Higher Education providers are also eligible for a share of £7.8m ring fenced funding for rewarding and developing staff, previously awarded by the TTA, but now allocated by the Higher Education Funding Council for England (HEFCE).

In addition, the TTA is providing £500,000 to cover providers' costs in seeking Criminal Records Bureau checks on potential trainees.

The funding increase is in advance of decisions on whether London providers should receive a premium payment to recognise the higher costs of being based in the capital, which has been the subject of a consultation in the HE sector. Further funding would be provided if the premium payment goes ahead.

The funding announced today totals £198 million, compared with £180 million for the current financial year. It will be allocated to 127 ITT providers, four more than this year.

A further £6 million of major capital funding has been made available to distribute to ITT providers to make up a shortfall in the amount of capital funding they received from the HEFCE over the last two years. From 2003-04, all ITT providers will automatically receive a share of major capital funding allocated by the HEFCE.

Michael Day, TTA Director of Funding, said:

'Providers worked hard and effectively this year to help us produce the best recruitment figures for 12 years. With nine per cent more places to fill from September, we have had detailed and helpful discussions with every training provider to look at their plans and the difficulties they may face.

'The increase in funding we are announcing today is well above the rate of inflation, and offers some stability for the next three years. We believe that it demonstrates that we have listened carefully, and are determined to support providers to expand and offer the highest possible standards of teacher training.'

Notes for editors

This News Release applies to England only.

The 4.5 per cent increases apply to all courses. The sums which providers will receive from September will range from £3428 for a primary undergraduate (up from £3211 this year), to £4715 for a science trainee on a flexible course (up from £4417).

HEFCE will be required to consult the TTA over its £7.8 million funding for rewarding and developing staff in 2003-4. The Government has indicated, through its HE strategy, that money for staffing initiatives in the ITT sector, including recruitment and performance, is expected to be worth £10.1 million in 2004-5 and £13.2 million in 2005-6. The TTA also intends to work closely with HEFCE and the DfES to ensure ITT providers receive an appropriate share of the new streams of funding available through the Government HE strategy.

The TTA Board will consider the outcome of the consultation over a possible premium payment to London-based providers at its next Board meeting in March.

In January, the TTA announced £5m to providers of teacher training for use in purchasing ICT equipment.

A survey by the TTA in October showed the number of people starting on Initial Teacher Training courses during the current academic year is 31,261, seven per cent up on last year and the highest since 1989-90. The number of ITT places available for the academic year 2003-04 rises to 34,675.

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e-mail: pressoffice@teach-tta.gov.uk

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People interested in becoming a teacher should visit the TTA Website Teach or contact the Teaching Information Line (tel: 0845 600 0991).