HC Deb 12 February 1997 vol 290 c227W
Mr. Jones

To ask the Secretary of State for Education and Employment (1) to what percentage of the education standard spending assessment the labour area cost adjustment is applied; and on what basis this percentage is calculated; [15336]

(2) what factors she took into account in her decision to include all salaries in the determination of area cost adjustment for education standard spending assessment. [15338]

Mr. Robin Squire

In calculating the area cost adjustment for education, all the employment groups relevant to the local authority labour market for education are taken into account—not just teachers—since the area cost adjustment seeks to reflect non-teaching as well as teaching costs.

As far as teaching costs are concerned, there is evidence that teachers' salaries, including London weighting payments, do not on their own represent the full additional costs of providing a standard level of service in London and the south-east, since they do not reflect lower levels of experience, higher vacancy and turnover rates, or non-salary payments.

In order to take account of these factors, the area cost adjustment is based on income levels in the general labour market of occupational groups relevant to the local authority labour force. The area cost adjustment for education redistributes some 3 per cent. of the total of education standard spending assessments to authorities in London and the south-east.

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