The sum is made up of estimated costs known as "contingent liabilities". Listed in the DCSF's supplementary estimates for 2009/10, the figure includes £420m that might have to go towards compensating local authorities for costs incurred under the academies programme.
It also includes £2m that could have to be paid to cover legal claims against the Qualifications and Curriculum Authority following the 2009 exam marking fiasco.
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