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The National Audit Office (NAO) has urged the government to tackle the 鈥渞ising cost鈥� of free schools, after the average cost of setting one up came in more than double what was forecast.

The NAO said the Department for Education (DfE) had to 鈥渆xert control to contain rising costs鈥� and learn lessons from the opening of its first 174 free schools since 2010.

The average capital cost of setting up a free school is 拢6.6m 鈥� double what the DfE forecast in its original plans.

The NAO criticised the DfE for prioritising 鈥渙pening schools at pace, rather than maximising value for money鈥�.

The NAO added: 鈥淏ecause the programme is demand-led, there will also inevitably be uncertainty about types of schools and where they will be located.鈥�

However the NAO acknowledged that the schools had been established 鈥渜uickly鈥� and at a 鈥渞elatively low cost鈥�.

Amyas Morse, head of the NAO, said: 鈥淚t is still early days in the Free Schools programme but the Department for Education has made clear progress by opening 174 schools, many at relatively low cost.

鈥淒espite limitations in information, it is also improving its approach with each successive wave of proposals but will need to tackle a rising cost trend as the programme continues to grow.鈥�

Margaret Hodge, chair of Parliament鈥檚 public accounts committee, said: 鈥淚t appears that the Department for Education has neglected value for money in its rush to open free schools.

鈥淭he DfE has not had a proper grip on the costs of the programme. The 拢6.6m setup cost per school is double what the department expected, and the department had to spend 拢27m on temporary premises so that children were able to start school in September.

鈥淚t has also paid almost 拢27m above its valuations for half the land and property it has purchased.

鈥淭he department has got to be much more rigorous about how it assesses applications for free schools and prioritises need and value for money.鈥