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FINANCE

Whitehall's £94m refund to councils

The DfE has refunded 100 local authorities £94m – having deducted too much money to cover the costs of central functions.

The Department for Education (DfE) has refunded 100 local authorities £94m – having deducted too much money to cover the costs of central functions which academy schools provide for themselves – such as financial administration and admissions management.

The department had cut local authority education by £413 over two years – £148m in 2011/12, and a further £265m in 2012/13. Cllr David Simmonds, chair of the Local Government Association's children and young people's board, said the payment is in addition to the £58m reimbursed in compensation for cuts that were undertaken in 2011/12.

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