Commentary on provisions of Act Section 14: Academies causing concern
Section 14 inserts new sections into the Academies Act 2010 to provide that all funding agreements for Academies and free schools made after section 14 comes into effect will include termination provisions around failing and coasting schools which are broadly in line with those in the current model funding agreement. It also provides that where an academy or free school [other than a 16 – 19 Academy] with a funding agreement entered into before section 14 comes into effect is judged inadequate by Ofsted or meets the coasting definition, then their ‎funding agreement will be read as having provisions around failing and coasting schools which are broadly in line with those in the current model funding agreement.
	In practice, the termination provision for failing academies gives the Secretary of State consistent powers to terminate academy and free school funding agreements on the grounds of an inadequate inspection judgement. The Secretary of State is required to give the proprietor of the academy the opportunity to make representations before terminating the funding agreement on the grounds of an inadequate inspection. The provision for coasting academies, applies to academies the coasting definition as defined in regulations for maintained schools. It also provides the Secretary of State with the power to make regulations to exclude certain type of academies from the coasting definition. The provision allows the Secretary of State to terminate the funding agreement of a coasting academy where a termination warning notice has been issued and the proprietor of the academy has failed to comply with that notice.