Education Reform Act 1988 (c. 40)

(The document as of February, 2008)

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(1) This section applies to any institution proposed to be established which in the financial year in which it is established will be required to be covered by a scheme.

(2) The Secretary of State may by regulations make provision--

(a) with respect to the government of institutions to which this section applies including in particular provision--

(i) requiring the constitution of temporary governing bodies for such institutions pending the constitution of their governing bodies; and

(ii) with respect to the size and composition of such temporary governing bodies;

(b) applying any of the provisions of this Chapter (including any provision made under section 146) in relation to institutions to which this section applies which have temporary governing bodies constituted in pursuance of any provision made in the regulations by virtue of paragraph (a) above, subject to such modifications as the Secretary of State may think fit.

(3) Regulations under subsection (2)(b) above may in particular include provision--

(a) requiring schemes to cover institutions to which this section applies;

(b) requiring schemes to provide for the delegation to their respective temporary governing bodies of the management of the budget shares of any such institutions which by virtue of any regulations made under paragraph (a) above are required to be covered by the schemes;

(i) to determine what staff (both full-time and part-time) are or will be required for the purposes of such institutions, and to select all such staff for appointment by the local education authority; and

(ii) to take such steps with respect to any other matters referred to in section 148 of this Act as may be appropriate in preparation for the conduct of such institutions following their establishment; and

(d) prohibiting local education authorities from taking any such steps as are referred to in paragraph (c)(i) or (ii) above which governing bodies are so authorised to take.

(4) Regulations under this section may provide that any scheme shall have effect with such modifications as appear to the Secretary of State to be appropriate in consequence of any provision made in those regulations by virtue of subsection (2) or (3) above.

155 Interpretation of Chapter III and supplementary provisions

(1) In this Chapter--

(a) references to a scheme are references--

(i) to a scheme made by a local education authority under section 139 of this Act; and

(ii) in a context referring to a particular local education authority, to a scheme so made by that authority;

(b) references to an institution's budget share for any financial year--

(i) shall be read in accordance with subsection (2)(a) of that section; and

(ii) include references to that share as from time to time revised in accordance with the scheme under which it is determined;

(c) references to an institution in respect of which financial delegation is required for any financial year shall be read in accordance with subsection (5)(a) of that section;

(d) references to an institution which has a delegated budget shall be read in accordance with subsection (5)(b) of that section;

(e) any reference to the delegation by a local education authority to the governing body of any institution of the management of the institution's budget share for any financial year shall be read in accordance with subsection (5)(c) of that section, in any case where the institution is an institution assisted by a local education authority; and

(f) references to the further and higher education budget of a local education authority for any financial year are references to the amount appropriated by the authority for meeting expenditure in that year for the purposes of the exercise of their further or higher education functions.

(2) References in this Chapter to the delegation requirement under any scheme shall be read in accordance with section 144(3).

(3) It shall be for the Secretary of State to determine any question arising under a scheme as to whether an institution required to be covered by the scheme is within the delegation requirement under the scheme.

Chapter IV Miscellaneous and Supplementary

156 Government and conduct of certain further and higher education institutions

(1) This section applies to any institution which is--

(a) a designated assisted institution providing full-time education; or

(b) an institution designated under section 129 of this Act as an institution eligible to receive support from funds administered by the Polytechnics and Colleges Funding Council.

(2) Where any institution to which this section applies is conducted by a company, the articles of association of the company shall incorporate--

(a) provision with respect to the constitution of a governing body of the institution (to be known as the instrument of government of the institution); and

(b) provision with respect to the conduct of the institution (to be known as the articles of government of the institution).

(3) Where any such institution is so conducted--

(a) the Secretary of State may give to the persons who appear to him to have effective control over the company such directions as he thinks fit for securing that--

(i) the memorandum or articles of association of the company; or

(ii) any rules or bye-laws made in pursuance of any power conferred by the articles of association of the company;

are amended in such manner as he may specify in the direction; and

(b) no amendment of the memorandum or articles of association of any such company (other than one required under paragraph (a)(i) above) shall take efect until it has been submitted to the Secretary of State for his approval and he has notified his approval to the company.

(4) Before giving any directions under subsection (3)(a) above the Secretary of State shall consult the persons who appear to him to have effective control over the company concerned.

