Guidance

Academy general annual grant allocation guide: 2023 to 2024 academic year

Published 13 February 2023

Applies to England

Introduction

This operational guide helps you understand how the Education and Skills Funding Agency (ESFA) has calculated your 2023 to 2024 academic year funding. We have developed the guide in consultation with a sample of academies to make sure it meets your needs.

This guide supports your general annual grant (GAG) statement. It sets out the funding you will receive, how we have calculated it, the factors that have been applied and the source of the data we use. You will notice some changes to some of the tables, but we have kept these to a minimum to allow headline year-on-year comparisons.

For 2023 to 2024, we’ll continue to use the national funding formula (NFF) for schools, high needs and central school services, to allocate budgets to local authorities.

It is important to note that the NFF school-level allocations 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 budgets in their authority. However, they will be required to start bringing their own formulae closer to the schools NFF.

As in previous years, local authorities have submitted this local formula to us so that we can produce and issue academies allocation statements. Your GAG statement reflects the local formula.

Who is the guide for?

This guide is for all existing mainstream, special and alternative provision academies, free schools, university technical college’s (UTCs) and studio schools, as well as academies and free schools opening during the year.

If your academy opens in the period April 2023 to August 2023 your funding calculation will be based on the 2023 to 2024 funding formula for both the remainder of the 2022 to 2023 academic year and the whole of the 2023 to 2024 academic year.

How to use this guide

We have produced this guide in a format that allows you to easily access the specific parts that interest you, or areas where you require more detailed information.

The ‘What’s New’ section shows the changes to academy funding in the 2023 to 2024 academic year at a glance, and where the change is reflected in your GAG statement. The subsequent chapters take you through an example funding statement table by table, explaining each line in turn.

We recognise that GAG funding makes up only part of the overall funding for your academy. The section at the end of the guide lists the main non-GAG revenue and capital funding lines.  It includes links to information about how and when these are paid.

Further information about academy revenue funding allocations is available.

What’s new in the 2023 to 2024 academic year

The changes to funding in 2023 to 2024 are summarised below and you can find more information on the technical aspects of these in subsequent sections:

Further policy information on pre-16 schools funding arrangements for 2023 to 2024 is also available. This includes the operational guidance on schools’ revenue funding, which sets out the factors that local authorities can use in their funding formula.

We have also published high needs funding arrangements for 2023 to 2024.

Changes to the funding formula and your GAG statement

The key changes to the funding methodology for 2023 to 2024 are set out below.

• local authorities must use all the NFF factors in their methodology. This means that the looked after children (LAC) factor can no longer be used and only English as an additional language rate 3 (EAL3) can be used in local formula

• local authorities must set their factor values 10% closer to the NFF factor values than their respective baseline (academic year 2022 to 2023) values to within a threshold of 2.5% of those NFF values

• the NFF provides a minimum per pupil funding value when setting the funding envelope for local authorities. These minimum per pupil values have increased for academic year 2023 to 2024

• the schools supplementary grant (SSG) will cease to be paid as a separate grant for the 2023 to 2024 academic year and instead will be funded through the dedicated schools grant (DSG). This funding will effectively form part of the school budget share (SBS) formula set by the local authority in 2023 to 2024 academic year, and to ensure a like-for-like comparison when calculating minimum funding guarantee (MFG), the MFG calculation is now required to add the academic year 2022 to 2023 SSG allocations into the baseline calculations.

The GAG statement explained

The following sections of this guide walk you through the GAG statement for the 2023 to 2024 academic year.

If your academy opens from 1 April 2023 to 31 August 2023: your GAG statement will show a pro-rated amount for the remainder of the current academic year 2022 to 2023. You will also receive a second GAG statement showing your funding for the 2023 to 2024 academic year.

If your academy opens on or after 1 September 2023 your GAG statement will show either a full or pro-rated amount for the following academic year depending upon when you opened.

If you are a special or alternative provision academy opening between April 2023 and August 2023 please refer to the 2022 to 2023 guide for your first year of opening.

Summary statement

The first page of your GAG statement is a summary of the tables that make up the remainder of your GAG. The information used to populate the summary table comes from each of the tables in your statement. Sections will only be shown if applicable to your academy.

For example: Section 2 for mainstream academies will only be populated if your mainstream academy has a designated special unit.

De-delegation funding retained by the local authority is only shown in the statement for the first funding period in which your academy is open. Excluding those academies opening in April or September.

School budget share (SBS)

Applicable to all academies excluding special and AP academies.

Table A sets out how we calculate your SBS. Your local authority agrees funding factors and rates in consultation with its schools forum and supplies these to ESFA using the authority proforma tool (APT). We apply these to your academy pupil numbers and associated characteristics.

Pupil numbers are derived either from your autumn 2022 validated school census return or your agreed estimate of pupil numbers for the 2023 to 2024 academic year, depending on the terms of your funding agreement. However, where the local authority notifies us of variations in school census numbers through their APT (for planned growth or infrastructure changes) then these will be used to calculate your allocation.

Table E gives further information about the pupil numbers we use in the calculation of your allocation.

For free schools, your pupil numbers will be taken from the finance plans in the first year of opening.

A structure description of table A is below.

Factor

Factors are now set by the NFF. They can be pupil-led or non-pupil-led. Pupil-led factors are driven by pupil numbers and their characteristics. All factors are now mandatory (except for the locally determined premises factors which remain optional, and the London fringe factor which is compulsory only for the 5 local authorities on the fringe).

Description

This column gives you more information about the basis for the calculation.

Rate

The rate shows the amount paid for each factor by your local authority. These are supplied to us using the APT.

Weighting

The weighting shows the proportion of pupils attracting funding under a particular factor. For example, if the rate is £1,000 and the weighting is 1.0 this means that £1,000 is applied to every pupil shown in the pupils column. If the weighting is 0.50, the rate only applies to 50% of your pupil numbers.

Pupils

Pupil numbers are taken from your autumn 2022 school census return or your agreed estimate of pupil numbers for the 2023 to 2024 academic year, depending on the terms of your funding agreement.

Table E gives further information about the pupil numbers we use in the calculation of your allocation.

Sub-total

This shows the funding payable for that factor, which for pupil led factors will be rate multiplied by weighting multiplied by pupils.

Percentage included in notional SEN

This shows the amount that your local authority has identified as notional special educational needs (SEN) budget in each school budget share. This is called notional because it is not a ring-fenced budget, and academies can make their own decisions about how much to spend on SEN support, given the needs of their pupils.

When planning their budgets, academies should take into account that they must meet the costs of additional support for pupils with SEN up to £6,000 from their school budget share (including the notional SEN funding). The total notional SEN budget is made up of a proportion of various factors included in your SBS, depending on the local formula. The factors included and the proportion attributed to your notional SEN budget allocation is decided locally.

Each factor includes the percentage which contributes to your school’s notional SEN budget. This is shown in the far right-hand column on table A.

Your notional SEN allocation is calculated by multiplying the sub-total for each factor by the percentage indicated in the SEN% column. This gives a notional SEN sub-total for each applicable row. The total of these gives your overall notional SEN allocation. This also appears on the summary table.

Totals shown

At the bottom of these columns there are 3 totals:

• total pupil-led factors showing the total funding for pupil-led factors

• total other factors showing the total funding for non-pupil-led factors

• total school budget share showing the total school budget share funding

Total school budget share

This is the sum of your pupil-led factors and non-pupil-led factors (excluding rates but including any applicable minimum per pupil funding level (MPPFL) uplift).

