The UK coalition government has decided to close the ICT education agency Becta within the next month, leaving its 240 employees jobless.
The decision has been made as a part of a £6 billion cost-cutting programme across government agencies over the next 12 months.
New chancellor George Osborne issued a statement stating that the closure of Becta will make the government an initial saving of £10 million this fiscal year.
In response, the chairman of Becta Graham Badman and chief executive Stephen Crowne said: "Our procurement arrangements save the schools and colleges many times more than Becta costs to run. Our Home Access programme will give laptops and broadband to over 200,000 of the poorest children."
Becta has brought services like Home Access Programme, National Grid Learning Programme, Offender Learning, Work-based learning to the colleges and schools and employs 240 staff and 120 people on contract.