JLL

Essential reading for education companies worldwide
 
 
Remember me:
Skip Navigation LinksEI article
Academies funding error exposed as DfE publishes consultation

Many academy schools were overfunded by hundreds of thousands of pounds last year as a result of inaccurate government funding formulas, new research has found.
 
An investigation by the Financial Times has concluded that an average secondary school with 1,000 pupils, which converted to academy status at the start of 2010-11, would have received £118,000 more in public funding than an equivalent local authority-maintained school. Some schools may have received over £300,000 in extra funding, the newspaper said.
 
Schools that convert to academy status receive similar per pupil funding for teaching, but also get a grant to pay for the services no longer supplied by their local authority. The Department for Education (DfE) said the formula for calculating this grant is “flawed” and had caused the funding errors.
 
Education secretary Michael Gove outlined new measures that would be taken to improve the funding system following a consultation with local authorities, launched in July 2011.
 
From April 2012, funding allocations for academies will take account of “net expenditure on education services”, he said in a ministerial statement. Gove also announced that, in areas where some responsibilities remain with the local authority, the DfE will only use “a proportion” of council spend when working out the amount to be transferred.
 
In addition, a cap was announced on the maximum amount to be transferred from council budgets in 2012-13. This will be synchronised with cuts announced by the Department for Communities and Local Government.
 
Gove said this arrangement, while providing “financial certainty and stability” to local authorities, would also mean “that the government will continue to provide a considerable amount of double funding in this area”.


Posted on: 09/12/2011




Latest news

21/09/2017
English language training provider St Giles International has acquired Cambridge-based New School of English and will be rebranded St Giles Cambridge.
21/09/2017
Investment fund Downing LLP has backed science education start-up Empiribox with £1 million.
20/09/2017
German tutoring firm Studienkreis, owned by investment group Aurelius Group, is up for sale, EducationInvestor can reveal.
20/09/2017
Private equity firm Key Capital Partners has invested £4 million in exchange for a minority stake in IT training and services provider Sparta Global.
20/09/2017
Dubai-based after school activities platform AfterSchool has said it is planning to raise $1 million through an Initial Coin Offering (ICO) with the issuance of its own Afterschool Tokens (AST).
19/09/2017
Tristan Capital opportunity fund European Property Investors Special Opportunities lV (EPISO 4) has acquired a 90% interest in Liverpool-based developer Downing.
19/09/2017
Private education firm Curro Holdings has said it is planning to list its tertiary education subsidiary Stadio on the Johannesburg Stock Exchange raising R840 million (£47 million).
18/09/2017
The Indian arm of education publisher Pearson is to open an online international school called International Connections Academy, this week.
18/09/2017
Bengaluru-based learning platform Unacademy has raised $11.5 million (£8.5 million) in a Series B funding round led by Sequoia India and SAIF Partners.
14/09/2017
Special education needs provider Aurora Group has bought Foxes Academy for an undisclosed amount.



EducationInvestor Global conference

global | France country profile

With a reformist president at the helm, France is boosting investor confidence again. Kirsten Noben investigates what it means for the education sector
Read more...


JLL

Parthenon

Features and analysis

Israeli firm KIDOZ Network has developed a content platform for children. Founder Gai Havkin tells us more

Popular predictions for the future of education are fast becoming outdated, says education digital strategist and founder of Teachit Garry Pratt

Sandbox & Co invests in and grows learning companies which serve millennial parents. Founder Bhav Singh tells us more

The platform is laid for African countries to see an explosion of education innovation over the next decade. Investors wanting to beat the herd may need to move rapidly though, says Jamie Martin, chief executive of ed tech incubator Injini

British investor Khalid Muhmood, chief executive of Singapore-based Dragonfly Education Group, talks candidly about setting up an education group far from home

The international schools market in India is on the cusp of significant expansion that could open up exporting opportunities for K12 providers says Richard Gaskell, schools director at ISC Research

The Philippines is an open territory for education investors and its government is highly receptive to private education but the quality of provision has so far been sketchy, explains Tony Mitchener, management consultant and national director of the Australia Indonesia Business Council

New Zealand’s higher education institutions have reaped the benefits of being close to Australia, the same is true of Canada with the US but Ireland has been a unique case. Jacob Kestner, senior vice president of EduCo discusses Ireland’s new bid to attract more students

Deloitte