Full year funding amount

This column will only show if you are an academy which opens during the year and will replace the columns rate, weighting, pupils, sub-total, and SEN%. It is the amount the local authority has already calculated for the whole of the 2023 to 2024 financial year.

For free schools in your first year, this is the amount that has been calculated from your finance plan.

Part year funding amount

This column will only show if you are an academy which opens during the year and will replace the columns rate, weighting, pupils, sub-total, and SEN%. This is the proportioned amount based on the full 2023 to 2024 financial year amount calculated by the local authority. It is based on the number of days between the date the academy opened and the August following that financial year.

Funding previously de-delegated

Funding for services is delegated by local authorities to schools through the funding formula. Maintained schools collectively may then pass back, or de-delegate, funding to the local authority for certain services to be provided centrally, with the approval of the schools forum.

A list of those services for which funding can be de-delegated can be found in the schools funding 2023 to 2024 operational guide.

To give the local authority time to plan services, some de-delegated funds are retained by local authorities after maintained schools convert to academy status. In these cases, new academies do not receive the de-delegated funds until an agreed point later in the year. Until this point, local authorities should continue to provide services to new academies where funding is de-delegated.

Academies opening on 1 April 2023 receive all of the previously de-delegated funds from April to August 2023. They will continue to do so in their 2023 to 2024 academic year and subsequent allocations.

Academies opening on 1 September 2023 will receive the full de-delegated amount for the academic year and should therefore secure these services independently from this point.

Academies that open after 1 April 2023 but before 1 September 2023 will not receive any previously de-delegated funding in the 2022 to 2023 academic year. They will, though, receive all the previously de-delegated funds in their 2023 to 2024 academic year allocation.

For academies opening after 1 September 2023 de-delegation funding will only be provided for the period from 1 April 2024 onwards.

Until these points the local authority should continue to provide the services to new academies where funding is de-delegated. If the local authority is unable to provide the requested service, then they could pay the funding directly to the academy.

School budget share - sample table

Not applicable to special or AP schools. Table A on your GAG statement relates to high needs funding and further information can be found here.

1. Basic entitlement

This is a compulsory factor.

For 2023 to 2024, the basic entitlement for primary and secondary pupils is a minimum of £2,000 and £3,000 respectively. The local authority can set different unit values for key stage 3 (KS3) and key stage 4 (KS4), but they must be at least 10% closer to NFF values than their respective baseline values.

Local authorities also have the option to apply a reception uplift that is to add new reception pupils starting between the autumn 2021 and January 2022 census.

Description	Rate	Weighting	Pupils	Subtotal	SEN%
Primary (including reception)	£3,140.00	1.000000	183	£574,620.00	6.00
Key stage 3	£4,421.00	1.000000	79	£349,259.00	6.00
Key stage 4	£4,980.00	1.000000	53	£263,940.00	6.00

2. Deprivation

This is a compulsory factor.

The Income Deprivation Affecting Children Index (IDACI) measures the proportion of children under the age of 16 that live in low-income households in the local area.

Your local authority formula must use IDACI categories A to F, free school meals (FSM) and FSM6 data to allocate its deprivation funding.

A separate rate can be paid for each of the 6 categories in the IDACI index, and for the primary and secondary phases.

Free school meals apply to the number of children in primary or secondary year groups eligible for FSM. Pupils eligible for FSM are recorded in the autumn 2022 school census.

FSM6 applies to primary or secondary pupils who have been eligible for free school meals at any time in the past 6 years.

Description	Rate	Weighting	Pupils	Sub-total	SEN %
Primary IDACI band F	£215.00	0.052326	183	£2,058.75	40.00
Primary IDACI band E	£260.00	0.046512	183	£2,213.02	40.00
Primary IDACI band D	£410.00	0.011628	183	£872.44	40.00
Primary IDACI band C	£445.00	0.000000	183	£0.00	40.00
Primary IDACI band B	£475.00	0.000000	183	£0.00	40.00
Primary IDACI band A	£620.00	0.000000	183	£0.00	40.00
Secondary IDACI band F	£310.00	0.025641	132	£1,049.23	40.00
Secondary IDACI band E	£415.00	0.008547	132	£468.21	40.00
Secondary IDACI band D	£580.00	0.017094	132	£1,308.72	40.00
Secondary IDACI band C	£630.00	0.000000	132	£0.00	40.00
Secondary IDACI band B	£680.00	0.000000	132	£0.00	40.00
Secondary IDACI band A	£865.00	0.000000	132	£0.00	40.00
Primary free school meals (FSM)	£460.00	0.114754	183	£9,660.00	40.00
Primary FSM6	£575.00	0.131868	183	£13,875.81	40.00
Secondary FSM	£460.00	0.166667	132	£10,120.00	40.00
Secondary FSM6	£840.00	0.251908	132	£27,931.60	40.00

3. Prior Attainment

This is a compulsory factor.

Local authorities must apply this factor for:

• primary pupils identified as not achieving the expected level of development in the early years foundation stage profile (EYFSP)

• secondary pupils not reaching the expected standard at either reading or writing or maths at KS2

Due to coronavirus (COVID-19) and following the cancellation or incompleteness of assessments in summer 2020 and summer 2021, local authorities will use 2019 assessment data as a proxy for assessments which would have taken place in 2020 and 2021.

In 2023 to 2024, the department has carried forward the weightings it used in 2022 to 2023 for the year 7 to year 10 cohorts, so they will apply to the year 8 to year 11 cohorts respectively.

For the academic year 2023 to 2024, the weightings are:

• pupils in year 7 in October 2022: 54.47%

• pupils in years 8 to 10 in October 2022: 64.53%

• pupils in year 11 in October 2022: 63.59%

Description	Rate	Weighting	Pupils	Sub-total	SEN %
Primary attainment: primary low attainment	£1,095.00	0.500000	183	£100,192.50	100.00
Secondary attainment: secondary pupils not achieving the expected standards in KS2 tests	£1,660.00	0.570662	132	£125,043.40	100.00

4. English as an additional language (EAL)

This is a compulsory factor and is for pupils for which English is an additional language at the point they enter the English statutory school system.

Previously the local authority could fund pupils in the first year only; the first 2 years; or in the first 3 years, but now must choose the 3-year option as an indicator for providing funding to these pupils.

The data will be taken from the national pupil database. The rate can differ for primary and secondary pupils.

Description	Rate	Weighting	Pupils	Sub-total	SEN %
Primary EAL	£550.00	0.62341	183	£62,746.21	100.00
Secondary EAL	£650.00	0.54781	132	£47,002.10	100.00

5. Mobility

This is a compulsory factor.

‘Pupil mobility’ refers to pupils who started the school at an unusual time during the last 3 academic years, that is not in September (or not in January for pupils joining in reception).

To be eligible for mobility funding, the proportion of mobile pupils in a school must be above the threshold of 6%. Mobility is an allocated per pupil amount in respect of all mobile pupils above that threshold.

Description	Rate	Weighting	Pupils	Sub-total	SEN %
Primary pupils starting school outside of normal entry dates (proportion above 6%)	£900.00	0.0670000	183	£110,349.00	100.00
Secondary pupils starting school outside of normal entry dates	£1,290.00	0.000000	132	£0.00	100.00

6. Sparsity

This is a compulsory factor.

