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

Part Time Finance Administrator

Essex County Council
Up to £25081.00 per annum + Pro Rata
Part Time Finance AdministratorPermanent, Part Time£25,081 per annum, full time equivalentLocation
Recuriter: Essex County Council

Senior Customer Services Adviser (Housing Repairs

Mansfield District Council
£28,598 - £33,699 per annum
Mansfield is a town of towns at the centre of things in Nottinghamshire - a place of many strong connections Mansfield, Nottinghamshire
Recuriter: Mansfield District Council

No Wrong Door Deputy Manager

North Yorkshire Council
From £47,181 up to £51,356 per annum pro rata
We’re looking for a passionate, driven, and dynamic professional to join our management team within our innovative No Wrong Door (NWD) service. Scarborough, North Yorkshire
Recuriter: North Yorkshire Council

Senior Resource Centre Worker

North Yorkshire Council
£34,434 - £38,220 per annum pro rata
You will work closely with families and other professionals to ensure that you have sound knowledge of the children you are caring for Morton on Swale, Northallerton
Recuriter: North Yorkshire Council

Social Worker

North Yorkshire Council
£38,220 - £42,839 per annum, pro rata
Our Family Assessment and Support Teams you will work with a range of children and their families, carers and networks. Selby, North Yorkshire
Recuriter: North Yorkshire Council
Linkedin Banner