Academy Grants Calculations

General Annual Grant (GAG) – The main grant an Academy receives annually to allow it to meet its normal running costs.

Rates – paid on a cost basis alongside GAG.

Insurance – paid on a cost basis, this must follow procurement rules.

Earmarked Annual Grant – exceptional grant only paid to cover extraordinary (normally one-off) costs.

All start-up grants – calculated initially on opening.

From April 2011, DfE has mainstreamed the following grants into the Dedicated Schools Grant:

  • School Standards Grant
  • Schools Standards Grant (Personalisation)
  • School Development Grant (includes SDG Main, Post-LIG Deprivation and Transition, City Learning Centres, Specialist Schools and High Performing Specialist Schools). It does not include the amount previously paid through Area Based Grant (ABG)
  • School Lunch Grant
  • Ethnic Minority Achievement (EMAG)
  • 1-2-1 Tuition
  • Extended Schools – Sustainability
  • Extended Schools - Subsidy
  • Targeted Support for the Primary National Strategy allocated to schools (consisting of Universal and Targeted elements, Leading Teachers, Every Child elements, Early Years Foundation Stage, and Modern Foreign Languages)
  • Targeted Support for the Secondary National Strategy allocated to schools (consisting of Universal and Targeted elements and Leading Teachers)
  • Diploma Formula Grant
  • London Pay Addition Grant

All enquiries regarding calculation of funding for Sponsored Academies should be directed to the Academies Finance Team ( This ensures that queries are dealt with efficiently.

Schools which converted to Academy status since 1st September 2010 under the coalition government should contact their Academy Lead Officer (ALO) in the first instance regarding funding queries.

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