Hundreds of schools may lose out on millions of pounds because councils cannot balance their books, head teachers are warning.

They say the education system faces a fresh crisis because some councils are considering using money earmarked for cutting class-sizes as emergency aid to other services.

And they called on the Government to ensure the money devoted to schools gets into the classroom where it is needed most.

Janet Warwick says it is wrong to lose more teachers

The warning, from the National Association of Head Teachers (NAHT), will come as an embarrassment to the government which put aside £800m as the first stage of its plan to cut class sizes.

Local councils, who administer the money, have the final say on how it is spent and many say they have not got enough money from Whitehall to run all their services.

The Education Secretary, David Blunkett, has warned councils they must spend the extra cash on class sizes or they will face possible penalties in future years.

Parents angry

Parents have demonstrated in Shropshire where teachers' leaders predict the county will lose 600 staff, resulting in pupil numbers in some classes reaching more than 40.

Janet Warwick, a Shropshire headteacher and member of a government taskforce on standards, said: "If this year we are having to lose possibly 600 staff, that is quite wrong when we have got a shortage of teachers and we are appealing for more people to join the profession."

Primary school classes may be hit the hardest in spending squeeze

David Hart, head of the NAHT, called on the Government to act now to protect school budgets before councils finalise spending plans.

"What I am saying to the Government is that if you want standards to be driven up and schools to be motivated to support your agenda, you have got to make sure that schools get the resources," said Mr Hart.

The Local Government Association, speaking for councils, said that the overwhelming majority of its members will follow Mr Blunkett's instructions.

But if a minority of councils use schools money elsewhere, a rise in class sizes will come as a serious blow to a government setting education as a priority.
 

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