I beg to move amendment 78, in clause 43, page 102, leave out lines 35 and 36.

With this it will be convenient to discuss the following:

Amendment 79, in clause 43, page 102, line 37, leave out from “may” to the end of line 3 on page 103 and insert

“exercise their powers under the funding agreement to terminate or require performance of the funding agreement in accordance with its terms.”

Amendment 88, in clause 43, page 102, line 37, leave out from “directions” to the end of line 39 and insert

“as are necessary to secure compliance with statutory duties, the requirements of the Funding Agreement, or charity law.”

This amendment would limit the Secretary of State’s power of direction should an Academy breach, or act unreasonably in respect of, the performance of a relevant duty.

Amendment 89, in clause 43, page 103, line 2, leave out from “directions” to the end of line 3 and insert

“as are necessary to secure compliance with statutory duties, the requirements of the Funding Agreement, or charity law.”

This amendment would limit the Secretary of State’s power of direction should an Academy act unreasonably in respect of the exercise of a relevant power.

Amendment 77, in clause 43, page 103, line 3, at end insert—

“(2A) Where the Secretary of State exercises functions under this section, the Secretary of State must make a statement in the House of Commons which explains the actions taken and the reasons for taking such actions.”

This amendment would require the Secretary of State to make a statement to Parliament each time the Secretary of State uses the powers in this clause.

Clause stand part.

This is a very centralising Bill. We have already talked about what PE kit people should be wearing at school; we have talked about whether schools will now have to apply to the Secretary of State to put up a bike rack. [Laughter.] Ministers laugh, but it is serious. They agreed to a clause just this morning that has that effect.

Nonsense.

It is not nonsense. It is your legislation. Sorry, let me correct the record: it is nonsense. This is nonsense legislation that we are being asked to pass.

Now we come on to something really serious that school leaders are warning us about, which is another completely out-of-control piece of centralisation. As drafted, the Bill will create the power for the Secretary of State to direct academy schools to do pretty much anything. Leora Cruddas, of the Confederation of School Trusts, has suggested a way to bring the currently unlimited clause 43 power under some limits:

“We do have concerns about the power to direct. We think it is too wide at the moment. We accept that the policy intention is one of equivalence in relation to maintained schools, but maintained schools are different legal structures from academy trusts, and we do not think that the clauses in the Bill properly reflect that. It is too broad and it is too wide. We would like to work with the Government to restrict it to create greater limits. Those limits should be around statutory duties on academy trusts, statutory guidance, the provisions in the funding agreement and charity law.”

That is precisely what Opposition amendments 88 and 89 would do. We are not against Ministers having a new power to intervene to get schools to fulfil their duties, but that is different; it is narrower than the current drafting. It may just be that when officials have gone away and tried to turn Ministers’ intentions into legislation, they have gone too far.

David Thomas, a successful headteacher, has made the same point:

“If the purpose is, as it says in the explanatory notes, to issue a direction to academy trusts to comply with their duty, that feels like a perfectly reasonable thing to be able to do. The Bill, as drafted, gives the Secretary of State the ability to ‘give the proprietor such directions as the Secretary of State considers appropriate’. I do not think it is appropriate for a Secretary of State to give an operational action plan to a school, but I think it is perfectly reasonable for a Secretary of State to tell a school that it needs to follow its duty. I think there is just a mismatch between the stated intention and the drafting, and I would correct that mismatch.”

I am not surprised that school leaders are concerned. The Government’s own policy summary notes make it clear that they intend to use the power to reach into schools and intervene on pretty much anything that the Department wants. They give the following example:

“The academy trust has failed to deal with a parental complaint and has not followed its complaints process. Therefore, the issue may be escalated to the Department to consider. In such cases, the Secretary of State could issue a compliance direction to ensure the trust addresses the complaint appropriately”.

It is crystal clear that the Government are taking a power to direct any academy school, without limit, on any issue they see fit. That is such a big move away from the whole idea of the academies programme—the idea of independent state-funded schools.

There are two ways of fixing the problem. Amendments 78 and 79 would simply delete the bit that is excessive, proposed new section 497C(1)(b); amendment 77 would require a statement to be made when the powers are used. Alternatively, amendments 88 and 89—this is, broadly speaking, the suggestion made by the Confederation of School Trusts—would be more incremental reforms. They would retain the text about direction but, in two relevant places, would limit it to

“compliance with statutory duties, the requirements of the Funding Agreement, or charity law.”

The impact assessment for the Bill says that if schools do not comply with the new orders from the Secretary of State, the trustees may be found to be in contempt of court. This charge may come with punishments including fines. It is also possible that, in very extreme cases, individuals found in contempt of court could face a custodial sentence. Helpfully, the assessment says that that should be very rare, but what a long way we have travelled from the whole idea of academies as independent state schools!