(5) Where it is proposed to form a company to conduct any institution providing full-time education which is maintained by a local education authority in exercise of their further or higher education functions, the proposed memorandum and articles of association of the company shall be submitted to the Secretary of State for his approval before the company is formed and amended in any manner he may require.

(6) For every institution to which this section applies which is not conducted by a company, there shall be--

(a) an instrument providing for the constitution of a governing body of the institution (to be known as the instrument of government); and

(b) an instrument in accordance with which the institution is to be conducted (to be known as the articles of government).

(7) The instrument and articles of government of any institution within subsection (6) above shall be made by the responsible authority with the approval of the Secretary of State.

(8) The instrument of government of any institution within subsection (6) above, and the instrument containing the articles of government of any such institution, may each include provision for its amendment or replacement subject to the approval of the Secretary of State.

(9) In this section, "the responsible authority" means, in relation to the instrument or articles of government of any institution within subsection (6) above--

(a) where any existing instrument or articles of government of the institution, or any other instrument relating to or regulating the institution, confers power on any persons to amend or replace that instrument or those articles, the persons on whom that power is so conferred; and

(b) in any other case, the persons responsible for the management of the institution.

(10) The Secretary of State may by order amend the instrument and articles of government of any institution within subsection (6) above in such manner as he thinks fit.

(11) Before making any amendments of the instrument or articles of government of any institution under subsection (10) above the Secretary of State shall consult--

(a) the responsible authority; and

(b) the persons responsible for the management of the institution, in any case where those persons are not the responsible authority;

in so far as it appears to him to be practicable to do so.

157 Variation of trust deeds, etc

(1) The Secretary of State may by order make such modifications as he thinks fit in any trust deed or other instrument--

(a) relating to or regulating any such institution as is mentioned in subsection (2) below; or

(b) relating to any land or other property held by any person for the purposes of any such institution.

(2) The institutions referred to in subsection (1) above are--

(a) any institution conducted by a higher education corporation;

(b) any designated assisted institution providing full-time education; and

(c) any institution designated under section 129 of this Act as an institution eligible to receive support from funds administered by the Polytechnics and Colleges Funding Council.

(3) Before making any modifications under subsection (1) above of any trust deed or other instrument the Secretary of State shall consult--

(a) where that deed or instrument, or any other instrument relating to or regulating the institution concerned, confers power on any persons to amend or replace that deed or instrument--

(i) the persons on whom that power is so conferred; and

(ii) if different, the persons responsible for the management of the institution; and

(b) in any other case, the persons so responsible;

in so far as it appears to him to be practicable to do so.

(4) Any provision of any instrument relating to any land or other property held for the purposes of any institution maintained or assisted by a local education authority to which this subsection applies which--

(a) confers on any person an option to acquire an interest in that land or other property; or

(b) provides (in whatever terms) for the determination or forfeiture of any such interest;

in the event of the institution's ceasing to be maintained or assisted by a local education authority or (as the case may be) by the authority in question shall, if the institution becomes an institution within the PCFC funding sector or a grant-aided institution, have effect as if the event referred to were the institution's ceasing to be a publicly funded institution.

(5) Subsection (4) above applies--

(a) to an institution maintained by a local education authority if it is an institution providing full-time education which is maintained by the authority in exercise of their further or higher education functions; and

(b) to an institution assisted by a local education authority if it is a designated assisted institution providing full-time education.

(6) In that subsection "publicly funded institution" means an institution which is an institution of any one or more of the following descriptions, that is to say--

(a) an institution maintained or assisted by a local education authority;

(b) an institution within the PCFC funding sector; and

158 Reports and returns to Secretary of State

(1) The persons mentioned in subsection (2) below shall make such reports and returns, and give such information, to the Secretary of State as he may require for the purposes of the exercise of any of his functions in relation to education.

(2) Those persons are--

(a) the governing body of--

(i) any institution within the PCFC funding sector;

(ii) any institution providing full-time education which is maintained by a local education authority in exercise of their further or higher education functions; or

(iii) any designated assisted institution providing full-time education; and

(b) the persons appearing to the Secretary of State to have effective control over a company conducting any institution to which section 156 of this Act applies.

