£9m goes underspent as schools stash cash

Schools across Rochdale have hoarded almost £9 million in their bank accounts — money ministers say should have been spent on children’s education.

Official figures released yesterday show 12 secondary schools have failed to spend £4.17 million and 69 primary schools across the area failed to spend £4.67 million as of the end of the 2008/09 financial year.

Many schools argue left over surplus is often already allocated for forthcoming projects. The figures from the Department for Children, Schools and Families show of the combined £8.8 million surplus, £2.37 million has been allocated.

The DCSF rules allow secondary schools to save 5% of their annual cash handout from their local education authority. Primary schools are permitted to save up to 8%.

Local authorities have powers to claw back the excessive surpluses where the extra cash has not been committed.

In Rochdale, there are six secondaries and 13 primaries above the threshold. If the council wanted to claim back the excess cash from the schools they would lose a combined £2.5 million.

Nationally the amount of surplus has fallen for the first time since 2002. Latest figures for 2008/09 show a £118 million reduction on the amount of cash hoarded compared with last year.

Schools minister Vernon Coaker said despite the reduction, balances are still too high and schools and local authorities must ensure excessive balances are used to improve standards for all pupils.

He said: “Last year we made it clear that we expect schools and local authorities to work to reduce the level of balances by the end of 2010-11.

“If we do not see a substantial reduction of total revenue balances and in particular the excessive balances held by individual schools, the Government will consider further action from 2011-12 to bring the total down to ensure the funding is being spent on improving outcomes for children and young people.”

Schools with too much in the bank (by percentage).

Primaries are allowed 8% and secondaries 5%.

PRIMARIES

Ashfield Valley 11.8

Bowlee Park Community 22.9

Castleton 9.9

Elm Wood 8.9

Holy Family Roman Catholic 11.3

Norden Community 8.5

St Gabriel's Roman Catholic 8.2

St John Fisher Roman Catholic 8.6

St Margaret's Church of England 8.8

St Mary's Roman Catholic 10.0

St Peter's Church of England 8.3

Stansfield Hall Church of England/Free Church 11.2

Woodland Community 17.1

SECONDARIES

Heywood Community High 33.2

Middleton Technology 6.0

Oulder Hill Community School and Language College 7.4

Siddal Moor Sports College 9.1

St Cuthbert's Roman Catholic High 6.3