15/05/2003

Funding shake up to release more money for teachers

Schools will be able to use funds for capital projects like building repairs to support their day-to-day running costs – like teachers' wages.

The government claims that this new flexibility will help schools to deal with changes to the way funding is being allocated and the one-off pressures relating to teachers' pensions and national insurance.

Education Secretary Charles Clarke said it would apply for one year and can only happen where there is a risk of "excessive instability" within the school.

Charles Clarke said he accepted that this is a difficult year of change for schools and education authorities.

"We are working with local authorities to help them deal flexibly with local difficulties. It is vital that the extra money the government has given to education this year reaches schools' budgets," he said.

All local education authorities in England have now supplied details of their spending decisions. They show that many authorities have taken steps to make sure that their schools have received reasonable funding increases. Some authorities have increased their spending on schools by significantly more than the resources the government has provided.

Many authorities have also confirmed that a significant proportion of the budgets they had not allocated to schools by 31 March has now been distributed. Analysis of the budget decisions has identified some underlying issues - some authorities, for example, are still not increasing their schools budget to match in full the increases from central government.

Mr Clarke also said that the government would consider what changes need to be made to education funding for next year so that all schools can expect to receive a reasonable budget in 2004-05.

(GMcG)

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