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Exclusive: Quarter of Covid fund is recycled DfE cash

Using repurposed money to address Covid crisis is ‘completely inadequate to the scale of the challenge’, warns union
22nd April 2021, 4:00pm

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Exclusive: Quarter of Covid fund is recycled DfE cash

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Covid Catch-up Funding For Schools Is Partly Recycled Dfe Cash, Vlog Can Reveal

A quarter of the government’s latest Covid catch-up fund has beenrecycled from existing education budgets,Vlogcan reveal.

In February,the government announced a newCovid recovery package, said to be worth £705 million. However £300 million of this cash hadalready been announced by theprime minister in January.

Vlogrepeatedly askedthe Department for Educationto specify whether the remaining £405 million was new money from the Treasury,or whether it hadbeen taken from existing education budgets.


Background:Be ‘honest’ over where catch-up cash is from, DfE told

Exclusive:DfE won’t say where Covidcatch-up cash came from

Report:£200m in catch-up cash taken out of education funds


Schools minister Nick Gibb later admitted that, while “over half” of themoneywas “new funding”, the DfEhad “contributed towards the cost” by repurposing some of its own resources.

But the departmentwould not say exactly how much of thefund came from within the DfE, and where savings were being made.

DfE ‘can’t keep recycling cash for Covid catch-up’

NowVlogcan now reveal that a quarter of the latest £705 million investment, worth £176 million, is made up of recycled DfE cash.

However, it remains unclear where the department has found the money.

In response to a freedom of information (FOI) request fromVlogaskinghow much cash had been repurposed, andwhich education budgets had been used to plug the gap, the DfE would only say that it utilised “headroom where adjustments to forecasts enable us to release additional resources”.

The news comes after a report from the National Audit Office said that afifthof thegovernment’s original £1 billion Covid catch-up fundwas takenfrom existing DfE budgets.

This means that, of the total £1.7 billion pledged for the education recovery effort to date, £376 million (22 per cent) has come from within the DfE itself, rather than the Treasury.

The department’s FOI response stated thatthe latest recovery package “makes available a further £405 million” across summer 2021 and the academic year 2021-22.

“While over half of this is new funding, DfE plans to contribute £176 million towards the cost of this package,” the department said.

“The contribution comes from the DfE budget overall, including headroom where adjustments to forecasts enable us to release additional resources.”

Mary Bousted, joint general secretary of the NEU teaching union, told Vlogthat the government’s use of “recycled” cash to address the “damage” to education was “completely inadequate to the scale of the challenge”.

“The government cannot keep recycling existing education funding to meet the Covid crisis and its aftermath, she said.

Sir Kevan Collins, the education recovery tsar, has said that it will take billions of poundsof funding for the nation’s children and young people to recover from the damage done to their education by Covid.

“Government response so far, with recycled money, is completely inadequate to the scale of the challenge.”

Geoff Barton, general secretary of the Association of School and College Leaders, said: “We welcome the investment in education recovery but it is important that this is new money rather than it being recycled from elsewhere within the Department for Education budget.

“It isn’t clear exactly where the ‘contribution’from the DfE has come from and we would like some reassurance that other education provision has not lost out.

“In any event, this was money already allocated for education and simply repackaging it doesn’t really live up to government bluster about the scale of its investment in education recovery.

“What is clear is that the Treasury is not willing to part with anything like the funding that is needed for education recovery, and the DfE appears to be trying to fill in the gaps.”

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