How academy orders can be revoked

The Department for Education has updated its guidance on intervention powers – which includes how and when academy orders can be revoked

Generally, academy orders are handed out to schools deemed ‘inadequate’ by Ofsted; however, ministers have been able to reverse these orders for some time. Now, the vague direction of the guidance has been made more specific to outline other ways in which orders can be reversed.

The Department for Education deems it essential that action is taken wherever a school is judged inadequate, or where there is financial mismanagement or failure of governance. Optional school support will be offered to schools that have been judged as ‘requires improvement’ by Ofsted.

Intervention is different from school support, and refers to the formal action taken by local authorities and regional school commissioners (RSCs) in schools that are causing concern. Interventions are about acting swiftly to address underperformance, and financial or governance failures, and helping schools to deliver the best outcomes for their pupils.

The updated guidance – key points

The updated guidance describes the processes local authorities and RSCs may take in schools that are eligible for intervention within the meaning of Part 4 of the Education and Inspections 2006 Act. These include:

• Schools that have failed to comply with a warning notice: local authorities may give warning notices to their maintained schools where they have concerns about unacceptable educational performance, a breakdown in leadership and governance, or where the safety of pupils or staff may be being threatened. RSCs may give a warning notice to a maintained school where they have concerns about a breakdown in leadership and governance, or where the safety of pupils or staff may be being threatened. Where a maintained school does not comply with a warning notice, it will become eligible for formal intervention.
• Schools that have been judged ‘inadequate’ by Ofsted: an academy order must, in line with statutory requirements, be issued for all maintained schools that have been judged inadequate by Ofsted, requiring them to become sponsored academies. When an academy is judged inadequate by Ofsted. The RSC is able to terminate the funding agreement with the existing academy trust and move the academy to a new trust.

The power of the secretary of state to revoke an academy order Section 5D of the Academies Act 2010 enables the secretary of state to revoke an academy order that was made because a maintained school is eligible for intervention. This power can be used at the discretion of the secretary of state and will only be used in exceptional circumstances and not just because a school’s Ofsted rating has improved.

It is the secretary of state’s view that schools, in general, should benefit from being part of an academy trust. In the secretary of state’s view, transferring underperforming maintained schools to academy trusts is the most effective means of securing their rapid improvement. Ministers will make decisions on any revocations of academy orders. Examples of ‘exceptional circumstances’ include where:

1. the secretary of state considers that the school would not be viable as an academy (in these cases, they would expect the local authority to close the school; the secretary of state can direct them to do so if necessary);
2. the school has been re-inspected by Ofsted and judged ‘good’ or ‘outstanding’, and the secretary of state is satisfied that the improvement can be sustained without the support of a strong sponsor. Ofsted’s findings will be one of a number of sources of information the secretary of state will consider when deciding whether improvement can be sustained without the support of a strong sponsor;
3. the school was rated inadequate by Ofsted solely on safeguarding grounds, having previously been judged ‘good’ or ‘outstanding’. If the school has reverted to its previous Ofsted rating, and the secretary of state is satisfied that the safeguarding concerns have been addressed, and can be sustained without the support of a strong sponsor or multi-academy trust.

The examples above are not exhaustive, and the secretary of state will consider each case on its individual merits, taking account of any reasons put forward by the governing body as to why revocation is in the best interests of the pupils served by the school.

The secretary of state will only consider revoking an academy order if the school’s governing body are in agreement, and have requested to do so. In circumstances where the maintained school is not viable, and the decision has been taken to revoke the academy order, the local authority will be expected to close the maintained school following the statutory school closure process and, if necessary, ministers may use the power to direct them to do so.