Education Act 1996 (c. 56)

(The document as of February, 2008)

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Financial delegation under a scheme

115 Financial delegation: introductory

In the following provisions of this Part--

(a) references to a school in respect of which financial delegation is required for a financial year under a scheme are to a school conducted by a governing body to whom the local education authority are for the time being required by or under the scheme to delegate the management of the school's budget share for the year (and the governing body of such a school are said to have a right to a delegated budget for the year), and

(b) references to a school which has a delegated budget are to a school conducted by a governing body to whom a local education authority have for the time being delegated the management of the school's budget share for a financial year in pursuance of a scheme (whether that delegation is required by the scheme or not).

116 Effect of financial delegation

(1) This section applies where a local education authority's financial provision for county and voluntary schools is subject to regulation by a scheme.

(2) In the case of any county or voluntary school maintained by the authority in respect of which financial delegation is required for a financial year under the scheme, the authority shall put at the disposal of the governing body in respect of the year a sum equal to the school's budget share for the year, to be spent for the purposes of the school.

(3) The times at which, and the manner in which, any such sum is put at the disposal of the governing body shall be such as may be provided by or under the scheme.

(4) Subject to section 125 (financial delegation apart from schemes) and section 489(2) (grants for education support and training), the authority may not delegate to the governing body of any school required to be covered by the scheme in a financial year the power to spend any appropriated amount otherwise than as required or permitted under the scheme; and for this purpose "appropriated amount" means a sum appropriated by the authority for the purposes of the school in that year.

(5) The governing body of a school which has a delegated budget--

(a) shall be entitled, subject to any provision made by or under the scheme, to spend any sum made available to them in respect of the school's budget share for a financial year as they think fit for the purposes of the school, and

(b) may delegate to the head teacher, to such extent as may be permitted by or under the scheme, their power under paragraph (a) in relation to any part of that sum.

(6) In subsection (5) "the purposes of the school" does not include purposes wholly referable to the provision of--

(a) part-time education suitable to the requirements of persons of any age over compulsory school age, or

(b) full-time education suitable to the requirements of persons who have attained the age of 19.

(7) The governing body of a school which has a delegated budget shall not exercise their powers under subsection (5) to pay to governors any allowances other than travelling and subsistence allowances.

(8) The governors of a school shall not incur any personal liability in respect of anything done in good faith in the exercise or purported exercise of their powers under subsection (5).

Suspension of financial delegation

117 Suspension of financial delegation for mismanagement etc

(1) Where it appears to the local education authority that the governing body of a school in respect of which financial delegation is required for the current financial year under a scheme--

(a) have been guilty of a substantial or persistent failure to comply with any requirements applicable under the scheme, or

(b) are not managing the appropriation or expenditure of the sum put at their disposal for the purposes of the school in a satisfactory manner,

the authority may suspend the governing body's right to a delegated budget by giving them not less than one month's notice of the suspension.

(2) The notice shall specify the grounds for the proposed suspension, giving particulars--

(a) of any alleged failure on the part of the governing body to comply with any requirements applicable under the scheme; and

(b) of any alleged mismanagement on their part.

(3) A copy of the notice shall be given to the head teacher of the school at the same time as the notice is given to the governing body.

(4) Where the authority have given a notice under subsection (1) to a governing body, they may suspend the governing body's right to a delegated budget before the expiry of the period of notice if it appears to them to be necessary to do so by reason of any gross incompetence or mismanagement on the part of the governing body or other emergency.

(5) If the authority exercise their power under subsection (4), they shall immediately give to the Secretary of State written notification of their action and the reasons for it.

(6) During any period when a governing body's right to a delegated budget is suspended under this section, the authority's duty under section 116(2) shall not apply in relation to that governing body.

118 Review of suspension

(1) The local education authority concerned shall review before the beginning of every financial year any suspension under section 117 which is for the time being in force.

(2) For the purposes of the review the authority--

(a) shall give the governing body and the head teacher of the school an opportunity of making representations with respect to the suspension, and

(b) shall have regard to any representations made by the governing body or head teacher.

(3) If on the review the authority consider it appropriate to do so, they shall revoke the suspension.

(4) The authority shall give the governing body and the head teacher written notification of their decision on the review.

(5) The revocation of a suspension on a review under this section shall take effect from the beginning of the financial year next following the review.

119 Appeal against suspension or refusal to revoke it

(1) A governing body may appeal to the Secretary of State against--

(a) the imposition of any suspension under section 117; or

(b) any refusal of a local education authority to revoke any such suspension on a review under section 118.

