Schools missing out on millions

Schools could save £400 million a year if they bought desks, equipment and services more sensibly, according to a new report from the Audit Commission, the public spending watchdog.

‘Valuable lessons’ also says that schools are sitting on cash reserves of nearly £2 billion. While the Commission believes it is reasonable for a school to carry over some money from year to year; almost two out of five schools hold more than the recommended amount.

English primary and secondary schools spend huge sums and efficiency savings are possible, the Commission says. The schools bill topped £31 billion in 2007/08, an increase of 56 per cent in real terms over the last decade. The Commission concludes that we can’t know for sure whether the taxpayer is getting value for money.

Michael O’Higgins, the Chairman of the Commission, said:

‘The Commission supports the principle of devolved school budgets and decision making, but taxpayers must be confident that public money is well spent.

‘Accountability for spending in schools has been weak possibly because, in the last ten years, the focus has been on results. Ofsted is planning to give a higher priority to value for money and we will be pleased to work with it.

‘Now, however, is a good time for schools to look for better value from the money they get. Budgets are growing more slowly and schools need to start planning for a more austere future. We believe savings could be made without adversely affecting children or their education.

‘Moreover, nearly 40 per cent of schools are sitting on unnecessarily large surpluses – cash that could be spent on children. Hoarding money intended for education is poor value.’

Read the full report.