Headteachers have warned that they are “increasingly concerned” about the government’s “commitment” to helping pupils catch up after the pandemic, as new findings reveal nearly a third of its Covid education fund is made up of recycled cash.
Research published today by the Institute of Fiscal Studies (IFS) shows that, of the £4.3 billion so far invested in education in response to the pandemic, 30 per cent has been sourced from “underspends” or “existing budgets”.
The news comes a month after Tes revealed that 22 per cent of the £1.7 billion fund earmarked for catch-up alone had come from within the Department for Education (DfE) itself rather than the Treasury.
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The Association of School and College Leaders (ASCL) said today’s findings suggested the cash injection “trumpeted” by the government was being “heavily supplemented” by funds found “down the back of the departmental sofa”.
And the NEU teaching union said the research exposed “another example of the gap between government rhetoric about investing in education recovery and the reality”.
The IFS valued Covid-related spending on education in England across 2020-21 and 2021-22 at roughly £4.3 billion.
“This includes about £1.7 billion on catch-up for schools and colleges, £1.5 billion on supporting schools during the pandemic, £280 million on the early years and families, £450 million on further education and skills, and £370 million on higher education,” the report said.
But the DfE is only due to receive around £1.3 billion in new funds from the Treasury, the IFS found.
“This means that about £1.3 billion or 30 per cent is due to be funded from underspends or from existing budgets,” the report added.
“The vast majority of the extra spending relates to day-to-day or resource spending, with about £670 million or 16 per cent of the £4.3 billion devoted to capital or investment spending.”
In response, Geoff Barton, ASCL general secretary, said: “We’re increasingly concerned about the Treasury’s commitment to education recovery and this research reinforces our fears.
“It suggests that the amount of money trumpeted by the government to support education so far is being heavily supplemented by what the Department for Education is able to find down the back of the departmental sofa.
“The government needs to explain exactly where this money is coming from and provide reassurance that it does not mean that other areas of education are losing out.
“We are concerned, in particular, about a change in the rules for allocating pupil premium money for disadvantaged children, which has meant that many schools have lost out on funding.
“Education recovery following the pandemic will require a significant multi-year programme of investment - and the Treasury will need to stump up the funding required.”
Mary Bousted, joint-general secretary of the NEU, added: “Creative accounting will not fool parents, teachers and the community.
“The government have allocated just £250 per pupil, which compares poorly with other nations like the United States and the Netherlands, which are investing £1,600 and £2,500 per pupil respectively.”
The DfE has been approached for comment.
