Information for academies about their annual revenue funding.
Applies to England
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.
A to Z of academies terms and acronyms
We explain the main funding, finance and governance terms and acronyms in our academies A to Z.
2024 to 2025 academic year
On 17 July 2023, the Minister of State for Schools made a written statement setting out the schools, high needs and central school services national funding formulae (NFF) for 2024 to 2025.
Provisional 2024 to 2025 NFF allocation tables and technical notes have been published, along with the policy document detailing the changes.
It is important to note that, as in previous years, 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 for 2024 to 2025, to determine individual schools’ budgets in their areas.
2023 to 2024 academic year
On 19 July 2022, the Minister of State for School Standards made a written statement setting out the schools, high needs and central school services national funding formulae (NFF) for 2023 to 2024.
Provisional 2023 to 2024 NFF allocation tables and technical notes have been published, along with the policy document detailing the changes.
It is important to note that, as in previous years, 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 for 2023 to 2024, to determine individual schools’ budgets in their areas.
General annual grant (GAG) allocation statements for 2023 to 2024 timetable
We have now issued all general annual grant allocations for 2023 to 2024. The allocation statements are available to view and download on Document exchange in the ‘Documents received from ESFA’ section.
We’ve published the academy general allocation guides for the 2023 to 2024 academic year for mainstream academies, free schools, UTC’s and studio schools, special and alternative provision academies and special free schools that were open before 1 April 2023 and those open between 1 April and 31 August 2023.
Academy funding in 2023 to 2024: 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 2022 census or the agreed estimate of pupil numbers for the 2023 to 2024 academic year.
For 2023 to 2024, 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 July 2022 were notional allocations only. In 2023 to 2024, 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 2023 to 2024 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 2022 to 2023 and 2023 to 2024 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 2023 to 2024, local authorities have the flexibility to set local MFG between +0.0% and +0.5% per pupil in order to offer higher levels of protection locally.
Where appropriate, the GAG may also include funding for high needs places and start-up funding for new institutions.
Guidance has been issued for schools opening as academies to estimate their revenue funding.
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 2023 to 2024.
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:
- 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
- national tutoring programme (NTP)
- coronavirus (COVID-19) recovery premium funding
- mainstream schools additional grant
- teachers’ pay additional grant
- teachers’ pension employer contribution grant (sixth forms and 16 to 19 schools only)