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

School Crossing Patrol Officer - United Academy

Essex County Council
Up to £13.00 per hour
School Crossing Patrol Officer - United AcademyPermanent, Term Time£13.00 per hourLocation
Recuriter: Essex County Council

Customer Service Advisor

London Borough of Richmond upon Thames and London Borough of Wandsworth
£32,841 - £42,888 per annum
Job Title
Recuriter: London Borough of Richmond upon Thames and London Borough of Wandsworth

Speech and Language Therapist (Grenfell Education Hub)

The Royal Borough of Kensington & Chelsea Council
Up to £53076 per annum
Support the North Kensington community to find and use their voices to shape futures beyond tragedy.As Speech and Language Therapist in the Grenfell E England, London
Recuriter: The Royal Borough of Kensington & Chelsea Council

Development Officer - Museums

The Royal Borough of Kensington & Chelsea Council
Negotiable
Secure the future of our historic museums through fundraising and community support. As a Development Officer, you'll play a crucial role in sustainin England, London
Recuriter: The Royal Borough of Kensington & Chelsea Council

Educational Psychologist (Grenfell Education Hub)

The Royal Borough of Kensington & Chelsea Council
£53076.00 - £54076 per annum
Support the North Kensington community to rebuild, aspire and shape futures beyond tragedy.Support the North Kensington community to rebuild, aspire a England, London
Recuriter: The Royal Borough of Kensington & Chelsea Council
Linkedin Banner