How academies are funded: 2025/26

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

Updated
on 8 April 2025
See 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