1

The Secretary of State may by regulations provide, in relation to cases where any provision for education to which this section applies is made by a local education authority in respect of a person who belongs to the area of another such authority, for requiring or authorising the other authority to pay to the providing authority—

a

such amount as the authorities may agree; or

b

failing agreement, such amount as may be determined by or under the regulations.

2

This section applies to primary, secondary and further education and to part-time education for those who have not attained the age of five years.

3

The regulations may provide for the amounts payable by one authority to another—

a

to reflect the whole or any part of the average costs incurred by local education authorities in the provision of education (whether in England and Wales as a whole or in any particular area or areas); and

b

to be based on figures for average costs determined by such body or bodies representing local education authorities, or on such other figures relating to costs so incurred, as the Secretary of State considers appropriate.

4

The regulations may provide for the amounts so payable, in such cases as may be specified in or determined in accordance with the regulations, to be such amounts as may be determined by the Secretary of State.