RAAC: Schools need ‘urgent clarity’ over funding as costs mount

Trusts leader flags “significant concern and anxiety” among CEOs over potential RAAC problems with maintained schools that have become part of MATs
15th September 2023, 5:00am

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RAAC: Schools need ‘urgent clarity’ over funding as costs mount

https://www.tes.com/magazine/news/general/raac-schools-need-clarity-funding-costs
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The government is under mounting pressure to provide “clarity” on funding for dealing with so-called crumbly concrete, with some schools already having spent thousands to make buildings safe, Tes has learned.

A briefing circulated to Confederation of School Trusts members by CEO Leora Cruddas following a meeting this week, seen by Tes, called for “urgent clarity about what is and is not funded from the DfE…to bring more certainty”.

And Geoff Barton, general secretary of the Association of School and College Leaders, criticised “vague language” as “unhelpful” for schools who need “clear information on exactly what funding is available”.

Despite promising to cover all costs related to making school buildings with reinforced autoclaved aerated concrete (RAAC) safe, the Department for Education has still not released details on how much money will be available to cover the capital costs of mitigating and repairing, how it will be allocated or whether it will trigger other funding cuts.

The department has also said it will cover “reasonable” revenue costs incurred by schools who have had to close buildings and relocate pupils for items such as transport and renting alternative spaces - but have yet to define what that would mean in practice.

In guidance issued last week, the DfE advised schools with RAAC to discuss funding requests with the Education and Skills Funding Agency or assigned caseworkers.

But in her briefing this week, Ms Cruddas said that members also had “concerns” that DfE caseworkers assigned to work with schools with confirmed cases of RAAC “are unsure, and that they cannot approve orders”.

Meanwhile, Mr Barton told Tes: “There needs to be clear information on exactly what funding is available to allow schools to plan for mitigation works and the substantial costs that may be involved.”

He added that ASCL remained “concerned that there has been no announcement of any additional investment” and called for “additional funding to mitigate the risks posed by RAAC without reducing spending elsewhere”. 

‘No clarification’ on costs

Scalby School in Scarborough is one of 147 schools named by the DfE as having confirmed RAAC. A significant portion of the school is currently shut while contractors put mitigations in place, and some students are having to learn from home.

Michael McCluskie, learning director at the Coast and Vale Trust of which Scalby is part, told Tes: “We’ve had no clarification on costs. We don’t understand what ‘reasonable’ revenue costs means.

“We’re waiting for some documentation from the DfE we’re supposed to complete but we’ve had no indication when we’ll receive that. We’ve already spent about £190,000 and that’s only to secure the school.

“It’s concerning because a lot of money has gone out in a short space of time and we haven’t had confirmation we will get all that back. What if what we think is reasonable isn’t what the DfE thinks is reasonable?”

James Bowen, assistant general secretary of the NAHT school leaders’ union, called for the DfE to commit to not delaying or cancelling existing capital projects to pay for the costs of RAAC. He added: “It is important that schools understand how and when they will receive the funds to cover any additional costs they incur.”

‘Shock’ over insurance refusal

Some trusts say they had hoped they may get some help through the risk protection arrangement, an insurance scheme for schools promoted by the DfE. As of August 2022, 7,711 academies and 1,957 local authority schools were signed up to it.

Their hopes were raised after DfE guidance issued late last week said “we recommend that you contact your commercial insurer or the Risk Protection Arrangement (RPA) if you are a member” to discuss potential cover for costs.

However, one MAT executive told Tes he was “quite shocked” when he was refused help by the RPA with the capital and revenue costs of mitigating RAAC in one of his trust’s schools after it had to shut at short notice.

“This is the government’s leading recommended insurance scheme and it’s not supporting,” he said. 

‘The whole sector is desperate’

The DfE has now confirmed that if a roof collapses owing to being constructed by RAAC, repairing or reinstating the roof will not be covered under the RPA. It said the RPA will pay for the repairs of any damage to “non-defective” school property (ie, that which has not been constructed using RAAC).

It said the RPA will cover increased costs of running a school (such as alternative accommodation) only as a result of damage to non-defective school property, and cover will stop for this once property without RAAC is repaired or reinstated, even if the school still needs to work on a roof containing RAAC, for example.

If a collapse causes death or injury to employees or pupils, the RPA will pay defence costs and compensate schools for damages or legal costs they may have to pay, according to the DfE.

Academy funding consultant Tim Warneford said: ”The fact that RPA will not cover the latent condition liabilities posed by the existence of RAAC adds additional pressure on schools whose only financial support will now have to be shouldered by the DfE.

“This issue perfectly illustrates the significant risks that failure to conduct adequate estates due diligence exposes schools to.

“I think the whole sector is desperate for clarity on where this money is coming from. The not knowing is a detriment - no one can plan until we understand.”

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