159 Information with respect to educational provision in institutions providing further or higher education

(1) The Secretary of State may make regulations requiring every local education authority to publish, in relation to each relevant institution maintained or assisted by the authority, such information with respect to the matters mentioned in subsection (3) below as may be prescribed.

(2) For the purposes of this section, an institution is a relevant institution in relation to a local education authority if it is either--

(a) an institution providing full-time education which is maintained by that authority in exercise of their further or higher education functions; or

(b) a designated assisted institution providing full-time education which is dependent on assistance from that authority.

(3) The matters referred to in subsection (1) above are--

(a) the educational provision made by the institution for students at the institution; and

(b) the educational achievements of students at the institution (including the results of examinations, tests and other assessments of those students).

(4) The information shall be published in such form and manner and at such times as may be prescribed; and the regulations may provide for a local education authority to make arrangements with the governing body of any relevant institution for the publication by that governing body of the information required to be published in accordance with the regulations in the case of that institution.

160 Adjustments of block grant in respect of expenditure on advanced further education

(1) The block grant payable to a local authority in England for any year beginning on or after the date appointed for the purposes of section 126(1) of this Act shall not be subject to adjustment in accordance with paragraph 6 of Schedule 10 to the [1980 c. 65.] Local Government, Planning and Land Act 1980 (which relates to adjustments of block grant in respect of expenditure on advanced further education as between local authorities).

(2) In relation to any expenditure incurred by such an authority on or after that date in the exercise of the authority's functions as a local education authority, sub-paragraphs (3)(a) and (5)(b) of paragraph 5 of that Schedule (which define certain expenditure for the purposes of that paragraph) shall each have effect as if the words "other than that to which paragraph 6 below applies" were omitted.

(3) On that date Part I of that Schedule (which relates to adjustments of block grant in respect of expenditure on advanced further education as between England and Wales) shall cease to have effect.

(4) Anything done by the Secretary of State before the passing of this Act for the purpose of making in the block grant payable to a local authority in England adjustments under paragraph 5 or 6 of that Schedule in respect of expenditure incurred in the years beginning in 1985, 1986 and 1987 by local authorities in England in connection with further education of an advanced character (including the training of teachers) shall be deemed to have been done in accordance with that paragraph.

(5) In this section--

"local authority" means a body which is a local authority for the purposes of Part VI of that Act; and
"year" has the same meaning as in that Part.

161 Interpretation of Part II

(1) In this Part of this Act, except where the context otherwise requires--

(a) references to courses of advanced further education shall be read in accordance with section 121(4);

(b) references to the further or higher education functions of a local education authority are references to the functions of the authority under either or both of the following--

(i) section 41 of the 1944 Act (provision of facilities for further education); and

(ii) section 120(3) and (4) of this Act (provision of facilities for higher education);

(c) references to a designated assisted institution dependent on assistance from a local education authority shall be read in accordance with section 139(7); and

(d) "governing body" includes, in relation to any institution, a board of governors of the institution or any persons responsible for the management of the institution (but not formally constituted as such a body or board).

(2) References in this Part of this Act to the total full-time equivalent enrolment number of any institution at any time are references to the aggregate of its full-time equivalent enrolment numbers at that time for courses of all descriptions then offered by that institution.

(3) For the purposes of this Part of this Act the full-time equivalent enrolment number at any time of any institution for courses of any description shall be determined in accordance with Schedule 9 to this Act.

Part III Education in Inner London

Reorganisation of provision of education in inner London

162 Abolition of ILEA

(1) On 1st April 1990 the following shall cease to exist--

(a) the Inner London Education Authority (in this Part referred to as "ILEA") and any education committee established by that Authority; and

(b) the Inner London Education Area.

(2) That date is in this Part referred to as the "abolition date".

163 New local education authorities for areas in inner London

(1) On the abolition date each inner London council shall become the local education authority for its area, and references to a local education authority in the Education Acts 1944 to 1988 or in any other enactment shall be construed accordingly.

(2) In this Part, "inner London council" means the council of an inner London borough or (in their capacity as a local authority) the Common Council of the City of London.

