How academies are funded
Find out how your general annual grant (GAG) funding is calculated, and what government funding you're entitled to on top of your GAG.
The 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 Education and Skills Funding Agency (ESFA), so the ESFA can issue academies allocation statements – as explained on page 3 of this ESFA funding allocation guidance
- Your funding allocations are:
- Paid directly to your trust by the ESFA
- Based on the academic, rather than financial, year
This is explained in guidance from the ESFA.
Transition to the 'hard' NFF
The 'hard' NFF will mean that your school's budget allocation will be decided directly by the central government, rather