Academy Funding

Introduction & Posting Guidelines - Please Read First

It has been stated that "there should be no financial advantage or disadvantage for a school converting to academy status."

It is difficult to square this statement with the following information taken from a consultation document prepared by Preston Business and Enterprise College in Somerset.

I include THIS LINK to their full consultation outline document which is very instructive and seems to me to be exemplary in its approach.

Funding:

Funding is payable by the Secretary of State


Academies receive the same funding as maintained schools with the additional funding for services that the LA would have provided – it is clear however that there is currently a financial incentive to convert now and the quicker the conversion the greater the financial gain


A school converting on or before 1st August will receive additional funding of £539 per student, based upon current student numbers the school would receive an additional £506,121 per annum.


A school converting on or after the 1st September will receive additional funding of £239 per student


Initial indications are that the funding difference will reduce over time, we are still waiting for exact details although initial enquiries suggest a drop of between 10-20% in the second year


An additional £25,000 grant is payable to support the school's conversion to an Academy


The introduction of a new national funding arrangement is expected for 2014/15, I would anticipated parity for all Academies as an outcome of this process


All costs associated with running the school become the responsibility of the Academy Trust – increased liabilities include maternity leave, redundancy costs, pension provision, legal costs, insurance and indemnity requirements.