Guidance

Core schools budget grant (CSBG): conditions of grant for the 2024 to 2025 financial year

Updated 22 April 2025

Applies to England

The Education and Skills Funding Agency (ESFA) closed on 31 March 2025. All activity has moved to the Department for Education (DfE). You should continue to follow this guidance.

1. 滨苍迟谤辞诲耻肠迟颈辞苍听听

1.1 尝别驳颈蝉濒补迟颈辞苍听

The core schools budget grant (CSBG) will be paid by the Secretary of State for Education as a grant under section 14 of the Education Act 2002. In accordance with section 16 of that Act, the Secretary of State attaches the following terms to the grant payable.

1.2 笔耻谤辫辞蝉别听

The CSBG will provide almost 拢1.1 billion to support schools with their overall costs in the 2024 to 2025 financial year, in particular following confirmation of the 2024 teacher pay award.听

The Education and Skills Funding Agency (ESFA) will pay the CSBG funding to local authorities for maintained mainstream schools and centrally employed teachers (CETs), and directly to mainstream academies and city technology colleges on behalf of the Secretary of State for Education.听

For maintained special schools and pupil referral units, and for special and alternative provision (AP) academies, independent special schools, and hospital education, ESFA will pay the CSBG funding to local authorities.听

Non-maintained special schools (NMSS) will be funded directly by ESFA.

1.3 笔别谤颈辞诲听

These conditions of grant cover the financial year 2024 to 2025.听

The funding for mainstream primary, secondary and all through schools will be incorporated into core budget allocations for 2025 to 2026, by being rolled into the schools national funding formula (NFF) for 2025 to 2026. Funding for CETs will be rolled into central schools services block funding for 2025 to 2026.听听

In financial year 2025 to 2026, we will combine into a single grant to local authorities, the CSBG, teachers鈥 pay additional grant (TPAG) and teachers鈥 pension employer contribution grant (TPECG 2024) allocations for special and AP schools and hospital education.

2. 贰濒颈驳颈产颈濒颈迟测听听

2.1 Types of settings听

The following settings are eligible to receive funding via local authorities:听

  • 5 to 16 provision in maintained mainstream schools听

  • 5 to 16 provision in pupil referral units (PRUs)

  • 5 to 16 provision in AP academies and free schools听听

  • maintained special schools听

  • special academies and free schools听

  • independent special schools听

  • maintained hospital schools and academies

The following settings are eligible to receive funding directly from ESFA:听

  • 5 to 16 provision in mainstream academies and free schools (including studio schools and university technical colleges)听

  • city technology colleges听

  • non-maintained special schools (NMSS)

2.2 Centrally employed teachers听

Local authorities are also eligible to receive funding for teachers who are centrally employed by the local authority. Dependent on local definitions, it may cover the following teachers:鈥

  • peripatetic teachers, home tutors, and teachers who are employed by education authorities to provide education in institutions other than schools (for example hospitals, home tuition, assessment centres and PRUs).

3. 笔补测尘别苍迟蝉听听

3.1 颁补濒肠耻濒补迟颈辞苍听听

Allocations of this grant have been calculated using the methodology provided in the CSBG methodology document.听听

3.2 Payment timetable听

ESFA will pay the CSBG to local authorities for the period 1 September 2024 to 31 March 2025 in a first payment in November 2024, with an updated payment in March 2025.

This second payment will include funding for high needs settings, based on any net increase in place numbers at local authority level as a result of new data on 2024 to 2025 academic year place numbers in maintained special schools and pupil referral units (to take account of new data from the 2024 to 2025 section 251 budget returns from authorities), and special and AP academies and free schools (taking into account new schools that have opened in September 2024).

The second payments of the CSBG in March 2025 will also include allocations for 鈥渘ew and growing鈥 mainstream schools, as set out in the methodology document.

Mainstream academies and NMSS will receive their allocations directly from ESFA.

