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

Children’s Social Worker

Cheshire East Council
£39,000 - £41,771 per annum
As a Children's Social Worker, you'll work directly with children, families and partner agencies to safeguard children, promote their wellbeing Cheshire
Recuriter: Cheshire East Council

School Crossing Patrol

North Yorkshire Council
£13.28 - £13.92 per hour
Duty times
Recuriter: North Yorkshire Council

Travel Trainer (Ealing)

Essex County Council
£25959.0000 - £28621.0000 per annum
Travel Trainer (Ealing)Permanent, Full Time£25,959 up to £28,621 per annumLocation
Recuriter: Essex County Council

Loader

North Yorkshire Council
£25,614 - £26,847
To work as a team to ensure services are completed and responsive to external factors – breakdowns, blockages etc. Skipton, North Yorkshire
Recuriter: North Yorkshire Council

Financial Control Assistant

The Royal Borough of Windsor & Maidenhead
£25,706 per annum
This is a full-time, permanent role with hybrid working, and a salary of £25,706 per annum. Maidenhead, Berkshire
Recuriter: The Royal Borough of Windsor & Maidenhead
Linkedin Banner