register their interest in becoming academies, and a step-by-step guide to the process. The Bill makes it clear that it will be legal for schools to start conversion procedures before the legislation is passed, so that the first can open in September 2010. Each school’s conversion process is expected to last three months.

Procedures for special schools are still being established and the first of these is not expected to open as an academy until September 2011.

Schools in special measures may also be turned into academies by direction of the Secretary of State.

Work is ongoing to create mechanisms for allowing schools which are neither outstanding nor in special measures to apply for academy status later.

It seems, though, that these schools will have to sign up a sponsor before proceeding, as existing academies have had to do. Interested schools are being urged to register their interest on the DfE website.

The text of the Bill has been widely heralded and contains no surprises, although some of the detail is interesting. A great deal of the Bill is amendments of previous education Acts.

Why is the Government so keen on this?

According to its Impact Assessment, it assumes that each pupil in a school which converts to an academy will improve their exam performance by 1.5 percentage points.  This, it suggests, translates into a lifetime earning increase for each of £92,500, a total of £1072m for all these pupils.

What is the cost of converting schools to academies in this way?

The Impact Assessment document suggests that 200 schools will convert in each of the next four years. It suggests that one-off pre-opening costs and capacity funding – perhaps enabling it to create systems to help a weaker school -- will cost a total of £17m for each of the next four years.

The DfE assumes it will cost each school £78k to convert, exclusive of VAT. It will provide a grant, usually £25,000, to each school to help meet these costs, which will include new signage and legal work. Schools spending less than this may keep the balance.

Who decides whether a school can apply for Academy status?

The governing body of a school has to vote in favour of the process, and in the case of a foundation or voluntary school the foundation must agree as well.

There is no requirement to consult the local authority.

A TUPE consultation must be carried out with all members of staff and their unions as part of the staff transfer process. This is done by their current employer, which will either be the LA or the governors.

It is recommended that schools should consult parents.

Do new academies need to have a sponsor?

Outstanding schools can proceed without a sponsor; however other schools becoming an academy will still need a sponsor. The school’s governing body establishes an academy trust (which is a charitable company limited by guarantee). The trust enters into a funding agreement with the Secretary of State for education for the academy’s running.

The trust for each school will have member who appoint the governors. The governors manage the academy on behalf of the trust. Their major responsibilities are to ensure the quality of educational provision, challenge and monitor performance, manage the trust’s finances and property, and employ staff. It is possible to be both a trust member and a governor.

The trust can work with any external organisation.

Do academies work with the local authority?

The DfE is strongly encouraging schools to work with neighbours and local partners.

What about other schools?

Outstanding schools which become academies will be expected to agree to help another school to raise attainment, although these arrangements can be made later in the process.

What happens when a school applies for academy status?

It will fill out a business plan as part of its application on the DfE website. It will then be allocated a “handler” who will negotiate precise terms and conditions and advise through the process. It is not clear whether it is this handler who will continue to have regular contact with the school if it does become an academy.

What about money?

Academy agreements can include capital as well as current expenditure costs, although it sounds as though some of the capital money could be in the form of a loan, as the relevant clause allows for repayments.

Existing legislation which means a school’s budget surplus reverts to the local authority if it closes or becomes an academy is being revised. This means that local authorities must hand over any surplus to the school, which means both any unspent portion of its budget share and any unspent portion of any other funding, including government grants. The Bill will let the Secretary of State issue regulations about this procedure and give him the right to ask for a review of the amount of money the LA says is owed to the school.

Does a school have to have another inspection before it becomes an Academy?

No, the legislation specifically removes this requirement. However, it does not say what happens if a previously outstanding school is inspected again after applying to become an Academy, and is no longer rated outstanding.

What happens if an academy wants to lengthen the working day or alter school terms?


Staff  are entitled to transfer to a new academy under the same employment conditions. The academy trust can later consult with staff and union representatives on changes to terms and conditions. Guidance on the DfE website says that as an outstanding school, immediate changes to staff structure and operation are not anticipated.

What about the curriculum?

Secondary schools must continue to have a specialism. This does not apply to primary schools.

What about admissions?

Outstanding schools which become academies can retain their current criteria. This includes selection if they already select all or some of their pupils.

However, academies are their own admissions authority and will need to manage this process themselves. This will mean consultation from time to time and regular publication of the arrangements, which must comply with the School Admissions Code.

What if a school developed an extremist character?

Michael Gove, interviewed on the Today programme, was adamant that academies would not be able to use their new freedoms to teach creationism or in other controversial ways.  He said: “It’s up to the department to ensure that groups that are either extremist, or religiously fundamentalist, do not use the opportunities that we are creating in order to establish a school which is responsible for spreading that agenda.”

Who introduced the Bill in the Lords? 

Lord Wallace of Saltaire – William Wallace – is an academic, writer, and Liberal Democrat peer. He has just become a Government Whip acting as government spokesperson in the House of Lords on the Foreign and Commonwealth Office, the Department for Work and Pensions and the Department for Education.

However, Lord Hill of Oareford CBE, Parliamentary Under-Secretary of State for Schools, has now taken responsibility for the Bill.

More details

The Academies Bill

Academies Bill Explanatory Notes

The DfE impact assessment

Memorandum on delegated powers in the Bill

DfE Frequently Asked Questions

Susan Young
Susan Young is an education journalist.
Page Published: 09/06/2010

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