That has been the theme as we have gone through the Bill: again and again, we are moving away from a culture of entrepreneurialism, can-do spirit and freedom—going out there and solving problems and making the magic happen for kids—and towards a compliance culture that is all about dealing with what the Secretary of State wants and clicking our heels when they say jump. Since 1988, we have been on a cross-party journey away from micromanagement and towards greater autonomy for schools.

Is the hon. Gentleman aware that 48% of schools are local authority-maintained schools? He seems to be denigrating their entire modus operandi in his characterisation of the way non-academies work. They are working hard and are delivering fantastic outcomes for children. We do not denigrate academies; I do not understand why the hon. Gentleman wishes to do so to maintained schools.

It is always a bad sign when someone has to misrepresent completely what their opponent is trying to say. Allow me to address that point directly by, once again, reading what Leora Cruddas of the Confederation of School Trusts told the Committee:

“We accept that the policy intention is one of equivalence in relation to maintained schools, but maintained schools are different legal structures from academy trusts, and we do not think that the clauses in the Bill properly reflect that. It is too broad and it is too wide. We would like to work with the Government to restrict it to create greater limits.” ––[Official Report, Children’s Wellbeing and Schools Public Bill Committee, 21 January 2025; c. 81, Q169.]

That is what our amendments seek to do.

To take the temperature out of the discussion, let me say that I do not have a problem with the Government having a new power of intervention to cut across their funding agreements with academies—although that is a big step, by the way. My problem is with the completely unlimited nature of the power. I am thinking about the effect of getting away from micromanagement over time. The sixth-form college I went to had become brilliant because it had managed to use the freedoms in the 1992 reforms to take a huge step away from micromanagement, but some of the older teachers there still remembered the days when they had to ring up the town hall if they wanted the heating turned up. Imagine that absurd degree of micromanagement. Terrifyingly, some schools in Scotland are still experiencing that insane degree of micromanagement; teachers there are currently on strike because their concerns about discipline are not being taken seriously, so we can see that freedom has worked in England.

I do not think that this was the intention of the Ministers, but the drafting of the clause is far too sweeping. It gives an unlimited power. I see no reason why the Ministers should not accept the suggestion from the Confederation of School Trusts, which our amendments seek to implement, that we limit that power in certain reasonable ways. It is fine for Ministers to be able to intervene more, but we need some limits. I am sure that the current Secretary of State wants only good things, but a bad future Secretary of State should not be able to do just anything they want.

The Ministers started from a reasonable point of view, but it has gone too far. I hope that they will work with the CST to turn the unlimited power into a limited one. Perhaps they will even accept our amendments, which would do exactly that.

I was going to say largely the same as the hon. Member for Harborough, Oadby and Wigston, although I think he was exaggerating slightly in suggesting that the power will lead to local authorities telling schools whether or not they can switch their heating on and off.

I did not say that.

There was that suggestion.

No, I said that that happened in the ’80s.

All right. I have a lot of sympathy with amendments 88 and 89, and I agree that the drafting of the clause seems at odds with the explanatory notes. There is a potential overreach of the Secretary of State’s powers over schools, so I look forward to hearing what the Minister can say to temper what is in the Bill. I have no problem ideologically with what I think are the Ministers’ intentions; it is just that the drafting seems to allow a level of overreach and micromanagement from Whitehall, which I think we all wish to avoid.

Clause 43 will give the Secretary of State a power to direct specific actions to comply with duties, rather than just specifying what those duties are. That is what brings it into a different category. It is a much wider set of powers than we would find in a funding agreement. In principle, it appears to include the power to dictate how individual schools are run, which is not to say that the present Ministers would ever do so.

I have two questions for the Minister. First, is there a mechanism to challenge or appeal a decision made in that way? Secondly, has the Department assessed how much extra work will be involved for it as a result of handling more complaints?

I want to say a little about academies and maintained schools in general. There is no conflict. Defending academy freedoms and what academies can do does not mean pushing down on maintained schools. I have had children at both, and I have both in my constituency. In fact, East Hampshire is relatively unacademised: particularly at primary level, it has a relatively small number of schools that are academies. I love them all, because they are places where children learn, but none of that takes away from the fact that the freedoms and flexibilities afforded to academies are good things to have.

On the question of academic studies, as with grammar schools or various other debates, I could find an academic who could give us any answer we want. In fairness, causality is really hard to prove with these things. What I can tell the Minister, however, is that I have a graph. He may have seen it; if not, I will be happy to send him a copy. It is a U-shaped graph of the performance of schools in England relative to their peers in other countries; it relates to the PISA study, but there are equivalents for PIRLS and TIMSS.

