In a delegated Officer Key Decision, Laura Eden, Corporate Director of Children and Young People, approved a pre-statutory consultation regarding the proposed amalgamation of Odessa Infant School and St James' Junior School. The consultation is the first step in a process that could see the two schools merge into a single primary school by August 2026. This decision was made due to financial pressures faced by Odessa Infant School.

School Amalgamation Proposal

The main item under consideration was the proposal to amalgamate Odessa Infant School and St James' Junior School. Laura Eden, Corporate Director of Children and Young People, agreed that Newham Council officers should progress with a pre-statutory consultation on the proposal. The consultation is the first stage in a five-stage process for discontinuing and altering maintained schools, as outlined in the School Organisation (Establishment and Discontinuance of Schools) Regulations 2013/3109¹ and the School Organisation (Prescribed Alterations to Maintained Schools) (England) Regulations 2013/3110².

The proposal involves discontinuing Odessa Infant School and enlarging St James' CofE Junior School to become a primary school for children aged 3-11. The Diocese of Chelmsford, the Church of England body responsible for overseeing Anglican churches and schools in the area, has been consulted on the proposal.

Reasons for the Amalgamation

Odessa Infant School is facing a growing budget deficit, despite having stable pupil numbers. The deficit is partly due to an increase in pupils with special educational needs and disabilities (SEND) and insufficient funding. According to the Officer Decision Report, Odessa Infant School is one of eight maintained schools in Newham with a budget deficit.

The report states that if the amalgamation does not proceed, Odessa Infant School faces significant challenges and could become unsustainable, potentially leading to closure. The amalgamation with St James' Junior School, which is not forecasting a deficit, is seen as the only viable solution to ensure the school's financial stability and maintain high-quality education.

Financial Implications

The Officer Decision Report outlines the financial implications of the proposed amalgamation. Odessa Infant School has an in-year deficit of £0.2 million for the 2024/25 financial year, with a cumulative deficit of £0.4 million. The school has received £365,000 in cash advance payments and is forecasting a further £350,000 requirement for the 2025/26 financial year. Without the amalgamation, the projected deficit could rise to around £1 million.

St James' currently holds a closing surplus balance of approximately £186,000, although it had a small in-year overspend of around £14,000.

The report considered three options for an amalgamated budget:

• Option A: Retains a model broadly similar to the current establishments, but the forecast overspend continues to increase.
• Option B: Reduces expenditure, with projected in-year surpluses leading to a closing surplus of £418,000 by 2028/29. This option is considered financially viable and sustainable.
• Option C: Proposes a more significant reduction, delivering the most favourable financial projection. However, concerns exist regarding its operational feasibility.

The report notes that pension strain and redundancy costs have not been included in the projections, and the figures are based on assumptions that could change.

Legal and Equalities Implications

The decision-maker was informed of the legal requirements for the amalgamation process, as detailed in the DfE's statutory guidance Opening and closing maintained schools 2024³. The council must ensure all required consultations are properly undertaken in accordance with relevant law and guidance.

An equality impact assessment will be carried out alongside the pre-publication consultation to ensure all views related to the potential closure are represented. The decision to proceed to a statutory consultation will be informed by the outcome of the equality impact assessment. The council is required to consider the Public Sector Equality Duty (PSED) under section 149 of the Equality Act 2010⁴.

HR Implications

The council, as the employer of staff at both schools, must seek further advice to ensure compliance with employment law if the amalgamation is agreed. All teachers and support staff employed under a permanent contract at the time of the proposed amalgamation would automatically continue their employment in the new primary school, subject to any restructuring. The headteacher post would be new and advertised internally in the first instance.