(1)The Secretary of State may, in accordance with the provisions of this Part of this Act, make grants to be known as education support grants.
(2)Education support grants shall be payable to local education authorities in England and Wales in respect of expenditure incurred or to be incurred by them of any class or description specified in regulations made by the Secretary of State under this section, being expenditure for or in connection with educational purposes which it appears to him that those authorities should be encouraged to incur in the interests of education in England and Wales.
(3)Regulations under this section shall provide that any education support grant payable in pursuance of the regulations—
(a)shall only be payable in respect of prescribed expenditure incurred or to be incurred by a local education authority in a financial year to the extent to which that expenditure is approved for that year by the Secretary of State for the purposes of the regulations; and
(b)shall be payable at such rate, not exceeding 70 per cent. of the expenditure so approved, as may be specified in the regulations.
(4)Regulations under this section may provide—
(a)for the time and manner of payment of any education support grant;
(b)that the payment of any such grant shall be dependent on the fulfilment of such conditions as may be determined by or in accordance with the regulations ;
(c)for requiring local education authorities to whom payments have been made in pursuance of the regulations to comply with such requirements as may be so determined.
(5)Regulations under this section may provide for expenditure incurred or to be incurred by any local education authority in making payments, whether by way of maintenance, assistance or otherwise, to any body or persons who incur expenditure for or in connection with educational purposes (including another local education authority) to be treated, in such circumstances as may be specified in the regulations, as prescribed expenditure.
(6)References in this section to prescribed expenditure are to expenditure of a class or description for the time being specified under subsection (2) above ; and references in this section or section 2 below to a financial year are to the period of twelve months ending with 31st March in any year.
(7)Any function of the Secretary of State under this section or section 2 below may be exercised or performed separately and differently for England and for Wales, and any reference in those sections to local education authorities in England and Wales, or otherwise relating to education in England and Wales, shall be construed accordingly.