explaining academy status

Children & Young People’s Department
Academy Briefing
Church of England Schools
Gloucester Diocese
Academies are publicly funded independent state schools.
Funding comes directly from central government rather than
via the Local Authority.
Members of the Academy are directly accountable to the
Secretary of State for the academy’s performance
The Governing Body decides whether to apply to convert to
an academy (however, for schools deemed to be ‘failing’, the
Secretary of State can insist on an ‘Academy Order).
For CE schools, the Diocesan Board must approve academy
Conversion to academy status is irreversible.
National Society
Department for Education
Secretary of State
Local Authority and Diocese
Governing Body
Head Teacher
Secretary of State
Land &
Academy Trust
Governing Body
Company Law
Charity Law
Head Teacher
What’s different about
Differences from other
....and what stays the
Laws on admissions,
exclusions and SEN
Partnership and
Not for profit
Freedoms: Facts
Academies have freedom
from Local Authority ‘control’.
to adapt or vary the National Curriculum.
to vary pay and conditions for staff.
to change length/timing of school day/term/year.
to choose their provider across a wider range of
Freedoms: Issues
Schools are already largely self-managing.
Academies must still comply with the law
on admissions, SEN and exclusions.
Converting schools are normally expected
to partner a less successful school.
Governance: Facts
Academies are companies limited by guarantee and are
charitable trusts.
Members of the company are guarantors not
Governors are directors of the company and trustees of
the charity.
The academy company is the admissions authority,
employs school staff and owns the premises.
The academy company is accountable for standards and
The Academy Company
who become
Company Directors
and Charity Trustees
Governance: Issues
Governing Bodies may be smaller with fewer elected
parents or staff reps.
Members may appoint governors to maintain majority.
Levels of delegation to governors from members may
Academy members’ liability is up to £10 per head.
The Trust must ensure that Governors’ (as Directors)
have indemnity insurance to ensure they are fully
Accountability: Facts
Academies are independent of Local Authority
They are ultimately responsible to the Secretary
of State and the Education Funding Agency.
Funding agreement sets out obligations.
They are still subject to primary legislation
covering e.g. employment, health & safety and
Accountability: Issues
Schools are already largely autonomous; the LA
does not exert operational control over day to day
An academy will have fewer links with the local
democratic decision making process.
Reduced support from LA if problems occur: may
be purchased but may no longer be available.
Curriculum: Facts and Issues
Academy must
provide a ‘broad and
balanced’ curriculum
but can vary or adapt
the National
How to maintain
continuity from phase
to phase of schooling.
Staffing: Facts
On conversion staff will TUPE on current terms
and conditions.
Academies can later choose to change contracts
and set own pay structures.
Increased employers’ contribution for nonteaching pensions.
Must offer access to national pension schemes
to staff.
Staffing: Issues
Each school establishes own
arrangements for salary negotiation.
Newly appointed staff are not
automatically employed on national pay and
Academy must manage staff response to
any proposed changes in pay and
Premises: Facts
Academy has a Supplementary
Agreement with the trustees and they
manage the premises.
CE Schools converting need a “licence to
occupy” their buildings.
VA schools converting will no longer have
to find 10% contribution to capital projects.
Premises: Issues
No automatic access to LA expertise and
support in event of problems or critical events.
May have to use contractors with no detailed
knowledge of buildings.
Academies assume responsibility and liability for
day to day management of premises including
H&S and asbestos.
No guarantee of capital levels in future: current
applications very oversubscribed.
The Principle of Funding
Becoming an academy “should not bring about a
financial advantage or disadvantage to a school”
However, academies have greater freedoms on
how they use their budgets.
This is specifically in relation to the LACSEG
funding they receive to meet additional
responsibilities that are no longer provided for
them by the Local Authority.
How Funding is Calculated
The funding for academies comes from the DfE (via the
Education Funding Agency (EFA)) in the form of a grant the General Annual Grant (GAG).
This is calculated and paid over the academic year rather
than the financial year.
It consists of two parts
an amount equivalent to the school’s current delegated
budget share (by far the largest part of the GAG).
additional money (known as LACSEG) to cover those
central services the Local Authority no longer provides.
Local Authority Central
Spend Equivalent Grant
This is the additional money an academy receives to cover
those services no longer provided by the LA.
It varies considerably from LA to LA, depending on how
much each LA holds back to pay for central services.
The grant is calculated by the EFA, and has two elements:
a flat rate per pupil on roll.
an additional amount based on the number of SEN pupils on
either school action or school action plus.
LACSEG is not based on the actual costs of the services
currently supplied to an individual school.
New Responsibilities
Schools already pay for a range of services out of their
delegated budget.
Academies receive funding (through the LACSEG) for
extra responsibilities, hitherto covered by the LA.
Services and costs currently
funded from a local
authority’s schools budget
SEN support services.
Behaviour support services.
14-16 practical learning options.
School meals and milk.
Assessment of FSM eligibility.
Repair and maintenance of kitchens.
Museum and library services.
Licences and subscriptions.
Central staff costs (maternity, long term
sickness and trade union duties).
 Costs of certain employment terminations.
Services and costs funded
from other local authority
Costs of LA statutory/regulatory duties.
Asset management costs.
School improvement services.
Monitoring national curriculum assessments.
Education welfare services.
Pupils’ support (e.g. clothing grants).
Music services.
Visual and performing arts services.
Outdoor education services.
Certain redundancy and early retirement costs.
Local Authority Retained
The LA retains funding for some statutory services that it
has to continue to provide.
These are:
home to school transport;
educational psychology;
SEN assessment and statementing;
monitoring of SEN provision etc.;
prosecution of parents for non-attendance;
some individually assigned SEN resources;
provision (through a PRU or education otherwise) for a pupil no
longer registered at an academy.
Deficits and Surpluses
Deficits and surpluses transfer with the school
on conversion.
If an academy opens with a deficit then the EFA
would repay the Local Authority.
The academy would then be required to agree
with the EFA a plan to repay it from GAG
Academies are not allowed to run a deficit
without remedial action.
One–off Costs of
A school in the process of converting receives a
one-off grant of £25K.
This is intended to cover the legal costs incurred
by both the school and the Diocese, and the
accountancy and project management costs
incurred by the school.
Academy Funding in
the Future
The government’s view is that the current
system of school funding is too complex and
In addition, as more schools convert to
academies, a system of funding based on a local
authority driven formula becomes unsustainable.
The government has consulted on proposals for
a new school funding formula.
The new formula would be used to calculate the
budgets for academies in the area.
Diocesan Umbrella Trust
Secretary of State
Academy Trust
Governing Body
Head Teacher
Secretary of State
Academy Trust
Governing Body
Governing Body
Head Teacher
Governing Body
Head Teacher
I have come that
they may have
life in all its
John 10
Children & Young People’s Department
Academy Briefing
Church of England Schools
Gloucester Diocese