Law

Education Reform Act 1988

United Kingdom · statute

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In force since 2026-04-01, as the publisher states.

Copy read on 2026-11-08. The page it was read from

Contains public sector information licensed under the Open Government Licence v3.0. Source: legislation.gov.uk, The National Archives.

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Contents: 272 provisions
  1. Title and introductory text
  2. 1 Duties with respect to the curriculum.
  3. 2 The National Curriculum.
  4. 3 Foundation subjects and key stages.
  5. 4 Duty to establish the National Curriculum by order.
  6. 5 Courses leading to external qualifications.
  7. 6 Collective worship.
  8. 7 Special provisions as to collective worship in county schools.
  9. 8 Religious education required in the basic curriculum: further provisions.
  10. 9 Exceptions, special arrangements and supplementary and consequential provisions.
  11. 10 Duties with respect to certain requirements.
  12. 11 Standing advisory councils on religious education.
  13. 12 Determination by advisory councils of the cases in which the requirement for Christian collective worship is not to apply.
  14. 12A Power of Secretary of State to direct advisory council to revoke determination or discharge duty.
  15. 13 Advisory councils: supplementary provisions.
  16. 14 Establishment of Councils.
  17. 15 Transfers of property and staff to Councils.
  18. 16 Development work and experiments.
  19. 17 Exceptions by regulations.
  20. 17A Exemption from sex education.
  21. 18 Pupils with statements of special educational needs.
  22. 19 Temporary exceptions for individual pupils.
  23. 20 Procedure for making certain orders: England.
  24. 21 Procedure for making certain orders: Wales.
  25. 22 Provision of information.
  26. 23 Complaints and enforcement.
  27. 24 Extension of certain provisions.
  28. 25 Interpretation of Chapter I.
  29. 26 Admissions to county and voluntary schools.
  30. 27 Standard numbers for admissions.
  31. 28 Procedure for reduction of standard number.
  32. 29 Special provisions in relation to admissions to primary schools.
  33. 30 Special arrangements in respect of admissions to aided or special agreement schools.
  34. 31 Consequential provisions.
  35. 32 Interpretation of Chapter II.
  36. 33 Schemes for financing county and voluntary schools.
  37. 34 Preparation and imposition of schemes.
  38. 35 Revision of schemes.
  39. 36 Delegation to governing body of management of school’s budget share.
  40. 37 Withdrawal of delegation.
  41. 38 Schemes: determination of budget shares.
  42. 39 Schemes: provision for financial delegation.
  43. 40 Initial implementation of delegation requirements under schemes.
  44. 41 Extension of delegation requirement under schemes in the case of primary schools.
  45. 42 Publication of schemes and financial statements, etc.
  46. 42A Certification of statements by Audit Commission.
  47. 43 Application of schemes to special schools.
  48. 44 Staff employed by the local education authority.
  49. 45 Staff at aided schools.
  50. 46 Staff: further provisions.
  51. 47 Community Schools.
  52. 48 New schools.
  53. 49 Required financial delegation apart from schemes.
  54. 50 Financial statements in respect of schools not covered by statements under section 42.
  55. 51 Interpretation of Chapter III and supplementary and consequential provisions.
  56. 52 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
  57. 53 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
  58. 54 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
  59. 55 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
  60. 56 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
  61. 57 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
  62. 58 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
  63. 59 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
  64. 60 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
  65. 61 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
  66. 62 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
  67. 63 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
  68. 64 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
  69. 65 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
  70. 66 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
  71. 67 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
  72. 68 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
  73. 69 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
  74. 70 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
  75. 71 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
  76. 72 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
  77. 73 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
  78. 74 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
  79. 75 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
  80. 76 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
  81. 77 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
  82. 78 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
  83. 79 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
  84. 80 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
  85. 81 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
  86. 82 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
  87. 83 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
  88. 84 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
  89. 85 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
  90. 86 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