LAs (high needs settings and CETs) and their maintained schools Academies
Payment 1 November 2024 December 2024
Payment 2 (to cover new and growing schools) February 2025 March 2025
Payment 3 (for high needs settings, based on any net increase in place numbers) March 2025 April 2025

3.3. School closures, openings and academy conversions听

3.3.1 Mainstream maintained schools and 补肠补诲别尘颈别蝉听

For mainstream schools that open in September 2024, we will confirm鈥 CSBG鈥 allocations in February 2025. We will calculate their allocations using pupil number data from the October 2024 census.鈥

The allocation will be pro-rated to the proportion of the 2024 to 2025 financial year that the setting is open.听

ESFA will make a听revised allocation to mainstream schools that are not fully open and are still growing their year groups since opening. This means that if, at the start of the autumn term 2024, the setting has been open for fewer years than the number of year groups in the setting; ESFA will confirm the setting鈥檚 final allocation for 2024 to 2025 in February 2025, revising the indicative allocations published in autumn 2024.

The revised allocation will be based on pupil numbers in the October 2024 school census.听听

If a school closes during the financial year, the local authority (for maintained schools) should allocate鈥痶he grant for the proportion of the financial year the setting is open.听

Local authorities should pay the CSBG allocations to any and all schools listed as maintained schools in the local authority area on the relevant allocation spreadsheet.

In a small number of cases, schools that convert to academy status after the allocations spreadsheet is produced, will still be listed as local authority-maintained schools on the allocations spreadsheet. In such cases, the local authority should still pass the funding listed on the spreadsheet to the successor academy.

The grant allocation is intended for the school and it will be assumed the local authority passed on the entire grant funding to the school immediately upon receipt from ESFA. In addition, any unspent grant funding should remain with the school after it converts.听听

In respect of calculating a school鈥檚 final accounts, any pro-rated amount up to the point of conversion is included in the balance calculation for the school. The remaining amount which relates for the period after the school has converted should be accounted for by the academy.

3.3.2 Maintained special schools, PRUs and special and AP 补肠补诲别尘颈别蝉听

For the second payment of the CSBG to local authorities, ESFA鈥痺ill use 2024 to 2025 academic year place numbers for maintained special and鈥AP鈥痵chools, as published in the 2024 to 2025 section 251 data from local authorities.

In calculating their allocations to those schools, local authorities should reflect any changes to the place numbers for their maintained special schools and PRUs (for example, reductions or increases in the place number, or the closure of a school), including any that are not included in the published data.

For the second payment of CSBG, ESFA will also use updated data on 2024 to 2025 place numbers for academies and free schools, including new special and鈥AP鈥痜ree schools that have opened, or special or AP academies that have closed. Local authorities should reflect such changes to the place numbers in their allocations to academies and free schools as well.

3.4. Additional local authority duty听

Local authorities will be required to certify that they have passed on the correct amount of funding to schools or, where funding has been spent centrally, that it has been spent in line with these conditions of grant.鈥 The Department for Education (DfE)鈥痺ill issue a certification form in spring 2025. Local authorities must pass funding on to their maintained schools in a timely manner in line with their scheme for financing schools.听

Mainstream schools听听

Local authorities must pay CSBG funding to each:听

  • maintained primary and secondary school听

  • all-through maintained school听

the allocation amounts shown in the school level and local authority allocations.听

Local authorities must comply with the condition above irrespective of any deficit relating to the expenditure of the school鈥檚 budget share.听

We have now published school level allocations

Special schools听听

Local authorities must pay鈥CSBG鈥痜unding to each:听

  • maintained special school听

  • special academy and free school听

  • PRU maintained by a local authority (pre-16 provision only)听

  • AP鈥 academy and free school (pre-16 provision only)听

  • maintained hospital school and equivalent academy听

which they are responsible for maintaining, which they previously maintained but is now an academy or, in the case of a free school, which is located in their area.

