One in four academies having financial problems, NAO report reveals
Joe Lepper
Friday, September 10, 2010
A quarter of all existing academies rely on government bailouts to avoid financial ruin, according to a National Audit Office (NAO) report.
The NAO found that some academies found it difficult to balance their accounts without additional money. Many had also been let down by their sponsors, who had not handed over money which had originally been pledged.
The report warns that government plans to increase the number of academies risks being poor value for money for taxpayers as they could potentially require bailouts and additional support.
It also found that the Department for Education’s ability to administer and monitor academies had been "stretched". This remit has now transferred to the Young People’s Learning Agency but the report warns that an increase in the number of academies "will also put pressure on the agency’s resources".
Most academies are schools in deprived areas or with historically low grades.
The report also notes the improvements in academic attainment and the social mix of students in schools that have switched to academy status.
However, it notes that the attainment gap between those from deprived backgrounds or with special educational needs and their peers had widened as less disadvantaged pupils benefit from improvements more quickly.
Amyas Morse, head of the National Audit Office, says that considering many of the new academies will include more successful schools, it is difficult to accurately predict how well they will perform.
She said: "Existing academies have been primarily about school improvement in deprived areas, while new academies will often be operating in very different educational and social settings."
Martin Johnson, deputy general secretary of the Association of Teachers and Lecturers said the report presented "huge question marks over the accountability of schools, which are now semi-independent but are still funded by taxpayers".
He also accused academies of "the age-old technique" of admitting more pupils who are likely to do well in exams in order to improve the school’s exam results.
NUT general secretary Christine Blower added: "This report is a wake-up call to government that this piecemeal break up of our education system must stop. The academies programme is not working now, and there are serious doubts that it ever will."
Education Secretary Michael Gove has defended the expansion of academies. He said: "The academies programme is helping children from all backgrounds to get a better education. That is why we are allowing more schools to become academies and are giving real power and autonomy back to schools and teachers."
The report warns that government plans to increase the number of academies risks being poor value for money for taxpayers as they could potentially require bailouts and additional support.
It also found that the Department for Education’s ability to administer and monitor academies had been "stretched". This remit has now transferred to the Young People’s Learning Agency but the report warns that an increase in the number of academies "will also put pressure on the agency’s resources".
Most academies are schools in deprived areas or with historically low grades.
The report also notes the improvements in academic attainment and the social mix of students in schools that have switched to academy status.
However, it notes that the attainment gap between those from deprived backgrounds or with special educational needs and their peers had widened as less disadvantaged pupils benefit from improvements more quickly.
Amyas Morse, head of the National Audit Office, says that considering many of the new academies will include more successful schools, it is difficult to accurately predict how well they will perform.
She said: "Existing academies have been primarily about school improvement in deprived areas, while new academies will often be operating in very different educational and social settings."
Martin Johnson, deputy general secretary of the Association of Teachers and Lecturers said the report presented "huge question marks over the accountability of schools, which are now semi-independent but are still funded by taxpayers".
He also accused academies of "the age-old technique" of admitting more pupils who are likely to do well in exams in order to improve the school’s exam results.
NUT general secretary Christine Blower added: "This report is a wake-up call to government that this piecemeal break up of our education system must stop. The academies programme is not working now, and there are serious doubts that it ever will."
Education Secretary Michael Gove has defended the expansion of academies. He said: "The academies programme is helping children from all backgrounds to get a better education. That is why we are allowing more schools to become academies and are giving real power and autonomy back to schools and teachers."