The sparsity factor allocates funding to academies that are remote, measured by sparsity distances, and are small, based on average year group size.

We measure sparsity distances using road distances. To calculate an academy’s sparsity distance, we take all the pupils for whom it is the nearest compatible school and find the average shortest road distance from these pupils’ home postcodes to their second nearest compatible schools.

An academy is eligible for sparsity funding if:

• its sparsity distance is equal to or above the main distance threshold, or above the tapered distance threshold (where the local authority is applying the distance taper) and

• the average year group size is below the relevant size threshold

The table below shows the requirements for sparsity funding and the tapers.

School phase	Size threshold: maximum average number of pupils per year group	Main distance threshold: minimum average distance to second nearest compatible school	Distance taper threshold: minimum average distance to second nearest compatible school
Primary	21.4	2 miles	1.6 miles
Secondary	120	3 miles	2.4 miles
Middle	69.2	2 miles	1.6 miles
All through	62.5	2 miles	1.6 miles

Local authorities can reduce the average year group size threshold or increase the distance threshold in their local funding formulae. The distance and group size taper thresholds remain optional in local funding formulae for 2023 to 2024.

Local authorities can determine a sparsity lump sum for each of the above phases. The maximum permissible value is £100,000 (including the London fringe uplift).

Local authorities can apply the NFF methodology where schools’ allocations are tapered according to average year group size, so that the smaller the school the greater the allocation. Schools with a sparsity distance equal to or greater than the main distance threshold (2 or 3 miles) and an average year group size of less than or equal to half the year group threshold receive 100% of the sparsity funding for their phase.

Local authorities can also determine schools’ allocations by a ‘continuous’ taper or a fixed sum. The continuous taper means schools with an average year group size of half the year group threshold will not receive 100% of the sparsity funding for their phase. Instead, they will receive half the maximum. The fixed sum means all eligible schools will receive the exact same sparsity amount irrespective of their size.

Schools with a sparsity distance between the distance taper threshold and the main threshold will attract some sparsity funding through the NFF. The amount depends on both their size and how far away their sparsity distance is from the main threshold. The closer the school’s sparsity distance to the main distance threshold, the greater their allocation and vice versa. Schools with a sparsity distance half-way between the distance taper threshold and the main threshold will receive half as much as they would were they equal to or above the main threshold.

The distance taper threshold is optional in local funding formulae for 2023 to 2024. Where used, it must be set 20% below the main distance thresholds used in local funding formulae, as in the NFF. It can be used irrespective of whether the NFF year group taper, the continuous taper, or the fixed sum is used. The same principle applies across these methodologies, that the further away the school is from the main threshold, the smaller their allocation.

In addition, local authorities can make an application to the department to include an exceptional circumstance of up to £50,000 for very small sparse secondary schools, which would otherwise be unable to attract sufficient funding to remain viable. Local authorities can only make an application for this where schools have:

• pupils in years 10 and 11

• 350 pupils or fewer

• a sparsity distance of 5 miles or more

If this additional lump sum applies to your academy, it will be shown in the exceptional circumstances part of table A.

Line 6 in your SBS table shows the total amount of sparsity funding your academy will receive, if applicable.

Description	Rate	Weighting	Sub-total	SEN %
Sparsity funding (see further details in table A.1)	-	-	£70,000.00	6.0

Table A.1 – Sparsity Data will display the data and methodology used in the calculation.

This table will only appear on your statement if your academy is eligible for sparsity funding. An example of table A.1 is below.

Sparsity unit value

This is the lump sum amount of money your local authority has set in consultation with its schools forum. It can set different amounts for primary and secondary schools, middle schools or all-through schools, up to a maximum of £100,000 in each case.

Line	Value
1. Sparsity unit value	£70,000.00

Distance threshold (miles)

This figure can be set by the local authority. This needs to be either at or above the minimum of two miles for primary, middle and all-through schools and three miles for secondary.

Line	Value
2. Distance threshold (miles)	2.000000

Does the local authority use the distance taper?

This will indicate whether the LA is using the distance taper or not.

Line	Value
3. Does the local authority use the distance taper?	No

Year group threshold

The local authority can apply a cap on the size of schools eligible for sparsity funding, as long as it is at, or below, the average year group size appropriate for the academy.

Line	Value
4. Year group threshold	62.500000

Average year group size

This is the average year group size of your academy.

Line	Value
5. Average year group size	26.2500000

Taper applied (fixed/ tapered/NFF)

The local authority can apply a single lump sum or a tapered amount related to school size. If they have applied a single lump sum, it will say ‘fixed’; if a tapered amount is applied it will say ‘tapered’. Local authorities can also use the NFF formula for sparsity. If this is the case, then this box will say ‘NFF’.

Line	Value
6. Taper applied (fixed/ tapered/NFF)	NFF

Sparsity distance

The sparsity distance is produced by identifying those pupils for whom the school is their nearest eligible school and then calculating the average distance to the second nearest eligible school for these pupils. Distances are calculated using actual road distance (in miles) from a pupil’s postcode to a school’s postcode.

Line	Value
7. Sparsity distance	4.469223

7. Lump sum

This is a compulsory factor.

Local authorities can set a flat lump sum for all phases or differentiate the sums for primary and secondary.

Local authorities should give middle schools a weighted average, based on the number of year groups in each phase.

The lump sum may be different for primary and secondary schools. The upper limit of the lump sum is £175,000.

All-through schools will receive the secondary lump sum value.

Any schools that merged in the 2022 to 2023 financial year may receive an allocation equivalent to 85% of the combined lump sums they would have received as separate establishments.

The additional amount will be shown under the exceptional circumstance 1 line at the bottom of table A.

Description	Rate	Weighting	Sub-total	SEN %
Primary lump sum	£117,800.00	0.000000	£0.00	6.0
Secondary lump sum	£117,800.00	1.000000	£117,800.00	6.0

8. Split sites

This is an amount agreed by the local authority to cover additional costs associated with running a school across different sites. If the local authority chooses to apply this factor it must be based on clear criteria and a clear methodology for calculating the funding and be shown in the local authority’s APT return.

Description	Rate	Weighting	Sub-total	SEN %
Split sites	£0.00	1.000000	£0.00	0.0

9. Private finance initiative (PFI)

This factor funds the additional costs of being in a PFI contract. This is not necessarily the full cost as some costs may be covered within other factors. This factor can relate to additional premises costs and/or the affordability gap of the contract where this has been delegated.

There is no limit to how much a local authority can allocate to this, but they must set out a clear methodology for calculating the funding.

Description	Rate	Weighting	Sub-total	SEN %
PFI	£0.00	1.000000	£0.00	0.0

10. London fringe

This factor supports schools that have to pay higher teacher salaries because they are in one of 5 local authorities in the London fringe area, where only part of the authority is in this area. These are: Buckinghamshire, Essex, Hertfordshire, Kent, and West Sussex.

It is applied as a multiplier to the 7 pupil-led factors, the lump sum factor, and the sparsity factor.

Description	Rate	Weighting	Sub-total	SEN %
London fringe	£1,490,923.67	0.015636	£23,312.11	-

Exceptional circumstances

Note that these exceptional circumstance lines will only appear in table A if your local authority has an approved exceptional factor and it applies to your academy.

Exceptional circumstance 1

This is the additional amount payable as a result of the amalgamation. It is 85% of the combined lump sums from the year after amalgamation. Additional lump sums may be agreed in a second year after amalgamation, these will be shown as one of exceptional circumstance 3 to 7.

