WE are investing record levels in education, says the Government. We are so short of cash we must make teachers redundant, say the schools. It does not add up.

Education ministers, it seems, are getting their sums wrong. There is no doubt that more money is being allocated from Whitehall to local education authorities. But once rising salaries, national insurance and pensions are taken into account, the extra cash is all but eaten up.

As a result, according to the National Association of Head Teachers conference in York at the weekend, four-fifths of schools are facing cuts.

Dozens of teachers are facing redundancy in North Yorkshire alone. Losing experienced classroom teachers is the quickest way to undermine our children's education.

Education Secretary Charles Clarke is using an old political trick to try to distance himself from this mess. If in doubt, blame the local councils.

Judging by his bodged attempt to smear City of York Council, however, this tactic will not work. We reported on Saturday Mr Clarke's claim that York council had withheld £1 million from schools.

Today education director Patrick Scott revealed that this money could not be spent by his department - because Whitehall's own rules forbade it. The cash can only be used to recompense schools for specific training costs. "It does rather suggest that they don't understand their own funding mechanisms," Mr Scott said today.

We do not doubt that both Mr Clarke and Mr Scott want the same thing: better schools. So it is daft that they are devoting time to make claim and counter-claim in this way.

One fact stands out from the wrangle: we cannot afford to lose good teachers. The Education Secretary must listen to head teachers and LEAs and reconsider the way his department funds schools.

In the meantime he and his officials may also wish to drop into their nearest numeracy hour. That might prevent them publishing misleading figures in future.

Updated: 10:37 Wednesday, May 07, 2003