Schools in Warrington have been told to stop hoarding money, following a review on expenditure at the end of the financial year.
Figures on spending show more than a third of the borough's schools are not using cash given to them to fund pupils' education.
Helen Jones, Warrington North MP, told the Warrington Guardian: "The local authority must do more to tackle this problem. The money must go towards the education of children who are at school now."
More than #163;3 million went unspent this past financial year.
John Rimmer, president elect for teaching union NASUWT, said: "The Department for Children, Schools and Families and the local authority allocate the money to schools to spend at the time. It does education a disservice if we don't use it to improve the delivery of education." GL.