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Proposals at a glance

The Government is proposing that from April 2006:

* Local authorities will receive central government cash for schools through a new ring-fenced fund, rather than through general local government funding and council tax. They will not be able to use the dedicated schools grant for anything other than schools and other services such as providing for pupils with special education needs.

* Three-year budgets will be introduced for all maintained schools. These will be geared to pupil numbers, with a guaranteed minimum increase each year for every school.

* A new single standards grant will absorb the following standards-related funding streams: school development grant; advanced skills teachers; leading edge; specialist schools; training schools; gifted and talented children; excellence in cities and excellence clusters; targeted behaviour and improvement programme; enterprise learning

* The leadership incentive grant, which comes to the end of its three-year life span in March 2006, is not included, while the teachers' pay reform grant will be transferred to the new dedicated schools grant.

Consultation on the proposals ends on May 13. Copies of the consultation document can be downloaded from

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