Academies can keep 10% of GAG payments for non-existent pupils

Following-up a piece in the Guardian and a tweet from Warwick Mansell it seems that academies can keep 10% of General Annual Grant (GAG) overpayments based on pupil estimates. This could provide a motive for consistently over estimating pupil numbers - which is what the DfE appears to be complaining about - it also puts into context the DfE's claim that it can recover money wrongly given to academies (i.e. only cash above the first 10%).



United Learning Trust's funding agreement says: 'The basis of the pupil number count for the purposes of determining GAG will be the Company’s estimate in November for numbers on roll in the following September.'

It adds: 'The Secretary of State reserves the right to make adjustments in the level of GAG payable to the Company in respect of each Academy in the following circumstances:
a) pupil numbers at the relevant Academy are 10% or more below estimates;
b) pupil numbers at the relevant Academy are 5% or more above estimates;
c) additional grants relevant to an Academy are made by the Secretary of State to maintained schools.'