Holgate Meadows: Taxpayers will pay off £5m debt run up by two Sheffield special schools, sources say

Sheffield city council is planning to write off up to £5m of debt owed by an 'Inadequate' special school and its sister site using taxpayer money, The Star can reveal.

In July 2023, The Star reported how Holgate Meadows School, in Parsons Cross, had run up a debt of £2.49m - a figure a source close to the story called "unpayable," and led to a raft of redundancies for teaching assistants.

However, The Star can reveal not only that that figure has grown to £3m - but that financial difficulties have also spread to its sister site, Heritage Park School, which is £2m in debt.

Previously, Ofsted reported Holgate is seeking to join NEXUS MAT, but its efforts have been delayed due to its "significant financial hardship". But now, to make way for both Hogate and Heritage to join trusts, it is expected that taxpayers will pick up the bill for both sites.

Sources says Sheffield City Council is planning to write off the multi-million-pound figure for both schools, with no guidance yet if it will reimbursed by central Government.

£5m is more than the council's entire annual school maintenance budget.

It is not known which trust Heritage could join.

The two special schools care for up to approximately 160 children with SEND between them.

It comes four years after an 'Interim Executive Board' was appointed to both schools by the city council in 2019 - when both schools were rated 'Good' and Holgate Meadows even had a surplus of £350,000.

In the four years since then, Holgate Meadows has not only spent that £350,000 and gone into the red by £3m, but has also been rated 'Inadequate' in all areas by Ofsted in a damning report published March 2022.

Inspectors heavily criticised said Interim Executive Board for not having a “clear vision” for the school, while students reported they did “not feel safe”.

In May this year, a new report from a follow up visit found the school was back on track and was a “more pleasant and calm place to be”, but it still could not yet be removed from special measures.

If plans go ahead, Holgate Meadows and Heritage Park schools will have their financial slates wiped clean using taxpayer money, which may or may not be reimbursed to the council by central Government.

The Star asked Sheffield City Council to confirm it was in talks to write off both schools' debts.

Councillor Dawn Dale, chair of Sheffield City Council’s Education Committee said: "Holgate Meadows and Heritage Park schools in Sheffield have been a focal point of concern for Sheffield City Council.

“Sheffield City Council appointed an Independent Executive Board in 2019 to address leadership and management issues. The IEB oversees the schools' provision and finances, funded by the government.

“Sheffield City Council collaborates with the IEB to enhance teaching quality and financial management, aiming to reduce deficits and support improvements in line with the DfE's expectations.”

It is believed the huge debts run up by Holgate Meadows - and, now, Heritage Park - are swollen by the overuse of alternative provision, where children are not educated at the school and are, for example, taught at home for a number of hours a week by tutors.

In a letter to staff in July, interim executive headteacher of Holgate Meadows Sarah Storer explains the budget deficit is due to “overstaffing owing to the number of learners who have needed 1:1 support that has not been recognised in their [care plans]”, the costs of alternative provision for children off-site, and agency costs due to “staff absences”.

The letter further states the school’s alternative provision to teach children off-site is “not funded by the local authority,” costing £4,000 per week.

This issue was highlighted by Ofsted, who has said in three different inspection reports that the number of pupils who are persistently absent, attend alternative provision, or "whose needs cannot be met" is a serious issue.

A report in September read: "There continues to be a significant proportion of pupils whose needs cannot be met by the school, or who are persistently absent or attend alternative provision on a full-time basis but remain on the school’s roll. The welfare and safety of these pupils remain your highest priority.

"Procedures have been tightened and improved to make sure that pupils, particularly pupils who are persistently absent from school, are safe."

However, other costs not outlined in the letter include the £400,000 paid to the school’s former headteacher, Tony Middleton, between 2019 and 2023, while he was suspended ahead of a disciplinary hearing in February when he lost his job. He is understood to be challenging the decision.

Three interim executive headteachers and three principals were also paid salaries during those four years.

In July, more than 13 teaching assistants and support staff at Holgate Meadows were made redundant.

None of these redundancies extended to the seven members of the school’s executive team, which includes an Interim Executive Headteacher, a principal, and three executive assistant principals.

Other methods of support by the council for Holgate has included the funding of 19 "ghost pupils". This is where Holgate this year only has 76 children on its roll and should therefore receive less funding, but receives full funding from the local authority as if it had a full roll.