The B.C. government says it's putting all the money saved during last month's three-day teachers' strike back into the school system.

Education Minister George Abbott says $30 million in savings will go to the Learning Improvement Fund to provide direct student support, doubling the amount of money originally set aside for the fund this year.

Another $7 million in savings will go to school boards for individual district priorities.

The BC Teachers' Federation has said the Learning Improvement Fund has far less money than required to keep up with inflation in bolstering the school system.

Demands from the union for improvements in class composition and size have been one of the major sticking points in the long-running contract dispute with the government.

Last week, Abbott appointed mediator Charles Jago as the person to deal with the issues between the two sides.