Sector News

Department of Education announces details of In Year budget cuts.

The overall amount available to local authorities through Area Based Grant (ABG) from the Department of Education for the year 2010-11 has been reduced by £311 million.

Posted: 07/02/2010

In a letter to Directors of Children’s Services and Chief Executives, Michael Gove, Secretary of State for Education has announced that this £311 million saving will be made by a 24% reduction across the total Department of Education Area-Based Grants and that it is for local Authorities to “manage the reduction across all their funding sources to protect frontline services.”

In addition to these budget cuts, the DofE has also announced the de-ringfencing of specific grants as follows:

  • Think Family Grant
  • Youth Opportunity Grant
  • Challenge and Support Funding
  • Fair Play Pathfinders Capital
  • Fair Play Pathbuilders Capital
  • Youth Crime Action Plan Grant

Local Government will be forced to make decisions regarding these in year expenditure cuts directly.

The full letter is attached below.

Details of the £1.166bn Local Government contribution to the £6.2bn cross government savings in 2010/11 can be found at

Details of Heidi Alexander’s (Lewisham east) (Lab) response to the coalition Governments cuts are attached.

Lewisham Council have now published a report providing the Mayor & Cabinet with a summary of the Government’s announcement of £1.166bn of funding reductions to Local Authority grants in 2010/11, to show the financial impact for Lewisham and to seek decisions on corresponding reductions in Council spending. 

The report is concerned with how the Council deals with the in year grant reductions for 2010/11 proposed by the Government. The Council needs to make reductions of £3.295m for 2010/11, with the prospect of further reductions needing to be made in future years.

A meeting to discuss a collective response to proposed funding cuts has been organised by Voluntary Action Lewisham (VAL)

 6 – 8pm, Thursday 8th July 2010

999 Club, 21 Deptford Broadway, London, SE8 4PA


VAL’s Director Martin Howie will also be attending to discuss ongoing support that VAL can offer you in responding to this situation.

 Email Kate English, if you are going to attend.

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