Academies revenue funding allocations
Information for academies about their annual revenue funding.
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 the Secretary of State set out the funding arrangements for 2017 to 2018 in her statement to Parliament. More detailed information on funding arrangements for 2017 to 2018, including changes in the funding system from 2016 to 2017, can be found in school funding arrangements 2017 to 2018 guidance.
2016 to 2017 academic year
We issued funding allocation statements to academies using the EFA Information Exchange via Secure Access by 31 March 2016. You can read funding allocation packs to help understand your allocation. It includes sample tables and explains 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 and the key changes to academy and free schools funding for 2016 to 2017.
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. Institutions funded on estimates may be subject to a pupil number adjustment. 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 use the local authority (LA) 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 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.
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 LA. The FAP guides for the 2016 to 2017 academic years 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 start-up funding for new institutions.
Education services grant
Academies receive ESG to cover services that a local authority would normally provide to a maintain school, such as HR, audit and asset management. Academies receive:
- £77 per pupil in the 2016 to 2017 academic year
Special academies receive:
- £327.25 per pupil in the 2016 to 2017 academic year
Alternative provision academies receive:
- £288.75 per pupil in the 2016 to 2017 academic year
We have arrangements to protect academies against significant budget reductions as a result of changes to the ESG rate in 2016 to 2017.
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 they will also be eligible for the protection arrangements. The protection thresholds 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 the ESG 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 and free schools with school sixth forms will receive details of their post-16 funding with their pre 16 allocation by the end of March 2016.
Local authorities commission education provision for pupils that attract high-needs funding. This means academies receive high-needs funding from both EFA and LAs. We published a letter outlining the high-needs funding arrangements for 16 to 25-year-olds in the 2016 to 2017 academic year .
High needs funding arrangements, sets out the timetable and process for implementing the 2016 to 2017 academic year high needs place funding arrangements. The FAP guide for special and alternative provision academies and free schools for 2016 to 2017 helps academies understand their allocations.
We have also published information on high needs funding arrangements for 2017 to 2018.
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: 20 December 2016
- 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.