Education: Investing in opportunity for all

Spending on education and skills in England is set to rise by an average of 6 per cent a year in real terms over the next three years, taking it from £45.0 billion in 2002-03 to £57.8 billion in 2005-06. UK education spending is forecast to rise to 5.6 per cent of GDP by 2005-06, fulfilling the Government's pledge to raise the share of national income devoted to education over the parliament.

This increase in spending, linked to major reforms of the education service, will mean more money going directly to schools to help meet new minimum performance targets, extra resources going to young people from lower income families, wider participation in further and higher education and more help for unskilled adults. School and college heads will have more freedoms to respond to local challenges, and new support for leadership in schools will empower good headteachers and strengthen management.

There will be a nationwide roll out of previously piloted Education Maintenance Allowances (EMAs) from September 2004. Up to £1500 a year will be available to 16-19 year olds from lower income families for any course of full time study and £175 million a year from 2003-04 will provide for a new grant, worth £125,000 a year to each of at least 1400 individual schools, to support leadership and raise achievement in secondary schools in challenging areas.

Estelle Morris, Secretary of State for Education and Skills, welcomed the 2002 Spending Review settlement and said:

"I am delighted with the education spending plans announced today. Over the 5 years covered by this spending review and SR 2000, education spending will rise by 35 per cent in real terms, more than over the entire period between 1978-79 and 1996-97. These plans amply demonstrate this Government's continued commitment to investing more in education to raise standards and enable people of all ages and incomes to fulfil their potential."

Key outcomes for the Department of Education and Skills are:

The transformation of secondary education, with a focus on improving outcomes for poorer pupils and minimum school level performance targets to reduce the percentage of pupils failing to reach the expected standard for their age at 11 and 14;
Devolution of freedom and responsibility to the front line, with a large rise in direct payments to schools through the School Standards Grant which will be boosted by £325 million in 2003-04; £375 million in 2004-05; and £375 million in 2005-06 compared to 2002-03 (figures comprise revenue and capital increases). From next year, payments will rise by £10,000 to at least £50,000 for a typical primary school and by £50,000 to at least £165,000 for a typical secondary school;
A major drive to expand Modern Apprenticeships and work-relevant qualifications;
1 per cent real terms growth in unit funding every year to 2005-06 for further education colleges prepared to commit to performance targets;
New targets to improve the basic skills of 1.5 million adults by 2007 and reduce by at least 40 per cent the number of adults in the workforce lacking NVQ 2 or equivalent qualifications by 2010;
A major science package - including increases in the DTI Science Budget - worth an additional £1 ¼ billion by 2005-06, to upgrade laboratories and equipment, keep UK research at the international leading edge and improve the recruitment and retention of key staff;
Increase significantly the take up of sporting opportunities by 5-16 year olds (jointly with the Department of Culture, Media and Sport).
A new integrated budget for children, child care and early years learning worth £1.5 billion a year by 2005-06.

Notes for editors

1. The DFES will receive additional resources as follows:

£ million	2002-03	2003-04	2004-05	2005-06
Department for Education and Skills
Resource Budget	20,890	22,338	23,964	26,805
Capital Budget	2,303	3,302	3,836	4,379
Total Departmental Expenditure Limit¹	23,167	25,595	27,754	31,137
Local Authority Education SSA²	22,503	23,928	25,285	26,828
Total Education and Skills (England)^3,4	44,961	49,313	52,717	57,777
Near-cash spending in DFES DEL³	23,183	25,599	27,755	31,137

1 Full resource budgeting basis, net of depreciation.
2 Standard Spending Assessment: subject to spending decisions by local authorities.
3 Consistent with previous control basis.
4 DfES DEL, Education SSA and AME spending on Education Maintenance Allowances less administration costs and non-education and skills programmes.

£ million	2002-03	2003-04	2004-05	2005-06
Total UK education spending	53,720	58,571	62,871	68,430
Cash spending (estimated) on UK education¹	53,730	58,620	62,691	68,482
UK education as a proportion of GDP (%)²	5.1	5.3	5.4	5.6

1 UK figures are subject to the decisions of the devolved administrations
2 To ensure consistency with national accounts, the proportion of GDP is calculated using near-cash numbers

2. The Government conducted a comprehensive review of public services - the Comprehensive Spending Review - in 1998. The 2000 Spending Review built on this by setting targets and allocating resources for the three years to 2003-04. The 2002 Spending Review revises these plans for 2003-04 and outlines new plans for 2004-05 and 2005-06.

3. For further details please contact the Press Office on 020 7925 6789 or visit the DfES website at http://www.dfes.gov.uk/.

Education: Investing in opportunity for all

Notes for editors

1 UK figures are subject to the decisions of the devolved administrations 2 To ensure consistency with national accounts, the proportion of GDP is calculated using near-cash numbers

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1 UK figures are subject to the decisions of the devolved administrations
2 To ensure consistency with national accounts, the proportion of GDP is calculated using near-cash numbers