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Investment and reform to education and skills - on a scale...
Investment and reform to education and skills - on a scale

unprecedented for a generation - has been announced by secretary of

state for education and skills Charles Clarke.

In a statement to the house of commons Mr Clarke said that the

spending rise - six per cent real terms a year over three next three

years - would be matched with real reform to create a world class

system of education and training at all ages.

Schools funding alone rises by 17 per cent in real terms by 2005-06 -

an average real terms increase in revenue funding per pupil of over

£1,000 in the ten years between 1996-7 to 2005-06.

The new school funding system makes a break with the past by cutting

bureaucracy to give heads funding stability and more freedom to meet

the ultimate test of reform - meeting the aspirations of every child.

Mr Clarke said:

'At a time when we face economic uncertainty it is more important

than ever that we continue to invest and reform to drive up the

skills of our people and improve our productivity as a nation.

'Tackling the attainment gap and creating a world-class system of

education and training will only be achieved if in addition to

investing, we also reform our schools and colleges so that they

genuinely meet the aspirations of every child. That will be the

ultimate test of our success at the end of this Spending Review


The reform package breaks new ground with:

- increased funding per pupil - an average real terms increase in

revenue funding per pupil of over£1,000, from£2,840 to£3,850 in

the ten years between 1996-7 to 2005-06;

- more money to the front line - by 2005-06 more than 92% of all

school funding will be allocated through local authorities in

accordance with local priorities - up from 87% in 2002-03

- less money tied with red tape - the number of specific grants made

from the department will be reduced;

- more money to help good heads lead the rest - further investment in

the world-leading National College for School Leadership in

Nottingham and new funds through the new Leadership Incentive Grant

of£175m per year for heads in the most challenging areas;

- more money to reform the school workforce - increased funding

through the Standards Grant to allow heads to bring in more and

better trained teaching assistants, which must be matched by a

commitment from unions and employers to restructuring;

- more money for school buildings - on top of the extra money for

school running costs, funding for school buildings and repairs also

increases from£23 for every primary pupil in 2002-03 to£49.40 by

2005-06 and from£34.51 to£74.10 for every secondary school pupil;

- early years -£300m transferred to local authorities to

enable them to provide universal nursery provision for three year


The SoS also announced£10bn for skills by 2005-06 and said:

'Developing the skills of our people is critical to improving our

productivity, and therefore to the economic and social future of this

country. We have to transform the performance of the learning and

skills sector. We need to make it far more responsive to the needs of

learners, employers and communities. We need to raise the quality of

the sector and increase the achievement of those studying and

learning in the sector.'


1. Schools funding - key changes:

- more money to the front line - on top of the£4.3bn increase

by 2005-06 in local authority general education funding previously

announced, substantial funds will be moved from central DfES

spending to local authority spending.

This will be an extra£500m in 2003-04, and a further£800m

in 2005-06. This means that by 2005-06, over 92% of all

schools funding will be allocated through local authorities in

accordance with local priorities;

- less money tied with red tape - The department will end the

ring-fenced grants for the following programmes:

In 2003-4, grants for nursery education for three-year olds; funding

for infant class sizes; the school improvement grant; school

inclusion - pupil support; performance management and induction for

newly qualified teachers.

In 2004-5, in addition, we will do the same with grants for: Special

educational needs; Study support; Golden Hello payments; Advanced

Skills Teachers; School support staff, Drugs education and Teacher


- the School Standards Grant amounts to£800m in 2003-04

rising to£875m by 2005-06, paid direct to schools. Within

this the substantial extra investment in the School Standards Grant

must be matched by a commitment from unions and employers to a

restructured teaching profession.

Grant Allocations are detailed at Annex 1;

- Standards Fund amounts to£1.5bn in each of the next three

years will enable schools to galvanise reform on standards,

behaviour and choice. In 2003-04, this will support the following

programmes, among others:

Key Stage 3 strategy -£120m

Ethnic minority achievement -£80m

Music services -£60m

Excellence in Cities and Excellence Clusters -£290m - with

more to come for behaviour improvement plans;

School support staff and training -£170m

- Schools will have the freedom to spend their Standards Fund budget

on any purpose - providing they deliver improvements in standards,

behaviour, choice.

- School buildings: total investment - including Private Finance

Initiative credits - will rise from£3bn in the current year

to£3.8bn in 2003/4,£4.5bn in 2004/5 and over£5bn by 2005-06. Capital funding breaks down as follows:

Per school all sectors

Per Primary pupil

Per Secondary pupil

Per SEN pupil

2003-04 11,300 42.40 63.60 127.20

2004-05 12,750 48.00 72.00 144.00

2005-06 13,150 49.40 74.10 148.20

2. Skills - key details

Total spending on skills increases from£8.6bn in 2002-03 to

over£10bn in 2005-06. This represents a real terms increase

over the spending review period of almost 12%. This includes

previously announced£1.2bn for reforms to further education

(from the Association of Colleges' conference on 19 November) and the

Learning and Skills Council's budget - which will increase by£1.4bn, reaching a total of£9.2bn by 2005-06.

4. Early years - key details

expenditure on early years and childcare will rise from about£1bn this year to some£1.5bn in 2005-06, of which£300m will be transferred to enable local authorities to provide universal nursery provision for three-year olds.

Annex 1

School Standards Grant: Rates for 2003-06


Primary Pupils







Secondary Pupils






Special Pupils




Primary Pupils







Secondary Pupils






Special Pupils




Primary Pupils







Secondary Pupils






Special Pupils



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