(2) On an appeal under this section, the Secretary of State--

(a) may allow or reject the appeal; and

(b) shall have regard, in making his determination, to the gravity of the default on the part of the governing body and the likelihood of its continuing or recurring.

Extension of schemes

120 Application of schemes to maintained special schools

(1) The Secretary of State may by regulations require or authorise schemes to cover maintained special schools.

(2) Sections 107(1), 108 and 110 shall not apply to schools required to be covered by a scheme by virtue of regulations under subsection (1).

(3) Regulations under subsection (1) may require or authorise schemes to include provision for requiring the local education authority concerned to delegate to the governing body of a maintained special school the management of the school's budget share for the year--

(a) in the case of all schools required to be covered by a scheme in any financial year by virtue of the regulations; or

(b) in the case of such schools required to be covered by a scheme in any financial year by virtue of the regulations as the Secretary of State may direct.

(4) The Secretary of State may by regulations--

(a) make in any of the following, namely--

(i) any provisions of this Chapter, and

(ii) sections 136 to 141, Schedule 14 and paragraphs 2 and 18 to 24 of Schedule 19 (which make provision in relation to the staffing of schools with delegated budgets etc.),

such amendments as appear to him to be required in consequence of any provision made in regulations under subsection (1); and

(b) provide that any scheme shall have effect with such modifications as appear to him to be appropriate in consequence of any provision so made.

Information

121 Publication of schemes

A scheme shall be published in such manner as may be prescribed--

(a) on its coming into force, and

(b) on such subsequent occasions as may be prescribed.

122 Financial statements

(1) This section applies where a local education authority's financial provision for county and voluntary schools is subject to regulation by a scheme.

(2) Before the beginning of each financial year, the authority shall prepare a statement of the financial provision they plan to make in that year for county and voluntary schools maintained by them.

(3) Part I of Schedule 11 has effect in relation to the contents of a statement under subsection (2).

(4) After the end of each financial year, the authority shall prepare a statement containing such information with respect to the following matters as may be prescribed--

(a) the planned financial provision in that year specified in the statement prepared by the authority under subsection (2);

(b) expenditure actually incurred in the year for the purposes of all schools required to be covered by the scheme; and

(c) expenditure actually incurred in the year which was incurred, or is treated by the authority as having been incurred, for the purposes of each such school.

(5) A statement under this section shall be prepared in such form, and published in such manner and at such times, as may be prescribed.

(6) The authority shall furnish--

(a) the governing body of each school required to be covered by the scheme in any financial year, and

(b) the governing bodies of--

(i) such grant-maintained schools in the authority's area, and

(ii) such grant-maintained special schools mentioned in section 104(3)(c),

as may be prescribed,

with a copy of each statement prepared by the authority under this section in relation to that year or, in such circumstances as may be prescribed, with such part or parts of it as may be prescribed.

(7) A governing body provided with a statement under subsection (6) shall secure that a copy of it is available for inspection (at all reasonable times and free of charge) at the school.

123 Certification of statements by Audit Commission

(1) This section applies where a local education authority's financial provision for county and voluntary schools is subject to regulation by a scheme.

(2) The authority shall, if directed to do so by the Secretary of State, require the Audit Commission for Local Authorities and the National Health Service in England and Wales to make arrangements in accordance with section 29(1)(d) of the [1982 c. 32.] Local Government Finance Act 1982 for certifying such statement or statements prepared by the authority under section 122 of this Act as may be specified in the directions; and for the purposes of section 29(1)(d) of that Act any statement under section 122 of this Act shall be treated as a return by the authority.

(3) The arrangements made by the Audit Commission in pursuance of subsection (2) shall include arrangements for sending a copy of any such statement or statements as so certified to the Secretary of State.

(4) Directions given under subsection (2) may relate to any local education authority or to local education authorities generally or to any class or description of such authorities.

124 Financial statements in respect of special schools not covered by statements under section 122

(1) A local education authority shall prepare, in respect of each financial year during the whole or any part of which they maintain one or more relevant special schools, a statement of the financial provision initially planned by them in respect of the year for that school or those schools.

(2) For the purposes of this section a "relevant special school" is any special school other than one in relation to which (by virtue of any provision made by regulations having effect under section 120) information is required to be included in a statement prepared by the authority in respect of the year under section 122.

(3) Part II of Schedule 11 has effect in relation to the contents of a statement under subsection (1).

(4) After the end of each financial year in respect of which a local education authority are required to prepare a statement under subsection (1), they shall prepare a statement containing such information in respect of--

(a) expenditure actually incurred in the year for the purposes of all the schools required to be covered by the statement under subsection (1), and

(b) expenditure actually incurred in the year which was incurred, or is treated by the authority as having been incurred, for the purposes of each such school,

as may be prescribed.

