Latest news with #DepartmentForEducation
BBC News
13 hours ago
- Business
- BBC News
Bristol City Council could 'go bust' due to £63m debt 'time bomb'
Bristol City Council could "go bust" within 10 months if the government does not extend a deadline for it to plug a £63m hole in the school's budget, a councillor has deficit has mostly built up due to the authority having to spend more money than planned supporting young people with special educational needs and disabilities (Send).The council has permission from the government to carry over the debt next year, but there is no indication this deadline will be extended, and councillor Jonathan Hucker fears it has become a "ticking time bomb".The Department for Education has been contacted for comment. The schools deficit is subject to an accounting mechanism known as a "statutory override" until March 2026, which allows the council to exclude it from its main the government has not said this will be extended, or that it will provide the billions in funding required to Bristol and many other local authorities in similar situations to clear the debt, the Local Democracy Reporting Service a meeting of the audit committee on 29 May, Mr Hucker said the council is facing the prospect of having to declare bankruptcy."It is the most critical financial issue that the council faces," he said. "If the government does not act, it is likely that the council will go bust at the end of this financial year."Mr Hucker said he believed it was "very unlikely" the government would fund the deficit."It is a ticking time bomb. To withstand such a major financial shock would be difficult at the best of times."Bristol City Council finance director Andy Rothery acknowledged there was "nothing on record" from the government about extending the he added the Department for Education was conducting a major review of Send funding.
Telegraph
a day ago
- Business
- Telegraph
Private school pupil numbers plummet after Labour's VAT raid
Private school pupil numbers have fallen by more than 11,000 in England following Labour's VAT raid on fees. There were around 582,500 pupils at English private schools in January, down from 593,500 at the same point last year, according to Department for Education (DfE) data published on Thursday. It marks a 1.9 per cent decrease compared to last year, or around one in fifty pupils – the biggest year-on-year drop in more than a decade. The figures are likely to show an initial exodus from the private school sector by January, when the Government's 20 per cent VAT raid on fees came into force. It far eclipses the Government's prediction that the policy would drive out 3,000 private school pupils across the UK this year, rising to a cumulative 14,000 next year. The DfE figures revealing the drop only capture schoolchildren in England, whereas the VAT policy applies to schools across the UK. Separate census data, published last month by the Independent Schools Council (ISC), which represents private schools across the devolved nations, claimed pupil numbers plummeted by around 13,000 in the year to January. A Government spokesman claimed the decline 'reflects the broader demographic trends and changes in the state sector' and proved that warnings about a potential exodus were 'manufactured'. But the Government's own figures show the 1.9 per cent plunge is the largest annual decline since at least 2010 – the earliest comparable data published by the DfE. The second-largest drop over that period was in January 2021, when the private school headcount fell by 1.3 per cent – or around 7,500 pupils. Slowing birth rate The decrease is also far higher than across the overall schools sector, which saw pupil numbers shrink by 0.7 per cent this year, in part because of a slowing birth rate. It includes a 1.3 per cent drop in pupil numbers at state primary schools. The number of pupils in state secondary schools remained broadly unchanged compared to last year, while the proportion of those in state-funded special education rose 5.3 per cent. Julie Robinson, chief executive of the ISC, said: 'These new Department for Education statistics show that the drop in independent school numbers cannot be explained by the fall in overall pupil numbers. 'The Government's own figures now show that, in England alone, 8,000 more students have left independent education than politicians had estimated. This outsized exodus should concern anyone who is interested in this tax on education as a revenue raiser.' Many of the biggest falls in pupil numbers occurred in poorer areas, including a 26 per cent drop in St Helens, Merseyside, a 13 per cent decline in Brent, north-west London, and a fall of 11 per cent in Barking and Dagenham, east London. Traditional independent schools – which excludes hundreds of independent special schools, alternative provision and religious schools – were more likely to be impacted by a drop in pupil numbers this year. Across the 1,218 traditional schools analysed by The Telegraph, numbers fell from around 485,500 to 472,650 - a fall of 12,850, or a 2.7 per cent drop. In other private schools, pupil numbers actually increased by around 3 per cent, with the most elite schools largely untouched. Eton College saw its pupil body increase by five to hit 1,346 in January, while Winchester College made room for eight extra places. Charterhouse's pupil body rose by five per cent. Mike Stimpson, a partner at wealth manager Saltus, said the overall drop of 1.9 per cent private school pupils was likely to 'just be the beginning', with more families expected to reconsider their education options over the summer. 