Academies revenue funding allocations
Information for academies about their annual revenue funding.
This page contains information about academies revenue funding allocations. Academies (including special academies) and free schools are funded on the same basis as maintained schools. They receive annual funding allocations from the Education Funding Agency (EFA). Academy funding is calculated and paid based on an academic year, compared with financial year for maintained schools.
We have also produced information aimed specifically at new academies.
A to Z of academies funding terms and acronyms
The A to Z of academies funding explains the main funding terms and acronyms and includes links to further information.
2016 to 2017 academic year
Academies funding 2016 to 2017, published in July 2015 summarises key academy funding information for the 2016 to 2017 academic year.
Allocations for the 2016 to 2017 academic year will be uploaded to the Information Exchange via Secure Access by 31 March 2016. We have produced funding allocation packs to help academies understand their allocation.
Watch our short videos; Focus on academy funding for 2016 to 2017, High needs funding and Focus on pupil premium funding.
2015 to 2016 academic year
EFA published a letter in July 2014 to all academies summarising the main funding changes for the 2015 to 2016 academic year and setting out arrangements for the education services grant (ESG). The funding allocation pack guides academies through their funding allocation. It includes sample tables and explains how each element is calculated.
The essentials of academy funding video highlights the key changes to academy and free schools funding for 2015 to 2016 to help you understand your funding allocation.
Academy funding: an overview
Watch our Academy funding: the basics video for information on how academy allocations are calculated.
The majority of a school’s revenue funding is calculated using their pupil numbers, taken from either the autumn census return or an agreed estimate of pupil numbers, as outlined in the academy’s funding agreement. Pupil numbers registered in the October 2015 census will be used in academy allocations for the 2016 to 2017 academic year.
EFA calculates funding using the local authority (LA) formula for mainstream provision, and place-led funding for high needs institutions. Academies and free schools also receive funding through the education services grant (ESG), which covers the cost of services LAs provide directly to maintained schools.
Each LA 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.
Most funding for academies comes from the general annual grant (GAG). More information on funding outside the GAG (for instance capital and pupil premium allocations) is available in our guide to estimating your allocation and in our short training video.
The General annual grant
The GAG is made up of:
- school budget share – calculated on the same basis as for maintained schools in the same LA. The FAP guides for the 2015 to 2016 and 2016 to 2017 academic years provides a detailed explanation of how the school budget share is calculated.
- ESG – allocated based on pupil numbers
The school budget share is protected by a minimum funding guarantee. 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 start up funding for new institutions.
Education services grant
ESG is paid to academies to cover services that a local authority would normally provide to a maintain school, such as audit and asset management. Academies receive ESG at a rate of:
- £87 per pupil in the 2015 to 2016 academic year
- £77 per pupil in the 2016 to 2017 academic year
Special academies receive ESG at a rate of:
- £369.75 per pupil in the 2015 to 2016 academic year
- £327.25 per pupil in the 2016 to 2017 academic year
Alternative provision academies receive ESG at a rate of:
- £326.25 per pupil in the 2015 to 2016 academic year
- £288.75 per pupil in the 2016 to 2017 academic year
Academies are protected against significant budget reductions as a result of changes to the ESG rate in the 2016 to 2017 academic year. The ESG technical note 2016 to 2017 provides additional information about the changes to ESG and how the tapered protection will be applied. A supplementary note provides more information on ESG for the 2015 to 2016 academic year.
Pupil number adjustment
The EFA carry out an annual pupil number adjustment (PNA) for any academies that are funded based on estimated pupil numbers. The PNA is calculated using census data and ensures that funding reflects the actual numbers of pupils present during the year.
Some estimate-funded academies have a threshold specified in their funding agreement. If such an academy’s estimate of pupil numbers for the 2015 to 2016 academic year is below the threshold, no funding adjustment will be made through the PNA process. If the estimate differs from actual pupil numbers by more than the threshold it will trigger a PNA, which could result in an increase or decrease in funding.
An academy’s estimated pupil numbers and the funding they receive are used to produce a per pupil funding rate for the 2015 to 2016 academic year. This is multiplied by the number of pupils that are over or under the threshold when comparing the number funded against data from the autumn 2015 census. Separate calculations are made for pre-16 school budget share funding, post-16 funding, and ESG funding. An academy’s overall PNA is the sum of these three calculations.
You can use our PNA calculator (MS Excel Spreadsheet, 29KB) (ODS, 10KB) with the figures you have for your academy to see how an adjustment is calculated.
We will send statements to academies in scope for PNA for the 2015 to 2016 academic year by mid-May 2016.
Information about how colleges, schools and academies receive their allocations is available on our 16 to 19 funding allocations guidance page. Academies and free schools with school sixth forms will receive details of their post-16 funding with their pre-16 funding allocation by the end of March 2016. We recently published a letter explains the funding for academic year 2016 to 2017 for students aged 16 to 19 and students aged 19 to 25 with an education, health and care plan.
High needs funding
Since 2013 local authorities have had an enhanced role in funding high needs pupils as the commissioner of education provision for these pupils. This means academies now receive funding from both EFA and the LA for pupils with high needs.
Mainstream academies (leaving aside any special units within them) are expected to contribute up to £6,000 from their school budget share to the cost of additional educational support provision for high needs pupils and students. Their notional SEN budget is indicated in table A of their funding statement.
If your academy receives a post-16 funding allocation, your statement will show how much of the formula funding the LA has attributed to meeting SEN support costs. Watch our high heeds funding videos for more information.
High needs funding arrangements sets out the timetable and process for implementing the 2016 to 2017 academic year high needs place funding arrangements.
EFA published a letter outlining the high-needs funding arrangements for 16 to 25-year-olds in the academic year 2016 to 2017.
Funding for special and AP academies, special units and resourced provision
Special academies and academies with special units or resourced provision receive £10,000 for each high needs place. Alternative provision (AP) academies also receive £10,000 per place.
Top-up funding above these levels, based on the assessed needs of the pupil and the cost of meeting these, should be agreed between the commissioning LA and the academy. Top-up funding is paid on a per-pupil basis, in or close to the real-time movement of the pupil. It is paid directly to academies by the LA. Top-up funding for pupils in AP can be paid directly by other academies and schools if they commission the places for those pupils. The FAP guide for special and alternative provision academies and free schools for 2016 to 2017 helps academies understand their allocations.
Pupils in hospital education places in academies do not attract top-up funding.
Academies revenue payments
The EFA is responsible for paying academies in accordance with the terms set out in the academy’s funding agreement. Academies and free schools GAG payments are paid in 12 equal instalments. 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
Academies receive funding outside their general annual grant (GAG) including:
- early years funding
- national non domestic rates (NNDR)
- pupil premium
- PE and sport premium for primary schools
- universal infant free school meals
- high needs top-up funding
Your academy may also receive capital funding from EFA.
Our presentation on funding outside the GAG includes more information about how and when these revenue streams are paid.
You can also access our series of short training videos which explain aspects of funding for academies and free schools, including:
- the essentials of academy funding for the 2015 to 2016 academic year
- funding for free schools, UTCs and studio schools
- engaging with your schools forum
- the education services grant - includes a worked example of the new tapered funding protection
- the minimum funding guarantee - including capping and scaling
- funding for new academies
- funding outside your general annual grant
Published: 11 March 2014
Updated: 11 February 2016
- 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.