Clarke “finds” missing schools’ cash
The Education Secretary, Charles Clarke today attempted to demonstrate where the “missing millions” from the Government’s school funding allocation have gone.
Mr Clarke published data analysing the amount of funding allocated to Local Education Authorities (LEA) and the amounts passed on to schools, which shows that over £590 million has not yet reached schools.
However, the move has angered teaching professionals, who accuse the Government of “passing the buck”.
The publication also follows a fresh warning from head teachers that schools in England are facing a disastrous funding situation this year.
The National Association of Head Teachers (NAHT) asserts that the gravity of the situation has been underestimated arguing that three quarters of schools are facing a funding shortfall.
The Government has acknowledged that schools are enduring financial difficulties but has firmly laid the blame at the door of the LEAs and Mr Clarke stated that today’s figures “raise big questions” about the missing funds.
The data shows that £533 million, which LEAs have specifically ear-marked for individual schools has not yet been allocated, with a fifth of local councils still in possession of more than £5 million that should have been passed onto schools.
It also indicates that 19 LEAs have not been passporting the full increase in education resources they received from the Government meaning that schools in these authorities are being denied the benefits of a £23 million entitlement.
Further, the DfES reports that 40 per cent of authorities are diverting more than £1 million from revenue budgets into capital spending and over two-thirds are holding over £100,000 for contingency purposes.
Local government ministers insist that all the money allocated for education has been passed on – and in some cases that additional costs have been met through increased Council Tax.
However, the Government clearly disagrees and Mr Clarke is hopeful that today’s data will vindicate the Government’s allocation policy, which he maintains is sufficient and has been adjusted to reflect the burden of the hike in National Insurance and pensions contributions.
Speaking on BBC Radio Four’s ‘Today’ programme, Mr Clarke said, “Overall nationally we allocated about £250 million more to education than all the total of the cost pressures, but it’s been distributed in a variable way across the country and it’s that distribution which is causing the pressures reported”.
The NAHT disputes this and has published the results of its own survey, which reports that only 22 per cent of schools have had an increase this year of 10 per cent.
The union argues that 17 per cent of schools face a cut in real terms. The profession is warning that redundancies could be the only option available to counter the deficit.
The Education Secretary is keen to avoid this. He said, “What I can promise is that I will work with Local Education Authorities on the basis of the data we’ll publish today, to stop teacher redundancies, because that would be an unwarranted thing”.
The Minister was also keen to emphasise that this is “not a naming and shaming exercise”.
Following the publication of the figures, he said, “We want to work with LEAs – and for LEAs to work with schools – to ensure that schools get the full benefit of the extra government investment in education.”
“The purpose of this exercise is not to apportion blame but to solve problems. We recognise that despite the extra £2.7 billion (11.6%) increase in education funding this has been a difficult year with a number of major changes in the funding arrangements for LEAs and schools. However, the emerging pattern of spending decisions does raise big questions regarding the amount of money that has not yet reached schools.”
However, David Hart, General Secretary NAHT, said, “The Government funding statement is a smoke-screen designed to divert attention from its responsibility for this year’s financial crisis says NAHT.
I am all in favour of local authorities giving the maximum money to schools and certainly there are some that have failed their schools, but the government’s attempt to pass the buck to LEAs, and to paint them as the villain of the piece, simply won’t wash.”
He added, “All in all NAHT estimates that, far from there being a cushion of £250 million, schools this year are in debt nationally to the tune of over £200 million.”
The DfES is preparing to write to LEAs to ask questions about their spending decisions and their impact on schools.
Mr Clarke said, “”I want every LEA to look closely at their spending plans and their unallocated budgets in particular to ensure that the maximum possible amount is given to individual schools without delay.”
He concluded, “In the light of the information they provide I shall consider what changes to make regarding funding arrangements for 2004-05.”