(5) Where only one school is required to be covered by the statement under subsection (1), the reference in subsection (4)(a) to all the schools is a reference to that school and subsection (4)(b) does not apply.

(6) A statement prepared under this section shall be prepared in such form, and published in such manner and at such times, as may be prescribed.

(7) The authority shall provide the governing body of any school required to be covered by a statement under subsection (1) in respect of a financial year with a copy of each statement prepared by the authority under this section in relation to that year.

(8) A governing body provided with a statement under subsection (7) shall secure that a copy of it is available for inspection (at all reasonable times and free of charge) at the school.

Financial delegation apart from schemes

125 Required financial delegation apart from schemes

(1) In respect of any period during which a county, voluntary or maintained special school does not have a delegated budget, the local education authority shall make available a sum of money which (subject to subsection (2)) the governing body of the school are to be entitled to spend at their discretion during that period--

(a) on books, equipment and stationery; and

(b) on such other heads of expenditure (if any) as the authority may specify or as may be prescribed.

(2) In spending that sum the governing body shall comply with such reasonable conditions as the authority think fit to impose.

(3) The governing body may, to such extent as they may specify, delegate their powers in relation to that sum to the head teacher.

(4) Before making any regulations for the purposes of subsection (1), the Secretary of State shall consult--

(a) such associations of local authorities as appear to him to be concerned; and

(b) any local authority with whom consultation appears to him to be desirable.

Financial delegation and new schools

126 Financial delegation and new schools

Schedule 12 has effect for the purpose of applying the other provisions of this Chapter in relation to new schools.

Chapter VI Conduct and staffing of county, voluntary and maintained special schools

Articles of government

127 Articles of government

(1) For every county, voluntary and maintained special school there shall be an instrument (known as the articles of government) in accordance with which the school is to be conducted.

(2) The articles of government shall be made by order of the local education authority.

(3) The articles of government--

(a) shall contain such provisions as are required by this Chapter or by any other enactment; and

(b) shall not contain any provision which is inconsistent with any provision made by or under this Act or any other enactment.

(4) The articles of government shall comply with any trust deed relating to the school.

128 Procedure for making and altering articles of government

(1) Before making an order under section 127, a local education authority shall consult the governing body and the head teacher of the school concerned.

(2) Before making an order under section 127 in respect of a voluntary school, a local education authority shall also--

(a) secure the agreement of the governing body to the terms of the proposed order; and

(b) have regard to the way in which the school has been conducted.

(3) Where the governing body of a county, voluntary or maintained special school make a proposal to the local education authority for the alteration of the provision made by the articles of government for the school, the authority shall consider their proposal.

(4) Where a local education authority--

(a) propose to make an order under section 127 but cannot secure any agreement required by subsection (2), or

(b) refuse, in the case of a voluntary school, to make such an order in response to a proposal of a kind mentioned in subsection (3),

the authority or (as the case may be) the governing body may refer the matter to the Secretary of State.

(5) On a reference to him under subsection (4), the Secretary of State shall give such direction as he thinks fit having regard, in particular, to the status of the school as a controlled, aided or (as the case may be) special agreement school.

(6) Where it appears to the Secretary of State--

(a) that an order, or proposed order, under section 127 is in any respect inconsistent with the provisions of any trust deed relating to the school, and

(b) that it is expedient in the interests of the school that the provisions of the trust deed should be modified for the purpose of removing the inconsistency,

he may by order make such modifications in the trust deed as appear to him to be just and expedient for that purpose.

(7) References in this section to an order, or proposed order, under section 127 are references to an order, or proposed order, under that section embodying or varying the articles of government for a school.

129 Overriding, and amendment, of articles where school has a delegated budget

(1) During any period when a school has a delegated budget under such a scheme as is mentioned in section 101(1), any provisions of the articles of government of the school which are inconsistent with the operation during that period of any provisions of Chapter V or of the scheme shall be of no effect to the extent of the inconsistency.

(2) If a school's articles of government contain any provisions to which subsection (1) applies ("inconsistent provisions"), the local education authority shall amend the articles so as to include in relation to each inconsistent provision the statement required by subsection (3).

(3) The statement shall specify--

(a) the inconsistent provision,

(b) the provision of Chapter V or of the scheme with the operation of which it is inconsistent (the "overriding provision"), and

and shall indicate that, during any period when the school has a delegated budget, the inconsistent provision is superseded by the overriding provision to the extent of the inconsistency.

(4) Any amendment required by subsection (2) shall be made within the period of five years beginning with the date on which begins the financial year in which the school first has a delegated budget under the scheme.

