Funding promised to schools has been withdrawn by The Treasury, despite a cash flow problem in education

The Treasury has taken back money promised to schools, it has emerged. Some £384m was originally earmarked for schools in England as part of plans to make all schools academies. However, after the government ditched the compulsory academy plan The Treasury withdrew most of this extra funding.

Academy Plan

The academy plan was dropped during the Queen’s Speech last October after it failed to gain support from the education sector and was a massive blow to the government.

It would have forced underperforming schools to make the switch to academies, putting them beyond the control of local authorities by 2022, and aimed to “spread educational excellence everywhere”. However, at the time there was significant concern about putting failing schools out of the reach of local authority control. As a result, the Bill was eventually dropped, to the embarrassment of the government.

Anger over the loss of funding

School heads are now expressing anger over the disappearance of this money that had been earmarked for education.

Heads said losing this funding was “outrageous”, particularly at a time when schools are struggling to “make ends meet”.

However, the Department for Education defended the action, stating it was appropriate to return the funds as the project did not go ahead.

Headteachers raise questions over funding

The news follows a letter to local MPs in West Sussex, written by headteachers asking what happened to the extra £500m pledged to schools last year.

Headteachers in Bristol also contacted the Education Secretary warning about “extreme” funding problems. They asked why the cash set aside for academies could not be used to plug this gap.

The Department for Education said most of this funding has disappeared back into The Treasury, but that in excess of £100m was spent on other education projects.

Schools have warned that funding problems mean they may have to reduce school hours or cut teaching staff, but the Department for Education said schools are receiving record levels of funding, adding the new funding formula will distribute this more fairly.

Leader of the ASCL headteachers’ union Malcolm Trobe warned heads would be “extremely disappointed and angry” if the extra money had not been used within the education budget.


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