SEND

Councils commit extra cash to keep special school trust afloat

The Queensmill Trust is fighting for its financial survival and to keep its flagship school after warning notice

The Queensmill Trust is fighting for its financial survival and to keep its flagship school after warning notice

27 May 2022, 7:00

More from this author

Exclusive

Councils have been forced to find more cash to keep a special school trust afloat, after it claimed insufficient funding had left it paying wages from its reserves.

The Queensmill Trust, which runs two schools in west London, is now fighting not only for its financial survival but to keep its flagship school after receiving a government warning notice last week.

Experts and school leaders said it highlighted the wider financial challenges for special schools, including a reliance on local authority goodwill to pass on extra government cash.

Yet a shortage of places means that councils themselves are also heavily reliant on special schools to avoid paying for more costly private provision.

The government has threatened to rebroker the trust’s flagship Queensmill School, an all-through school for pupils with autism, if it cannot show sufficient improvement capacity.

Ofsted had rated it “inadequate”, stating that DBS checks were not completed for all staff and leaders lacked a “clear picture” of when pupils received medication.

But the potential further upheaval comes less than a year after the government allowed the over-subscribed, previously “outstanding” school to set up an academy trust and open a second school.

It also comes after the trust warned that its precarious finances could undermine its work, urging councils to step in.

Special school trust reserves used on rising costs

Queensmill’s 2020-21 accounts reveal that it had reserves of just £4,625. Auditors highlighted trustees’ acknowledgement that “there may be material uncertainties that may cast significant doubt on the company’s ability to continue as a going concern”.

The trustees claim reserves have been eroded by council top-up funds failing to increase for seven years. They have used them to fund rising pay, pension and pupil costs.

They say that, without extra top-ups, “it will be very difficult for the academy trust to maintain a balanced budget, manage its cashflow and deliver the excellent service that they currently provide”.

Councils provide top-up funding to cover extra costs beyond the £10,000 place funding that special schools are allocated by central government. It is understood that most councils agreed to increase Queensmill’s funding.

Camden, which funds fewer than 10% of its pupils, hiked top-up fees by 11.6 per cent to £19,189 per pupil, as requested by the trust in January. A spokesperson said Queensmill had not previously asked for extra funds.

A spokesperson for Hammersmith and Fulham said it had given Queensmill an additional £745,000 since last year, when it agreed to fund 50 extra places and enhanced provision.

But it is understood that the council, which funds almost two-thirds of pupils, has so far not agreed to raise top-up funding levels specifically.

A spokesperson said it would keep working with the government and councils on the school’s funding, “while encouraging the trust’s management to undertake a full review of all its costs”.

Other London councils did not comment. The trust declined to say whether it had subsequently secured such funds or to comment on the notice.

Investigation reveals shortage of state places

A recent Schools Week investigation highlighted the shortage of state-sector special school places, with more than half of settings taking more pupils than commissioned.

Warren Carratt, chief executive of Nexus Multi-Academy Trust, which includes nine special schools in Rotherham, said he was “absolutely not surprised” to see such financial challenges.

special school
Metcalfe

He said it was “typical” of councils not to have increased top-up funding for special schools for many years, while per-pupil place funding provided by central government had also stagnated for years.

Micon Metcalfe, a school finance expert, said: “Alternative provision and special trusts are heavily reliant on council top-ups and that funding hasn’t even increased in line with mainstream funding.”

The average special school’s per-pupil income fell 10 per cent between 2015-16 and 2020-21, according to analysis by the National Education Union. That compares with a 4 per cent drop for mainstream primaries and 9 per cent for secondaries.

Both Carratt and the Confederation of School Trusts recently challenged the government over some councils’ reported refusal to hand over new funds intended to cover rising employment and other costs.

Government officials highlighted a £1 billion increase in high needs funding in 2022-23 and £2.6 billion planned SEND capital funding.

Latest education roles from

Headteacher

Headteacher

Bradford Diocesan Academies Trust

Headteacher

Headteacher

Cloughside College

Calderdale College – Vice Principal – Adults, Apprentices and Higher Education

Calderdale College – Vice Principal – Adults, Apprentices and Higher Education

FEA

Director of MIS – York College & University Centre

Director of MIS – York College & University Centre

FEA

Sponsored posts

Sponsored post

Equitas: ASDAN’s new digital platform putting skills at the heart of learning

As schools and colleges continue to navigate increasingly complex learning needs, the demand for flexible, skills-focused provision has never...

SWAdvertorial
Sponsored post

Bett UK 2026: Learning without limits

Education is humanity’s greatest promise and our most urgent mission.

SWAdvertorial
Sponsored post

Six tips for improving teaching and learning for vocabulary and maths

The more targeted the learning activity to a student’s ability level, the more impactful it will be.

SWAdvertorial
Sponsored post

From lesson plans to financial plans: Helping teachers prepare for the Autumn budget and beyond

Specialist Financial Adviser, William Adams, from Wesleyan Financial Services explains why financial planning will be key to preparing for...

SWAdvertorial

More from this theme

SEND

£6bn SEND shortfall a ‘matter for 2027 spending review’ – Phillipson

But ministers still face questions about where in government's budget funding for black hole will come from

Freddie Whittaker
SEND

Three councils allowed to breach minimum school funding rules

North Tyneside, Bracknell Forest and – for the third year in a row – Kent all 'gained approval to...

Samantha Booth
SEND

Budget bedlam: £20bn SEND black hole prompts DfE row with spending watchdog

Former adviser says Treasury is 'trying to force the pace' of reforms

Samantha Booth
SEND

Budget 2025: Government faces £6bn SEND shortfall once override ends

Spending watchdog warns 'no savings have been identified' to offset pressure on government coffers of end to council budgeting...

Samantha Booth

Your thoughts

Leave a Reply

Your email address will not be published. Required fields are marked *