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Monday, 15 July, 2002, 11:03 GMT 12:03 UK
Spending plans face rising demands
Schools say they still need a substantial increase
Head teachers and universities could still be asking for more after the government's spending review on Monday.

The education budget is expected to receive an increase of around 12.5bn a year, and around 50,000 per secondary school - but this falls short of the demands already made by schools and universities.

The Secondary Heads Association has called for spending to be increased by 17bn, if the United Kingdom wants to match education systems in other leading European countries.

Spending demands
Heads call for 17bn
University chiefs want 10bn
Further education wants 2.6bn
Education maintenance allowances 600m
Teachers' workload: unknown
Student funding: unknown
There have been warnings that earlier funding increases have already been absorbed by increased staff numbers and higher staffing costs.

"There has not been a big increase in funding at school level. Rising costs are barely covered, or not covered at all," said David Hart, leader of the National Association of Head Teachers.

University vice chancellors have put a price tag of 10bn on the funding increase needed urgently by higher education.

Schools say that higher staffing costs have absorbed earlier funding increases

They say that 5.1bn alone is needed to modernise buildings, equipment and libraries.

There are also pressures for higher pay for academics and claims of long-term underfunding of the increase in student numbers.

Universities argue that a further expansion in university places - enough for 50% of young people - will not be possible without extra money.

Further education principals have also put forward a claim on the spending review, with the Association of Colleges asking for 2.6bn.

This would address problems such as improving pay for further education lecturers - which has failed to keep pace with school teachers' earnings.

Staying-on rates

The Chancellor Gordon Brown is likely to emphasise the importance of seeing improved performance in return for extra spending.

This "something for something" message will focus on raising standards and improving staying-on rates in schools, colleges and university.

This could include up to 40 per week per pupil in an "educational maintenance allowance" intended to encourage pupils to stay in education beyond the age of 16.

It has been suggested that this will cost 600m from the spending plans.

But the huge sums of money expected to be announced will also have to tackle expensive structural changes.

The dispute over a reduced working week for teachers, backed by the threat of industrial action in the autumn, will have to be resolved on the basis of funding from the spending review.

Housing costs

This is also linked to the problem of recruiting teachers.

Teachers' pay and recruitment perks have had to be increased - and there could be further spending on subsidising housing in high-cost areas such as the south east of England.

And if school budgets have to be stretched to pay teachers higher salaries and to recruit more staff to accommodate a cut in workload, that will soon account for any extra funding.

Student funding is also set to be overhauled, with the review of spending set to fund a revised system of loans, grants and fees.

The announcement of the new structure for student loans will not be made until the autumn - after deliberations that will have taken almost a year.

But any system that subsidises the higher education of half of all young adults will not come cheap.

And the intended increase in student numbers will have to be built into the overall spending plans for education.

The government's plans for future spending are published on 15 July

Key stories



See also:

05 Jun 02 | Education
17 Apr 02 | Education
20 Feb 02 | Education
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