Education Bill
Mr Stephen Timms (Minister of State (School Standards), Department for Education and Skills; East Ham, Labour)
On a point of order, Mrs. Adams. It has been drawn to my attention that I undersold my case to the Committee last Thursday. We discussed who should be liable for the employer's pension contributions where a school has earned autonomy. I have written to Committee Members about that, and I want to put on record that contrary to what I said on Thursday, the employer's pension contribution will be taken from the school's budget share. There is therefore no question of a school increasing an LEA's pension liability after earning greater autonomy, which was the concern of several members of the Committee. I am sure that hon. Members will welcome that correction. The employer's contributions will come from the school's budget share and not the other part of the LEA's budget.
Mr Graham Brady (Altrincham and Sale West, Conservative)
Further to that point of order, Mrs. Adams. We are grateful to the Minister for that clarification, but since he was not sure of the position on employers' pension contributions in regard to variation in pay and conditions, can he assure us that a local education authority will never incur liability as a result of decisions taken by a school?
Mr Stephen Timms (Minister of State (School Standards), Department for Education and Skills; East Ham, Labour)
I said earlier that the cost of changes to the software system, for example, would be low. I cannot say that there will be no liability whatever but I am not aware of any significant liability that will fall on the LEA budget.
Mr Chris Grayling (Epsom and Ewell, Conservative)
Further to that point of order, Mrs. Adams. Will circumstances exist in which a school could rewrite the terms of an individual's pension arrangements or are they rigidly subject to the authority's pension fund provisions, so that they cannot be varied?
Mr Stephen Timms (Minister of State (School Standards), Department for Education and Skills; East Ham, Labour)
The terms of the teachers' pension scheme are clearly laid down. A school could enter into a different kind of pension arrangement with a teacher, but in such a case the LEA would not be liable to make contributions beyond those to the teachers' pension scheme. I have considered that possibility but, although the avenue is open, it would not place liabilities on the LEA beyond those that I have mentioned.Clause 10 Powers of governing bodies to form or invest in companies to provide services etc