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. 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 issued funding allocation statements for 2017 to 2018 to academies using Information Exchange via Secure Access by 31 March 2017.
You can read the funding allocation pack (FAP) guides to help you 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 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.
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. ESFA 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 2017 to 2018 academic year explains how we calculate the school budget share.
education services grant (ESG) protection if applicable
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, 16 to 19 students and startup funding for new institutions.
Education services grant (ESG) protection
From September 2017 the ESG general funding rate was removed. We put in place protection arrangements for academies following the removal of the ESG general funding rate. The percentage protection for an academy is determined by its level of ESG per pupil (ESG + ESG protection) in the 2016 to 2017 academic year.
The protection thresholds for 2017 to 2018 are set out in the table below:
|ESG allocation per pupil in 2016 to 2017||ESG protection in 2017 to 2018|
|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.
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.
Academies with sixth forms received details of their 16 to 19 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 ESFA and local authorities.
We have published information on high needs funding arrangements for 2017 to 2018.
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
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.