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The Department for Education has been accused of “robbing Peter to pay Paul” after it emerged that ministers raided capital coffers for £250 million to cover part of this year’s teacher pay grant.

Last summer, the government announced that it had approved a 6.5 per cent pay rise for all teachers and leaders. Schools were handed a grant of £482.5 million this financial year and are due to receive £827.5 million next year to fund part of the increase.

But no new money was provided by the Treasury, leaving the DfE to find the funds from its existing budgets.

Schools Week can reveal that £250 million for this year’s grant came from the department’s capital budget, most of which is used for school rebuilds and maintenance.

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