  91. 87 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
  92. 88 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
  93. 89 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
  94. 90 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
  95. 91 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
  96. 92 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
  97. 93 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
  98. 94 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
  99. 95 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
  100. 96 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
  101. 97 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
  102. 98 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
  103. 99 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
  104. 100 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
  105. 101 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
  106. 102 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
  107. 103 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
  108. 104 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
  109. 105 Agreements for establishment, etc., of city technology colleges and city colleges for the technology of the arts.
  110. 106 Prohibition of charges, etc., in maintained schools.
  111. 107 Provision for cases where education is provided partly during and partly outside school hours.
  112. 108 Recovery of wasted examination fees.
  113. 109 Permitted charges.
  114. 110 Charges and remissions policies.
  115. 111 Charges for board and lodging at boarding schools.
  116. 112 Extension of powers as to trusts for religious education.
  117. 113 Schemes under the Endowed Schools Acts.
  118. 114 Extension of power to require local education authority to defray expenses of establishing controlled school.
  119. 115 Power to determine times of school sessions, etc.
  120. 116 Provision for delegation of functions by governing bodies of county, voluntary and maintained special schools.
  121. 117 Obligation to enter pupils for prescribed public examinations.
  122. 118 General and supplementary provisions relating to charges.
  123. 119 Interpretation of Part I.
  124. 120
  125. 121 Initial incorporation of higher education institutions maintained by local authorities.
  126. 122 Orders incorporating higher education institutions maintained by local authorities in Wales.
  127. 122ZA Orders for further education corporations in England to become higher education corporations
  128. 122A Orders transferring further education corporations in Wales to higher education sector.
  129. 123 Provisions supplementary to sections 121 to 122A.
  130. 123A Principal powers of a higher education corporation in England
  131. 123B Supplementary powers of a higher education corporation in England
  132. 124 Powers of a higher education corporation in Wales.
  133. 124ZA Instrument of government of higher education corporations in England
  134. 124ZB Proceedings etc. of higher education corporations in England
  135. 124A Constitution and conduct of higher education corporations in Wales.
  136. 124B Accounts.
  137. 124C Initial and transitional arrangements : Wales.
  138. 124D Exercise of Powers by Privy Council.
  139. 124E Articles of government: higher education corporations in England
  140. 125 Articles of government : higher education corporations in Wales.
  141. 125A Charitable status of a higher education corporation.
  142. 126 Transfer of property, etc., to higher education corporations.
  143. 127 Transfer of staff to higher education corporations.
  144. 128 Dissolution of higher education corporations in Wales.
  145. 127A Dissolution of higher education corporations in England
  146. 129 Designation of institutions.
  147. 129A Government and conduct of designated institutions.
  148. 129B Designated institutions conducted by companies.
  149. 130 Transfer of property, etc., to certain designated institutions.
  150. 131 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
  151. 132 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
  152. 133 Payments ...in respect of persons employed in the provision of higher or further education.
  153. 134 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
  154. 135 Inspection of accounts.
  155. 136 Transfer to Polytechnics and Colleges Funding Council of property and staff of NAB.
  156. 137 Control of disposals of land.
  157. 138 Construction of references to land held for the purposes of an institution.
  158. 139 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
  159. 140 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
  160. 141 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
  161. 142 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
  162. 143 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
  163. 144 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
  164. 145 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
  165. 146 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
  166. 147 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
  167. 148 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
  168. 149 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
  169. 150 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
  170. 151 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
  171. 152 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
  172. 153 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
  173. 154 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
