How academies are funded: 2026-27

Find out how your general annual grant (GAG) funding is calculated, and what government funding you're entitled to on top of your GAG.

Last reviewed on 11 March 2026See updates
School types: AcademySchool phases: AllRef: 3523
Contents
  1. National funding formula (NFF)
  2. General annual grant (GAG)
  3. Funding outside the GAG

This article applies to mainstream academies. If your school is a special or alternative provision (AP) academy, read our article on how special schools are funded instead.

National funding formula (NFF)

LAs determine your school's core budget using a local funding formula

The government uses the national funding formula (NFF) to work out your 'notional' core funding allocation.

However, your actual allocation is based on a local funding formula from your local authority (LA) – this is the same system as for maintained schools.

But, unlike for maintained schools:

  • Your LA will submit its local formula to the DfE, so the DfE can issue academies allocation statements – as explained in the 'introduction' section of this funding allocation guidance
  • Your funding allocations are:
    • Paid directly to your trust
    • Based on the academic, rather than financial, year

This is explained in guidance on academies revenue funding allocations

The previous government was taking a gradual approach to introducing the direct NFF model. The