Two schools in Forest Gate could merge as part of new proposals being considered by Newham Council.
Odessa Infant School in Wellington Road could be amalgamated with St James’ Junior School next door to create a new primary school, potentially opening in time for the 2026/27 academic year.
The Town Hall's plans say that if the merger does not go ahead, Odessa Infant School would be “unable to operate effectively” and “could be at risk of closure” amid a £400,000 budget hole.
A growing budget deficit at the school meant that a merger with St James’ was “the only viable option” to secure its financial stability, according to the council.
The Town Hall said the deficit was due to increased demand for special educational needs services, and the rising cost of providing them – issues facing schools and councils across the country.
It doesn’t expect that any pupils will have to move as a result of the merger.
The plans also say that staff on permanent contracts would “automatically continue their employment”.
However, this was “subject to any restructuring which takes place before the date of amalgamation, based on a sustainable staffing structure”.
The council said: “Odessa is an outstanding and inclusive infant school. The budget deficit is due to the increased special educational needs in the borough, and across London.
“As the school addresses these needs, costs have risen. Because of the funding model for infant schools, the school cannot meet these needs and balance its budget at the same time.”
According to the plans, Odessa Infant School has a cumulative deficit – accrued over more than one year – of £400,000. On the other hand, St James’ Junior School has a surplus of £186,000.
Under a merger model, the new school would be likely to have a surplus of more than £800,000 by 2028/29, based on reduced spending.
However, the plans say this prediction is based on assumptions such as stable pupil numbers and staffing structures.
The costs of “pension strain” or any redundancies “have not been included” in the projected spending.
The proposals state: “These costs are highly variable and dependent on individual circumstances. Given the early stage of planning, it is not possible to make reliable estimates at this point.”
The council said it “would not be appropriate to go into details” on potential redundancies as a decision on the future of the school has not yet been made.
Parents, carers, staff and governors at the school are set to be invited to give their views during the consultation.
The outcome of this will feed into more specific proposals that will require the council to give statutory notice.
There will be then be a period of four weeks during which any organisation or member of the public can submit comments.
The final decision on whether or not to go ahead with the merger would then be taken in public by the council’s cabinet.
