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MAT to be broken up after ‘breakdown of trust’ amongst governors

MAT to be broken up after ‘breakdown of trust’ amongst governors

An academy trust is to be broken up following a “breakdown in trust” between its central operation and local governors.

The Learning Link Multi-Academy Trust had previously been warned that a failure to deal with serious operating concerns would result in a number of its schools being rebrokered.

Regional schools commissioner for the West Midlands, Andrew Warren, recently informed the trust that a decision to seek new sponsors had been taken.

His report stated: “I am of the opinion that the trust has failed to take sufficient action to address my concerns fully and I do not believe the trust has the capacity to secure the necessary improvements.

The Schools Commissioner intervened after four schools within the Trust raised formal concerns that they had no confidence in either the trustees or acting chief executive.

As a result, the trust was ordered to appoint additional trustees from a list of “academy ambassadors and/or other turnaround consultants” and appoint three additional members.

It was also asked to confirm plans for “the permanent leadership of the trust”.

Additionally, at the start of 2020, the trust had been issued with a financial notice to improve.

Although two of the schools that had raised concerns, later confirmed votes of confidence in the trust, one of the schools still unanimously voted that it had no confidence and two schools requested to leave the MAT.

Mr Warren concluded that “there remains a breakdown in trust between those who are leading the academies within the trust and the trust board”.

Palmers Partner, BJ Chong, said: “A key aspect for schools wishing to either become academies for the first time or seek new sponsorship and for existing trusts looking to grow their MAT, is due diligence.

“Trustees, CEOs and senior school leaders need to be fully aware of any potential issues which may make for a less than harmonious partnership and this includes the legal implications of any issues which arise from the due diligence process so that a view can be taken as early as possible.

“Although due diligence can be lengthy, it is critical to ensure that there are no unpleasant surprises which could jeopardise the success of all concerned.

“Where an existing MAT is not working as harmoniously as it should and a school wishes to break away and seek new sponsorship, it is equally important to seek legal advice at an early stage to ensure that rebrokering is handled correctly.”

For help and advice on all aspects of due diligence, please contact us.

Coronavirus economic difficulties could result in more private school closures

Coronavirus economic difficulties could result in more private school closures

The leader of Independent Association of Preparatory Schools (IAPS) has claimed that economic difficulties caused by Covid-19 could result in struggling private schools being “tipped over the financial edge”

IAPS Chief Executive, Christopher King, issued the stark warning, saying that there could be many closures announced in the next academic year.

“The concerns will arise because of the fundamental affordability of private education,” he said.

“Committing to pay school fees over a long term is a decision that people don’t take lightly.

“Once they enter into it they, by and large, want to commit over a long period of time and they will only do that if they feel pretty secure in employment.”

Estimates suggest that up to 30 per cent of private schools could be at risk of closure due to Covid-19-related financial problems.

Julie Robinson, Chief Executive of the Independent Schools Council, told the Tes: “The longer it goes on, the more of a concern it is.

“We know schools are considering their financial situation. Of course, they’re watching this really carefully and they’re having to plan for several different possible scenarios going into the next academic year. It’s a time of anxiety for the parents and for the schools.

“A lot depends on how we go into the next academic year and it’ll probably be another year before we have a good, clear idea of the extent of the effects of this crisis.”

Palmers’ Partner, Luke Morgan said: “Sadly all schools – both state and independently run – have struggled with the financial impact of Covid-19.

“However, for private schools, the pressures can often threaten their very existence. It is therefore critical to seek advice and practical support from specialist advisors who can provide guidance on a range of measures that will help the organisation not only survive but also thrive in the long-term.”

At Palmers, our experts are able to assist with:

  • Advice relating to staff and employment law including redundancies
  • Negotiating with creditors
  • Advice on amalgamations and closures
  • Charitable and trust requirements
  • Merger and acquisition opportunities
  • Due diligence for schools considering a M&A
  • Securing equity funding

For help with all aspects of debt advice and legal support, please contact us.

School heads warn of unsustainable Covid burden

School heads warn of unsustainable Covid burden

Ofsted has revealed that schools are buckling under the ‘unrealistic pressures’ of delivering education during the Covid-19 pandemic.