'The academic year starting this September will be the first full school year under the new VAT regime, and our research suggests we are likely to see further declines in private school enrolments as the financial impact of this policy becomes even more real for families,' he said. Earlier this year, the ISC accused ministers of having 'underestimated' the impact of the VAT policy, which the Government hopes will raise £1.8 billion a year by the end of the decade. Average private school fees soared by 22.6 per cent this year, according to the ISC's latest annual census, compared to an 8.4 per cent rise in 2024 and a 6.4 per cent increase in 2023. It comes despite a Treasury impact assessment published last October saying that 'on average, the Government expects private school fees to go up by around 10 per cent as a result of the introduction of VAT'. High Court documents obtained by The Telegraph earlier this year also revealed that Rachel Reeves, the Chancellor, was warned Labour's levy on fees could cause an additional 100 private schools to shut over the next three years – something the Government had never admitted in public. Court documents shared with The Telegraph also revealed that Labour deliberately chose the 'most disruptive' start date for the VAT raid on private schools after being presented with a range of options. Ministers toyed with a later start date for the tax but ultimately decided to go with the course of action labelled by civil servants as 'the most disruptive' in order to 'maximise revenue'. The Government is currently embroiled in a High Court battle over its VAT policy after parent groups argued the tax raid is discriminatory. Claimants are seeking a 'declaration of incompatibility' under human rights laws. Although this would not overturn the VAT policy in itself, it could force the Government to take a second look at the tax raid or hand out exemptions. The judicial review was heard in April by three High Court judges, who are expected to issue a single written judgement in the next few weeks. The Government spokesman said: 'Today's figures shatter the myth that charging VAT on private education would trigger an exodus. The data reveals pupil numbers remain firmly within historical patterns seen for over 20 years. 'The 1.9 per cent decline in private school pupil numbers reflects the broader demographic trends and changes in the state sector, with almost no change in secondaries and a 1.3 per cent reduction in state-funded primary school pupil numbers. 'This manufactured crisis has failed to materialise. Ending tax breaks for private schools will raise £1.8 billion a year by 2029/30 to help fund public services, including supporting the 94 per cent of children in state schools, to help ensure excellence everywhere for every child.'
The Independent
a day ago
- Politics
- The Independent
Starmer describes free school meal expansion as ‘down payment' on child poverty
The expansion of free school meals is a 'down payment' on child poverty, the Prime Minister has said. Charities and campaigners have urged the Government to axe the two-child benefit cap to ease child poverty as ministers set out plans to expand free school meals to all pupils in England in families on universal credit. Asked whether he would go further and abolish the welfare limit, Sir Keir Starmer said: 'I would say this is a down payment on child poverty.' The Prime Minister added that he was 'determined' to drive down child poverty and identify its root causes. Currently, households in England on universal credit must earn below £7,400 a year (after tax and not including benefits) to qualify for free school meals. More than one in four pupils in England are now eligible for free school meals, the latest figures show. An additional 77,700 children became eligible for free school meals over a year, according to data published by the Department for Education (DfE). Eligibility for free school meals stood at 25.7% of all pupils in January this year, the equivalent of 2.17 million children – up from 24.6%, or 2.09 million, in January 2024, the data shows. The Government has said the expansion of free school meals to all pupils in families on universal credit from September 2026 will make 500,000 more children eligible for free lunches during the school day. Ministers have also suggested that the change will lift 100,000 children across England out of poverty. Alongside the extension of free school meals, the DfE said it is working with experts across the sector to review the School Food Standards to ensure every school is supported with the latest nutrition guidance. Sir Keir said Thursday's announcement was part of a broader package of provisions including breakfast clubs and 'so it needs to be seen within that group of measures'. He added: 'But yes, it's a down payment on what I want to do in relation to child poverty.' The Government's child poverty taskforce is due to publish its strategy later this year. Education Secretary Bridget Phillipson told Times Radio that the meals extension would be funded and the Government will 'make sure that schools have what they need to deliver this'. Asked why the expansion was not coming into force now, Ms Phillipson told BBC Breakfast: 'We're working as quickly as we can because we do appreciate the urgency, but we also need to work with schools to make this change happen.' Parents have to apply for their children to receive free school meals and eligible children are not automatically enrolled. The announcement has been largely welcomed by education leaders and campaigners, but some organisations have called for the Government to go further and introduce auto-enrolment. Arooj Shah, chairwoman of the Local Government Association's (LGA) children and young people board, said: 'Councils still face data sharing and resource challenges in ensuring as many eligible children as possible receive what they are entitled to. 'Introducing automatic enrolment, using existing government data to capture all those who are entitled to free school meals, would also streamline the process and ensure as many children as possible can benefit, at a time when many families are still under financial pressure.'
