ALL 80,000 pupils in Worcestershire's schools are likely to receive a cash boost as the Government takes its first step towards shelving one of it funding schemes.

The Worcester News understands that the Leadership Incentive Grant is to be scrapped. This is being welcomed by the county's fair funding campaigners.

They say Worcestershire receives a raw deal because only three of the county's secondary schools receive the top-up grant - worth £125,000 a year. The Local Education Authority was unable to identify the schools this morning. They pick up just 0.2 per cent of the national pot.

The £175m scheme was announced by the Chancellor, Gordon Brown, in his 2002 spending review to allow 1,400 of the most challenged schools to attract better teachers and buy new resources.

But the grant was criticised by county MPs and teachers because it is awarded to every school in Birmingham - but only three in Worcestershire.

Now the scheme is at the end of its initial three-year cycle, Department for Education and Skills ministers are trying to find a way to distribute the cash more fairly. It will almost certainly involve 'per pupil' funding so all Worcestershire's 273 schools will rake in additional money.

Funding campaigner Jon-athan Pearsall said: "This is warmly, warmly welcomed - a step in the right direction.

"We don't want other LEAs to miss out, but we welcome anything that brings fairer funding to Worcestershire's schools."

Ditching the Leadership Incentive Grant will bring in more money and see the funding gap between Worcester-shire and elsewhere close.

Worcester City MP Michael Foster said: "Schools in Worcestershire are not getting anything like the level of investment from this grant as schools in Birmingham.

"The discrepancy is too great. It would be fairer to share that money out more across the board.

"If Worcestershire starts to get some of this money it will be disproportionately better and will narrow the gap."

Worcestershire schools received an average £3,440 per pupil in 2003/4, compared to £4,190 in Birmingham.