More experienced teachers cost schools more

The Education Secretary, Charles Clarke, believes mis-management was a contributory factor to schools' funding problems this year.

Outside consultants are going to work with the National College for School Leadership on a "menu" of guidance.

But a head teachers' leader rejected the allegations as "unhelpful".

The headline figure of a 4% minimum rise for next year is based on schools' costs rising by 3.4% on average.

Within that, Mr Clarke expects the teachers' pay to account for 60% of a school's spending and support staff 19%, with 21% other costs.

Breakdown of costs

Pay inflation is expected to be 4.3% for the higher award, re-grading, pensions and associated costs.

Non-pay costs are expected to rise by 2.5%.

So if salaries account for more than 79% of the total, the budget will be under pressure.

In his statement to MPs, Mr Clarke said that where schools varied "significantly" from this average, "they do need to act to get back into balance".

They needed better support to do this, so his department had commissioned accountancy firm KPMG to work with the school leadership college and head teachers' associations to come up with ideas by the turn of the year.

Variable salary bills

Later he told journalists: "I am not going to go around saying all this problem was bad management but I think it was a factor in some cases in some schools."

Asked whether it was a major factor, he replied: "In some schools, yes."

But salary costs can vary. A key factor is simply the age of the staff.

I totally reject the department's allegations about mis-management Head teachers' leader David Hart

Teachers progress up a salary ladder, with an additional increment each year for the first five years after they qualify.

They also get more if they take on additional responsibilities such as co-ordinating an aspect of the curriculum.

So a school with many newly qualified teachers will have to pay out less than an otherwise identical school with more experienced teachers.

Or a school might be in an area where it is hard to recruit staff, so it has had to pay extra to attract people.

The general secretary of the National Association of Head Teachers, David Hart, said that if any school had a higher proportion of staff costs than 80% "then they could be in trouble".

Given that the figure was an average, many plainly would be.

"There will be a significant number of schools for whom this settlement will present real difficulties," he said.

"I totally reject the department's allegations about mis-management and I think it's a really unhelpful contribution to the debate."

Liberal Democrat education spokesman Phil Willis said: "Head teachers require a sound financial basis to run their schools and dramatically less government interference.