A Devon boy expelled from school for selling cannabis is to receive £1,500 in compensation from a council.
The Local Government Ombudsman ruled that Torbay Council was guilty of maladministration in its slowness to find a new school for the Year-10 boy.
He said the money was not a reward but that failure to find a school and teach him at home properly caused injustice.
The authority admitted it was unable to find alternative provision as quickly as it should have done.
The ombudsman also ordered the council to pay £250 to the boy's father.
It says the payment to the boy's father was for what was described as the "time and trouble in chasing the complaint".
In a statement, the council said the issue of drug dealing in schools was a highly emotive one.
It said that despite its best endeavours, it had been unable to find the boy suitable alternative provision in a school as quickly as it should have done.
The ombudsman, Jerry White, told the BBC: "It is parliament's intention that excluded children should be reintegrated into mainstream education where possible and within a short timescale.
"It was the council's legal responsibility to do so and I believe it failed to do what it should have done."
Mr White added: "It is not a reward, his education will suffer from his own actions. But it is not right that it should suffer further through the fault of the council."