Local authorities will not receive an allocation for鈥NMSS, which will be funded directly by鈥ESFA.听

Local authorities must comply with the following requirements in setting their local methodology for how they will pass on the additional funding to the eligible school types as listed above, excluding the funding notionally allocated for helping with any independent school fee increases.听

Local authorities must:听

  • pass on 100% of鈥痶he鈥CSBG鈥痜unding that is allocated, in total, in respect of鈥痶he eligible school types as listed above, to eligible schools. The total amount is published for each local authority鈥

  • ensure that all eligible schools receive a funding allocation of鈥CSBG鈥痠n the period September 2024 to March 2025听

  • have transparent criteria to distribute funding to individual schools, treating academies and mainstream schools the same. This includes using the same 2024 to 2025 academic year place numbers as the basis for the allocations, even though those numbers for maintained schools will not be used until the updated allocations to local authorities in March 2025听

  • consult with eligible schools before deciding the methodology for allocating鈥CSBG鈥痜unding.听

Local authorities should seek to swiftly confirm the allocations for eligible鈥痵chools to provide institutions with the earliest possible certainty over their budgets.听

Local authorities are also allocated funding based on the number of pupils with education, health and care (EHC) plans placed in independent schools, as reported in the January 2024 AP census.

This funding is to support the payment of any increases in fees charged by independent schools as a result of any increases in costs due to the teachers鈥 pay award and other staff salary increases.听听听

Local authorities should also use this funding to support independent special schools with costs when 鈥 due to the timing of fee agreements 鈥 those costs have not been reflected in the fees for 2024 to 2025. Local authorities should pass on 100% of the funding notionally allocated for independent special schools, on either of the 2 circumstances above.听

NMSS will receive their funding directly from ESFA.听

Centrally employed teachers听

罢丑别鈥CSBG鈥痺ill provide funding to local authorities in respect of teachers categorised as centrally employed on the schools workforce census 2023.鈥

Local authorities should allocate all or a portion of the funding they receive for their CETs.听

In all settings鈥疌SBG鈥痜unding for mainstream schools is not part of maintained schools鈥 budget shares nor part of the individual schools鈥 budget. It is not part of academies鈥 general annual grant (GAG). It is not to be counted for the purpose of calculating the minimum funding guarantee for 2024 to 2025.听

4. Assurance听

4.1 Eligible spend听

Mainstream, special and AP academies (including hospital schools), and NMSS must only spend CSBG funds for the purposes of the school.听听

Local authorities must ensure that their maintained mainstream and special schools, PRUs and hospital schools only spend CSBG for the purposes of the school or unit.听

4.2 Carry forward听

In all schools, CSBG funds may be carried forward past 31 March 2025.

5. Further information听

Books, other documents and records relating to the recipient鈥檚 accounts shall be open to inspection by the Secretary of State and by the Comptroller and Auditor General.听

The Comptroller and Auditor General may, under section 6 of the National Audit Act 1983, carry out examinations into the economy, efficiency and effectiveness with which the recipient has used its resources.听

Local authorities and schools shall provide information as may be required by the Secretary of State to determine whether they have complied with these conditions.听

6. Variation听听

The basis for allocation of grant may be varied by the Secretary of State from that set out above, if so requested by the local authority, school or college.听

7. Recovery of funding听

If a local authority or setting fails to comply with the terms and conditions set out in this document, the Secretary of State may recover some or all of the鈥CSBG鈥痝rant that has been allocated. This will be notified in writing to the local authority, school or college.听

Recoveries will be made by invoice or by offsetting the amount against subsequent payments due from鈥痶he department.听

The recipient must notify鈥ESFA鈥痠mmediately through the鈥 鈥痠f it becomes aware of any instance of error, suspected fraud or financial irregularity in the use of the funds.听

8. Overpayments听

If a setting or local authority identifies that it has been overpaid, it must contact鈥ESFA鈥痶o arrange repayment of the excess. Where鈥ESFA鈥痠dentifies an overpayment, it may seek to recover the excess. The local authority or school will be notified of this in writing.听

9. Enquiries听听

For queries relating to these terms and conditions please use the