(5) Any such amendment shall be made by order under section 127; but section 128 shall not apply in relation to an order made under section 127 by virtue of this subsection.

Conduct of schools: general

130 Governing body to have general responsibility for conduct of school

The articles of government for a county, voluntary or maintained special school shall provide for the conduct of the school to be under the direction of the governing body, but subject--

(a) to any provision of the articles conferring specific functions on a person other than the governing body, and

(b) to any provision (other than a provision of the articles) made by or under this Act or any other enactment.

131 Consultation with governing body not required in urgent cases

Regulations may make provision as to the circumstances in which, in any case where--

(a) any provision made by or under Chapter IV or this Chapter requires the governing body of a county, voluntary or maintained special school to be consulted before a particular step is taken by the local education authority or the head teacher, and

(b) the authority or head teacher require to take that step as a matter of urgency but are unable to contact the chairman or vice-chairman of the governing body,

the authority or (as the case may be) the head teacher may proceed without consulting the governing body.

132 Separate departments of school to be treated as separate schools

(1) Where a county, voluntary or maintained special school is organised in two or more separate departments, each with a head teacher, any provision made by or under this Act which confers functions on or in relation to the head teacher of the school shall have effect as if each department were a separate school.

(2) Subsection (1) does not apply where the school's articles of government provide otherwise.

Staffing of schools without delegated budgets

133 Staffing of county, controlled, special agreement and maintained special schools without delegated budgets

(1) A county, controlled, special agreement or maintained special school shall have a complement of teaching and non-teaching posts determined by the local education authority.

(2) The complement shall include--

(a) all full-time teaching posts, and

(b) all part-time teaching posts which are to be filled by persons whose only employment with the authority will be at the school.

(3) The complement shall not include any staff employed by the authority solely in connection with either or both of the following--

(a) the provision of meals;

(b) the supervision of pupils at midday.

(4) Schedule 13 has effect in relation to the staffing of county, controlled, special agreement and maintained special schools.

(5) The appointment and dismissal of staff (including teachers) at a county, controlled, special agreement or maintained special school shall be under the control of the local education authority, subject to--

(a) any provision made by the articles of government for the school in accordance with Schedule 13,

(b) section 135 and any provision made by the articles of government in accordance with that section (appointment and dismissal of clerk to governing body),

(d) in the case of a school for which there is a temporary governing body, Schedule 19 (conduct and staffing of new schools).

(6) This section is subject to section 136 (staffing of county, controlled and special agreement schools with delegated budgets).

134 Staffing of aided schools without delegated budgets

(1) In the case of an aided school the functions of the local education authority and of the governing body with respect to--

(a) the appointment of teachers, and

(b) subject to section 145 (dismissal of teachers of religious education), the dismissal of teachers,

shall be regulated by the articles of government.

(2) The articles of government shall make provision--

(a) for the appointment of the teachers by the governing body, and

(b) for enabling the local education authority to determine the number of teachers to be employed.

(3) The articles of government shall make provision for enabling the local education authority--

(a) to prohibit the dismissal of teachers without the authority's consent, except for reasons for which under section 145 the governing body may dismiss a teacher without the authority's consent; and

(b) to require the dismissal of any teacher.

(4) The articles of government may make such provision as may be agreed between the local education authority and the governing body or, in default of such agreement, as may be determined by the Secretary of State, for enabling the authority--

(a) to prohibit the appointment, without the authority's consent, of teachers to be employed for giving secular education; and

(b) to give directions as to the educational qualifications of the teachers to be employed for giving secular education.

(5) The local education authority may give directions to the governing body of an aided school as to the number and conditions of service of persons employed at the school for the purposes of the care and maintenance of the school premises.

(6) Where the trust deed relating to the school provides for a person other than the governing body to be entitled to control the occupation and use of the school premises to any extent, then, if and to the extent that (disregarding any transfer of control agreement under section 151) the use of those premises is or would be under the control of any such person, the reference in subsection (5) to the governing body shall be read as a reference to that person.

(7) This section is subject to section 137 (staffing of aided schools with delegated budgets).

135 Appointment etc. of clerk to governing body of school other than aided school

(1) The articles of government for a county or maintained special school shall provide for the clerk to the governing body to be appointed by the local education authority in accordance with arrangements determined by them in consultation with the governing body.

(2) The clerk to the governing body of a controlled or special agreement school shall be appointed--

(a) where the articles of government make provision in relation to his appointment, in accordance with that provision, or

(b) where paragraph (a) does not apply, by the local education authority in accordance with arrangements determined by them in consultation with the governing body.

