Extra money for recruitment and heads leaves unions dissatisfied

Extra money for teacher recruitment, school repairs and additional funds for headteachers to spend as they see fit were announced by the Chancellor in his Budget speech today.

Education secretary David Blunkett will reveal how the ?200m recruitment allocation will be spent next Monday. He is expected to introduce new incentives for retired and former teachers who want to return to the classroom - possibly worth ?2000 each.

Gordon Brown declared that schools and hospitals were the Budget's priority. Direct grants for primary headteachers will be larger than anticipated, with primaries receiving between ?13,000 and ?63,000 each year until 2004. Secondary headteachers will receive a payment of between ?68,000 and ?115,000 to spend as they wish.

The annual budget for school repairs, new classrooms and heating will also rise by between ?3000-?9000 this year. Private Finance Credits - which help offset the cost of new buildings - worth around ?200m will come on stream in 2002.

But Doug McAvoy, general secretary of the National Union of Teachers, said ex-teachers were unlikely to be swayed by the prospect of a ?2,000 one-off payment. "If there is to be a long term solution the government must concede the need for an inquiry into teachers' pay levels, salary structure and conditions of service. Without fundamental changes, young people will not be attracted into a profession which demands a 53 hour working week and offers rewards drastically below those available outside teaching."

NASUWT general secretary Nigel de Gruchy said: "It's good the government has acknowledged the crisis, but it is stumbling from one short-term bribe to another to recruit people without any regard to the need to retain and motivate those already in the classroom. Why can't we have a decent pay rise for all, rather than these piecemeal measures?"

"The money announced is a stopgap," said the deputy general secretary of the Secondary Heads Association, Russell Clark. "Obviously there are more fundamental problems in public services such as teaching that this money will not address. Nevertheless, the money is welcomed, as is the extra funding for head teachers."

Additionally, the Chancellor announced that major museums - including the British Museum, the National Gallery, the Natural History Museum, the Imperial War Museum, Tate Britain and Tate Modern, the Victoria & Albert Museum, the Museum of Science and Industry and national museums in Wales and Scotland - would receive VAT refunds when they introduced free admission. The refund will cost the government around ?15m each year.