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Monday, 22 November, 1999, 13:15 GMT
Funding doubts over performance pay
Teachers are promised 1bn in performance pay

Local government leaders have questioned whether the government's funding for performance pay for teachers is 'new' money.

The government has promised 1bn to pay for the merit pay awards proposed in the plans for reforming teachers' pay and conditions.

But the Local Government Association says that the funding is partially drawn from money already assigned for schools' running costs.

Estelle Morris says additional funding for schools is well-above inflation
"Most of the billion pounds is new money, but some of it is coming from what would be the increase in the money to schools for next year," says Graham Lane, the LGA's education spokesperson.

"It doesn't mean there will be cuts in schools' budgets, what it means is that heads will not be able to spend that money in the way they want to, because it is already earmarked for increasing teachers' pay."

The School Standards Minister, Estelle Morris, defended the government's plans for performance pay, saying that although the money was drawn from two separate funds it still amounted to 1bn.

"Let's look at the figures. What is happening to local authorities? They will get a 5.4% increase. On top of that, they will get the money for performance-related pay. I don't think that's a bad deal, with inflation running at 2%."


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See also:
25 Jan 99 |  Education
Pay sums 'do not add up'
27 Jul 99 |  Education
Teachers want promises on merit pay
22 Sep 99 |  Green Paper
Peace breaks out in performance pay dispute
08 Jul 99 |  Green Paper
How teachers can earn 35,000+
22 Sep 99 |  Education
Payment by results worth $1,000 bonus

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