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

Director of Technology and Customer Experience

Oxfordshire County Council
£125,350 - £135,928
Lead transformation through local government reorganisation. This is a pivotal opportunity for an exceptional, director level leader who thrives on turning complex change into better outcomes for people. If you’re ambitious to get Oxfordshire County Oxford
Recuriter: Oxfordshire County Council

Caseworker - Essex Legal Services

Essex County Council
£25081.00 - £27653.00 per annum + + 26 Days Leave & Local Gov Pension
Caseworker - Essex Legal ServicesPermanent, Full Time£25,081 to £27,653 per annumLocation
Recuriter: Essex County Council

Catering Assistant

North Yorkshire Council
£12.65 per hour
Full uniform will be provided including safety footwear. Bedale, North Yorkshire
Recuriter: North Yorkshire Council

LGV Driver

North Yorkshire Council
£34,094 - £37,225 per annum
Would you like a rewarding role that allows you to work outside in some of the most scenic places in the country? Harrogate, North Yorkshire
Recuriter: North Yorkshire Council

Facilities Assistant

Essex County Council
Up to £25081.00 per annum
Facilities AssistantFixed Term, Full Time£25,081 per annumLocation
Recuriter: Essex County Council
Linkedin Banner