Guidance

Academies remittance advice guide

Updated 27 September 2023

Applies to England

1. Introduction

This guide provides information on the ‘activity descriptions’ used in the remittance notes to academies. It also provides links to further information where available.

2. Pre-16 payments

Activity description	Explanation
Exceptional factors	You will only see this in your remittance advice if your local authority has successfully applied to ESFA to include additional factors in their formula. Such factors reflect any exceptional circumstances related to the nature of their premises and will only be shown if relevant to your academy. More information can be found in the 2023 to 2024 academy allocation guides.
MFG	The minimum funding guarantee (MFG) is designed to protect per-pupil funding from one year to the next against significant changes in funding formulae or changes in data not directly related to pupil numbers. More information can be found in the 2023 to 2024 academy allocation guides.
Other factors	This is additional funding we provide that is not based on pupil demographics. It includes your lump sum and other funding, for example for split sites, where applicable. More information can be found in the 2023 to 2024 academy allocation guides.
Pre-16 high needs	This is high needs place funding for pre-16 places in designated units in mainstream academies, alternative provision (AP) and pre-16 places in special academies. More information can be found in the 2023 to 2024 academy allocation guides.
Hospital provision	This is hospital education place funding for 0-25 year olds in alternative provision (AP) academies. More information can be found in the 2023 to 2024 academy allocation guides.
Pupil led factors	This is the total amount paid under the pupil led factors in accordance with the local authority funding model. More information can be found in the 2023 to 2024 academy allocation guides.

3. 16 to 19 funding

Activity description	Explanation
Programme funding	We calculate and allocate these allocations using the 16 to 19 national funding formula. We calculate your basic funding using national funding rates, which depend on the size of your students’ study programmes. We then apply the other elements of the funding formula to reflect various other elements such as deprivation, retention and programme weighting of your post-16 students.
Bursary funds	The 16 to 19 bursary fund enables you to support students who require additional financial assistance with the costs associated with education such as transport, meals, books and equipment. We allocate the funds using a national formula, but leave the management up to you as an institution. Your distribution of funds must keep in line with our published information.
High needs element	We calculate high needs funding for post-16 pupils in designated units in mainstream academies, on a simple per-place basis. This is paid in 2 elements: per place funding which is paid through the high needs block and the per pupil amount paid at the national funding formula rate.

4. Other funding factors

Activity description	Explanation
Risk protection	This is an adjustment to funding for academies that have opted into the risk protection arrangement (RPA). Once an academy has opted in, they will need to give the ESFA at least three months’ notice prior to the end of the academic year (May 2024) to opt out. Academies can only opt out of RPA at the end of the academic year and this is when their GAG payments will stop. The calculation is based on pupil numbers and the funding rate of £21 per pupil. It is adjusted for the number of days opted in, up to and including 31 August 2024. We adjust payments in equal amounts. Those who opted in before 1 September 2022 will have payments adjusted across the full 12 months. Remaining academies will see equal adjustments according to the published timetable. Further information can be found in the academies RPA guidance.
GAG adjustment	You will only see this in your remittance advice if a prior arranged recovery or payment has been agreed.
Pupil number adjustment (PNA)	You will only see this in your remittance advice if a prior arranged recovery or payment schedule is in place for a pupil number adjustment (PNA). More information is provided in the guidance for academies funded on estimates.
LA (local authority) transfer deficit	This is a recovery payable by academies that converted with a deficit. You will only see this in your remittance if the recovery of a deficit has been agreed.
De-delegation retained by the LA	This is payable by academies in the first year of opening only. This is recovered in equal instalments from the date of conversion.

5. Start-up funding

Activity description	Explanation
Post opening grant (POG) leadership diseconomies	We provide free schools, studio schools, and university technical colleges (UTCs) with a post-opening grant (POG) to reflect the additional costs in establishing a new publicly-funded school which cannot be met through the general annual grant (GAG). POG leadership diseconomies funding is calculated based on the number of empty cohorts in the school and would be expected to fall each year as more year groups are accepted into the school. The funded rate depends on the school phase. More information can be found in the 2023 to 2024 academy allocation guides.
POG per pupil resources	This element is based on a flat rate depending on pupil numbers and the school phase. More information can be found in the 2023 to 2024 academy allocation guides.
Start up grant (SUG) A	We provide funding for full sponsored academies in the form of a start up grant (SUG) which is based on a flat rate depending on phase and forms of entry. More information can be found in the 2023 to 2024 academy allocation guides.
SUG B formula	The SUG B formula is funding that has been agreed with your local authority based on agreed capacity figures. More information can be found in the 2023 to 2024 academy allocation guides.

6. Ad hoc and miscellaneous payments

Activity description	Explanation
Acad pupil premium	Pupil premium funding is additional funding to raise the attainment of disadvantaged pupils and close the gap between them and their peers. More information can be found in the pupil premium guidance.
Admissions appeals	This is funding you have applied for, to help with the cost of additional admissions appeals, in addition to the 20 appeals that you are expected to fund from your budget.
Advances and abatements	You will only see this in your remittance advice if a short term approved advance has been agreed. Repayments will also show against this line.
COVID-19 related funding	Activity descriptions for COVID-19 related funding will vary, depending on the specific funding programme.
Deficit funding	This is a grant we might be able to give if you face financial failure (eligibility criteria apply).
ESFA academies free meals	The free meals in the further education (FE) allocation is funding for 16 to 19 academies only so that they can provide their most economically deprived students with one meal per day for the duration of the students’ programmes.  More information is available in the 16 to 19 funding: free meals in further education funded institutions for 2023 to 2024 guidance.
ESFA free school top-up	This is top-up for specialist maths free schools to cover additional costs for outreach work, university input, small class sizes and delivery of their innovative curriculum.
KS2 moderation and phonics funding	This is funding to support the teaching of phonics at key stage 2 (KS2).  This is paid annually in October.
Pre-16 universal infant free school meals	Funding to provide free school meals (FSM) for all pupils in reception, year 1 and year 2. More information can be found in the UIFSM conditions of grant and allocations for 2023 to 2024.
Primary PE and sport premium	This funding has been allocated to your school to improve PE and sport provision for your registered pupils. It has been calculated using the annual schools census. More information can be found in the PE and sport premium for primary schools guidance.
Rates relief	Rates relief is funding to meet the costs of your national non-domestic rates (NNDR). More information can be found in the academies NNDR claims guidance.
Residential support scheme (RSS)	This is funding to support students with the costs of living away from home where the student is studying a first full level 2 or level 3 substantive qualification that is not available to them locally. More information can be found in the 16 to 18 residential support scheme guidance.
Restructuring and TUPE	This funding covers the costs of any restructuring and is paid in accordance with your individual funding agreement.
Teachers’ Pension Employer Contribution Grant	The teachers’ pension employer contribution grant covers the cost of the increase in the employer contribution of the Teachers Pension Scheme. You can find out more in this guidance.
UTC transition	Transitional funding is a grant we pay to assist in the sustainability of UTCs and which, generally, is used to offset any existing PNA debt.

7. Queries about payments

For any other queries about payments, please contact the ESFA enquiry service:

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