Factor	Description	Sub-total	SEN %
Exceptional circumstance 1 (optional)	Additional lump sum for schools amalgamated during the financial year 2022 to 2023	£0.00	0.50

Exceptional circumstance 2

Local authorities can apply to include an additional lump sum of up to £50,000 for very small secondary schools in sparsely populated areas.

Factor	Description	Sub-total	SEN %
Exceptional circumstance 2 (optional)	Additional sparsity lump sum for small schools	£0.00	0.00

Exceptional circumstances 3 to 7

Local authorities may request the inclusion of additional factors in their formula for exceptional circumstances relating to the nature of their premises. Such factors must be approved by ESFA. To qualify as ‘exceptional’ these factors must normally affect fewer than 5% of schools (including academies) in the authority and the cost for the academy must normally exceed 1% of their budget.

Factor	Description	Sub-total	SEN %
Exceptional circumstance 3 (optional)	Exceptional circumstance 3	£0.00	0.00
Exceptional circumstance 4 (optional)	Exceptional circumstance 4	£41,426.00	0.00
Exceptional circumstance 5 (optional)	Exceptional circumstance 5	£0.00	0.00
Exceptional circumstance 6 (optional)	Exceptional circumstance 6	£0.00	0.00
Exceptional circumstance 7 (optional)	Exceptional circumstance 7	£0.00	0.00

Prior year adjustment

Local authorities can apply an adjustment to total funding where they wish to make an amendment relating to funding paid in the prior year that will be added to or deducted from the current year’s allocation.

Note that this line will only appear in table A if it applies to your academy.

Factor	Description	Sub-total	SEN %
Prior year adjustment (optional)	Prior year funding adjustment	£0.00	-

Minimum per pupil funding level

The NFF provides a minimum per pupil funding value when setting the funding levels for local authorities. These minimum per pupil values have increased for 2023 to 2024.

The use of the minimum per pupil rate has also been made mandatory, though, in certain circumstances, local authorities can apply to change the rate(s) through the ‘disapplication’ process.

The calculation of the ‘test’ for any uplift for the minimum per pupil funding has been simplified; the option for the local authority to exclude elements of funding has been removed so that now mobility is always included in the calculation and premises (rates, PFI, split sites for example) always excluded.

To ensure consistency for all schools, including those with non-standard year groups, the calculation for a school’s individual minimum per-pupil levels within the NFF has been simplified.

For all schools, we will now apply the following calculation:

((number of primary year groups × £4,405) + (number of KS3 year groups × £5,503) + (number of KS4 year groups × £6,033)) divided by total number of year groups.

This calculation will provide per-pupil funding of at least £4,405 for each primary school, and £5,715 for each secondary school with standard structures of seven- and five-year groups respectively. For middle schools, all-through schools and other schools with a non-standard year group structure this will produce a specific minimum per-pupil value that relates to the number of year groups in each phase.

The total academy allocation (less excluded factors mentioned above) is divided by the funded number on roll (NOR) (reception to year 11) to arrive at the per pupil allocation for comparing with the minimum per pupil funding level.

If the academy’s per pupil allocation is higher than the minimum per pupil rate set by the local authority, the minimum per pupil funding level adjustment allocation is zero. Otherwise, the minimum per pupil funding level allocation is calculated as the minimum per pupil level rate, less the calculated per pupil allocation, multiplied by NOR.

Where an academy receives a minimum per pupil funding level allocation, they will be exempt from capping and scaling in the minimum funding guarantee (MFG) calculation. Similarly, where they do not receive a minimum funding level allocation, capping and scaling will not take the budget lower than the minimum per pupil funding level (MPPFL).

MPPFL rate

Factor	Description	Sub-total	SEN %
MPPFL rate	Minimum per pupil funding level (as set by the local authority)	£4,405.00	-

MPPFL adjustment (if applicable)

Factor	Description	Sub-total	SEN %
MPPFL adjustment (if applicable)	Total adjustment required to ensure the academy meets the MPPFL rate set by the local authority	£0.00	0.00

Further details are included in the MFG section.

Minimum funding guarantee (MFG)

This section is not applicable to special or alternative provision academies but a minimum funding guarantee has been set for special schools for 2023 to 2024. Further information about high needs top-up funding and MFG is set out in the high needs operational guide top up funding section.

MFG is not applicable to free schools (in their first year of opening). Newly opened free schools will receive funding protection in place of MFG for their first year of opening. Further information is available in the funding protection section of this guide.

If you are a newly opened mainstream academy, your MFG is calculated by the local authority, therefore your statement will look slightly different. An example of your MFG can been found below.

For special and AP academies, your table B will relate to post-opening grant (start-up grant) on your statement. More information can be found in the relevant section below.

The 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.

To determine whether to apply the MFG, we calculate and compare the MFG per pupil values for the 2 academic years. If the change in per pupil funding is less than the MFG rate set by the local authority, then an adjustment is applied to ensure per pupil funding increases by the MFG rate.

Where the local authority chooses to apply capping and scaling, if there is a change in per pupil funding of more than the cap they set, then gains over this cap are scaled back according to the scaling factor the LA chooses to apply.

As the MFG calculation operates at a per pupil level, not on the overall SBS, we do not protect falling budgets caused by a reduction in pupil numbers.

MFG applies to pupils in reception to year 11, excluding any reception uplift if it is applied by the local authority.

Exclusions and adjustments

A number of exclusions and adjustments are applied to the respective SBS to ensure a valid comparison.

Exclusions

The funding lines automatically excluded from the MFG calculation are:

• early years funding – this is paid by the local authority and not included in the SBS.

• the lump sum – this is not treated as a per pupil amount because, for small schools, the lump sum forms a significant amount per pupil. If it was included in the MFG calculation it would build in excessive protection where a school is increasing its numbers

• the sparsity factor - sparsity is handled in the same way as the lump sum though is not in itself per pupil funding therefore including it would distort the protection that MFG provides

Any additional lump sum funding paid in the years following an amalgamation will be deducted from the corresponding year’s allocation in the MFG calculation.

MFG exclusions

If local authorities wish to exclude any additional funding lines from the MFG calculation (from either the 2022 to 2023 baseline funding or the 2023 to 2024 academic year funding) they must make an exceptional case to ESFA. An example of an approved MFG exclusion is where a school would be receiving split-site funding for the first time in the 2023 to 2024 academic year. This exclusion allows the school to receive the full benefit of the additional funding. Similarly, where a school will no longer be operating on a split-site in 2023 to 2024 the local authority may wish to exclude the split-site funding from the baseline for 2023 to 2024 when calculating the MFG, so that the protection does not include funding for which the school is no longer eligible.

Technical adjustments

Local authorities can make technical adjustments to the 2022 to 2023 baseline to make this comparable with 2023 to 2024 funding in certain exceptional circumstances (These adjustments can also be made to 2023 to 2024 to make funding comparable to the 2022 to 2023 baseline as shown in the table below). These relate to changes in delegation, for example, where a budget was previously funded centrally and is now delegated into the funding formula, or where funding has been moved to the high needs block to commission alternative provision (AP) places for schools as well as for the local authority.

Capping and scaling – affordability adjustments

Local authorities are able to cap and/or scale back overall gains for schools to make the funding formula affordable. The cap is the limit to which any per pupil gains in SBS can be retained by the school or academy. The scale is the degree to which gains above the cap will be scaled back in the calculation. Local authorities in consultation with their schools forums determine whether and how to limit gains. This must be applied on the same basis to all schools and academies.

