Academies (including special academies) are funded on the same basis as maintained schools. They receive annual funding allocations from the Education and Skills Funding Agency (ESFA), previously the Education Funding Agency (EFA).
The ESFA has published guidance on how academies are funded. It says:
We use the local authority (LA) formula to calculate [the funding for] mainstream provision, and place-led funding for pupils who attract high needs funding.
It also notes that allocations and payments to academies are based on an academic year. Maintained schools are funded based on the financial year.
The ESFA guidance linked to in section 1 explains that funding for academies comes primarily in the form of a grant known as the general annual grant (GAG). The GAG comprises the school budget share (SBS), which is calculated on a comparable basis as for maintained schools in the same LA.
Each academy has a funding agreement that it must publish. This sets out how the academy should operate.
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