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Guidance

Academy funding: remittance advice guide

Updated 1 October 2026

Applies to England

Information on the ‘activity descriptions’ used in the remittance advice notes to academies.

Pre-16 payments

2026 to 2027 academy allocation guides has more information.

Exceptional factors

You will only see this in your remittance advice if your local authority has successfully applied to the Department for Education (DfE) to include additional factors in their formula. These factors reflect any exceptional circumstances related to the nature of their premises and will only be shown if relevant to your academy.

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.

Other factors

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.

Pre-16 high needs

High needs place funding for pre-16 places in designated units in:

  • mainstream academies
  • alternative provision (AP)
  • special academies

Hospital provision

Hospital education place funding for 0- to 25-year-olds in AP academies.

Pupil led factors

The total amount paid under the pupil-led factors in accordance with the local authority funding model.

16 to 19 funding

Academies: programme funding

We:

  • calculate your basic funding using national funding rates, which depend on the size of your students’ study programmes
  • apply the other elements of the funding formula to reflect various other elements such as the deprivation, retention and programme weighting of your post-16 students

We calculate these allocations using the 16 to 19 national funding formula.

Academies: bursary funds

The 16 to 19 bursary fund enables you to support students who need additional financial assistance with the costs associated with education, such as:

  • transport
  • meals
  • books
  • 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 2026 to 2027 bursary guide information.

Academies: high needs element 2

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
  • per pupil amount, which is paid at the national funding formula rate

FE free meals

The free meals in the further education (FE) allocation is for 16 to 19 academies so they can provide their most economically deprived students with one meal each day for the duration of the student’s programme. 

The 16 to 19 funding: free meals in further education 2026 to 2027 guidance has more information.

Maths free school top-up

Top-up funding for specialist maths free schools to cover additional costs for:

  • outreach work
  • university input
  • small class sizes
  • delivery of their innovative curriculum

Residential support scheme (RSS)

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.

16 to 18 residential support scheme guidance. has more information.

Academies: high value courses premium

The high value courses premium (HVCP) is additional funding to encourage and support the delivery of selected level 3 courses in subjects that lead to higher wage returns.

Academies: advanced maths premium

The advanced maths premium is for additional students studying an eligible level 3 maths qualification.

Advanced British Standard (ABS) skills: 16 to 19 core maths

The core maths premium aims to encourage the provision of core maths qualifications and expand maths education for students up to the age of 18. The funding rate for a student studying core maths is £900 for one year only.

Academies T Level industry placement

T Levels are 2-year, level 3 technical qualifications intended to give students the skills that the industry needs. They bring classroom learning and an extended industry placement together.

Other funding factors

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, it will need to give DfE at least 3 months’ notice prior to the end of the academic year (May 2027) to opt out. Academies can only opt out of RPA at the end of the academic year, and this is when their general annual grant (GAG) payments will stop.

The calculation is based on pupil numbers and the funding rate of £29 per pupil. It is adjusted for the number of days opted in, up to and including 31 August 2027. We adjust payments in equal amounts. Those who opted in before 1 September 2026 will have payments adjusted across the full 12 months. Remaining academies will see equal adjustments according to the published timetable.

The academies RPA guidance has more information.

GAG recoveries

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 PNA.

The guidance for academies funded on estimates has more information.

Academy deficit

This is a recovery payable by academies that converted with a deficit. You will only see this in your remittance advice if the recovery of a deficit has been agreed.

De-delegation retained by the local authority

This is payable by academies in their first year of opening. It is recovered in equal instalments from the date of conversion.

Start-up funding

The 2026 to 2027 academy allocation guides has more information.

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 that 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.

POG per pupil resources

This element is based on a flat rate depending on pupil numbers and the school phase.

Start up grant (SUG A)

Funding for full sponsored academies in the form of a start-up grant (SUG). This is based on a flat rate, depending on phase and forms of entry.

SUG B formula

Funding that has been agreed with your local authority based on agreed capacity figures.

Ad hoc and miscellaneous payments

Academies pupil premium

Pupil premium funding is additional funding to raise the attainment of disadvantaged pupils and close the gap between them and their peers.

Pupil premium guidance has more information

Admissions appeals

Funding you have applied for to help with the cost of additional admissions appeals. This is 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.

Deficit funding

A grant we might be able to give your institution if it faces financial failure. Eligibility criteria apply.

KS2 moderation and phonics funding

Funding to support the teaching of phonics at key stage 2 (KS2). It is paid annually in October by the Standards and Testing Agency.

Pre-16 universal infant free school meals

Funding to provide free school meals (FSM) for all pupils in reception, year 1 and year 2.

The universal infant free school meals (UIFSM) conditions of grant and allocations for 2026 to 2027 has more information.

Primary PE and sport premium

Funding to improve PE and sport provision for your registered pupils. It is calculated using information from the annual school census.

PE and sport premium for primary schools guidance has more information.

Rates relief

Rates relief is funding to meet the costs of your national non-domestic rates (NNDR). The academies NNDR claims guidance has more information.

Restructuring and TUPE

Covers the costs of any restructuring and is paid in accordance with your individual funding agreement.

16 to 19 teachers’ pension grant academies

The teachers’ pension employer contribution grant covers the cost of the increase in the employer contribution of the teachers’ pension scheme.

The 16 to 19 teachers’ pension scheme employer contribution grant: conditions of grant for local authorities and academies 2026 to 2027 has more information.

Early career framework NRO mentor backfill

Schools using one of the DfE-funded training providers to deliver early career framework (ECF) mentor training will receive backfill payments to cover 36 hours of mentor time off timetable for training per mentor, over 2 years.

Early careers teacher entitlement year 2: time off timetable and mentor support

Schools using one of the DfE-funded training providers to deliver early career framework (ECF) mentor training will receive backfill payments to cover 36 hours of mentor time off timetable for training per mentor, over 2 years.

General mentor grant academy

A claims-based grant to fund mentors working in schools that offer initial teacher training (ITT) placements. It is paid once a year in October.

Initial teacher training reform funding guidance has more information.

Breakfast clubs (Breakfast clubs – academies)

The government has committed to offering a free and universal breakfast club in every primary school. DfE has selected schools to become early adopters through an expression of interest process.

The breakfast clubs guidance has more information.

Post 16 NICs grant: academies

We are making approximately £155 million available in the 2026 to 2027 financial year to support institutions with the increase to employers’ National Insurance contributions (NICs) arising from their post-16 education from April 2025.

More information can be found in the post 16 NICs guidance.

Care to Learn: academy

Care to Learn (C2L) provides funding for childcare to help young parents (defined as those aged under 20) continue in education after the birth of a child.

The Care to Learn guidance has more information.

Schools budget support grant 2026 (SBSG26)

The government has announced additional funding alongside the 2026 teacher pay award. It is providing £635 million to support schools with the cost of pay awards in the 2026 to 2027 financial year.

The SBSG guidance has more information.

Vulnerable bursary: academy

Institutions currently draw down funding for bursaries for vulnerable groups from the Student Bursary Support Service (SBSS) a third-party administrator, whenever new students are verified as meeting the criteria and having a financial need. You will submit funding claims directly to DfE at defined points in the year.

The 16 to 19 Bursary Fund: provider guide has more information.

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