The graph shows how remarkably school performance in England has improved over the past decade and a half. Nobody should ever claim that a single factor causes these things, but a fundamental vehicle for schools improvement in that time—alongside the hub network and established and proven methods such as maths mastery and phonics—was the ability for schools to convert to academies, and for academy trusts to spread good practice through our system.

I will turn first to amendment 77, which was tabled by the hon. Members for Harborough, Oadby and Wigston and for Central Suffolk and North Ipswich. We are committed to maintaining transparency in our decisions to intervene in academies and trusts. We already publish notices to improve and termination warning notices when they are issued to trusts. When a direction is issued, the Secretary of State will publish the direction unless there are good reasons not to do so. The direction will make clear the duty or power in relation to which it is made; it will also clearly state what the trust has to do to rectify the issue. We therefore do not consider it necessary to make a statement to the House of Commons about every direction. I therefore respectfully ask the hon. Members not to press amendment 77.

Amendment 78 seeks to limit the legal duty limb of the direction-making power to when the Secretary of State considers that there has been a breach of a legal duty by a trust. As the regulator of academies, the Secretary of State must be able to ensure that trusts are complying with their legal duties; this includes performing those legal duties properly and not bending the rules. That is why it is important that the Secretary of State can intervene when trusts are performing their legal duties in an unreasonable way, just as we can issue a direction to governing bodies of maintained schools under existing powers when there is an unreasonable performance of a duty. I therefore respectfully ask the hon. Member for Harborough, Oadby and Wigston to withdraw amendment 78.

Amendment 79 seeks to limit the scope of the power to secure proper performance of academy trusts to breaches of their legal duties only. It also suggests that the Secretary of State may not be able to issue a direction, but should instead rely on the termination powers in funding agreements to enforce compliance with the duty. The legal duties and powers to maintain schools and academies originate from different sources. The duties and powers for maintained schools are contained primarily in legislation; in contrast, some academy duties and powers are sourced in legislation, but others are sourced in contract. This measure therefore needs to be drafted broadly to encompass a comparable range of powers and duties.

The purpose of the direction-making power is to give the Secretary of State a way of enforcing breaches of legal obligations where threatening to terminate a funding agreement and move an academy to another trust is not proportionate. The amendment would totally undermine that purpose and would leave us with essentially the same powers that we have now. I therefore respectfully ask hon. Members not to press amendment 79.

Amendments 88 and 89 seek to limit the scope of the Secretary of State’s power to issue directions. The Secretary of State must be able to hold trusts and their proprietors to account for fulfilling their duties and powers. Limiting the scope of compliance, as is proposed, would undermine that ability and would hinder effective oversight.

As I have said, the legal framework for academies is distinct from the framework for local authority-maintained schools. The duties and powers applicable to academies are not solely enshrined in legislation; they are also embedded in their funding agreements and articles of association. A power with a more broadly drafted scope is necessary to encompass a comparable range of powers and duties. The broader scope will ensure that the Secretary of State can address the unreasonable actions of academy proprietors comprehensively and effectively, without the need to terminate a trust’s funding agreement. Narrowing the scope of directions, as amendments 88 and 89 would, risks hindering the Secretary of State’s ability to enforce proprietors’ compliance with their duties and to exercise their powers as they should.

It is crucial that we maintain a robust and flexible approach to oversight, ensuring that all academies adhere to the highest standards of governance and accountability. Furthermore, it is important to note that any directions issued by the Secretary of State will be made in line with common-law principles of reasonableness and fairness. This will ensure that the directions are fair, balanced and appropriate to the circumstances, providing a safeguard against any potential misuse of power. For those reasons, I respectfully ask hon. Members not to press amendments 88 and 89.

I turn to clause 43. The majority of trusts are doing an excellent job, providing good-quality education to their children and fulfilling their legal obligations while doing so. However, when things go wrong and trusts are not fulfilling their obligations or are stretching the rules unreasonably, it can be hard for Government to intervene. The only intervention that we can currently take is threatening to remove academies from the trust, and that would disrupt the education of children. That is the only option, even when non-compliance is not even connected to education outcomes.

Clause 43 will allow the Secretary of State to issue a direction to a trust when things go wrong, identifying what needs to be done to remedy it. That will provide the trust with clarity about its responsibilities. In almost all cases, before deciding to issue a direction, the Secretary of State will write to the trust to let it know that she is minded to direct it to take action, providing an opportunity for it to make representations. When the trust does not comply with that direction, instead of disrupting the education of pupils for quite discrete matters we will seek an enforcement through a court order. That means that the Secretary of State can ensure that trusts are doing what they should be doing, without unnecessary disruption to pupils.

