Core Schools Budget Grant Explained (2025 Update for Schools & Early Years)
Posted by EYR Team on 6th Apr 2026
read moreIn this guide, we’ll break down:
- what the CSBG is
- who receives it
- how it’s calculated
- and what’s changing in 2025–2026
What is the Core Schools Budget Grant?
The Core Schools Budget Grant (CSBG) is additional funding provided by the UK government to support mainstream schools with increased costs—particularly following teacher pay awards.
It was introduced for the 2024–2025 financial year to help schools manage financial pressures without reducing resources or staffing.
Quick Summary
- The CSBG is extra funding for schools in England
- It supports rising costs such as teacher salaries
- It applies to maintained schools and academies
- Funding is based on pupil numbers
- From September 2025, it will be absorbed into the National Funding Formula
Who Receives the CSBG?
The grant is allocated to:
- Maintained primary and secondary schools
- Academies (including free schools)
- Special schools and alternative provision settings
For early years providers, the impact is more indirect, but changes to school funding can still influence wider education budgets and priorities.
How is the Grant Calculated?
The CSBG is typically calculated based on:
- pupil numbers
- phase of education (primary vs secondary)
- funding rates set by the government
While exact figures vary, the goal is to distribute funding fairly based on need and school size.
Why Was the CSBG Introduced?
The grant was introduced in response to rising financial pressures, including:
- increased teacher pay awards
- inflation and operational costs
- staffing and retention challenges
By providing targeted funding, the government aimed to reduce the financial strain on schools and maintain education standards.
What’s Changing in 2025–2026? (Important Update)
One of the most important updates is that the Core Schools Budget Grant is not a permanent funding stream.
From September 2025, funding provided through the CSBG will be incorporated into the National Funding Formula (NFF).
What this means:
- Schools will no longer receive a separate “CSBG” payment
- Funding will instead be built into core school budgets
- The system becomes more streamlined—but less visible as a standalone grant
Additional funding is still being allocated for:
- teacher pay increases
- National Insurance contributions
- support for special schools and alternative provision
This makes it essential for schools to stay updated on how funding is structured—not just how much is received.
How Does This Affect Schools and Early Years Settings?
For schools:
- budgeting processes may change
- funding may feel less transparent
- long-term planning becomes more important
For early years providers:
- indirect effects may include shifts in school spending priorities
- potential changes in local authority funding distribution
What Should Schools Be Doing Now?
To prepare for these changes, schools should:
- review their current budgets carefully
- stay informed about National Funding Formula updates
- plan ahead for integrated funding from 2025
- ensure spending aligns with long-term priorities
Frequently Asked Questions
Is the Core Schools Budget Grant permanent?
No—this is a temporary funding stream that will be absorbed into the National Funding Formula from September 2025.
How is the CSBG paid to academies?
Academies typically receive funding directly from the Education and Skills Funding Agency (ESFA), rather than through local authorities.
Will schools lose funding after 2025?
Not necessarily—the funding is being restructured, not removed. However, it may be less visible as a separate grant.
Why is school funding changing?
The government is aiming to simplify funding and make allocations more consistent across all schools.
Final Thoughts
The Core Schools Budget Grant has played an important role in supporting schools through rising costs—but with changes coming in 2025, understanding how funding is evolving is more important than ever.
By staying informed and planning ahead, schools and early years providers can continue to make confident financial decisions.
Looking to make the most of your budget? Explore our range of budget friendly resources designed to support learning while staying cost-effective.