A HOUSING developer which agreed to pay half a million pounds towards local schools before it started work on a new estate last August has failed to pay a penny.

Bellway Homes signed a legal agreement with Oxfordshire County Council to hand over £535,000 before it even began groundworks on the 133-home estate north of Grove last year.

The company has now built rows of houses but not paid any of the money, which is now nine months overdue.

The council, which bears part of the responsibility for getting hold of the cash, said that Bellway had sent the notification that it had started work late, and said it was 'in the process of raising an invoice' for the money.

Locals, however, have warned that the money is already desperately needed to create new school places.

Grove parish councillor June Stock, who was re-elected as chairwoman this month, said: "With all the new housing going up we have got a real problem finding places.

"We are already practically full in Grove. We have children coming to Grove CofE School from Wantage and you see kids getting buses to schools elsewhere.

"At one point there was talk of expanding Grove CofE but apparently that has been pulled because the ground is in the flood plain."

Grove CofE School is the only primary in the village, although there are three in neighbouring Wantage and more in surrounding villages.

The financial contribution associated with the 133 homes was signed off in a so-called S106 agreement in February 2014.

The agreement actually totals £2m of contributions to schools, roads, leisure and social care, due to be paid in instalments.

That contract was first signed by the original developers Gallagher Estates and Gleeson Homes, who then sold the site – along with the S106 agreement – to Bellway.

The agreement states: "The owner covenants with the council... not to cause or permit the development to be implemented until... it has paid to the council Infrastructure Payment No. 1."

'Implementation' is defined as any preparatory ground works on the site, including archaeological investigations.

In the past five years, more than 300 homes have been built in the area, including 180 at Stockham Farm between Wantage and Grove, 85 at Chain Hill, Wantage, and 71 in East Challow.

The 133-home Bellway site is part of the 824-home Monks Farm development due be built over the next 15 years.

The Vale Academy Trust, which runs King Alfred's Academy in Wantage and five local primaries, has warned there is a 'desperate need' for new schools which is growing rapidly.

That group recently won permission to open a new all-ages school in Grove, but that will not open until 2019 at the earliest, and that is only if land can be secured.

If the school is to be built in the new Grove Airfield housing estate as widely expected, it will depend on yet another S106 delay being resolved: planning permission was granted for the 2,500-home estate in December 2013, but work has not begun because the developers, landowners and council are still haggling over the agreement.

Housing campaigner Julie Mabberley said she was disappointed that Bellway had withheld its S106 obligation, but not surprised.

Ms Mabberley, who manages Wantage and Grove Campaign Group for sustainable development, said: "These S106 payments are very, very important.

"This is the only mechanism we have for getting the money for the infrastructure we need.

"These agreements can be quite a sophisticated tool and our council have to get their act together to use it properly.

"They also need to get these payments promptly because there is always a chance that a developer could declare bankruptcy, and then we will never get the money."

Bellway was asked to comment but did not respond.

Oxfordshire County Council spokeswoman Emily Reed said: "Notification to the county council about the start date of works was sent in late by Bellway.

"Following discussions between county council officers and Bellway, agreement has been reached on the amounts to be paid.

"Oxfordshire County Council is in the process of raising an invoice for the first instalment of Bellway’s contribution which amounts to around £535,000."