Information for academies about their annual revenue funding
The Education Funding Agency (EFA) funds academies (including free schools, university technical colleges and special academies) on the same basis as maintained schools. Allocations and payments to academies are based on an academic year, compared with financial year for maintained schools.
You can read a separate guide about funding for new academies.
A to Z of academies funding terms and acronyms
We explain the main funding terms and acronyms in our A to Z of academies funding.
2017 to 2018 academic year
In July 2016, the Secretary of State set out the funding arrangements for 2017 to 2018 in her statement to Parliament and more detailed information, including changes in the funding systems from the previous year, can be found in the school funding arrangements 2017 to 2018 guidance.
Allocation statement arrangements
We will begin issuing 2017 to 2018 allocations towards the end of February 2017. We expect to issue all allocations to academies that opened before or on 1 January 2017 by the end of March 2017.
Allocations for 2017 to 2018 for February and March 2017 opening academies will be issued by mid-April 2017.
We will issue statements using the EFA Information Exchange via Secure Access.
Multi-academy trusts (MATs) will be able to view their academies’ allocations using their trust log in details, not the academy log in details. We will upload each academy’s allocation as soon as it is finalised following confirmation of the relevant local authority’s funding formula. MATs should note that this means allocations for all academies in the trust might not be uploaded simultaneously.
You can read the funding allocation pack (FAP) guides to help you understand your allocation.
2016 to 2017 academic year
In July 2015, EFA wrote to academies, highlighting the key points on academy funding, following the publication of schools funding arrangements for 2016 to 2017.
We issued funding allocation statements to academies using the EFA Information Exchange via Secure Access by 31 March 2016.
You can read the funding allocation pack (FAP) guides to help understand your allocation. They include sample tables, and explain how we calculate each element. You can also read FAP guides for academies opening during the academic year.
Academy funding: an overview
Watch our collection of videos for information on how we calculate academy allocations.
We calculate most of an academy’s revenue funding using the pupil numbers taken from either the autumn census return or an agreed estimate of pupil numbers, as outlined in the academy’s funding agreement.
Academies funded on estimates may be subject to the pupil number adjustment process; visit our academies funded on estimates page for more information.
We used pupil numbers recorded in the October 2015 census to calculate funding for the 2016 to 2017 academic year. We will use pupil numbers recorded in the October 2016 census to calculate funding for the 2017 to 2018 academic year.
We use the local authority formula to calculate mainstream provision, and place-led funding for pupils who attract high needs funding. Academies and free schools also receive the education services grant (ESG), which covers the cost of services local authorities provide directly to maintained schools.
Each local authority agrees the funding factors and rates for their area in consultation with their schools forum. The funding formula for mainstream academies uses pupil-led factors such as basic entitlement, deprivation, prior attainment, mobility and English as an additional language (EAL), combined with factors based on the institution, such as a lump sum for premises costs, split site funding or a sparsity factor for small rural academies. EFA uses the local funding model to calculate allocations for academies and free schools.
The general annual grant (GAG)
Most funding for academies comes from the general annual grant (GAG). This is made up of:
- school budget share – calculated on the same basis as for maintained schools in the same local authority. The FAP guidance for the 2016 to 2017 academic year explains how we calculate the school budget share.
- education services grant (ESG) – allocated based on pupil numbers
A minimum funding guarantee protects the school budget share. This means per-pupil funding will not fall by more than 1.5% compared with the previous year. The minimum funding guarantee calculation excludes funding for sixth forms and places in special units.
Where appropriate, the GAG may also include funding for high needs places, post-16 students and startup funding for new institutions.
Education services grant (ESG)
Academies receive ESG to cover services that a local authority would normally provide to a maintained school, such as HR, audit and asset management.
The ESG rates in the 2016 to 2017 academic year are as follows:
|Academy type||ESG rate per pupil|
|Alternative provision academy||£288.75|
From September 2017 the ESG general funding rate will be removed. Academies will continue to receive the current annual rates per pupil for the April to August 2017 period. We will put in place protection arrangements for academies following the removal of the ESG general funding rate using the same methodology as in 2016 to 2017.
Schools which convert to academies between April and August 2017 will receive ESG funding at the current rate of £77 per pupil prorated to the number of days open as an academy (post-16 elements are prorated by number of months they are an academy). From September 2017 they will also be eligible for the protection arrangements.
The protection thresholds for 2017 to 2018 are set out in the table below:
|ESG allocation per pupil||ESG protection|
|Up to £77 per pupil||Loss protected at 1% of total funding|
|More than £77 per pupil but less than £87 per pupil||Additional funding above £77 per pupil is protected at 2% of total funding|
|More than £87 per pupil||Additional funding above £87 per pupil is protected at 3% of total funding|
Schools which convert to academy status from September 2017 onwards will not be eligible for ESG funding or ESG protection.
Information about how colleges, schools and academies receive their post-16 allocations is available on our 16 to 19 funding allocations guidance page.
Academies with sixth forms will receive details of their post-16 funding by the end of March 2017.
High needs funding
Local authorities commission education provision for pupils that attract high needs funding. This means academies receive high needs funding from both EFA and local authorities.
We have published information on high needs funding arrangements for 2017 to 2018.
Guidance which sets out the 2016 to 2017 academic year high needs place funding arrangements is also available.
Academies revenue payments
EFA pays academies’ GAG in 12 equal instalments in accordance with the terms set out in the academy’s funding agreement. A monthly remittance note accompanies each payment. Revenue funding: payments to academies explains how academies are paid and how to change bank details.
Revenue funding outside the general annual grant
Some academies receive funding outside their GAG, including:
Published: 11 March 2014
Updated: 9 February 2017
- Information added on timeline for 2017 to 2018 academic year allocations.
- Updated to include information on ESG protection.
- Updated information and removed information for academies funded on estimates to a separate page.
- Information about 2014 to 2015 removed. Details of pupil number adjustment for 2015 to 2016 added. Information about 2016 to 2017 funding added including education services grant rates.
- Link to funding video for 2016 to 2017 added.
- Links to funding videos on YouTube added.
- This page has been updated to include the pupil number adjustment calculator for the 2014 to 2015 academic year.
- Links to funding training videos and registration for webinars added.
- ESG rates for 2015 to 2016 academic year added and a link to a guidance note about the ESG changes.
- Updated to add a letter to academies about funding arrangement for 2015 to 2016
- Updated pupil number adjustment calculator added.
- Pupil number adjustment (PNA) details for the 2013 to 2014 academic year added.
- First published.