The Independent
a day ago
- Business
- The Independent
Full extent of private school ‘exodus' revealed after VAT on fees
New government figures have revealed a decline in the number of pupils attending private schools in England, following the introduction of VAT on fees. According to data from the Department for Education (DfE), private schools saw approximately 11,000 fewer pupils in January compared to the same time last year. This represents a 1.9 per cent decrease, from 593,486 pupils in January 2024 to 582,477 this year. The government's policy to impose 20 per cent VAT on private school fees came into effect on January 1. The data also indicated an overall decrease of 0.7 per cent in the total number of pupils in schools across England, including both state and private institutions, bringing the total to 9.03 million. The DfE has suggested that the decline in pupil numbers in state primary schools and private schools, coupled with minimal change in state secondary schools, is "primarily driven by demographic changes". A population bulge in England has been moving from primary schools into secondary schools. The DfE said the population in private schools was now 'similar' to that in 2021/22. In November, the Government estimated that around 3,000 private school pupils would move into the state school sector in the UK by the end of the 2024/25 academic year because of the VAT change on private school fees. Julie Robinson, chief executive of the Independent Schools Council (ISC), said: 'These new Department for Education statistics show that the drop in independent school numbers cannot be explained by the fall in overall pupil numbers. 'The Government's own figures now show that, in England alone, 8,000 more students have left independent education than politicians had estimated. 'This outsized exodus should concern anyone who is interested in this tax on education as a revenue raiser.' A Government spokeswoman said: 'Today's figures shatter the myth that charging VAT on private education would trigger an exodus. 'The data reveals pupil numbers remain firmly within historical patterns seen for over 20 years. 'The 1.9 per cent decline in private school pupil numbers reflects the broader demographic trends and changes in the state sector, with almost no change in secondaries and a 1.3 per cent reduction in state-funded primary school pupil numbers. 'This manufactured crisis has failed to materialise. 'Ending tax breaks for private schools will raise £1.8 billion a year by 2029/30 to help fund public services, including supporting the 94 per cent of children in state schools, to help ensure excellence everywhere for every child.'
The Independent
a day ago
- Business
- The Independent
More than one in four pupils in England now eligible for free school meals
More than one in four pupils in England are now eligible for free school meals, figures show. An additional 77,700 children became eligible for free school meals over a year, according to data published by the Department for Education (DfE). Eligibility for free school meals stood at 25.7% of all pupils in January this year, the equivalent of 2.17 million children – up from 24.6%, or 2.09 million, in January 2024, the data shows. The figures come as the Government announced plans to expand free school meals to all pupils in England in families that claim universal credit from September 2026. Currently, households in England on universal credit must earn below £7,400 a year (after tax and not including benefits) to qualify for free school meals. The Government has said the expansion will make 500,000 more children eligible for free school meals, and it will save parents nearly £500 every year. It suggested that the change would lift 100,000 children across England out of poverty. Charities have welcomed the expansion as a 'first step' towards easing child poverty, but they urged the Government to axe the two-child benefit cap. Meanwhile, the Institute for Fiscal Studies (IFS) warned the expansion would 'not see anything like 100,000 children lifted out of poverty next year'. On Thursday, Education Secretary Bridget Phillipson said ministers were 'working as quickly as we can' on plans to extend free school meals. She told Times Radio that the meals extension would be funded and the Government will 'make sure that schools have what they need to deliver this'. Asked why the expansion was not coming into force now, Ms Phillipson told BBC Breakfast: 'We're working as quickly as we can because we do appreciate the urgency, but we also need to work with schools to make this change happen.' Parents have to apply for their children to receive free school meals and eligible children are not automatically enrolled. The announcement has been largely welcomed by education leaders and campaigners, but some organisations have called for the Government to go further and introduce auto-enrolment. Arooj Shah, chairwoman of the Local Government Association's (LGA) children and young people board, said: 'Councils still face data sharing and resource challenges in ensuring as many eligible children as possible receive what they are entitled to. 'Introducing automatic enrolment, using existing government data to capture all those who are entitled to free school meals, would also streamline the process and ensure as many children as possible can benefit, at a time when many families are still under financial pressure.' Paul Whiteman, general secretary at school leaders' union NAHT, said: 'No child should ever have to go hungry due to their parents' financial circumstances. 'Hunger affects not only children's health and wellbeing but also their readiness to learn, and the existing very low income cap for free school meals means many children living in poverty are ineligible. 'As well as this expansion to eligibility, we would also like the Government to introduce auto-enrolment so no child entitled to a free meal misses out.'
