The government believes schools can save £10 million through a new framework agreement with Microsoft.

Under a new three-year memorandum of understanding (MoU) all schools in the UK will be able to take advantage of improved discounts and better licensing terms across a wide range of Microsoft's academic software.

"Under this new agreement schools will be able to use more of their budgets on frontline teaching rather than back office administration, with estimated total savings of around £10 million," said the government.

Education secretary Michael Gove said, "Schools spend a significant amount on software licensing. Through this new agreement we can make sure more money goes on frontline teaching."

The new agreement builds on an existing arrangement that has operated with Microsoft since 2004. It secures improved benefits based on the entire UK schools' software spend with Microsoft, but involves no financial or contractual commitment for schools or the Department for Education, the government said.

The Department for Education said the deal allowed schools to have more flexibility in the way they license Microsoft software, while they will also be able to "make more cost-effective choices for using alternative and free to use software".

Last year Gove announced new £20,000 computer science teacher training scholarships ( run by the BCS, with the backing of Microsoft and other companies.