164 Extension of functions of London Residuary Body

(1) For the purpose of enabling it to discharge the functions conferred or imposed on it by or under the following provisions of this Part in connection with the abolition of ILEA, the London Residuary Body shall not be required in accordance with section 67 of the 1985 Act to submit to the Secretary of State a scheme for its winding up, but shall, subject to the provisions of this Part, continue in existence notwithstanding the completion of its work under that Act and the disposal of any of its functions, property, rights and liabilities to which that section applies.

(2) That section shall apply in relation to the London Residuary Body with the following modifications--

(a) references to its functions and work shall not apply to its functions and work under this Part;

(b) references to property, rights and liabilities shall not apply to property, rights and liabilities transferred to it, or held, acquired or incurred by it by virtue of, or in the exercise of any of its functions under, this Part; and

(3) In this Part "the 1985 Act" means the [1985 c. 51.] Local Government Act 1985.

Disposal of functions and property of ILEA

165 Development plans for education

(1) Not later than such date as the Secretary of State may direct each inner London council shall prepare and publish a plan (referred to in this section as a "development plan")--

(a) describing the manner in which the council proposes to perform the functions of a local education authority for its area (in this Part referred to, in relation to each such council, as the council's "LEA functions"); and

(b) giving the additional information required by subsection (2) below.

(2) A council's development plan shall--

(a) list the property belonging to ILEA which, in the council's opinion, needs to be transferred to it for the purpose of enabling it properly to perform its LEA functions;

(b) specify--

(i) all schools situated inside the council's area which are currently maintained by ILEA; and

(ii) any schools situated outside the council's area which are currently so maintained and which the council would wish to maintain in exercise of its LEA functions; and

(c) give particulars of the management structure (within the meaning of section 169 of this Act) which the council proposes to adopt for the purpose of the exercise of those functions.

(3) In preparing a development plan, a council shall--

(a) consult the local authorities for adjacent areas; and

(b) take into account any guidance given by the Secretary of State (whether as to the contents of the plan or as to consultation with any other persons, and whether as to such plans generally or as to the particular council's plan).

(4) Guidance given by the Secretary of State for the purposes of subsection (3)(b) above shall be published in such manner as the Secretary of State thinks fit.

(5) A development plan shall be published in such manner as the council concerned considers likely to bring it to the attention of persons (both inside and outside its area) who may be affected by the performance by the council of its LEA functions, and the council shall make copies of the plan readily available, during office hours, to persons wishing to inspect it.

166 Responsibility for schools

(1) The Secretary of State shall by an order or orders made at any time before the abolition date designate in relation to each inner London council--

(a) the ILEA maintained schools which it is to be that council's duty to maintain; and

(b) the ILEA grant-maintained schools in respect of which functions exercisable by ILEA are to be exercisable instead by that council.

(2) The Secretary of State may by an order or orders so made designate in relation to any local education authority specified in the order (other than an inner London council)--

(a) any ILEA maintained school which it is to be that authority's duty to maintain; or

(b) any ILEA grant-maintained school in respect of which functions exercisable by ILEA are to be exercisable instead by that authority;

and shall so designate any such school which is not designated by an order under subsection (1) above.

(3) For the purposes of this section--

(a) a school is an ILEA maintained school if it is a county, voluntary, nursery or special school maintained by ILEA; and

(b) a school is an ILEA grant-maintained school if it is a grant-maintained school which was maintained by ILEA immediately before it became a grant-maintained school.

(4) A school may be designated--

(a) in relation to a council by an order under subsection (1) above; or

(b) in relation to a local education authority by an order under subsection (2) above;

whether it is inside or outside the area of that council or authority.

(5) Subject to subsection (6) below, as from the abolition date each inner London council and any other local education authority shall maintain and, except in accordance with the Education Acts 1944 to 1988, shall not cease to maintain any school--

(a) which is designated in relation to that council or authority by an order under subsection (1)(a) or (2)(a) above; and

(b) which immediately before that date was maintained by ILEA.

(6) Any such council or authority may, with the consent of the Secretary of State, agree with any other local education authority for the maintenance by that authority of any school which by virtue of subsection (5) above would otherwise fall to be maintained by the council or the first-mentioned authority.

