Further Information: Department of Education and Employment



18 July 2000

SR2000/DFEE

EDUCATION: INVESTMENT IN OUR FUTURE

Education spending across the UK is set to rise by 5.4 per cent a year in real terms over the next three years, taking it from £45.8 billion in 2000-01 to £57.7 billion in 2003-04, Chancellor Gordon Brown announced today.

Together with the extra boost for education in 2000-01 announced in the Budget in March, this represents an average growth rate of 6.6 per cent over four years, the highest growth over a four year period for 20 years.

The increase in spending, matched by tough targets, will bring higher attainment in schools, wider participation in Further and Higher Education and much more help for unskilled adults.

David Blunkett, Secretary of State for Education and Employment, welcomed the Spending Review 2000 settlement and said:

"I am very pleased with the education spending plans announced today. Over the five years covered by this Government's two spending reviews, education spending will rise by 33 per cent in real terms, more than the entire increase between 1978-79 and 1996-97. This demonstrates this Government's continued commitment to investing more in education and raising standards."

Key outcomes for the Department for Education and Employment are:

  • demanding new standards will be set in secondary schools: subject to consultation, 85 per cent of pupils aged 14 should by 2007 achieve the required standard for English, maths and Information and Communications Technology (ICT), 80 per cent in science. This compares, for example, with 64 per cent in English and 62 per cent in maths in 1999;


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  • minimum targets will be set for children aged 11, 14 and 16 in order to narrow the attainment gap between those at risk of falling behind and the standards they should reach. For example, at least 38% of pupils in every Local Education Authority will achieve five A*-C grade GCSEs or better by 2004;


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  • the staying on rate of those aged 16 in Further Education will be increased;


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  • more places will be available in Higher Education, working towards the ambition to extend participation in HE to 50 per cent of those aged 18-30; and


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  • a major drive will be launched to help adults achieve proficiency in literacy and numeracy.

Other measures announced today include:

  • a continuation of direct payments to schools, increasing the Budget payments by £250 million to £550 million. A typical primary school will receive £20,000, compared to £9,000 in the Budget. A typical secondary school will receive £60,000, compared to £40,000 in the Budget;
  • additional provision to create more specialist and beacon schools;
  • further spending on school buildings and ICT;
  • progressive introduction of the Connexions service for helping young people to stay on in education or training; and
  • a new objective to widen university access and provision to help leading universities recruit more of their students from state schools and colleges and widen access to students from a broader range of backgrounds.


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NOTES FOR EDITORS

1. Subject to decisions by the Scottish Parliament, the Welsh Assembly and the Northern Ireland Assembly, education spending is projected to be 5.0 per cent of Gross Domestic Product in 2001-02 and to rise to 5.3 per cent by 2003-04. This compares with 4.7 per cent in 1996-97.

2. The settlement for science is set out in Press Notice SR2000/DTI, for the Department of Trade and Industry.

3. Other related announcements for Young People at Risk and Sure Start are included in Press Notice SR2000/X1.

4. Key figures for the DfEE settlement are tabulated below:

£ million 2000-01 2001-02 2002-03 2003-04
DfEE - Education and Training* 17,455 19,600 21,753 23,928
of which: Resource Budget 15,223 17,088 18,741 20,116
Capital Budget 2,232 2,512 3,012 3,812
Education Standard Spending** 21,332 22,513 23,863 25,261
Total 38,787 42,113 45,616 49,189
* expenditure within the Departmental Expenditure Limit, including Sure Start, the New Deal for Schools, additional funding in the 2000 Budget, allocations from the Capital Modernisation Fund and administration costs. Excludes spending on employment.

** Local Authority Standard Spending Assessment: 2000-01 figure adjusted to place it on a comparable basis to 2001-02


5. For more details contact the DfEE press office on 020 7925 5476 / 5721 (Schools Desk) or 020 7925 5893 / 5373 (Lifelong learning).