Inspectors who visited a number of schools during the autumn term reported that head teachers were facing “unrealistic pressures” and that staff were “tired or exhausted”.

Ofsted’s Chief Inspector, Amanda Spielman, has said that that arranging cover for staff absences due to self-isolation or positive Covid tests and more stringent cleaning regimes has led to additional financial pressures on school funds leaving senior leaders feeling that they are “firefighting”.

The Ofsted report follows visits, some of which were carried out remotely, to 380 schools during the autumn term and states that: “despite the generally high levels of resilience…. staff are tired or exhausted, and that workload had increased”.

The report also warns that: “The pressures on senior leaders – including headteachers – across many schools have also increased. Leaders described these pressures as unsustainable, overwhelming or unrealistic”.

James Bowen, director of school leaders’ union the NAHT, said: “School budgets were already incredibly tight.

“The Government’s refusal to recognise the financial difficulties schools are now facing due to Covid-19 and fully reimburse them for the money they have been required to spend to make schools safe, means that not only is money being taken away from children’s education and wellbeing, it could push some schools over the edge financially.”

Samantha Randall, an Associate Solicitor and employment law expert, said: “Headteachers and governors have a delicate balancing act to perform, to ensure that the school meets its duties both as an education provider and as an employer.

“In particular, staff’s mental health needs to be considered, in addition to the continuing measures being put in place to protect their physical wellbeing as they provide both remote teaching and in-school provision for vulnerable and key worker children.”

If you are experiencing any concerns in relation to employment law, please contact us.

Independent schools close due to coronavirus economic pressures

Independent schools close due to coronavirus economic pressures

A number of independent schools have been forced to permanently close their doors after financial pressures caused by the coronavirus outbreak, crippled their finances.

Moreton Hall Preparatory School in Bury St Edmunds, Suffolk, announced that it will close in the summer. During the lockdown, the school offered to teach “remotely or in person” but has admitted the coronavirus was the final straw after struggling for some time to balance its books.

It is believed that at least 40 staff will be made redundant.  In a statement, the school explained the reasons for the closure, saying: “Many parents now find themselves in difficult financial straits; overseas boarding will not become feasible again until at least 2021 to 2022; and we cannot draw on the usual annual income from summer camps. It is a perfect storm.”

Meanwhile, a Northamptonshire independent school has announced that it will close for good later this year.

St Peter’s Independent School in Blackthorn will not reopen at the start of the 2020/2021 school year, after trustees took the difficult decision to close.

The non-selective independent school, which caters for boys and girls aged three to sixteen, had celebrated its 40th anniversary in 2019, but blamed the current pandemic for its financial troubles.

Palmers’ Luke Morgan said: “Sadly all schools – both state and independently run – have struggled with the financial impact of Covid-19.

“However, for private schools, the pressures can often threaten their very existence. It is therefore critical to seek advice and practical support from specialist advisors who can provide guidance on a range of measures that will help the organisation not only survive but also thrive in the long-term.”

At Palmers, our experts are able to assist with:

  • Advice relating to staff and employment law including redundancies
  • Negotiating with creditors
  • Advice on amalgamations and closures
  • Charitable and trust requirements
  • Merger and acquisition opportunities
  • Due diligence for schools considering a M&A
  • Securing equity funding

For help with all aspects of debt advice and legal support, please contact us.

£1.5billion funding for schools building projects and repairs pledged

£1.5billion funding for schools building projects and repairs pledged

The Government has promised £1billion funding for 50 new school building projects, together with more than half a billion pounds for urgent repairs.

Announcing the school rebuilding programme, Boris Johnson said: This major new investment will make sure our schools and colleges are fit for the future, with better facilities and brand new buildings.”

However, teaching unions claim the money being set aside is insufficient to deal with the true scale of the problem, pointing to National Audit Office figures which have identified £6.7billion worth of repairs are needed across England’s 21,000 schools.

The 50 school building projects will be identified later in the year, with construction expected to begin in September 2021.

An additional £560million is being set aside to fund urgent upgrades and repairs to schools for the next academic year.

A budget of £200million for further education colleges, which has already been announced by the Government, will now be brought forward under the latest plans.

Geoff Barton, leader of the ASCL head teachers’ union, also applauded the decision but warned that the infrastructure of schools must “never be allowed to fall into such a perilous state again”.

