Joint Committee on Statutory Instruments Second Report


Memorandum by the Department for Education and Employment


  1. The Joint Committee requested a memorandum on the following point:

    "Ought not regulation 5(2) to have applied to approved expenditure incurred on (as well as after) 1 April 1997?"

  2. The Department agrees that regulation 5(2) ought indeed to have applied to such expenditure incurred on 1 April 1997 and regrets this error.

  3. Regulation 5(1) provides that "except as provided in paragraph (2) below" grants in respect of approved expenditure incurred "on or after 1 April 1997" shall be payable at the rate of 60% of such expenditure. Paragraph (2) provides that grants in respect of approved expenditure incurred "after 1 April 1997" in respect of various specific items referred to in regulation 5(2) shall be paid at higher percentage rates. The percentage rates are specified in a table in regulation 5(2). The position therefore would seem to be that where expenditure was incurred on 1 April by a local education authority in respect of the items referred to in regulation 5(2) grant could only be paid at the rate of 60% because regulation 5(2) would not apply, although the intention was that grants should be paid at a higher rate.

  4. If this proves a problem in practice the Department will make amending regulations to come into force before the first payments of grants are made, which occurs in July. However it is thought unlikely that expenditure would be incurred on 1 April since this year 1 April falls immediately after Easter and will almost certainly be in the school holidays.

21st March 1997

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