For example:

• a 4% cap and 40% scaling means gains up to 4% are kept by schools, and any gains above 4% are scaled back by 40%

• a 10% cap and 100% scaling means all gains above 10% are removed

• a 0% cap and 70% scaling means all gains are scaled back by 70%

Your SBS includes all gains before any MFG is applied. Any adjustments made as a result of capping or scaling will appear as a negative amount on your summary table.

Capping and scaling will not be applied to new schools if they have opened in the last 7 years and do not have all year groups present.

Capping and scaling and MPPFL

Where an academy receives a minimum per pupil funding level (MPPFL) allocation, they will be exempt from capping and scaling in the minimum funding guarantee (MFG) module.

Similarly, where an academy does not receive an MPPFL allocation, any capping and scaling applied will not take the budget lower than the minimum per pupil funding level.

MFG – sample table for mainstream existing academies

This sample table is applicable to existing academies. If you are a newly opened academy, you should consult the relevant MFG sample table.

B1 Calculation of baseline for academic year 2022 to 2023

1. Full year pre-16 academic year 2022 to 2023 school budget share

This is the actual school budget share paid excluding rates but including any MFG and capping/scaling applied in 2022 to 2023. This is a full year funding amount. Any part-year openers will have their funding grossed up to a full year allocation. This will also include any Free School Protection for free schools in their first full year of allocation.

Description	Value	Calculation
1. Full year pre-16 academic year 2022 to 2023 school budget share	£1,638,646.87	-

2. Schools supplementary grant 2022 to 2023

This will also include a notional amount for the 2022 to 2023 SSG to ensure a like for like comparison can be made with the 2023 to 2024 funding.

Description	Value	Calculation
2. Supplementary grant adjustment for 2022 to 2023	£30,000.00	-

3. Lump sum (including fringe) in local authorities funding formula for academic year 2023 to 2024

The lump sum for the 2023 to 2024 academic year is removed from the SBS in both funding years to allow for a year-on-year comparison of per pupil funding. This is because some authorities will have a different lump sum between the 2 years, and excluding different amounts in each of those years would distort (either excessively or inadequately) the protection that MFG provides.

Description	Value	Calculation
3. Lump sum (including fringe) in local authorities funding formula for academic year 2023 to 2024	£117,800.00	-

4. Academic year 2023 to 2024 sparsity value (including taper)

The sparsity value for the 2023 to 2024 academic year is removed from the SBS in both funding years to allow for a year-on-year comparison of per pupil funding. This is because sparsity is similar to the lump sum in its purpose and therefore not excluding it would distort the protection that MFG provides.

Description	Value	Calculation
4. Academic year 2023 to 2024 sparsity value (including taper)	£70,000.00	-

5. Approved MFG exclusions for academic year 2022 to 2023

Local authorities are able to apply to ESFA for specific funding elements to be excluded from the MFG. The value of any approved exclusions from the 2022 to 2023 baseline will be shown here.

Description	Value	Calculation
5. Approved MFG exclusions for academic year 2022 to 2023	£0.00	-

6. Technical adjustments to academic year 2022 to 2023 baseline

This will show any further adjustments made to cover any additional circumstances needed to make the baseline for 2022 to 2023 comparable with 2023 to 2024 funding. This may be a positive or a negative adjustment as determined by the local authority and detailed on their APT return.

Description	Value	Calculation
6. Technical adjustments to academic year 2022 to 2023 baseline	£0.00	-

7. Adjusted pre-16 academic year 2022 to 2023 school budget share

This is the 2022 to 2023 budget being protected by the MFG calculation. This is the result of the various adjustment made from the ‘starting point’ which is the 2022 to 2023 SBS.

Description	Value	Calculation
7. Adjusted pre-16 academic year 2022 to 2023 school budget share	£1,480,846.87	1+2-3-4-5-6

8. Academic year 2022 to 2023 pupil number on roll

Pupil numbers actually funded through the SBS excluding any reception uplift (if applicable) in the 2022 to 2023 academic year.

Description	Value	Calculation
8. Academic year 2022 to 2023 pupil number on roll	316	-

9. Academic year 2022 to 2023 MFG unit value

This is the baseline 2022 to 2023 academic year per pupil figure, against which the comparison of 2023 to 2024 per pupil funding will be made. It represents the SBS (after adjustments) divided by the number on roll.

Description	Value	Calculation
9. Academic year 2022 to 2023 MFG unit value	£4,686.22	(7/8)

10. Minimum value per pupil

This shows the MFG rate (set by the local authority) applied to the figure above. The per pupil funding in 2023 to 2024, after adjustments, cannot fall below this figure.

Description	Value	Calculation
10. Minimum value per pupil	£4,709.65	9 x (100% + 22)

B.2  Calculation of MFG budget for academic year 2023 to 2024

11. Academic year 2023 to 2024 school budget share

This is the actual SBS as shown in table A.

Description	Value	Calculation
11. Academic year 2023 to 2024 school budget share	£1,711,838.69	Full year allocation

12. Lump sum (including fringe) in local authorities funding formula for academic year 2023 to 2024

The lump sum for the 2023 to 2024 academic year is removed from the SBS in both funding years to allow for a year-on-year comparison of per pupil funding. This is because some authorities will have a different lump sum between the 2 years and excluding different amounts in each of those years would distort (either excessively or inadequately) the protection that MFG provides.

Description	Value	Calculation
12. Lump sum (including fringe) in local authorities funding formula for academic year 2023 to 2024	£117,800.00	-

13. Academic year 2023 to 2024 sparsity value

The sparsity value for the 2023 to 2024 academic year is removed from the SBS in both funding years to allow for a year-on-year comparison of per pupil funding. This is because sparsity is similar to the lump sum in its purpose and therefore not excluding it would distort the protection that MFG provides.

Description	Value	Calculation
13. Academic year 2023 to 2024 sparsity value	£70,000.00	-

14. Approved MFG exclusions for academic year 2023 to 2024

Local authorities may apply to ESFA for specific funding elements to be excluded from the MFG. The value of any approved exclusions from the 2023 to 2024 allocation will be shown here.

Description	Value	Calculation
14. Approved MFG exclusions for academic year 2023 to 2024	£41,426.00	-

15. Academic year 2023 to 2024 technical adjustments

This will show any further adjustments made to cover any additional circumstances needed to make the 2023 to 2024 allocation comparable with 2022 to 2023 baseline funding. This may be a positive or a negative adjustment as determined by the local authority and detailed on its APT return.

Description	Value	Calculation
15. Academic year 2023 to 2024 technical adjustments	£0.00	-

16. Total MFG budget for academic year 2023 to 2024

The MFG budget for the 2023 to 2024 academic year is the school budget share, after adjustments. It provides the starting point for calculating the MFG unit value for 2023 to 2024.

Description	Value	Calculation
16. Total MFG budget for academic year 2023 to 2024	£1,482,612.69	11-12-13-14-15

17. Academic year 2023 to 2024 pupil number on roll

Pupil numbers actually funded through the SBS, excluding reception uplift (if applicable) for the 2023 to 2024 academic year.

Description	Value	Calculation
17. Academic year 2023 to 2024 pupil number on roll	315

18. Academic year 2023 to 2024 MFG unit value

This is the 2023 to 2024 academic year per pupil figure, against which the comparison of 2022 to 2023 per pupil funding will be made. It represents the SBS (after adjustments) divided by the number on roll.