The Department for Education has confirmed that the funding announced by the Prime Minister is part of a wider investment in schools – including £650million for Covid-19 catch-up funding, as well as £350million for a tutoring service to help the most disadvantaged pupils.

Ministers also point to the Government’s commitment to increase school spending by £7.1billion by 2022-23.

BJ Chong, a Partner with Palmers, said: “The announcement represents an encouraging step forward for schools who will now be waiting to see whether their much needed building projects will be included in the first tranche of construction work.

“With any significant project of this kind it is important to ensure that the correct legal procedures have been carried out to ensure its smooth delivery.

“At Palmers, we are able to provide advice on outsourcing, procurement and contracts with external suppliers. We can also advise on managing outsourced services, contracts with suppliers and procurement terms and conditions.”

To find out more, please contact us.

Government plans for ‘new normal’ way of teaching revealed

Government plans for ‘new normal’ way of teaching revealed

From autumn, it has been revealed that entire year groups will be expected to remain in separate ‘bubbles’ as the Government unveils how it plans to have all pupils back in the classroom in September.

In secondary schools, this could result in up to 240 pupils per group, who would be expected to socially distance from other year groups, with separate, breaks, lunch and start and finish times in place.

In the event of a pupil testing positive for coronavirus, it could also mean that the entire group would then be sent home and expected to self-isolate for 14 days.

In primary schools bubble groups are expected to increase from the current maximum of 15 pupils, to a whole class of 30 pupils.

According to the Government’s proposals, if a pupil shows coronavirus symptoms, a parent or guardian will be expected to quickly collect their child.

According to the guidelines, “while waiting, the child should be kept 2 metres away from the supervising teacher and if that is not possible, in the case of a young child or one with complex needs, staff should wear full PPE – disposable gloves, a disposable apron, a fluid-resistant surgical face mask and in some cases eye goggles”.

According to the guidance, secondary school pupils will be expected to maintain 1 metre distancing but it has been acknowledged that primary school children will not be expected to do so.

Classroom layouts will change, with all pupils facing forward rather than sitting at circular tables and teachers will be encouraged to maintain social distancing at the front of the class.

Schools will be asked to put in place regular hand-washing routines although the guidance stops short of requiring either temperature checks or masks for staff and pupils.

Education Secretary, Gavin Williamson has stated that parents will no longer have the option to decide whether they wish their children to return to school, with compulsory attendance once again the norm, with fines for not compliance.

It has also been suggested that there could be fewer GCSE subjects offered, in a bid to focus on helping pupils to catch up with core subjects such as English and maths.

Whilst schools work to adapt to the ‘new normal’ in the classroom, it is understood that Ofsted is not planning to carry out routine inspections, for the autumn term at least.

A Department for Education spokesman said: “We’ve said we want to see all children back at school in September – returning to full primary and secondary class sizes in a safe way.”

Samantha Randall, an employment law expert, said: “Notwithstanding the DfE’s proposal to have all children back in school in September, headteachers and governors have a delicate balancing act to perform, to ensure that the school meets its duties as an employer.

“In particular, staff with pre-existing health conditions who are deemed clinically vulnerable will need to be considered.”

The latest Government guidance states that if clinically vulnerable individuals cannot work from home, they should be offered the option of the safest available on-site roles, enabling them to stay 2 metres away from others. If they have to spend time within 2 metres of others, an employer should carefully assess whether this involves an acceptable level of risk.

The guidance also states that particular attention should also be paid to people who live with clinically extremely vulnerable individuals.

There is also an implied duty that an employer will take reasonable care for the health and safety of employees. The implied term of mutual trust and confidence will also be relevant.

Where the breach of an implied term amounts to a fundamental breach of contract, the employee may elect to resign and claim constructive dismissal.

Where an employee is pregnant there are additional health and safety duties including:

(a) Risk assessments in respect of the employee or their child.

(b) To alter an employee’s working conditions/hours of work to avoid any significant risk or if this is not reasonable, to offer suitable alternative work on terms that are not substantially less favourable.

As the guidance and law is constantly evolving, if you are experiencing any concerns in relation to health and safety or employment law, please contact us.