MORE than £33million is lying unspent in Lancashire schools as head teachers hoard their cash, a teachers union has claimed.

And Roger Haydock, spokesman for the National Association of Schoolmasters and Union of Women Teachers' Lancashire Federation, said eight primary schools and a special school in East Lancashire had saved more than £1 million which they had been allocated for the 2000/2001 financial year.

A spokesman for Lancashire County Council said the money had piled up because large increases in government grant allocations to schools were only made available after the start of the financial year.

"Many schools plan their spending on a longer-term academic year basis and there are inevitable time lags between the receipt of extra funding and actual spending," he added.

Mr Haydock said: "In excess of £33 million allocated to schools remains unspent. This is a massive increase on the previous year, by some 30 per cent.

"It is obvious that, yet again, some headteachers have begun hoarding their allocation rather than spending it on the education of their pupils.

"To put things into perspective, this amount equates to the employment of 2,000 additional teachers over the 12-month period.

"A good deal of the unspent amount will have been amassed from the devolution of cash from the county's educational support services into mainstream education.

"In short, in recent years, an admirable and valuable support service has been systematically axed and the amount saved apparently hoarded."

A county council spokesman said that during 2000/01 overall school balances, both nationally and locally, had increased quite significantly. This was largely due to significant increases in government grant allocations to schools which were only made available after the start of the financial year.

"The county council keeps school spending under review and has reviewed and reissued guidance to schools about the appropriate levels of balances and reserves.

"It is expected that, overall, school balances will reduce this year as schools adjust their spending plans."