Description	Value	Calculation
18. Academic year 2023 to 2024 MFG unit value	£4,706.71	(16/17)

19. Academic year 2023 to 2024 guaranteed level of funding

This is the result of multiplying the minimum value per pupil calculated above by the 2023 to 2024 pupil numbers. It shows the level of funding below which the 2023 to 2024 SBS cannot fall.

Description	Value	Calculation
19. Academic year 2023 to 2024 guaranteed level of funding	£1,483,539.75‬	10 x 17

B.3  Application of MFG floor and scaling/capping

20. Does the LA apply capping and scaling?

This indicates whether the local authority is applying capping and/or scaling. This information will be taken from the local authority pro forma.

Description	Value	Calculation
20. Does the LA apply capping and scaling?	No	-

21. Have the growing school criteria been met?

New schools are not subject to capping and scaling if they have opened in the last 7 years and not all year groups are present. So, if the answer here is ‘Yes’ then capping or scaling will not be applied.

Description	Value	Calculation
21. Have the growing school criteria been met?	No	-

22. MFG floor

This is the term given for the MFG rate as set by the local authority.

Description	Value	Calculation
22. MFG floor	0.5%	-

23. LA capping factor

A cap only applies where the funding formula in the 2023 to 2024 academic year results in a unit value which is greater than that in the previous academic year. This is where line 18 is greater than line 10. Gains will be capped by the percentage amount defined by the local authority and shown here.

Description	Value	Calculation
23. LA capping factor	0.00%	-

24. LA scaling factor

Any gains above the cap will be scaled back by a percentage amount defined by the local authority and shown here.

Description	Value	Calculation
24. LA scaling factor	0.00%	-

25. Percentage change in MFG unit value between academic years 2022 to 2023 and 2023 to 2024

This shows the change in per pupil funding, after relevant adjustments, between the 2022 to 2023 and 2023 to 2024 academic years. If it has reduced, or not increased sufficiently, this would trigger the MFG. If it has increased sufficiently, this may lead to capping/scaling being applied.

Description	Value	Calculation
25. Percentage change in MFG unit value between academic years 2022 to 2023 and 2023 to 2024	0.44%	(18-9) / 9

26. Extent to which percentage change falls below MFG floor

This demonstrates by how much the per pupil funding has dropped beyond the MFG protection level between the 2 academic years.

Description	Value	Calculation
26. Extent to which percentage change falls below MFG floor	0.06%	IF (25 < 22, 22 – 25) ELSE 0

27. MFG adjustment value (applying MFG floor)

This is the amount to be added to the school budget share as MFG protection.

Description	Value	Calculation
27. MFG adjustment value (applying MFG floor)	£928.76	26 x 17 x 9

28. Extent to which percentage change exceeds cap

If the local authority applies capping and scaling, and if the percentage change identified at line 25 is greater than the cap set by the local authority, this will show the difference (that is, how much ‘gain’ exceeds the cap).

Description	Value	Calculation
28. Extent to which percentage change exceeds cap	0.00%	IF 25 > 23, 25 -23) ELSE 0

29. Scale factor applied to excess above cap

This demonstrates the total percentage of the previous year per pupil allocation to be deducted. Any gains received after the capping calculation will be scaled back by a factor set by the local authority as at line 24.

Description	Value	Calculation
29. Scale factor applied to excess above cap	0.00%	28 x 24

30. Affordability value adjustment (applying scale factor above cap)

If capping or scaling is applicable, this shows the amount by which the gains in funding will be reduced.

Description	Value	Calculation
30. Affordability value adjustment (applying scale factor above cap)	£0.00	IF capping applies = 29 x 17 x 9

31. Minimum funding level and funding floor adjustment (post cap and scale)

An adjustment may be made to ensure capping and scaling does not take the budget lower than the minimum per pupil funding level.

Description	Value	Calculation
31. Minimum funding level and funding floor adjustment (post cap and scale)	£0.00	-

32. Overall net adjustment (MFG minus affordability plus MPPFL adjustment)

This is the amount of funding to be added or subtracted from the 2023 to 2024 academic year SBS as a result of the MFG calculation / affordability adjustment, or MFL adjustment (where appropriate).

Description	Value	Calculation
32. Overall net adjustment (MFG minus affordability plus MPPFL adjustment)	£928.76	27 - 30 + 31

33. Academic year 2023 to 2024 MFG budget after MFG and affordability adjustments

This calculation generates the 2023 to 2024 academic year MFG budget, with the overall net adjustment applied.

Description	Value	Calculation
33. Academic year 2023 to 2024 MFG budget after MFG and affordability adjustments	£1,483,541.45	16 + 32

34. Academic year 2023 to 2024 MFG unit value after MFG and affordability adjustments

This calculation states line 33 as a per pupil figure to allow a checking of the MFG calculation in line 35 below.

Description	Value	Calculation
34. Academic year 2023 to 2024 MFG unit value after MFG and affordability adjustments	£4,709.66	33 / 17

35. Percentage change in MFG unit value after adjustments

This checks the calculation of the MFG. It will not be less than the MFG rate set by the local authority.

Description	Value	Calculation
35. Percentage change in MFG unit value after adjustments	0.5 %	(34 - 9) / 9

36. Total academic year 2023 to 2024 school budget share (excluding rates)

This shows the 2023 to 2024 pre-16 SBS as shown in Table A plus/minus any adjustment as applicable.

Description	Value	Calculation
36. Total academic year 2023 to 2024 school budget share (excluding rates)	£1,712,767.45	11+32

MFG - sample table for newly opened mainstream academies

The sample table is applicable to newly opened mainstream academies. If you are an existing academy, please see the previous sample table B.

1. Academic Year 2023 to 2024 school budget share

This is the SBS shown in your table A. It is the 2023 to 2024 financial year allocation calculated by the local authority adjusted pro rata for the proportion of the 2023 to 2024 academic year you are open.

Description	Value	Calculation
1. Academic Year 2023 to 2024 school budget share	£1,711,838.69	School budget share from table A

2. Minimum funding guarantee (MFG) adjustment - full year

This is the calculation made by the local authority for the whole 2023 to 2024 financial year. If a local authority has applied capping or scaling, then any affordability adjustment would appear as a deduction.

Description	Value	Calculation
2.Minimum funding guarantee adjustment- full year	£0.00	-

3. Pupil numbers used in original MFG calculation

This is the pupil numbers that were used in the original calculation.

Description	Value	Calculation
3. Pupil numbers used in original MFG calculation	315	-

4. Number of pupils actually funded

This shows the total number of pupils being funded.

Description	Value	Calculation
	4. Number of pupils actually funded	315	-

5. MFG adjustment- 366 days pro rata

This is the total MFG adjustment, proportioned for the number of days your academy is open in the academic year. For academies opening before or on 1 September 2023 this will be equivalent to the full year amount in the 2023 to 2024 academic year.

Description	Value	Calculation
5. MFG adjustment -366 pro rata	£0.00	(2 / 366 days x days open) x (4 / 3)

6. Adjusted academic year school budget share

This is the total school budget share from 1 that has any adjustments made from the days that are pro rata.

Description	Value	Calculation
6. Adjusted academic year school budget share	£1,711,838.69	1+5

Funding protection

Note: only applicable to newly opened mainstream free schools for their first year allocation.

Funding protection limits the impact of differences in the per-pupil funding element of budgets developed using the previous year’s financial template and actual budgets based on the new local formula.

The protection ensures a minimum change in per pupil funding year on year. The rate of protection will vary locally between 0% and +0.5%.

This element of protection funding is only applicable for the first year of opening and excludes SEN providers.

We compare the 2022 to 2023 academic year local authority average per pupil rate (intended to be representative of the funding in that year’s free schools financial template) to the 2023 to 2024 academic year local authority average per pupil rate.

If there is a fall in per pupil funding between the two academic years of more than the rate set by the local authority, then a protection amount will be payable.

The per pupil protection amount will be calculated using the 2023 to 2024 academic year pupil numbers.

Exclusions

The funding lines automatically excluded from the calculation are:

• mobility
• high needs
• sparsity

Funding protection - sample table

The example includes explanations to help you understand your own table B.

Overall per pupil rates

Line	Value	Calculation
1. Academic year 2022 to 2023 LA overall per pupil rate	£5,609.54	N/A
2. Academic year 2023 to 2024 LA overall per pupil rate	£5,618.03	N/A

Percentage change

Percentage change in the per pupil rate between the 2 academic years.

Line	Value	Calculation
3. Percentage change	0.15%	(2 - 1) / 1

Academic year 2023 to 2024 number on roll

The total number of pupils on roll in the 2023 to 2024 academic year will be used to calculate the total protection amount.

Line	Value	Calculation
4. Academic year 2023 to 2024 number on roll	210	N/A

Funding protection floor

Line	Value	Calculation
5. Funding protection floor	0.50%	N/A

Extent below floor

Line	Value	Calculation
6. Extent below floor	0.35%	IF 3 < 5 Then 5 - 3 Else 0

Difference per pupil

Line	Value	Calculation
7. Difference per pupil	£19.63	1 x 6

Does funding protection apply?

Line	Value	Calculation
8. Does funding protection apply	YES	IF (3 < 5, ‘Yes’, ‘No’)

Total funding protection amount – full year

This shows the total amount of protection payable.

Line	Value	Calculation
9. Total funding protection amount – full year	£4,122.30	4 x 7

Total funding protection – prorate (1 November 2023 to 31 August 2024)

The total allocation proportioned from the time you open until the end of the academic year, 31 August 2024.

Line	Value	Calculation
10. Total funding protection – prorate (1 November 2023 to 31 August 2024	£3.423.99	9 x 304 days / 366 days

Post-opening grant (start-up grant)

This will show as table B if a special or AP academy.

Table C will only be populated if you are due to receive start-up grant (SUG) or post-opening grant (POG) funding in the 2023 to 2024 academic year.

Start-up grant (SUG)

SUG is paid to full sponsored academies only. If your school is a free school these lines will not be populated in your statement.

There are 2 elements, part A and part B. Part A is a flat rate allocation that is paid in the first year of opening: 50% in month 1, 25% in month 2 and 25% in month 3. However, for academies opening between April 2022 and August 2022 this will not apply in the second year of opening.

Part B is a formulaic allocation that is intended to contribute to costs, such as leadership, as a new academy grows towards full capacity. It is paid over 2 years for primary schools and 3 years for secondary schools. All pupil or place counts will be agreed at point of opening and will not change for the purposes of calculating SUG thereafter.

Special and AP academies do not receive start-up grant B, which is a formulaic allocation for leadership capacity.

This is because these academies receive a general annual grant (GAG) allocation per place rather than per pupil, which already takes account of staff diseconomies of scale and recognises that place numbers in such provision can fluctuate widely throughout the year.

The part A rates and the calculation of part B are different for primary and secondary, and for special and alternative provision academies. More information is available in sponsored academies funding: advice for sponsors.

Post-opening grant (POG)

Free schools, studio schools and university technical colleges (UTCs) are provided with a post-opening grant to reflect the additional costs in establishing a new publicly funded school which cannot be met through the GAG.

Free schools (including special and AP free schools) established through the local authority presumption route won’t attract POG as the local authority is responsible for the pre-opening development costs and post-opening funding required to address diseconomies of scale until the school reaches full capacity.

The post-opening grant provides funding in two elements as the free school grows: per pupil resources, paid on a per pupil basis, and a leadership diseconomies grant. These titles reflect the basis on which the funding is calculated, but the grant can be spent on any legitimate purpose of the school.

The first element (resources) is paid each year that the school builds up to capacity for each new pupil expected to be on roll. The resources element is calculated at the time that the financial plan is agreed, prior to opening; the post-opening grant will not be reviewed on an annual basis to reflect actual pupil numbers. Once awarded, the post-opening grant will be paid in line with the financial plan.

The second element (leadership) is paid annually based on the number of year groups that the school will ultimately have that do not yet have pupils. The amount is paid to mainstream schools with pupils aged 5 to 15 each year depending on how many year groups (cohorts) are empty. The amount paid to special schools is a set rate for up to 3 years. Alternative provision schools are calculated on a case-by-case basis which is agreed with the project lead.

Post-opening grant (start-up grant) - sample table

Start-up grant part A

This is a one-off payment. Not applicable to free schools.

Line	Type	Value	Calculation
1	Start-up grant part A	£0.00	-

Start-up grant part B – formulaic allocation

The total part B value will be paid in the first 3 years after opening for secondary and the first 2 years after opening for primary academies. Not applicable to special and AP academies.

Line	Type	Value	Calculation
2	Start-up grant par B – Formulaic allocation	£0.00	-

Post-opening grant – per pupil resources

For free schools (including special and AP), UTCs and studio schools, this is the total of the resource element of the POG.

Line	Type	Value	Calculation
3	Post-opening grant – per pupil resources	£10,000.00	-

Post-opening grant – leadership diseconomies

For free schools (including special and AP), UTCs and studio schools, this is the total of the diseconomies element of the POG.

Please note that presumption free schools are excluded from receiving this funding.

Line	Type	Value	Calculation
4	Post-opening grant – leadership diseconomies	£38,000.00	-

Total post-opening grant (start-up grant) allocation

The sum of SUG or POG elements as applicable.

Line	Type	Value	Calculation
5	Total post-opening grant (start-up grant) allocation	£48,000.00	1+2+3+4

High needs place funding for mainstream academies

If you are a special or AP academy your high needs funding is explained here. This appears as table A in your statement.

Table D will only be populated for those mainstream academies that have designated special units or resourced provision.

High needs place funding provides a base level of funding. Any additional funding above this level (top-up) must be agreed with your commissioning local authority. Top-up funding is paid by the local authority and is therefore not shown on your GAG funding statement.

For mainstream academies and free schools, we determine the rate of place funding amount based on occupancy data provided in the APT, with the number of places confirmed as part of the place change notification process. The APT is the tool local authorities use to submit their local funding formulae each year. We ask it reflects HN unit occupancy as at the October census for the appropriate year and use that to calculate the occupied and unoccupied places to be funded. Occupied places will be funded at £6,000. Pupils in these places will also attract funding through the mainstream school formula.

Unoccupied places are funded at £10,000. This may apply where:

• the place is or will be occupied by a pupil registered on the roll of another school
• a place isn’t occupied at the time of the school census count, but is likely to be filled, and requires funding
• spare capacity is required for another reason

We confirm the number of high needs places in mainstream academies and free schools with units or resourced provision to fund in 2023 to 2024 as part of the annual place change notification process.

