Funding in consultation spotlight

The Department for Education (DfE) recently launched a consultation seeking views on simplifying academies funding.

The consultation opened on 1 May and closed on 2 June seeking feedback on proposals for converting non-recoupment academies to recoupment academies from the financial year ending 2016.

Around 90 per cent of academies are recoupment academies, which means their funding is included in the dedicated schools grant that the DfE gives to each local authority. The academies’ funding body, the Education Funding Agency (EFA), then recoups the academies’ share of the grant from each local authority.

The remaining academies are non-recoupment academies and funding for these is not included in the dedicated schools grant.

In the consultation document, the DfE says: “In the case both of recoupment and non-recoupment academies EFA funds the academy directly, basing an individual academy’s budget on the schools funding formula specified by the academy’s local authority.

“These arrangements would not change as a result of the proposals…Individual academies would not see any difference to the way their funding is calculated or paid.”

The DfE says advantages of its proposals include creating a single funding system that would be simpler for schools, local authorities and the EFA and simplifying data collection, both for the EFA and for multi-academy trusts with both recoupment and non-recoupment academies in their chains.

Meanwhile, the DfE is also consulting on how local authorities and academies can achieve savings in the 2015 to 2016 financial year.

The 2013 spending round announced that the government would reduce the education services grant by around £200 million in the 2015-16 financial year and the DfE is seeking views on:

  • how local authorities and academies use the education services grant currently
  • how local authorities and academies can make savings to the services funding by the education services grant
  • how the DfE can help local authorities and academies to make savings.

The consultation closes on 19 June.

For more information, please contact the Nicklin academies team.

Posted in Academies News.