How to set up a Govt Funded New School in UK in 2025: How to getting Free Funding for Schools: Free schools are government-funded independent schools designed to give parents more choices and improve education standards. These schools can be established by teachers, parents, charities, or community groups, providing an alternative to traditional state schools.
Since their introduction, over 250 free schools have opened across England, with more than 100 additional schools planned from September 2015 onwards. These schools aim to enhance educational opportunities for children from all backgrounds.
Who Can Set Up a Free School?
The free schools programme allows various groups to open new schools, including:
- Teachers – Experienced educators looking to innovate in education.
- Parents – Groups of parents who want better schooling options for their children.
- Charities – Organizations dedicated to improving education.
- Community Groups – Local groups committed to providing high-quality education.
These schools operate independently but receive government funding, ensuring they remain free for students while maintaining high educational standards.
How to Get Involved in Setting Up a Free School
If you’re interested in opening a free school, you can take the following steps:
- Visit the New Schools Network Website
- The New Schools Network provides guidance and support to those interested in establishing a free school. You can visit their website for detailed information and advice.
- Contact: Phone – 020 7537 9208 or Email – info@newschoolsnetwork.org
- Review Department for Education (DfE) Guidelines
- The Department for Education (DfE) oversees the approval process. They provide clear guidelines and criteria that applicants must meet.
- Submit an Application
- The DfE accepts applications three times a year in designated application rounds.
- Proposals must demonstrate how the school will improve education and meet the needs of the local community.
How Long Does It Take to Set Up a Free School?
The process for establishing a free school has been simplified in recent years. Once the DfE grants approval, it typically takes just over a year for the school to start operating.
While the process is rigorous, it has been made quicker and more efficient, allowing approved schools to open their doors to students in a relatively short time.
Free schools offer an exciting opportunity to improve education by giving communities more control over how schools operate. Whether you are a parent, teacher, or community leader, you can contribute to setting up a free school and help shape the future of education in your area. With government funding and a streamlined approval process, it is now easier than ever to create schools that meet the needs of young learners.
How to Get Funding for FREE School
Academies, including free schools, university technical colleges (UTCs), and special academies, receive government funding from the Education and Skills Funding Agency (ESFA). Their funding follows the same basis as maintained schools, but allocations and payments for academies are based on the academic year, while maintained schools follow the financial year.
This guide explains how academy funding works, key updates for 2024-2026, and how schools can access their funding statements.
How Are Academies Funded?
Most funding for academies comes from the General Annual Grant (GAG). This grant includes:
- School Budget Share – Similar to maintained schools in the same local authority.
- Minimum Funding Guarantee (MFG) – Ensures funding stability, with a 0.0% to 0.5% per pupil increase in 2024-25.
- High Needs Funding – For pupils requiring special education, funded by both ESFA and local authorities.
- Start-up Funding – Provided for newly opened academies.
Academies also receive 16 to 19 funding for students in post-16 education and additional revenue funding through separate grants.
Funding Allocations for 2025-2026
National Funding Formula (NFF) Update
On 28 November 2024, the Minister of State for School Standards announced the National Funding Formula (NFF) allocations for the 2025-26 academic year. Schools can view:
- Provisional NFF allocation tables
- Technical notes and policy documents
Local authorities continue to determine individual school budgets within the framework of the Schools Operational Guide.
General Annual Grant (GAG) Allocation Timetable
- Academies open before February 2025: GAG allocation statements will be issued from late February to March 2025.
- Academies opening between February and March 2025: Statements will be available by April 2025.
Statements will be available online through the Manage Your Education and Skills Funding (MYESF) portal.
Accessing Your Funding Statement
Academies can access their digital GAG statements via the MYESF portal. Schools will receive automated emails when their statements are available.
How to Access Your Statement:
- Log in to DfE Sign-in.
- Request access to the MYESF service.
- Select the ‘View Allocation Statements’ sub-service.
- Submit your request for approval.
Academy trusts can access statements for all schools within their trust using their Trust UKPRN DfE sign-in.
Funding Allocations for 2024-2025
General Annual Grant (GAG) for 2024-25
- GAG allocation statements for academies open before February 2024 have already been issued.
- Academies opening between February and March 2024 have also received their funding details.
- Schools can download statements from the Document Exchange under “Documents received from ESFA”.
New Digital GAG Statements
- In 2024-25, ESFA tested a digital format for GAG statements in MYESF.
- Schools could access both PDF and digital versions.
- Feedback was collected for further improvements in 2025-26.
Academy Revenue Payments
Payment Process
- ESFA pays GAG funding in 12 equal instalments each month.
- Payments come with a monthly remittance note for tracking.
- Schools can update bank details via the Revenue Funding: Payments to Academies page.
Additional Revenue Funding
Apart from the GAG, academies may receive:
- 16 to 19 Funding – Allocations for post-16 education.
- High Needs Funding – Provided by both ESFA and local authorities.
- Other Revenue Grants – Various government grants available for specific needs.
For full details, academies can visit the Revenue Funding: Payments to Academies page.
Academies receive funding through the General Annual Grant (GAG), which includes school budget share, high needs funding, and start-up funding. Funding is allocated based on pupil numbers, with payments made monthly by the ESFA.
For 2025-26, funding will continue under the National Funding Formula (NFF), with digital allocation statements available via MYESF. Schools should ensure they have DfE Sign-in access to receive their funding statements on time.
With a streamlined funding system, academies can better manage their budgets and ensure high-quality education for their students.
Source:
https://www.gov.uk/government/get-involved/take-part/set-up-a-new-school
https://www.gov.uk/guidance/academies-funding-allocations
FAQ
How are academies funded in England?
Academies receive funding through the General Annual Grant (GAG) from the Education and Skills Funding Agency (ESFA). This covers school budget share, high needs funding, and start-up grants.
What is the National Funding Formula (NFF)?
The NFF is a government funding model that determines how much money each school gets. Local authorities apply this formula to set individual school budgets.
When will academies receive their 2025-26 funding statements?
Academies open before February 2025 will receive their GAG allocation statements between February and March 2025. Schools opening later will get them by April 2025.
How can academies access their GAG statements?
Schools can view their funding statements online via the ‘Manage Your Education and Skills Funding’ (MYESF) portal. A DfE Sign-in account is required.
What is the Minimum Funding Guarantee (MFG)?
The MFG ensures that per-pupil funding does not fall below a certain percentage. For 2024-25, local authorities can set MFG between +0.0% and +0.5%.
Do academies receive high needs funding?
Yes, high needs funding is allocated by both ESFA and local authorities for students requiring additional educational support.
How often are academy payments made?
Academies receive GAG payments in 12 equal monthly instalments from ESFA.
Is additional funding available for academies?
Yes, academies can receive extra grants for 16 to 19 funding, special education needs, and other government support programs.
