Education Act 1994

5 Grants, loans and other payments

(1) A funding agency may—

(a) make grants, loans or other payments in respect of expenditure incurred or to be incurred by the governing body of an eligible institution for the purposes of activities qualifying for funding under this Part by virtue of section 4(1)(a) or (b), and

(b) make grants, loans or other payments in respect of expenditure incurred or to be incurred for the purposes of the provision of services as mentioned in section 4(1)(c),

subject in each case to such terms and conditions as the funding agency think fit.

(2) The terms and conditions on which a funding agency may make any grants, loans or other payments under this section may in particular—

(a) enable the funding agency to require the repayment, in whole or in part, of sums paid by the agency if any of the terms and conditions subject to which the sums were paid is not complied with, and

(b) require the payment of interest in respect of any period during which a sum due to the funding agency in accordance with any of the terms and conditions remains unpaid.

(3) The terms and conditions shall not relate to the application of any sums derived otherwise than from a funding agency.

(4) In exercising their functions under this section a funding agency shall have regard—

(a) generally, to any forecasts of demand for newly-qualified teachers notified to them by the Secretary of State; and

(b) in relation to any particular institution, to any assessment of the quality of education provided by the institution—

(i) made by either of Her Majesty’s Chief Inspectors of Schools, or

(ii) to which the agency think it appropriate to have regard or to which the Secretary of State directs them to have regard.