£64m school reserves ‘shouldn’t be left in bank’
EDUCATION Secretary Kirsty Williams has called on local authorities to ensure more money reaches education’s frontlines after figures revealed schools in Wales have £64m in reserves.
Data published last week by the Welsh Government shows the huge amount of money being carried forward by schools from one year to the next.
Figures show the overall level of reserves held by schools in Wales was £64m in March this year, the equivalent of £142 per pupil.
Reserves in primary schools accounted for £51m – or 79% – of the total. A breakdown of the funds shows 138 primary, 65 secondary, seven special, one nursery and two middle schools in Wales had negative reserves totalling £15m.
The remaining 1,395 schools had positive reserves, 206 of which had reserves in excess of 10% of their total delegated expenditure.
Swansea laid claim to the highest total reserves of £9.5m, while Merthyr Tydfil (£800,000) had the lowest recorded level.
Schools are responsible for managing their own finances and the level of reserves held depends on a number of factors, including the level of contingency funding governors consider appropriate.
Ms Williams said: “I recently met with leaders from the Welsh Local Government Association (WLGA) and I know we both share a common passion to ensure that our children receive the best possible education, regardless of where they live.
“However, I did raise the issue of school re- serves and how I want them to look at the issue closely. In these times of reducing budgets, some of our schools seem to be sitting on considerable surplus budgets.
“I have asked council leaders to look at this issue closely to make sure their directors of education have got a real grip on this and can they clearly explain the intended use of this money.
“If it is sitting in bank accounts then it is not being spent on our children and young people.”
Owen Hathway, policy officer for teachers’ union NUT Cymru, said: “We do not support the holding of excessive balances and do feel that delegated funds should be spent on the cohort of pupils for whom they are intended.
“Where there is perhaps a concern is that there remains a lack of financial training for headteachers.
“Furthermore, the scale of cuts last year has understandably led schools to be cautious about expenditure and to buy time for voluntary staffing reductions.”
A spokesman for the WLGA said school funding was a matter local authorities took very seriously and they would continue to monitor the level of reserves.
He added: “During a period of austerity it is prudent to maintain an appropriate level of reserves.”