Schools face missing out on Government cash if their heads are on fatcat salaries.
Ministers yesterday announced plans for a £400million boost to school and college funding for new facilities and improved buildings.
All academies and sixth-form colleges in England can bid for a slice of the cash – but they will be penalised if they pay their headteachers and senior staff more than £100,000.
It is the latest attempt by the Government to rein in excessive pay after it emerged last year that the number of academy trusts paying salaries of £150,000 or more had risen to 125.
The new funding, which was announced last night by Education Secretary Gavin Williamson, can be used to expand classrooms, upgrade facilities such as sports halls and science labs, and address issues with general wear and tear.
The new funding, which was announced last night by Education Secretary Gavin Williamson, can be used to expand classrooms, upgrade facilities such as sports halls
But applications for a slice of the funding will be subject to strict criteria which will favour bids from schools with good governance and well-organised finances.
Schools will lose points in the Government’s awarding system if they pay two or more salaries in excess of £100,000 or one salary over £150,000.
Mr Williamson said: ‘This Government is determined to give all children the best possible education but, as well as great teachers, we want all pupils to learn in classrooms that enable them to gain the knowledge and skills they need for success.
‘Following our huge investment in school funding with an increase of a total of £14billion over three years, this year’s multi-million pound fund will support our pledge to create more good school places and continue raising standards.’
Academies, which were established under Tony Blair’s government, are independent of local councils and have the power to set their own rates of pay.
However, this freedom was granted largely to help recruitment for classroom teachers in subjects such as maths and physics, rather than to encourage large salaries for heads or chief executives.
As education secretary, Michael Gove pledged in 2010 that no headteacher would earn more than the prime minister
But they have faced mounting criticism over high pay doled out to chief executives, especially at a time when heads are teaming up with Labour to accuse the Government of starving schools of funding.
About two-thirds of secondary schools and a quarter of primaries are academies.
Last month, schools minister Lord Agnew wrote to almost 300 schools where senior staff were on six-figure contracts, asking them to justify their high salaries.
Lord Agnew said: ‘Proper financial management is essential to ensuring all children get the excellent education they deserve. I have always challenged schools to use taxpayers’ money as effectively as possible.’
He warned he would ‘bear down on unjustified pay’.
Last year 66 heads earned more than the Prime Minister’s £150,000 salary, with one paid £260,000.
High earners include Colin Hall, head of Holland Park School in west London – once dubbed ‘the socialist Eton’ – who earned £260,000 last year, and Dayo Olukoshi, executive head of Brampton Manor Academy in east London, who took home £220,000.
Executives have continued to rake in high salaries despite an attempted crackdown from the Department for Education.
As education secretary, Michael Gove pledged in 2010 that no headteacher would earn more than the prime minister.
And last year ministers wrote to trusts that were paying at least one member of staff a salary of more than £150,000.
It demanded information about the ‘process’ and ‘rationale’ for setting salaries at this level, requesting information about the responsibilities staff have.
Any academies ignoring the request face being penalised in a ‘financial capability assessment’ due to be launched next year.