Education’s new royal family: how control of England’s second- largest chain of academies will pass to the family of its founder upon his death

One of the first Harris academies: Harris Academy Peckham

A group of 48 state-funded academy schools is to stay under the control of the family of the multi-millionaire businessman who founded it – even after his death, its constitution documents have disclosed.

In what seems to have marked the creation of an education dynasty, the south London-based Harris Federation has been set up to be in the apparently permanent control of the family of the Conservative peer and carpets tycoon Lord Harris of Peckham.

In what may be a staggering revelation for those not familiar with how academy trusts can be set up, Lord Harris currently has the legal right to appoint up to 32 directors of the trust which bears his name.

The Harris Federation is England’s second-largest academy chain, educating 32,500 pupils and with income from the government in 2017-18 of £173m.

Legal text in the federation’s constitution, unearthed by Education Uncovered, states that Lord Harris will be replaced by family members as “principal sponsor” – in control of its governance through having the right to appoint or dismiss trustees, and to appoint others with this right – on his death.

Lord Harris would be replaced in that role by Lady Harris or one of two of their sons, with any family member who replaced him then having the right to name the principal sponsor who would take their place on their own death.

The trust’s constitution - agreed by the Harris Federation with the government - sees the “principal sponsor” having the right to appoint up to 32 trustees of the organisation, who in turn then set its strategy and hold its management to account.

The constitution documents, or Articles of Association (viewable from this page), state: “In the event of the death of Lord Harris of Peckham, his wife, Lady Harris, shall replace him as Principal Sponsor. If at the relevant time Lady Harris is deceased or unwilling or unable due to physical or mental incapacity to act as Principal Sponsor his son, Martin Harris, shall replace him as Principal Sponsor.

“If at the relevant time Martin Harris is deceased or unwilling or unable due to physical or mental incapacity to act as Principal Sponsor Lord Harris of Peckham’s other son Peter Harris shall replace Lord Harris as the Principal Sponsor.

“If at the relevant time Peter Harris is also deceased or unwilling or unable due to physical or mental incapacity to act as Principal Sponsor then such other person as Lord Harris may name as his replacement in any will…or, in the absence of such a person being named, such person as the relevant Principal Sponsor’s executors shall determine shall replace Lord Harris as Principal Sponsor.”
 

The text adds that when any of the Principal Sponsors who follow Lord Harris dies, they will be replaced as Principal Sponsor by whoever they say should take on this role, in their will or, failing that, whoever the executor of their will decides.

This statement includes a proviso, stating that: “None of Martin Harris, Peter Harris or any other person who is not named in this article may become Principal Sponsor without the prior written approval of that person by the Secretary of State, which approval shall not be unreasonably withheld or delayed.”

An identical clause has featured in successive versions of the Harris Federation’s articles since the establishment of the trust back in 2007, under Tony Blair’s Labour government.

The “principal sponsor” title holds the key to control of the Harris trust, its Articles of Association – available on the Companies House website - make clear.

The principal sponsor has the right to serve as a “member” of the trust, and also to appoint two further members. Members have the right, in turn, to appoint trustees – also known as non-executive directors - who set the organisation’s overall strategy. Members are also able to amend the trust’s Articles of Association. 

The Harris Federation’s current Articles of Association, which were signed off in 2013, see the “principal sponsor” given the right to appoint “up to 12 sponsor directors”, to sit on the overarching board which oversees the organisation.

In addition as many as 20 further directors, known as “academy directors” could be appointed to the board, the Articles state. These would be the chairs of governors of individual Harris academy schools, who would be appointed to the overarching board by the “principal sponsor”.

The federation’s latest published accounts say that it currently has 12 directors, including Lord Harris himself, who is listed on the government’s “Get Information about Schools” database as also the organisation’s chairman. The board of directors also features Sir Daniel Moynihan, who is the federation’s chief executive and has received the highest pay of any academy CEO in recent years, at £440-£445,000 plus £50-£55,000 in employers’ pensions contributions.

Lord Harris, a Conservative Party donor, founded the Carpetright carpets chain.

In terms of pupil numbers, the Harris Federation is second only to the Northampton-based United Learning Trust as England’s largest academy chain.

It is a highly successful academy chain, with all but one of its schools which have been visited by Ofsted being rated either “good” or “outstanding”.

However, the news will add to the debate over the ability of private individuals to gain control over state schools through the academies programme.

Among the freedoms given to the trusts are to decide each school’s curriculum and to set the pay and conditions of staff.

As Education Uncovered also reveals today, overall nearly 200 state-funded schools, together educating more than 100,000 pupils, are now in the control of wealthy businessmen through the academies scheme. Nine of the 10 academy trusts running these schools are either controlled by or are heavily influenced by donors to political parties, including eight of them to the Conservative Party.

The Harris Federation was asked for a response. As is now usual following my enquiries, it did not get back with one.