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Government consults on the funding transfer for academies
When academies manage their own budget, they take control of funds that would otherwise be used by the local authority to support building work, pupil welfare, administration and outdoor education.
Consequently, the Department for Education (DfE) has announced plans to change the way that the amount transferred is calculated from April 2012, to ensure it accurately reflects the services handed over to academies from local authorities.
According to the Secretary of State for Education, Michael Gove, this will be achieved in two ways:
“Firstly we will, in future, only take account of net expenditure on education services; and secondly, in areas where some responsibilities remain with the local authority, we will only use a proportion of spend in those areas to determine the amount to be transferred.”
The government will now consult with local authorities, the Local Government Association and London Councils on the proposals until Thursday 12th January 2012.
These measures will be welcome news to the councils, which are set to lose between £940 million and £1.06 billion by 2012-13 as schools are converting to academy status at a far higher rate than expected.
Indeed, the Local Government Association argued that only £60 million would be saved from council budgets for every 200 academies, which meant that the government’s original funding methodology was “fundamentally flawed”.
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