Annal Nayyar explains Insurance top-up funding

EFA has confirmed a risk protection arrangement (RPA) for academy trusts will come into effect from 1 September 2014.

Currently, all academies receive per-pupil funding for insurance as part of their general annual grant (GAG). This funding is in 2 parts:

  • an amount delegated by the local authority through its local funding formulae, which is equivalent to the amount that maintained schools receive for insurance. This is estimated to be around £25 per pupil on average in the 2013 to 2014 academic year
  • an additional grant of £20 per pupil, to reflect the fact that, on average, insurance premiums are higher for academies than they are for maintained schools (the supplementary amount)

To assist academies, the Department for Education has worked with the Crescent Purchasing Consortium (CPC) to provide a route to the insurance market which offers best value for money. Many academies and multi-academy trusts have already been successful in bringing costs down through this route, and other forms of competition.

For guidance on procuring insurance, please see insurance arrangements for academies in academic year 2013 to 2014.

EFA recognises there could be some academies in specific and exceptional circumstances that may be unable to pay for their insurance premium from their 2013 to 2014 academic year funding. These academies can apply for top-up funding online, by submitting a top-up insurance form to EFA.

To complete the form academies will require the following information:

  • current insurer
  • confirmation that they have been through the CPC, or have secured 3 competitive quotes, or are in a private finance initiative (PFI) contract which includes specified insurance costs or another accepted route
  • current insurance premium
  • reasons which may explain why the per-pupil costs of insuring your academy for 12 months beginning in the 2013 to 2014 academic year are particularly high
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