Information for academies about their annual revenue funding.
The Education and Skills Funding Agency (ESFA) funds academies (including free schools, university technical colleges and special academies) on the same basis as maintained schools. We base allocations and payments to academies 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.
2021 to 2022 academic year
On 20 July 2020, The Minister of State for School Standards, Rt Hon Nick Gibb MP, confirmed the provisional funding allocations for 2021 to 2022 through the schools, high needs and central school services national funding formulae (NFF).
It is important to note that individual schools’ and academies’ actual funding may be different to the amounts shown in these tables. This is because local authorities continue to set a local formula, in consultation with local schools’ forums, and within the framework of the schools operational guide to determine individual schools’ budgets in their areas.
General annual grant (GAG) allocation statements for 2021 to 2022 timetable
We’ll begin issuing 2021 to 2022 general annual grant (GAG) allocation statements towards the end of February 2021. These will be uploaded to Document Exchange. We expect to issue all allocation statements to academies that opened before or on 1 January 2021 by the end of March 2021.
Allocations for 2021 to 2022 for academies opening in February and March 2021 will be issued by the end of April 2021.
We’ll publish GAG allocations guidance in February 2021, before we start to issue the allocation statements.
For academies with sixth forms, your allocation statement will no longer include your total 16 to 19 funding amount. The detail of this allocation will only be shown on your 16 to 19 funding statement, which we’ll upload to Document Exchange separately. You can read more about the 16 to 19 allocations process and timelines.
General annual grant (GAG) allocation statements for 2020 to 2021 timetable
We’ve issued academy general annual grant (GAG) allocation statements for the 2020 to 2021 academic year for all open academies. For academies open before 1 September 2020, these are available in Document Exchange. If you’re unsure about your access to Document Exchange there’s guidance available on GOV.UK.
We send draft allocation statements to new academies by email prior to opening. We issue final funding allocation towards the end of the first month of opening.
We’ve published GAG allocations guidance to help academies understand their allocation statements.
Academy funding in 2020 to 2021: an overview of funding for the current academic year
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 from either the autumn 2019 census or the agreed estimate of pupil numbers for the 2020 to 2021 academic year.
For 2020 to 2021, we’ll continue to use the national funding formula (NFF) for schools and for high needs, to allocate budgets to local authorities.
It is important to note that the NFF school-level allocations that we published in September 2019 were notional allocations only. In 2020 to 2021, local authorities have continued to set a local formula which has determined individual school and academy budgets in their authority. As in previous years, local authorities submitted this local formula to us so that we could produce and issue academies allocation statements.
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. Guidance for 2020 to 2021 explains how we calculate the school budget share.
The minimum funding guarantee (MFG) is a protection against changes in per pupil school budget share (SBS) funding between the 2019 to 2020 and 2020 to 2021 academic years. The amount of protection will vary according to the impact of local changes in the funding formula and the effect of these on individual per pupil rates.
In 2020 to 2021, local authorities have the flexibility to set local MFG between +0.5% and +1.84% per pupil in order to offer higher levels of protection locally.
Where appropriate, the GAG may also include funding for high needs places, 16 to 19 students and start-up funding for new institutions.
16 to 19 funding
Information about how colleges, schools and academies receive their 16 to 19 allocations is available on our 16 to 19 funding allocations guidance page.
High needs funding
Local authorities commission education provision for pupils that attract high needs funding. This means academies receive high needs funding from both ESFA and local authorities.
We have published information on high needs funding arrangements for 2020 to 2021.
Academies revenue payments
ESFA 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
Many academies receive funding outside their GAG, including: