New opportunities for conversion to Academy status for schools under the Academies Act 2010

Thursday, 02 December 2010 00:00

The Act came into force in July 2010 and originally applied to schools judged by OFSTED to be 'outstanding'. But the Government has recently announced that schools graded as 'good with outstanding features' will be eligible to apply for Academy status.

• · be free from Local Authority control;
• · set their own pay and conditions for staff;
• · depart from the National Curriculum;
• · alter the length of the school day and terms;
• · exercise greater control over their budgets; and
• · spend the money currently used by the Local Authority on a maintained school's behalf.

Schools that choose to enter into an Academy arrangement with the Secretary of State for Education will be treated as having charitable status if they satisfy the following conditions:-

• · they are set up as a company limited by guarantee;
• · the company's registered office is in England or Wales;
• · they have entered into an Academy Arrangement;
• · the objects of the company are for a charitable purpose.

Academies will have exempt charity status so will not need to register with the Charity Commission and will not be regulated by them. But the Young Persons Learning Agency will ensure that they comply with charity law (this part of the Act comes into force on 1 January 2011).

Conversion process

Governors considering converting to an Academy have to consult with 'such persons as they think appropriate' i.e. staff, parents, pupils and other organisations or bodies who have an interest in the way the school is run. Schools with a religious foundation must consult with their Diocese or other appropriate authority. The consultation can be undertaken at any time during the process.

The first step is to register an interest in becoming an Academy with the Department for Education. It is at this stage (if not before) that schools should consider seeking the appropriate legal advice.

If the application is successful the Secretary of State will issue an Academy Order enabling the school to convert its status. Further work will be required before an Academy arrangement is entered into and the school can open.

Legal issues

The legal implications of converting to Academy status are significant. It is essential to consider these at the outset. We are already in discussion with a number of schools and authorities about this.

These issues include:-

• · Property (land transfers or leases; community use)
• · Employment (TUPE transfers and consultation)
• · Charity law (charitable status, restricted funds)
• · Company law (governance)
• · Policies (admissions, staff, disability, SEN etc)
• · Funding (academy agreement, tax and trading companies)

Academy status can and will bring exciting opportunities for schools and their governing bodies. Our expert team are on hand to assist and guide you through all stages of the process from initial consideration of conversion to the cutting of the ribbon at the opening ceremony.

We bring together expertise from our Charities and Schools team, Employment Law team, Commercial team and Property team to provide the advice schools need when converting to Academy status and to provide ongoing advice once the school's status has changed.