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Education Digest Autumn Term 2024 – Recent guidance

Following the election there have been a number of announcements which will impact the education sector. We expect there will be many more to come.

Teachers to receive 5.5% pay award

On 29 July 2024 the Government  accepted the recommendations of the School Teachers’ Review Body for a pay rise of 5.5%.  This is subject to the Government  introducing a new pay order in parliament, which once in force will see the pay rise backdated to 1 September 2024. The 5.5% pay rise will see wages increase by more than £2,500 per year, taking the median salary for the current tax year to nearly £50,000.

The Government  has stated that they will provide an additional £1.2 billion to cover the costs of this pay increase, with the majority of this funding being delivered through the new Core School Budget Grant.

The unions have welcomed this news, with the NASWUT, NAHT and ASCL all contending that this pay rise marks an important step towards improving the financial position of teachers. As a consequence, further strikes in relation to pay appear unlikely.  Find out more.

VAT on independent school fees and removal of charitable status

The Government  will end tax breaks for independent schools meaning that school fees will have to include VAT from January 2025 and business rate relief will end from 1 April 2025. The Government have stated that this additional revenue will be invested into state education.

Crucially, whilst some schools were permitting parents to pay fees up front to avoid the VAT, the Chancellor confirmed that this will not work as any fees paid after 29 July 2024 which relate to January 2025 onwards will be subject to VAT. There will continue to be an exemption for those pupils who are placed in independent schools because their needs cannot be met by the State, where the VAT charged on those fees will be refunded to local authorities.

Half of independent schools in England have charitable status, which means they currently benefit from charitable business rate relief of 80%, which some Local Authorities increase to 100% using their discretionary powers.  This will be removed from April 2025 (this only applies to England as this is a devolved matter and Scotland already charges business rates).  The detail of this has yet to be published. Find out more.

Academy Trust Handbook update – implications for estate management

Effective from the 1 September 2024, the 2024 Academy Trust Handbook issued by the ESFA introduces the following changes for Trusts in how they manage their estates.

  • Trusts will be able to enter into finance leases where the lease category appears on the DfE approved list. Consequently, only leases not on the DfE approved list will now need approval, as well as the taking of a leasehold/ tenancy on land and buildings for more than 7 years, or granting a land and building lease for any period. Trusts should of course continue to take into account matters such as value for money and cash flow before making any financial commitment.  Trusts also should keep a register of all leases including details for management purposes, as well as ensuring the appropriate information is available for auditing.

 

  • The list of examples where a Notice to Improve (NtI) may be issued by the DfE has been extended to include the management of the school estate. This continues a theme seen in recent years where more explicit statements have been required in trust’s financial statements by trustees and accounting officers around estates. An NtI can now be issued where trustees and the executive fail to manage their school estate and maintain it in a safe working condition strategically and effectively.  An NtI sets out what a trust must do to address the DfE’s concerns.  Any failure to comply with the notice will be deemed a breach of the trust’s funding agreement, with such non-compliance potentially resulting in termination of the funding agreement.

In the event that an NtI is issued, the delegated authorities in sections 5.7 to 5.31 of the Handbook may be revoked, and all transactions of this nature must be approved in advance by the ESFA, specifically in relation to estates, the taking up of a leasehold or tenancy agreement on land or buildings of a duration beyond any limit in the funding agreement.  A trust may be prevented from entering into transactions with related parties without approval.  These delegated authorities shall be returned once the NfI has been complied with, and improvement is sustainable.

Any NtI issued must be published by the trust on its own website within 14 days of being notified by the DfE and retain it on the website until the NtI is lifted by the DfE.

At a time when trusts are facing significant challenges with aging buildings and funding constraints, these recent changes mean that they must also be in a position to demonstrate that they are compliant.  The DfE signposts at paragraph 1.20 of the Handbook to estates safety and management guidance.  At Ward Hadaway we also have a specialist education property team who can advise you on your estates requirements.

Performance related pay optional

As you will have seen in our Newsflash, with effect from the 2024/25 academic year, performance-related pay is no longer mandatory.

Curriculum Review

The Department for Education has announced it will be conducting an independent review of the curriculum to ensure that the academic needs of each child is met. Leading the review will be Professor Becky Francis, CEO of Education Endowment Foundation, who was previously the director of UCL’s Institute of Education and was also a professor of education and social justice at Kings College. The review will be of the curriculum currently taught at key stages 1 to 5.

The recommendations will be published in 2025 following consultation with teachers, parents, and pupils. Following this review, academies will also be required to follow the national curriculum.

RHSE

The future of the Conservative Government’s planned reform of Relationships, Sex and Health education guidance (which would introduce, amongst other things, age limits for ‘sensitive topics’ and to clarify that the concept of gender identity is not to be taught) is in doubt.   More than 100 organisations, including unions and charities, have asked the new Government to withdraw the draft guidance.  The Labour Government  have not yet responded. Find out more.

Parent Fines for Missing School

The updated statutory guidance targeted at increasing school attendance took effect on 19 August 2024.  An unauthorised absence from school will now attract a fine of £80 per parent per child if paid within the first 21 days (an increase of £20), rising to £160 if paid after 21 days (a rise of £40). If a second fine is issued in relation to the same child within a three-year period, the fine will be automatically be £160, regardless of when it is paid.

Only 2 fines can be issued per parent in relation to the same child during a 3-year period. If a child is absent again their parent may be taken to court.  The court will have the power to issue a fine, community order, parenting order, or even a custodial sentence. Find out more.

Operation Encompass - safeguarding against domestic abuse

Operation Encompass is an early intervention partnership programme between the police and schools, for the purpose of safeguarding and supporting children experiencing domestic abuse. All police services across England and Wales are under a statutory duty to participate in the programme.

Where the police attend an incident of domestic abuse involving a parent of a schoolchild, this programme will ensure that a trained member of staff at the school is notified before the start of the next school day. This will also include incidents that have occurred both at weekends and during school holidays. Where the child is in elective home education, their social care and responsible officer from the local authority will instead be notified.

The information which is included within the notification will identify the name of the child and the parent, details of the incident, and the context and circumstances of the event.

Free training for all Key Adults within the schools on how to deal with Operation Encompass notifications can be accessed here: Online Key Adult Training : Operation Encompass.

If you have any questions or concerns about the recent changes in guidance and how this might impact your school, please do get in touch with Rachel Blythe or another of our Expert Education Solicitors.

Please note that this briefing is designed to be informative, not advisory and represents our understanding of English law and practice as at the date indicated. We would always recommend that you should seek specific guidance on any particular legal issue.

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Rachel Blythe

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