Windfall for schools and Sure Start

The money was allocated in last week's Comprehensive Spending Review and covers the 2008/11 period.

A total of £9.3bn will go to the Building Schools for the Future (BSF) programme to rebuild or refurbish secondary schools. The Primary Capital Programme, the primary school equivalent of BSF, will receive £1.9bn and £150m will be spent improving school kitchens.

Children's Secretary Ed Balls said: "Well-designed facilities are central to raising standards."

There will also be extra funds for expanding successful schools and turning around those that underperform, targeting deprived communities and enabling head teachers and councils to address local educational concerns.

Martin Johnson, acting deputy general secretary of the Association of Teachers and Lecturers, welcomed the money for modernising primary schools: "This will help to make all schools fit for use and put an end to children having classes in leaking and rotting huts."

Steve Sinnott, general secretary of the National Union of Teachers, said teachers' pay must also increase to ensure teaching is an "attractive profession".

The government is also due to spend a further £351m to meet its target of having a Sure Start children's centre in every community by 2010.

Children's minister Beverley Hughes said the money will be used for "developing, extending and modifying" existing centres.

"Our latest Foundation Stage results show that early years is starting to show results in the classroom and 90 per cent of parents are happy with the services they receive in our children's centres," she added.

In a separate announcement the DCSF said it would impose a five per cent levy on schools that hold surpluses at the end of a financial year, even if the money has been earmarked for specific projects.

The measure will be imposed in 2008/09, but backdated to the end of March 2007, which means some schools face the prospect of paying back money they have already spent.

- See Analysis, p12.