High needs place funding for mainstream academies – sample table

The example includes explanations to help you understand your own table D.

Lines 1 and 2

Place numbers: rolled forward 2022 to 2023 places (or agreed place numbers where a change in place numbers has been requested).

Unit value: £6,000 per occupied place, £10,000 per unoccupied place

Total allocation = place numbers x unit value

Type	Place numbers	Annual per place unit value	Total pre-16 allocation	Allocation to August 2023
1. Special unoccupied	1	£10,000.00	£10,000.00	N/A
2. Special occupied	8	£6,000.00	£48,000.00	N/A

Line 3

Place numbers: rolled forward 2022 to 2023 places (or agreed place numbers where a change in place numbers has been requested).

Unit value: £10,000 per place

Total allocation = place numbers x unit value

Type	Place numbers	Annual per place unit value	Total pre-16 allocation	Allocation to August 2023
3. Alternative provision	1	£10,000.00	£10,000.00	N/A

Line 4

Total pre-16 special allocation + total pre-16 alternative provision allocation.

In this example, £58,000.00 = 1 + 2 + 3

Special and alternative provision academies high needs place funding

Local authorities have a role in funding high needs pupils in academies, as a commissioner of special education provision for these pupils. This means that academies receive funding for pupils with high needs from both ESFA (place funding) and local authorities (top-up funding). In the case of AP, the top-up funding can also come directly from other schools, where they commission places directly.

High needs funding for pre-16 special educational needs (SEN) is funded on the number of agreed places, AP (which by definition is pre 16 only) is also funded on a per place basis.

In the 2023 to 2024 academic year, we will roll forward your 2022 to 2023 academic year place numbers and use these to calculate your allocation. The exception to this is where your local authority has requested a change in place numbers which was agreed with you (or accepted by ESFA where there was disagreement). In this instance, we would use this changed figure in your allocation. More information on this process is available in high needs funding arrangements: 2023 to 2024.

For any newly converted schools who are outside the scope of the annual place change notification process, place numbers will be determined using high needs and alternative provision (September to March) data.

EFSA must be notified if the Section 251 high needs and alternative provision data does not match the place numbers agreed with the local authority.

To inform ESFA of changes, notify the project lead overseeing the conversion to academy. ESFA must be notified of any change before conversion to an academy takes place. If ESFA is not notified of changes prior to conversion, section 251 will be used.

All AP free schools and new special free schools (opening after 1 October 2022) are out of scope of this process. Place numbers for free schools will be determined by ESFA based on a range of data, including the school’s financial plan, commissioning arrangements and occupancy levels.

Top-up funding above these levels, based on the assessed needs of the pupil and the cost of meeting these in the setting, should be agreed between the commissioning local authority and the special or AP academy. Top-up funding is paid for the period that the pupil is actually occupying the place in the academy. It is paid directly to the academy on a monthly basis, unless a different payment frequency is agreed with the local authority.

Top-up funding for pupils in AP can be paid directly by other academies and schools if they commission the places for those pupils. As top-up funding is not paid by ESFA, it is not shown on your GAG funding statement. Read the high needs funding 2023 to 2024: operational guide for more information on top up funding, including the minimum funding guarantee for special schools at its annex 1.

Hospital education places that exist in some academies will be funded at the same rate as in 2022 to 2023, unless the local authority has agreed a higher rate. Pupils occupying these places do not attract top-up funding.

Special and alternative provision academies high needs place funding - sample table

The example includes explanations to help you understand your own table A.

Pre-16 breakdown

Place numbers

For academies: rolled forward pre-16 2022 to 2023 places (or agreed place numbers where a change in place numbers has been requested);

For free schools: as agreed by ESFA

Unit value: £10,000

Total allocation = place numbers x unit value

Allocation to August 2024: (this column will only appear for academies opened within AY 2023 to 2024) = Total allocation x days open / 366

Type	Place numbers	Annual per place unit value	Total pre-16 allocation	Allocation to August 2024	Calculation
1. Special	134	£10,000	£1,340,000.00	£1,340,000.00	-

Allocation to August 2024: (this column will only appear for academies opened within AY 2023-2024) = Total allocation x days open / 366

Type	Place numbers	Annual per place unit value	Total pre-16 allocation	Allocation to August 2024	Calculation
2. Alternate provision	0	£10,000	£0.00	£0.00	-
3. Total pre-16 high needs place funding	N/A	N/A	£1,340,000.00	£1,340,000.00	=1 + 2

Hospital education breakdown

For academies: Funding per place remains the same as in 2022 to 2023, unless the local authority has agreed a higher rate.

For free schools: This is calculated by the local authority based on the agreed number of places you will provide. The local authority informs ESFA of the relevant amount.

Place numbers	Total hospital funding	Allocation to August 2024
334	£5,330,737.93	£5,330,737.93

Hospital education adjusted for 366 days

Total hospital education allocation, proportioned from the time you open as an academy until the end of the academic year. This will only appear for academies that opened within the 2023 to 2024 academic year.

Hospital education adjusted for 366 days (1 September 2023 – 31 August 2024).

In this example £5,330,737.93

Pupil number matrix

This table shows the pupil numbers used in each of the calculations. The sources of pupil numbers are the autumn 2022 census or the estimates provided by academies and agreed high needs places. Within your allocation the number of pupils attracting the various funding elements may differ. For example, the calculation for minimum funding guarantee (MFG) does not include reception uplift pupils.

Your local authority can opt to apply a reception uplift to your pupil numbers. The pupils counted in the reception uplift are also counted in all primary pupil-led factor calculations in the SBS, however, they are not included in the calculation of MFG.

For census-funded academies, pupil numbers are taken from the autumn 2022 validated school census using single registration at the school and current main-dual registration. However, where the local authority notifies us of variations in school census numbers (through their authority proforma tool, for planned growth or infrastructure changes) then these will be used to calculate your allocation.

For academies funded on estimates pupil numbers are drawn from the final validated revenue funding data collection (RFDC) dataset.

For free schools in your first year of opening, your pupil numbers will be taken from your finance plan.

Funding outside the GAG

The previous sections explain the elements that make up your pre 16 GAG funding. As an academy you may receive other revenue funding that is not part of your GAG. Some non-GAG funding has not been confirmed for 2023 to 2024 and this section will be updated as the grants are confirmed. Currently confirmed are:

• early years funding - paid by the local authority to academies with a nursery class through the early years national funding formula (EYNFF)

• pupil premium- paid in 4 instalments by ESFA. We have published the allocations for the 2023 to 2024 financial year.

• high needs top-up funding - paid by the local authority where required. In the case of AP, top-up funding can be paid directly by other schools and academies. Information about the high needs funding arrangements for 2023 to 2024 is available

• PE and sport premium - assists academies and schools to be able to deliver half of a child’s recommended daily physical activity

• mainstream schools additional grant (MSAG) - allocates funding to state-funded mainstream schools

Further information about revenue funding payments for academies, the growth fund and falling rolls fund is available.

In addition, your academy may receive capital funding.

Risk protection arrangement (RPA)

If you are a member of the RPA, any adjustment made to your funding will be shown on your monthly pay schedule. It is not shown on your allocation statement as it does not affect your allocation but does affect the amount you will receive on a monthly basis. If you opt into RPA after the allocation was published you will not receive an adjusted allocation statement, but your monthly pay schedule will be reissued. Details of the values for new academies are on the monthly remittance advice notes issued to the academy trust.