Extra teachers will be taken on in Southend thanks to an additional £123,000.
The Government has given the council the go-ahead to spend the cash on recruiting extra staff so it can cut class sizes for five, six and seven-year-olds to 30.
If the authority manages to implement the reductions early it stands to gain a further £52,000, councillors at tonight's education meeting will be told.
A sum of £80,000 has been allocated for building work at Bournemouth Park Infants School in Leigh so it can cut class numbers.
Bids by Southend council to increase space at Richmond Infants and Friars Infants both in Shoebury, and Fairways Primary School in Southend, were unsuccessful.
Council officer John Farry said: "The decisions were not unexpected.
"There will be further opportunities to make capital bids in subsequent financial years under the present class size reduction initiative."
A further bid to increase the number of children admitted to Our Lady of Lourdes VA Primary School in Leigh from 66 to 90 was also blocked by the Government.
The school now has to cut its standard admission number to 60 pupils to comply with the legislation.
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