  174. 155 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
  175. 156 Government and conduct of certain further and higher education institutions.
  176. 157 Variation of trust deeds, etc.
  177. 158 Reports and returns to Secretary of State.
  178. 159 Information with respect to educational provision in institutions providing further or higher education.
  179. 160 Adjustments of block grant in respect of expenditure on advanced further education.
  180. 161 Interpretation of Part II.
  181. 162 Abolition of ILEA.
  182. 163 New local education authorities for areas in inner London.
  183. 164 Extension of functions of London Residuary Body.
  184. 165 Development plans for education.
  185. 166 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
  186. 167 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
  187. 168 Transfers of property, rights and liabilities.
  188. 169 Approval of management structure and senior appointments in initial period.
  189. 170 Establishment and functions of staff commission.
  190. 171 Remuneration of employees.
  191. 172 Power to transfer staff.
  192. 173 Compensation for loss of employment or loss or diminution of emoluments.
  193. 174 Continuity of employment in certain cases of voluntary transfer.
  194. 175 Offers of employment by inner London councils.
  195. 176 Provision of services and facilities by London Residuary Body.
  196. 177 Repayment by London Residuary Body of loans to ILEA.
  197. 178 Liability of London Residuary Body for redundancy and compensation payments.
  198. 179 Payment of pensions and pensions increase by London Residuary Body.
  199. 180 Custody of residuary property, etc.
  200. 181 Power of London Residuary Body to pay compensation.
  201. 182 Preparation of ILEA’s final accounts.
  202. 183 Directions of Secretary of State.
  203. 184 Preparatory expenditure of inner London councils.
  204. 185 London Residuary Body: financial provisions.
  205. 186 Transitional functions of London Residuary Body in respect of block grant.
  206. 187 Winding-up of London Residuary Body.
  207. 188 Control of contracts.
  208. 189 Control of disposals.
  209. 190 Wrongful contracts or disposals.
  210. 191 Penalties for contravention of section 188 or 189.
  211. 192 Charities.
  212. 193 Information and access to documents.
  213. 194 Concurrent employment.
  214. 195 Continuity of exercise of functions.
  215. 196 Interpretation of Part III.
  216. 197 Education Assets Board.
  217. 198 Transfers under Parts I and II.
  218. 199 Loan liabilities excepted from transfer under Part II.
  219. 200 Grant-maintained schools: school property.
  220. 201 Wrongful disposals.
  221. 202 The University Commissioners.
  222. 203 Duty of Commissioners.
  223. 204 Powers of Commissioners.
  224. 205 Procedure for exercise of Commissioners’ powers.
  225. 206 Exclusion of visitor’s jurisdiction.
  226. 207 Power to make incidental, etc., provisions by Order in Council.
  227. 208 Corresponding provision for Northern Ireland.
  228. 209 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
  229. 210 Grants for the education of travellers and displaced persons.
  230. 211 Grants in respect of special provision for immigrants
  231. 212 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
  232. 213 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
  233. 214 Unrecognised degrees.
  234. 215 Unrecognised degrees: enforcement.
  235. 216 Identification of bodies granting or providing courses for recognised awards etc.
  236. 217 Unrecognised degrees: Northern Ireland and Channel Islands.
  237. 218 School and further and higher education regulations.
  238. 218A Regulations under section 218(6): further provision.
  239. 219 Powers of the Secretary of State in relation to certain educational institutions.
  240. 220 Extension of functions of Audit Commission.
  241. 221 Avoidance of certain contractual terms.
  242. 222 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
  243. 223 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
  244. 224 Superannuation for staff of Further Education Unit.
  245. 225 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
  246. 226 Services for schools in other member States providing education for British children.
  247. 227 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
  248. 228 Transfer of property to grant-aided institutions in Wales.
  249. 229 Power to make different provision for Wales in regulations under the 1944 and 1967 Acts.
  250. 230 Stamp duty.
  251. 231 Power to make incidental, consequential, transitional and supplementary provisions.
  252. 232 Orders and regulations.
  253. 233 Expenses.
  254. 234 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
  255. 235 General interpretation.
  256. 236 Commencement.
  257. 237 Amendments and repeals.
  258. 238 Citation, extent etc.
  259. SCHEDULE 1
  260. SCHEDULE 2
  261. SCHEDULE 3
  262. SCHEDULE 4
  263. SCHEDULE 5 Transition to Grant-Maintained Status
  264. SCHEDULE 6 Courses of Higher Education
  265. SCHEDULE 7 Higher education corporations in Wales established before the appointed day
  266. SCHEDULE 7A Higher education corporations in Wales established on or after the appointed day: instruments of government made by Privy Council
  267. SCHEDULE 8 The Funding Councils and the Assets Board
  268. SCHEDULE 9 Determination of Full-time Equivalent Enrolment Numbers
  269. SCHEDULE 10 Supplementary Provisions with respect to Transfers
  270. SCHEDULE 11 The University Commissioners
  271. SCHEDULE 12 Minor and Consequential Amendments
  272. SCHEDULE 13 Repeals

