London's school places' crisis is being made worse by an overly-complex funding system and an ongoing financial shortfall, the umbrella group representing the capital's 33 boroughs has argued.

According to London Councils, a ‘chronic shortage' of an estimated 78,923 primary school places by 2015/16 will become real for many parents across the capital on Thursday - when they learn which school their child has secured a place at for the next academic year.

In addition, there will be a shortfall of more than 12,000 secondary school places by 2015/16, but the impact will be especially felt in the next academic year.

A National Audit Office (NAO) study into capital funding of new school places issued last month found the DfE will need to make extra provision for 256,000 young children by 2014/15 to meet increased demand.  The overwhelming majority of the new places, some 240,000 are in primary schools, of which 37% are needed in London, the watchdog revealed.

However, cash for extra school places has been retained by the Department for Education until June leaving boroughs to enter a competitive bid process with the department to secure extra funds, London Councils has stated.  This position is forcing some boroughs to dip into other local service budgets and others to proceed without much-needed help, the body maintains.

Executive member for children's services, Cllr Peter John said: ‘Kids need school places, not bureaucracy.  London needs more school places now.  But instead we have another layer of Government red tape which is preventing boroughs from getting on with building new schools.

‘In the next few years, the children starting primary school this September will be moving up to secondary school where they will also need places which the government has failed to give us funding for.'