(7) Any functions which, immediately before the abolition date, were exercisable by ILEA in relation to, or in relation to registered pupils at, any school which is designated in relation to any such council or in relation to any other local education authority by an order under subsection (1)(b) or (2)(b) above shall, as from that date, be exercisable instead by that council or (as the case may be) by that authority.

(8) Where after the date on which an order under subsection (1) or (2) above is made any school designated under paragraph (a) of either of those subsections becomes a grant-maintained school, it shall be treated for the purposes of subsection (7) above as having been designated under paragraph (b) of subsection (1) or (2) (as the case may require).

167 Removal of certain governors

(1) On the abolition date--

(a) any person appointed by ILEA as governor of any institution to which this subsection applies; and

(b) any person co-opted as governor of any such institution;

shall cease to hold office.

(2) Subsection (1) above applies to the following institutions--

(a) any school which immediately before the abolition date was maintained by ILEA; and

(b) any institution other than a school which immediately before that date was maintained or assisted by ILEA.

(3) On that date any person appointed by an inner London council as governor of a primary school by virtue of any provision included in the instrument of government of the school in accordance with section 7(1) of the 1986 Act (appointment of governor by minor authority) shall cease to hold office.

(4) On and after that date the instrument of government of any school to which that section applies shall have effect as if it made the provision that would have been required by section 3 of that Act if section 7(1) had not applied (and with the omission of any provision included by virtue of subsection (6)(a) of section 7).

(5) Neither subsection (1) nor subsection (3) above shall be taken as prejudicing any subsequent appointment or co-option as governor of the school or other institution concerned of a person who by virtue of that subsection ceases to hold office as governor of that school or institution.

168 Transfers of property, rights and liabilities

(1) The Secretary of State may by an order or orders made at any time before the abolition date provide for the transfer to each inner London council of--

(a) such of the property, rights and liabilities of ILEA (other than excepted rights and liabilities) as, in his opinion, need to be so transferred for the purpose of enabling that council properly to perform its LEA functions; and

(b) such of the rights and liabilities of ILEA (other than excepted rights and liabilities) as, in his opinion, it is appropriate to transfer to that council for the purposes of or in connection with the exercise by that council by virtue of section 166 of this Act of functions in relation to, or in relation to registered pupils at, any grant-maintained school which were formerly exercisable by ILEA.

(2) The Secretary of State may by such an order or orders provide for the transfer to any local authority other than an inner London council of such of the property, rights and liabilities of ILEA (other than excepted rights and liabilities) as do not in his opinion fall to be transferred to such a council by virtue of subsection (1) above.

(3) Any transfer for which provision is made by order under this section may be on such terms, including financial terms, as the Secretary of State thinks fit and the Secretary of State may by order create or impose such new rights or liabilities in respect of what is transferred as appear to him to be necessary or expedient.

(4) The Secretary of State may by order confer on any inner London council or local authority to which property is transferred by or under the order any statutory functions which before the abolition date were exercisable in relation to that property by ILEA.

(5) In this section "excepted rights and liabilities" means rights and liabilities arising under contracts of employment between ILEA and its employees.

169 Approval of management structure and senior appointments in initial period

(1) References in this section to the management structure of an inner London council for the purpose of the exercise of its LEA functions are references to any aspect of the council's organisation and its arrangements for managing its affairs in relation to the exercise of those functions which the Secretary of State determines ought to be subject to approval under this section with a view to securing the proper performance by the council of those functions during the initial period.

In this section "the initial period" means the period of five years beginning with the abolition date.

(2) The reference in subsection (1) above to a council's organisation and its arrangements for managing its affairs in relation to the exercise of its LEA functions includes in particular its staffing arrangements and the determination of the duties to be performed by its employees concerned in the exercise of those functions.

(3) It shall be the duty of each inner London council to adopt and to maintain during the initial period a management structure for the purpose of the exercise of its LEA functions which is for the time being approved by the Secretary of State under this section.

(4) Such a council shall not before the end of the initial period make an appointment to which this subsection applies except after consultation with the Secretary of State.

(5) Subsection (4) above applies to the appointment of a person--

(a) to be the chief education officer of the council; or

(b) to any designated post forming part of the management structure of the council for the time being approved under this section.

(6) In subsection (5)(b) above "designated" means designated for the purposes of subsection (4) above by a direction given by the Secretary of State.