Proposed changes to this act

No one has proposed a change to this act yet.

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156 Government and conduct of certain further and higher education institutions.

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157 Variation of trust deeds, etc.

(1) An order of the Privy Council may modify any trust deed or other instrument— (a) relating to or regulating any such institution as is mentioned in subsection (2) below; or (b) relating to any land or other property held by any person for the purposes of any such institution. (2) The institutions referred to in subsection (1) above are— (a) any institution conducted by a higher education corporation in Wales; and (b) any institution in relation to which a designation made, or having effect as if made, under section 129 of this Act has effect, other than an institution established by Royal Charter. (3) Before making any modifications under subsection (1) above of any trust deed or other instrument the Privy Council shall so far as it appears to them to be practicable to do so consult— (a) the governing body of the institution; (b) where that deed or instrument, or any other instrument relating to or regulating the institution concerned, confers power on any other persons to modify or replace that deed or instrument, those persons; and (c) where the instrument to be modified is a trust deed and the trustees are different from the persons mentioned in paragraphs (a) and (b) above, the trustees. (4) Any provision of any instrument relating to any land or other property held for the purposes of any institution maintained . . . by a local authority to which this subsection applies which— (a) confers on any person an option to acquire an interest in that land or other property; or (b) provides (in whatever terms) for the determination or forfeiture of any such interest; in the event of the institution’s ceasing to be maintained . . . by a local authority or (as the case may be) by the authority in question shall, if the institution becomes an institution within the further education sector an institution within the higher education sector or a grant-aided institution, have effect as if the event referred to were the institution’s ceasing to be a publicly funded institution. (5) Subsection (4) above applies— (a) to an institution maintained by a local authority if it is an institution providing full-time education which is maintained by the authority in exercise of their further or higher education functions; and (b) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (6) In that subsection “publicly funded institution” means an institution which is an institution of any one or more of the following descriptions, that is to say— (a) an institution maintained or assisted by a local authority; (b) an institution within the further education sector or an institution within the higher education sector; and (c) a grant-aided institution.

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158 Reports and returns to Secretary of State.

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159 Information with respect to educational provision in institutions providing further or higher education.

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160 Adjustments of block grant in respect of expenditure on advanced further education.

(1) The block grant payable to a local authority in England for any year beginning on or after the date appointed for the purposes of section 126(1) of this Act shall not be subject to adjustment in accordance with paragraph 6 of Schedule 10 to the Local Government, Planning and Land Act 1980 (which relates to adjustments of block grant in respect of expenditure on advanced further education as between local authorities). (2) In relation to any expenditure incurred by such an authority on or after that date in the exercise of the authority’s functions as a local authority , sub-paragraphs (3)(a) and (5)(b) of paragraph 5 of that Schedule (which define certain expenditure for the purposes of that paragraph) shall each have effect as if the words “other than that to which paragraph 6 below applies" were omitted. (3) On that date Part I of that Schedule (which relates to adjustments of block grant in respect of expenditure on advanced further education as between England and Wales) shall cease to have effect. (4) Anything done by the Secretary of State before the passing of this Act for the purpose of making in the block grant payable to a local authority in England adjustments under paragraph 5 or 6 of that Schedule in respect of expenditure incurred in the years beginning in 1985, 1986 and 1987 by local authorities in England in connection with further education of an advanced character (including the training of teachers) shall be deemed to have been done in accordance with that paragraph. (5) In this section— “local authority” means a body which is a local authority for the purposes of Part VI of that Act; and “year” has the same meaning as in that Part.

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161 Interpretation of Part II.