I shall now respond to some of the questions raised. This is not about micromanaging academies. Existing intervention powers, like termination warning notices, simply are not always suitable for isolated breaches of legal duties or unreasonable behaviour—they are like using a sledgehammer to crack a nut. That is no way to run a system where what is often required is firm but much less drastic action. Terminating funding agreements can be incredibly disruptive for pupils, parents, staff and communities. The new measure offers a much more flexible, direct and commensurate way to ensure compliance. It will minimise disruption and maintain stability for trusts and their pupils.

With regard to the shadow Minister’s comments about the Confederation of Schools Trusts’ suggestions, I should say that I have absolute admiration for the work that the CST does and full respect for its views on these matters. However, the measure is drafted with the scope to cover a broad range of ways in which an academy trust might breach a legal duty, or exercise a power unreasonably, in a way that warrants intervention. By covering all duties and powers applicable to academy trusts, our drafting achieves that aim and makes the direction-making power as effective an intervention measure as possible.

We will issue guidance in due course detailing the circumstances in which we will issue a direction. We do not think it is necessary to limit the scope of the power to duties and powers in legislation, funding agreements and articles of association, as that would still result in a broad power.

On the question of appeals, we will issue a “minded to” letter first, as is already the case, so that the trust can respond to concerns. But when a trust is fulfilling a legal duty or exercising a legal power in an unreasonable way, the measure gives the Secretary of State the power to issue a direction to the trust, which will make it clear what is required from the trust. In cases of unreasonableness, we will issue a direction only when the behaviour of the trust is such that no reasonable trust could have acted in such a way, not simply when the Secretary of State disagrees with the action of the trust.

If a trust believes that the Secretary State has issued a direction mistakenly or unreasonably, the direction may be challenged by way of judicial review. Without this proposed direction-making power, the Secretary of State’s ability to take action in cases of unacceptable behaviour from trusts—for example, issues in relation to off-rolling—will be limited.

I turn to the comments of the right hon. Member for East Hampshire. As he will be aware, we are already regularly engaging with trusts as part of existing intervention processes. The amount of extra work for the Department is certainly a factor to consider, but it is difficult to quantify as it will vary on a case-by-case basis. Considering existing parallel powers for maintained schools has not led to an increase in work for the Department. Indeed, being able to take a more measured and proportionate approach, rather than a “sledgehammer to crack a nut” one, will hopefully be a more proportionate and measured response to any unreasonable behaviour by academy trusts.

For clarification, I meant that if a trust or a school had not followed its own complaints procedure and the DFE needed to intervene, that would result in an increase in the volume of parental complaints. The DFE does handle parental complaints, of course. I think that there would be an increase in the volume. My question was about the specific resourcing implications of that, particularly in a changed world with social media: when people get wind of these things, complaints could grow somewhat.

The right hon. Gentleman asks about a very specific example. I am happy to take it away. The issue of complaints is generally important. The Department is looking at where accountability and responsibility lies and how to make clear for parents where they can best direct their concerns. It is an important issue and one we are taking away.

In terms of the implementation of this power, I cannot see a significant impact, given that the provision is intended to create a much more reasonable approach when it comes to academies that are not fulfilling their legal duties. Currently the only options available are significant and disproportionate in many cases, and action might be required to deal with the case of a trust not complying with its legal obligations.

The Minister mentions a trust that is not complying with its legal duties; I do not think we would have a problem with addressing that, but that is not what is drafted here. As the provision is drafted, the Secretary of State can intervene whenever he or she thinks, in their own eye, that the school is behaving unreasonably. The only appeal the school will have is judicial review. The Minister is saying a lot of sensible stuff, but that is just too much, and I am keen to press amendment 88.

I have already responded to that point, both in my substantive comments and subsequent responses. I think we will have to agree to disagree. I urge the hon. Member to withdraw the amendment.

For all the reasons we have just rehearsed, I am keen to push amendment 88. Ministers may well vote against it today, but I hope that later on in the process they will listen to what school leaders are saying. There is a group of amendments, but I intend to push only amendment 88 to a vote. I beg to ask leave to withdraw amendment 78.

Amendment, by leave, withdrawn.

Amendment proposed: 88, clause 43, page 102, line 37, leave out from “directions” to the end of line 39 and insert

“as are necessary to secure compliance with statutory duties, the requirements of the Funding Agreement, or charity law.”—(Neil O’Brien.)

This amendment would limit the Secretary of State’s power of direction should an Academy breach, or act unreasonably in respect of, the performance of a relevant duty.

Question put, That the amendment be made.

The Committee divided: Ayes 5, Noes 12.

Question accordingly negatived.