Funding and finance
The YPLA is responsible for funding Academies. Under the remit letter from the Secretary of State, the YPLA is required to support the success of Academies by funding them fairly; providing high quality support and offering rigorous challenge.
Funding for Academies is paid from money transferred to the YPLA from DfE.
Funding Agreements for all open Academies can be found on the DfE website.
Sponsored Academies are established by the Secretary of State entering into a contract – the Funding Agreement - with a charitable company, which is often referred to as the Academy Trust.
This Academy Trust is incorporated with the sole intent of running one or more Academies, and the Funding Agreement provides the framework within which the Academy must operate.
It is important to stress, the exact nature of each Academy’s Funding Agreement will vary and will reflect the needs of the area and the Academy Trust.
Converter Academies receive similar funding to local maintained schools together with a grant based on services previously provided by the LA which the Academy will now have to provide. Academy funding is based on funding in the relevant local authorities because the funding level reflects local needs.
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;
- funding for running costs once the Academy is open