(1) In this Part of this Act, except where the context otherwise requires— (a) references to courses of advanced further education shall be read in accordance with section 121(4); (b) references to the further or higher education functions of a local authority are references to the functions of the authority (except in so far as they relate to secondary education) under sections 15ZA, 15A and 15B of the Education Act 1996 (post-16 education) and section 120 of this Act (higher education); (ba) “further education corporation in England” means a further education corporation established to conduct an institution whose activities are carried on, or principally carried on, in England; (bb) “further education corporation in Wales” means a further education corporation established to conduct an institution whose activities are carried on, or principally carried on, in Wales; (c) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (d) “governing body” includes, in relation to any institution, a board of governors of the institution or any persons responsible for the management of the institution (but not formally constituted as such a body or board). (e) “higher education corporation in England” means a higher education corporation established to conduct an institution whose activities are carried on, or principally carried on, in England; (f) “higher education corporation in Wales” means a higher education corporation established to conduct an institution whose activities are carried on, or principally carried on, in Wales. (2) References in this Part of this Act to the total full-time equivalent enrolment number of any institution at any time are references to the aggregate of its full-time equivalent enrolment numbers at that time for courses of all descriptions then offered by that institution. (3) For the purposes of this Part of this Act the full-time equivalent enrolment number at any time of any institution for courses of any description shall be determined in accordance with Schedule 9 to this Act.

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162 Abolition of ILEA.

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163 New local education authorities for areas in inner London.

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164 Extension of functions of London Residuary Body.

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165 Development plans for education.

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166 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

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167 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

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168 Transfers of property, rights and liabilities.

(1) The Secretary of State may by an order or orders made at any time before the abolition date provide for the transfer to each inner London council of— (a) such of the property, rights and liabilities of ILEA (other than excepted rights and liabilities) as, in his opinion, need to be so transferred for the purpose of enabling that council properly to perform its LEA functions; and (b) such of the rights and liabilities of ILEA (other than excepted rights and liabilities) as, in his opinion, it is appropriate to transfer to that council for the purposes of or in connection with the exercise by that council by virtue of section 166 of this Act of functions in relation to, or in relation to registered pupils at, any grant-maintained school which were formerly exercisable by ILEA. (2) The Secretary of State may by such an order or orders provide for the transfer to any local authority other than an inner London council of such of the property, rights and liabilities of ILEA (other than excepted rights and liabilities) as do not in his opinion fall to be transferred to such a council by virtue of subsection (1) above. (3) Any transfer for which provision is made by order under this section may be on such terms, including financial terms, as the Secretary of State thinks fit and the Secretary of State may by order create or impose such new rights or liabilities in respect of what is transferred as appear to him to be necessary or expedient. (4) The Secretary of State may by order confer on any inner London council or local authority to which property is transferred by or under the order any statutory functions which before the abolition date were exercisable in relation to that property by ILEA. (5) In this section “excepted rights and liabilities” means rights and liabilities arising under contracts of employment between ILEA and its employees.

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169 Approval of management structure and senior appointments in initial period.

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170 Establishment and functions of staff commission.

(1) The Secretary of State shall establish a staff commission for the purpose of— (a) advising the Secretary of State on the steps necessary to safeguard the interests of the staff employed by relevant authorities so far as affected by any provision made by or under this Part; (b) considering and keeping under review— (i) the arrangements for the recruitment of staff by those authorities in consequence of any such provision; and (ii) the arrangements for any transfer of the staff of those authorities in consequence of any such provision; and (c) considering such staffing problems arising in consequence of, and such other matters relating to staff of any body affected by, any such provision as may be referred to the commission by the Secretary of State. (2) The Secretary of State may give directions to the staff commission as to their procedure and to any relevant authority with respect to— (a) the implementation of any advice given by the commission; and (b) the payment by a relevant authority of any expenses incurred by the commission in doing anything requested by the authority; and it shall be the duty of the commission and of a relevant authority to comply with any direction given to it under this subsection. (3) Any expenses incurred by the staff commission under this section and not recovered from a relevant authority shall be paid by the Secretary of State. (4) The relevant authorities for the purposes of this section are— (a) ILEA and the inner London councils; (b) the London Residuary Body; and (c) any local authority other than an inner London council to which functions or property of ILEA will be or have been transferred by order under section 168 of this Act.