(7) For the purposes of the consultation required by subsection (4) above a council proposing to make an appointment to which that subsection applies shall send to the Secretary of State particulars showing the name, previous experience and qualifications of the persons from whom the council proposes to make a selection.

(8) If the Secretary of State is of opinion that any person whose name is submitted to him under subsection (7) above is not a fit person to hold the appointment in question, he may give a direction prohibiting that person's appointment.

Staff

170 Establishment and functions of staff commission

(1) The Secretary of State shall establish a staff commission for the purpose of--

(a) advising the Secretary of State on the steps necessary to safeguard the interests of the staff employed by relevant authorities so far as affected by any provision made by or under this Part;

(b) considering and keeping under review--

(i) the arrangements for the recruitment of staff by those authorities in consequence of any such provision; and

(ii) the arrangements for any transfer of the staff of those authorities in consequence of any such provision; and

(c) considering such staffing problems arising in consequence of, and such other matters relating to staff of any body affected by, any such provision as may be referred to the commission by the Secretary of State.

(2) The Secretary of State may give directions to the staff commission as to their procedure and to any relevant authority with respect to--

(a) the implementation of any advice given by the commission; and

(b) the payment by a relevant authority of any expenses incurred by the commission in doing anything requested by the authority;

and it shall be the duty of the commission and of a relevant authority to comply with any direction given to it under this subsection.

(3) Any expenses incurred by the staff commission under this section and not recovered from a relevant authority shall be paid by the Secretary of State.

(4) The relevant authorities for the purposes of this section are--

(a) ILEA and the inner London councils;

(b) the London Residuary Body; and

(c) any local authority other than an inner London council to which functions or property of ILEA will be or have been transferred by order under section 168 of this Act.

171 Remuneration of employees

(1) If--

(a) ILEA proposes to fix for any employee or class of employees of ILEA a rate of remuneration greater than the rate for the time being applicable to that employee or class of employees; and

(b) the new rate is to take effect as from a date ("W") falling after 30th September 1989;

ILEA shall notify each inner London council in writing of the proposal and the proposed date of increase.

(2) The employee or class of employees to whom any such proposal relates shall not be paid at the new rate--

(a) until the end of the period of four weeks beginning with the date immediately following the notification date; and

(b) where a complaint is made in accordance with subsection (3) below, unless payment at the new rate is authorised by the Secretary of State.

(3) Before the end of the period of two weeks beginning with the date immediately following the notification date, any three or more of the inner London councils may complain to the Secretary of State if they consider that the new rate is excessive having regard to levels of remuneration applicable in the case of persons employed by local authorities on work comparable to that on which the employee or class of employees concerned is employed.

(4) On receipt of such a complaint the Secretary of State--

(a) shall notify ILEA in writing of the complaint; and

(b) shall afford--

(i) to ILEA;

(ii) to each of the inner London councils; and

(iii) to such persons appearing to him to be representative of employees of ILEA as he considers appropriate in relation to the employee or class of employees concerned;

an opportunity of making representations to him with respect to the proposal.

(5) After considering any representations made to him under subsection (4)(b) above, the Secretary of State may--

(a) authorise payment at the new rate; or

(b) refuse to authorise such payment.

(6) The Secretary of State shall give written notification of his decision to ILEA, to each of the inner London councils, and to any other persons who made representations to him with respect to the proposal under subsection (4)(b) above.

(7) Subsection (8) below applies where by virtue of subsection (2) above the employee or class of employees to whom any proposal to which subsection (1) above relates is not paid at the new rate until after the proposed date of increase, and either--

(a) no complaint is made in accordance with subsection (3) above in respect of the new rate; or

(b) such a complaint is made but payment at the new rate is authorised by the Secretary of State.

(8) In any case to which this subsection applies, for the purpose of determining--

(a) the terms of any contract affected by section 172 of this Act; and

(b) any compensation payable in accordance with section 173 of this Act;

the employee or class of employees concerned shall be regarded as having been entitled under his or their contracts of employment with ILEA to remuneration at the new rate as from the proposed date of increase.

(9) In this section "the notification date" means, in relation to any proposal to which subsection (1) above applies, the date by which all the inner London councils have received notification of the proposal under that subsection.

172 Power to transfer staff

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