Wolverhampton schools hoarding unspent millions

Schools could be forced to give up some of their cash because they have too much money.

Forty-six Wolverhampton schools have an £8 million surplus in their coffers.

Seven, which are judged as satisfactory or requiring improvement by Ofsted, have more than £300,000 in their bank accounts.

Schools could see parts of their budgets taken away if they don't have plans to spend the cash. Education bosses at Wolverhampton City Council will meet with schools to discuss their proposals.

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Council bosses are contacting the headteachers of 42 city schools asking for detailed plans of how they will spend the extra cash. If they are deemed to be unsatisfactory, the cash could be distributed to other schools around the city.

The Government can question the council's budgets as 13 schools have been comfortably in the black for the past five years.

A report to the cabinet resources panel, which meets today, states: "Within the city 13 schools have now had a balance over 15 per cent of their income for five years meaning that the local authority is liable to challenge from the Department of Education.

"Governing bodies have been made aware that where there is evidence that there are no plans for the use of balances held, and redistribution would be beneficial to the wider school community, resources could ultimately be clawed back."

The report said it was 'evident that resources had not been spent in line with their plans'. Education chief, Councillor Phil Page, said: "We are determined to see our young people receive the best possible education, and for that to be the case our schools must make the best use of the funding available to them.

Should schools be made to share any extra funds they have? Leave your comments below.

"Schools have a right to plan the use of their resources over the medium term and it is important they maintain suitable balances, but the council has a responsibility to ensure they are using the resources they are given to the best effect.

"The Department for Education makes it clear that funding is provided for the children and young people who are currently in school, and that schools should not be holding high levels of balances without a defined plan for the use of those resources.

"We have therefore asked all our local schools that are holding a surplus balance to provide the council with details of how they intend to use that money in the coming years."