Annal Nayyar- Savings to the education services grant for 2015 to 2016

The Education Services Grant (ESG) is an un-ringfenced grant paid to local authorities

and academies. There is a general funding rate, which is the same for pupils in local

authority maintained schools and academies. Currently, academies also receive

additional transitional protection. When we introduced the ESG, we said that this

transitional protection will be removed over a limited period of time, so that rates for local

authorities and academies are aligned. In addition to the general funding rate, local

authorities currently receive an additional retained duties rate of £15 for all pupils

attending a state-funded school (whether a maintained school or an academy).

In June 2013 we announced that we would reduce the ESG by around £200 million in

2015-16. These savings help the Government to protect front-line budgets including the

dedicated schools grant and the pupil premium.

A consultation on Savings to the Education Services Grant was published on 27 March

2014. The purpose was to gather views about how the grant was being used, how much

money could be saved and the impact of making those savings. We were also interested

in whether there was any further clarification or guidance we could provide in order to

help local authorities and academies deliver these savings, as well as whether there

were any functions that local authorities or academies should stop doing completely.

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