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171 Remuneration of employees.

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172 Power to transfer staff.

(1) This section applies to any person who— (a) immediately before the abolition date is in the service of ILEA under a contract of employment which would have continued but for the abolition of ILEA; and (b) is designated for the purposes of this section by an order made by the Secretary of State. (2) The contract of employment between a person to whom this section applies and ILEA shall not be terminated by the abolition of ILEA but shall have effect as from the abolition date as if originally made between him and such successor authority (“the new employer”) as may be specified in relation to that person by the order designating him for the purposes of this section. (3) Without prejudice to subsection (2) above— (a) all ILEA’s rights, powers, duties and liabilities under or in connection with a contract to which that subsection applies shall by virtue of this section be transferred on the abolition date to the new employer; and (b) anything done before that date by or in relation to ILEA in respect of that contract or the employee shall be deemed from that date to have been done by or in relation to the new employer. (4) Subsections (2) and (3) above are without prejudice to any right of an employee to terminate his contract of employment if a substantial change is made to his detriment in his working conditions, but no such right shall arise by reason only of the change in employer effected by this section. (5) An order under this section may designate a person either individually or as a member of a class or description of employees. (6) In this section “successor authority” means— (a) an inner London council; (b) the London Residuary Body; and (c) any local authority other than an inner London council to which functions or property of ILEA are transferred by order under section 168 of this Act.

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173 Compensation for loss of employment or loss or diminution of emoluments.

(1) This section applies to any person who suffers loss of employment or loss or diminution of emoluments which— (a) is attributable to any provision made by or under this Part; and (b) occurs in the circumstances mentioned in subsection (2) below. (2) Those circumstances are— (a) in the case of loss of employment, the employment in question is employment with ILEA or the London Residuary Body and the loss is suffered on or after the abolition date; and (b) in the case of loss or diminution of emoluments, the loss or diminution arises from the termination of the employment of the person concerned with ILEA or that Body and is suffered on or after such date as may be specified in regulations made for the purposes of this section under section 24 of the Superannuation Act 1972 (“compensation regulations”). (3) Compensation in respect of any such loss or diminution suffered by a person to whom this section applies shall, subject to subsection (4) below, be paid only in accordance with compensation regulations; and accordingly neither ILEA nor the London Residuary Body shall pay any such compensation under any other statutory provision, by virtue of any provision in a contract or otherwise. (4) Subsection (3) above shall not preclude the making of any payment to which a person is entitled by virtue of contractual rights acquired by him before 21st November 1987. (5) Compensation regulations shall not provide compensation for a person to whom this section applies in respect of any such loss or diminution as is mentioned in subsection (1) above so far as attributable to the termination on or before the abolition date of a contract made after 17th February 1988 which provides for the employment of that person for a fixed term extending beyond the abolition date. (6) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (7) . . ., nothing in this section shall be construed as affecting any entitlement to . . .any payment by virtue of any provision of the Act of 1972 mentioned above other than section 24.

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174 Continuity of employment in certain cases of voluntary transfer.

(1) This section applies to a person who at any time on or after such date as may be specified by order made by the Secretary of State ceases to be employed by ILEA or the London Residuary Body (his “former employer”) if— (a) the termination of his employment is attributable to any provision made by or under this Part; (b) he is subsequently employed by another person (his “new employer”); and (c) by virtue of section 84, 94 or 95 of the Employment Protection (Consolidation) Act 1978 (renewal or re-engagement) that subsequent employment precludes his receiving any redundancy payment under Part VI of that Act. (2) Where this section applies to a person Chapter I of Part XIV of the Employment Rights Act 1996 (computation of period of employment for the purposes of that Act) shall have effect in relation to that person as if it included the following provisions, that is to say— (a) the period of employment of that person with his former employer shall count as a period of employment with his new employer; and (b) the change of employer shall not break the continuity of the period of employment. (3) Where this section applies to a person the period of his employment with his former employer shall count as a period of employment with his new employer for the purposes of any provision of his contract of employment with his new employer which depends on his length of service with that employer.