(3) Arrangements determined in respect of a school by virtue of subsection (1) or under subsection (2)(b) may be varied by the authority in consultation with the governing body.

(4) The articles of government for a county or maintained special school shall require the local education authority not to dismiss the clerk except in accordance with arrangements determined by them in consultation with the governing body.

(5) The clerk to the governing body of a controlled or special agreement school may not be dismissed except--

(a) where the articles of government make provision in relation to his dismissal, in accordance with that provision, or

(b) where paragraph (a) does not apply, in accordance with arrangements determined by the local education authority in consultation with the governing body.

(6) The articles of government for a county, controlled, special agreement or maintained special school shall require the local education authority to consider any representations made to them by the governing body as to the dismissal of their clerk.

(7) Subsections (1) to (6) are subject to section 136 (staffing of county, controlled, and special agreement schools with delegated budgets).

(8) The articles of government for a county, controlled, special agreement or maintained special school shall enable the governing body, where the clerk fails to attend a meeting of theirs, to appoint one of their number to act as clerk for the purposes of that meeting (but without prejudice to his position as a governor).

Staffing of schools with delegated budgets

136 Staffing of county, controlled and special agreement schools with delegated budgets

(1) This section applies to a county, controlled or special agreement school at any time when it has a delegated budget.

(2) None of the following shall apply in relation to the school--

(a) section 133 and Schedule 13,

(b) section 135(1) to (6), and

(c) any provision made by the articles of government for the school in accordance with Schedule 13 or section 135(1) to (6).

(3) Instead Schedule 14 has effect in relation to the staffing of the school, subject, however, to the provisions of sections 143 and 144 (appointment and dismissal of teachers of religious education).

137 Staffing of aided schools with delegated budgets

(1) This section applies to an aided school at any time when it has a delegated budget.

(2) None of the following shall apply in relation to the school--

(a) any provision of the articles of government for the school conferring any functions on a local education authority with respect to the number, appointment or dismissal of teachers or other staff to be employed at the school (including any such provision which is required by section 134), and

(b) section 134(5).

(3) If, apart from any provision of the articles of government excluded by subsection (2)(a) they would not otherwise have power to do so, the governing body may appoint, suspend and dismiss staff as they think fit.

(4) Subsection (3) has effect subject to any provision of the articles of government (other than one excluded by subsection (2)(a)).

(5) The governing body shall, on dismissing any member of the staff of the school employed by them, notify the local education authority in writing of the reasons for the dismissal.

(6) Paragraphs 23 to 28 of Schedule 14 apply in relation to the dismissal or withdrawal from the school of any member of the staff who is employed by the local education authority as they apply in relation to the dismissal or withdrawal from a county, controlled or special agreement school which has a delegated budget of a person employed to work at the school.

138 Staffing of aided schools with delegated budgets: advisory rights of chief education officer

(1) Subsection (2) applies if, in the case of an aided school which has a delegated budget--

(a) the governing body of the school have agreed with the local education authority to accord to the authority's chief education officer advisory rights in relation to the appointment or dismissal of teachers at the school, or

(b) in default of such agreement, the Secretary of State has determined that it would be appropriate that such advisory rights should be accorded to the chief education officer.

(2) During any period when the agreement or determination under subsection (1) is effective, the chief education officer, or an officer of the authority nominated by him, shall be entitled to attend all relevant proceedings of the governing body for the purpose of giving advice to the governing body.

For this purpose "relevant proceedings" means proceedings (including interviews) relating to any action to which the advisory rights accorded to the chief education officer extend.

(3) Advisory rights accorded by an agreement or determination under subsection (1) may relate to the appointment or dismissal, or both to the appointment and to the dismissal, either--

(a) of head teachers and deputy head teachers alone, or

(b) of all teachers at the school.

(4) The agreement of a governing body for the purposes of subsection (1)(a) must be given in writing and may only be withdrawn by notice in writing to the local education authority.

(5) A determination by the Secretary of State for the purposes of subsection (1)(b) may be withdrawn at any time (without prejudice to a further determination for those purposes).

139 Staffing of schools with delegated budgets: payments in respect of dismissal, etc

(1) This section applies to a county or voluntary school at any time when it has a delegated budget.

(2) It shall be for the governing body to determine--

(a) whether any payment should be made by the local education authority in respect of the dismissal, or for the purpose of securing the resignation, of any member of the staff of the school, and

(b) the amount of any such payment.

(3) Subsection (2) does not, however, apply in relation to a payment which the authority are required to make--

(a) by virtue of any contract other than one made in contemplation of the impending dismissal or resignation of the member of staff concerned, or

(b) under any statutory provision.

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