The letter reads: The Government has today announced its decision on education's share of the 1994-95 grant settlement. Accordingly, I now direct the Review Body, under Section 1(4) of the School Teachers' Pay and Conditions Act 1991, to have regard to affordability in the context of the 1994-95 Education Standard Spending total of 17,087m. The comparable total in the 1993-94 settlements was 16,686m. The 1994-95 figure represents an increase of 401m, or 2.4%, compared with this year's figure.
The Review Body's recommendations should in its judgement be affordable given the 1994-95 ESS total, having regard both to the scope that local education authorities have for making efficiency gains, given the Government's intention to cover any higher pay costs for its own employees within efficiency improvements and its view that a similar approach should apply for other public sector groups, and to new pressures on resources.