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175 Offers of employment by inner London councils.

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176 Provision of services and facilities by London Residuary Body.

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177 Repayment by London Residuary Body of loans to ILEA.

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178 Liability of London Residuary Body for redundancy and compensation payments.

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179 Payment of pensions and pensions increase by London Residuary Body.

(1) All liabilities of ILEA in respect of pensions payable by it shall on the abolition date become liabilities of the London Residuary Body. (2) The reference in subsection (1) above to pensions includes a reference to allowances, grants or other benefits in respect of past service, death, injury or disease (whether of the pensioner or another person) and any such compensation as is mentioned in section 8(1)(b) or (c) of the Pensions (Increase) Act 1971. (3) At the end of Part II of Schedule 2 to that Act (pensions payable out of local funds) there shall be inserted— 64C A pension payable by the London Residuary Body, being a pension which would fall within any of the foregoing paragraphs of this Part of this Schedule if references to a local authority had continued to include references to the Inner London Education Authority. (4) In paragraph 1(5) of Schedule 3 to that Act (cases where increase of pension is to be reimbursed by the last employing authority) after “64B” there shall be inserted the words “and 64C”. (5) The London Residuary Body shall pay— (a) any increase which by virtue of regulations under section 5(2) of that Act would have been payable on or after the abolition date by ILEA; and (b) any payment which is analogous to a pensions increase and would have been payable on or after that date by ILEA by virtue of regulations under section 13(3) of that Act.

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180 Custody of residuary property, etc.

(1) On the abolition date all residuary property, rights and liabilities of ILEA shall vest in the London Residuary Body. (2) In subsection (1) above “residuary property, rights and liabilities” means— (a) any property for the vesting of which provision is not otherwise made by or under this Part; and (b) subject to subsection (3) below, any rights and liabilities which are not transferred, extinguished or otherwise dealt with by any provision so made. (3) This section shall not be construed— (a) as continuing in force any contract of employment made by ILEA; or (b) as imposing any liability on the London Residuary Body in respect of the termination of any such contract by the abolition of ILEA; but the rights and liabilities to which this section applies shall include any rights and liabilities attributable to anything done or omitted under or in respect of such a contract before the abolition date except any liability to make a payment prohibited by section 173(3) of this Act. (4) The Secretary of State may by order confer on the London Residuary Body any statutory functions which before the abolition date were exercisable by ILEA in relation to any property, rights or liabilities which are vested in that body by this section. (5) Without prejudice to section 232(5) of this Act, the provision that may be made by an order under subsection (4) above includes provision amending any enactment or any instrument made under any enactment.

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181 Power of London Residuary Body to pay compensation.

(1) The London Residuary Body may pay compensation— (a) to any former officer of ILEA who sustained an injury in the course of his employment with ILEA; or (b) to the widow or widower or child of any former officer of ILEA who, in the course of his employment with ILEA, died or sustained an injury resulting in death. (2) Subsection (1) above applies irrespective of whether the employment with ILEA of the officer in question came to an end on or before the abolition date. (3) The London Residuary Body may pay compensation to any person in respect of loss suffered by him in consequence of any damage to property in respect of which it appears to them that a claim might have been brought against ILEA had ILEA not been abolished. (4) Any compensation payable under this section may be paid either— (a) by way of a lump sum; or (b) by way of periodical payments of such amounts and payable at such times and for such periods as the London Residuary Body may from time to time determine having regard to all the circumstances of the case. (5) The payment of compensation under this section shall not affect any right or claim to damages or compensation which— (a) any such officer as is mentioned in subsection (1)(a) or (b) above or his widow or widower or child; or (b) any such person as is mentioned in subsection (3) above; may have against any person other than the London Residuary Body or, except so far as may be agreed when the compensation is granted, against the London Residuary Body by virtue of section 180 of this Act.

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