Jessica Luper 25 September 2015

Cost of academy conversion leaves councils in millions of debt

Councils have been left in millions of pounds of debt from converting schools into academies, according to research conducted by the BBC.

The BBC investigation revealed that local authorities are forced to use their education grant to clear the debts created, which the Local Government Association say is taking vital cash from schools not involved in the scheme. This is because when council-maintained schools choose to become academies, local authorities must pay the costs of conversion, including the cost of any deficit and legal fees.

The BBC revealed £32.5m has been spent by councils on clearing debts since the Academies Act was introduced in 2010.

David Simmonds, deputy chairman of the Local Government Association, told the BBC: 'It is not fair that some schools are burdened with a deficit while other schools can walk away and leave that debt behind at the detriment of other schools in the community.

'It is not right that the taxpayer foots the bill. This money could instead be spent in ways which directly benefits pupils.'

A Department for Education spokesperson said: 'Councils are only required to cover a school's deficit when it has become a sponsored academy after a prolonged period of underperformance, and the deficit was accumulated under council control.

'Academies are a vital part of our plan for education and are transforming the education for millions of pupils across the country.'

SIGN UP
For your free daily news bulletin
Highways jobs

Team Manager - Targeted Early Help

London Borough of Richmond upon Thames and London Borough of Wandsworth
£51,540 - £62,451 per annum
Team Manager – Targeted Early Help
Recuriter: London Borough of Richmond upon Thames and London Borough of Wandsworth

Youth Worker - In training

Essex County Council
£3515 - £25115.00 per annum + pension
Youth Worker - In trainingPermanent, Full Time£24,786- £25,115 pa + £924 per annum Fringe AllowanceLocation
Recuriter: Essex County Council

Director of Corporate Services

St Leger Homes
£100,000 plus excellent pension scheme
We are a forward-looking organisation that genuinely wants to live our new values of People, Pride, Performance and Progress. Doncaster, South Yorkshire
Recuriter: St Leger Homes

Collections Assistant

Oxfordshire County Council
£10233 - £10561
About the Role The Collections Assistant supports the care and access of our museum collection. This is a hands-on role that works closely with colleagues and volunteers on collections care, assisting preventive conservation and looking after the collect Museum Resource Centre, Standlake
Recuriter: Oxfordshire County Council

Lawyer Children, Adult and Health

Durham County Council
£47,181 to £51,356 p.a. (Grade 13)
Are you looking to progress your career in Law?  If so, we are looking for a Lawyer working within our Children, Adults and Health Team within Legal S Durham
Recuriter: Durham County Council
Linkedin Banner