There are three types of funding for Academies: initial grants for the revenue costs of feasibility planning and the implementation of plans to establish an Academy; capital grant for buildings; and funding for running costs once the Academy is open.
Feasibility and Implementation Costs
The Government will agree grants with projects for feasibility and implementation work to cover areas such as project management, consultancy and transitional management and staffing costs. These grants will cover all the costs of preparing for the Academy and cover the period from the announcement of the partnership to the opening day.
The Academies programme recognises the importance of providing the right environment for the delivery of a relevant curriculum to the first part of the 21st Century. Each academy will develop individual curriculum plans which will inform the design process, ensuring facilities comparable with similar state funded schools for local children and their communities.
For the first academies, sponsors contributed up to £2 million towards the costs of the new or refurbished school buildings, and the Government provided the balance of the funding in line with the agreed budget. However, Academy buildings are now procured through Partnerships for Schools (PfS) and local authorities as part of the Building Schools for the Future programme, and sponsorship now takes the form of an endowment fund that is not connected to building work.
For some academies there will be an extensive programme of rebuilding and refurbishment. For others complete new buildings may be necessary. Decisions about the capital project will take account of the sponsors' views as well as expert advice commissioned by the Department for Children, Schools and Families.
The Government is committed to funding Academies on a comparable basis to other schools in their areas with similar characteristics. Each Academy receives a General Annual Grant from the Secretary of State to meet its normal running costs. This is calculated on the basis of the funding formula of the Local Authority in which it is situated, with an additional allowance for the money which Local Authorities hold back from maintained schools. General Annual Grant also includes a per pupil allowance in relation to the Academy specialism on the same basis as maintained schools with a specialism. Funding Academies on a comparable basis to other schools ensures that the successes which they achieve are directly applicable to other schools in the sames areas and circumstances.
Because Academies receive the bulk of their funding direct from the Government, governors have the opportunity to manage a higher proportion of the budget than maintained schools. They can direct funds to the priorities of their Academy, encouraging greater flexibility and innovation.
In addition to the grant from the Secretary of State, Academies are eligible to receive Standards Fund grant and Leadership Incentive Grant, which are routed through LAs, on the same basis as neighbouring maintained schools.
