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Mistakes 'mean some academies overpaid or underpaid' Mistakes 'mean some academies overpaid or underpaid'
(40 minutes later)
By Angela Harrison Education correspondent, BBC NewsBy Angela Harrison Education correspondent, BBC News
Some new academy schools in England have been given too much money by central government and face having it "clawed back", according to reports.Some new academy schools in England have been given too much money by central government and face having it "clawed back", according to reports.
The Education Secretary Michael Gove says mistakes have been made by local authorities.The Education Secretary Michael Gove says mistakes have been made by local authorities.
According to the Financial Times newspaper, academies in one area have been given an extra £300 per pupil.According to the Financial Times newspaper, academies in one area have been given an extra £300 per pupil.
The government wants all state-funded schools to become academies, which are outside of council control.The government wants all state-funded schools to become academies, which are outside of council control.
Currently about one out of every six of schools in England is an academy.Currently about one out of every six of schools in England is an academy.
They are meant to be funded on the same level as other state schools, but with the money coming directly from central government rather than via councils.They are meant to be funded on the same level as other state schools, but with the money coming directly from central government rather than via councils.
In addition, they are given an amount of money that would previously have been spent by their local council on their behalf to provide services such as those for children with special educational needs.In addition, they are given an amount of money that would previously have been spent by their local council on their behalf to provide services such as those for children with special educational needs.
To determine the level of funding they receive, councils have to tell central government how much they spend per pupil on such services in their area.To determine the level of funding they receive, councils have to tell central government how much they spend per pupil on such services in their area.
It is in this reporting that the government says errors have been made. It is in this reporting that the government says errors have been made, but councils dispute this.
'Flawed system''Flawed system'
Mr Gove told BBC Radio 4's Today programme: "There have been individual mistakes made by local authorities in the calculation of their Section 251 returns," he said.Mr Gove told BBC Radio 4's Today programme: "There have been individual mistakes made by local authorities in the calculation of their Section 251 returns," he said.
Asked whether officials in the Department for Education had been responsible for any of the mistakes, he replied: "Not that I am aware of."Asked whether officials in the Department for Education had been responsible for any of the mistakes, he replied: "Not that I am aware of."
Mr Gove said the government had been working with a "flawed" system inherited from the former Labour government.Mr Gove said the government had been working with a "flawed" system inherited from the former Labour government.
"There is a problem with the financing of all schools because of the funding mechanism that was designed by the last government.""There is a problem with the financing of all schools because of the funding mechanism that was designed by the last government."
Officials at the Department for Education said there had been a "small number of cases" where mistakes had been made by local authorities, which could have led to academies being over- or under-funded.Officials at the Department for Education said there had been a "small number of cases" where mistakes had been made by local authorities, which could have led to academies being over- or under-funded.
"We don't think this is a big problem for the vast number of authorities," a spokesman said."We don't think this is a big problem for the vast number of authorities," a spokesman said.
Decisions on whether to "claw back" money that had been overpaid would take into account issues such as the scale of the error and the timing, he said.Decisions on whether to "claw back" money that had been overpaid would take into account issues such as the scale of the error and the timing, he said.
He said mistakes along these lines had happened in previous years.He said mistakes along these lines had happened in previous years.
"The government has said many times that the system is unfair and unclear, that is why we're proposing changes to the school funding formula," he added."The government has said many times that the system is unfair and unclear, that is why we're proposing changes to the school funding formula," he added.
A source at the Local Government Association told the BBC the problems had arisen because "the government had used expenditure information from local authorities for purposes for which it was never intended".
News of the mistakes emerged as Mr Gove announced 200 under-performing primary schools would be closed next year and converted to academies, under the wing of top schools.News of the mistakes emerged as Mr Gove announced 200 under-performing primary schools would be closed next year and converted to academies, under the wing of top schools.
In the past hour, Labour tabled an emergency question in the House of Commons on the issue of the mistakes and academy funding. Labour then tabled an emergency question in the House of Commons on the issue of the mistakes and academy funding.
Its education spokesman Andy Burnham said: "It raises a simple question: does the Secretary of State have a grip on his budget?Its education spokesman Andy Burnham said: "It raises a simple question: does the Secretary of State have a grip on his budget?
"On the day that serious questions are being asked about whether he has properly funded plan to back up the rapid expansion of his academy programme, only this Secretary of State could be in Birmingham announcing a further major expansion of it.""On the day that serious questions are being asked about whether he has properly funded plan to back up the rapid expansion of his academy programme, only this Secretary of State could be in Birmingham announcing a further major expansion of it."
Mr Burnham added: "Will the minister tell the House how many schools have been over-funded and what is the total amount is that has been paid in error?"Mr Burnham added: "Will the minister tell the House how many schools have been over-funded and what is the total amount is that has been paid in error?"
The Schools Minister Nick Gibb told MPs the government was taking action to sort out problems left by Labour.The Schools Minister Nick Gibb told MPs the government was taking action to sort out problems left by Labour.
At the weekend it emerged that the government was going to "reconsider" an element of its local education funding relating to academies following a legal challenge by 26 councils.
The councils have begun a judicial review of the decision to deduct £148m from their education budgets.