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Got a reply from conexxions, this is what they have said:
"To my knowledge there is no corporate policy on this matter to cover all schools, each school will be required to have it's own policy and guidance which will vary form school to school. If the student has gone back to the school there is nothing further the Local Authority can do. My only suggestion would be that the student might want to see first hand the school policy that covers this matter to check that what is being said is correct."
I think at this stage as it hasn't been reported to the police and my daughter was aware that the room wouldn't be locked it could loook as though she may try defrauding the school. Perhaps we will have to see this as her final lesson at this school and hope she has learned from this for the future when she starts college. I suppose my main peeve is the fact it cost so much.. if it was a cheaper phone I would of let it go. Mothers and daughters are difficult to come between! I hope her mother will not make the same mistake again. As our daughter is now working partime then it'll be up to her to pay for her electrical gadgets in future.