Forum Brief: Teacher pay

The education secretary has announced extra measures to help schools suffering from a budget crisis.

In a Commons statement, Charles Clarke said that cash settlements over the coming years would exceed likely rises in costs.

But he warned that some schools would have to make difficult decisions on future spending to avoid a cash crisis.

Damian Green, the shadow education secretary, said: "The government has spent months trying to dig itself out of the hole it created for itself last year.

"This statement shows that the means it is using are unfair to hard-working and successful teachers, threatening to council tax payers, and do not guarantee that the worst-hit schools will be enabled to recover quickly. The effects of this will be felt early next year when schools come to set their budgets."

John Pugh, education spokesman, said: "Any teacher cracking open the champagne in the staff room will wake up with a hangover by the time the details of the teachers pay deal and work load agreement are absorbed.

"The government is still trying to micro-manage the budget of every schools in the land, and its record at doing so is lamentable.

"The room left for local authorities to deal with seriously underfunded schools by adjustments to their formula is minimal.

"In passing on money as an increase for every child in the country, Charles Clarke is perpetuating problems and inequalities. Last years' winners may win again, but the old losers will find their problems unaddressed."

Forum Response: Association of Teachers and Lecturers

Dr Mary Bousted, general secretary, said: "Any funding increase per pupil is to be welcomed. This money will only be of value if the government can ensure that it is 100 per cent for the education of pupils in their schools. But we must accept that per pupil funding varies around the country and in some areas there is a much greater need for additional funding than in others.

"It is not clear whether the government has fully taken on board the need to ensure that wherever a child is educated there is an absolute minimum of funding required.

"Changes to the timing of funding announcements have improved the ability of schools to plan. But planning to manage deficits achieves nothing. We need stability against a background of adequate resources if this summer's crisis is not to be repeated."

Forum Response: National Union of Teachers

Doug McAvoy, general secretary, said: "Charles Clarke's statement on school funding shows that the government still has a very long way to go before schools can be sure that they will not face job losses, cuts and deficits in the next two years.

"Schools needed an average increase of 11 per cent to stand still this year. A four per cent guarantee for the next two years is a very long way from that.

"Indeed the secretary of state acknowledged in his letter to the STRB on October 7 that a four per cent per pupil guaranteed increase is insufficient to make good this year's funding crisis and meet increased costs next year.

"This then is a 'suck it and see settlement'. Only when we know what each school will receive will we know how many thousands of schools will suffer.

"The fact that the government is to enable LEAs to borrow is an admission of continued underfunding.

"There is insufficient money to employ the additional teachers necessary to implement the workload agreement.

"More teaching posts will be lost. More teachers will face redundancy. More pupils will be disadvantaged by classes being taken by unqualified persons.

"Teachers will continue to pay for the continuing government created funding crisis and for workforce reform. The government intends that progress on the Upper Pay Scale will be severely rationed and that all teachers will suffer a pay freeze until September 2006."

Forum Response: Local Government Association

Sir Jeremy Beecham, chair, said: "More funding for schools is welcome and the four per cent will be good news for many schools.

"The LGA has argued that headteachers need more money, more certainty, and earlier warning of changes. But the reduction of local discretion would allow councils little scope to direct funding where it is needed and some schools will be left short next year. Existing inequalities will be perpetuated.

"Charles Clarke has conceded some of these arguments today, and a restoration of some flexibility compared to what was threatened earlier is very welcome. Constructive dialogue between us has helped.

"But we must tread with great caution. The government financial assumptions and centralisation involved leaves little room for manoeuvre either to meet councils own particular circumstances, or schools particular circumstances.

"We have worked with government to ensure that schools have adequate budgets, and early news of funding decisions.

"Today we have won an assurance from Charles Clarke that the education element of council grant will fund the four percent pupil guarantee. But the education element does not account for the majority of council spending. And for those councils on the funding floor, there is still a danger that they will be left short.

"When council grants are announced next month, we will be looking for a guarantee of our own - that the overall grant to local government ensures that schools extra funding today is not at the expense of other key services tomorrow. The teachers' pay settlement and the rising pay bill in schools must also be fully funded.

"Progress has been made in recent years to ensure that funding matches the increased pressures on schools. But unless the government allows councils the flexibility to move money to areas of greatest need, and any overall funding shortfalls are bridged by the time councils' grant levels are set next month, many schools and councils could find themselves in difficulties yet again next year.

"The real solution lies not in further centralisation and compromise fixes thrashed out like this one today, but instead with an overhaul of the balance of funding between central and local government, maximising local discretion, and better management of school budgets.

"The sensible planning of local education can only be done in conjunction with spending decisions that take account of local needs and are integrated with other local services, such as social services.

"Since the problems in education funding last year, The LGA, across the political divide, has talked long and hard with Whitehall departments, particularly education, ODPM and the Treasury. Today's announcement reflects this to a point, and we will keep on talking, with the aim of ensuring schools needs are fully met, along with other council services - on many of which schools rely."