GAG Pooling: What Multi-Academy Trusts Need to Know

As the education sector continues to face financial pressure, more Multi-Academy Trusts (MATs) are considering GAG pooling as a way to deliver greater value, improve financial governance, and strengthen outcomes for pupils. But while the concept offers several long-term benefits, successful implementation requires careful planning—and a shift in mindset across the Trust.

What Is GAG Pooling?

GAG pooling is the process by which all General Annual Grant (GAG) income across a MAT is centralised into one pot, enabling strategic redistribution of funds based on need rather than individual school income. It moves MATs away from a “my school” mindset and towards a collective focus on “our Trust” and all the children it serves.

Done right, GAG pooling can:

·      Smooth disparities in funding between schools

·      Direct investment where it’s most needed—whether to raise educational standards or improve facilities

·      Reduce the administrative burden and simplify financial reporting

·      Align budgeting with curriculum priorities

·      Reduce the visibility of school-level deficits in financial statements

In many ways, GAG pooling reflects the Department for Education’s broader ambition for MATs to operate as single financial entities with a shared vision and consistent approach.

The Cultural Shift Required

Despite its benefits, GAG pooling often faces internal resistance—particularly from high-performing schools concerned about losing financial autonomy. This resistance stems from cultural and emotional ties to individual school budgets and a fear of “losing out.”

To overcome these challenges, MAT leaders must prioritise transparency, involve school heads in the budget-setting process, and reframe the narrative around Trust-wide impact. Including Trust-level performance in leadership appraisals, for example, can support alignment and engagement.

It’s essential to have a clear GAG pooling policy agreed by all schools within the Trust. This should set out:

·      What funding will be pooled (e.g. GAG income, Devolved Formula Capital)

·      How funds will be allocated

·      Whether reserves are included (and what happens if a school leaves the Trust)

·      An appeals process, as required by the Academy Trust Handbook

Making the Transition

For MATs exploring GAG pooling, a phased, structured approach can help manage risk and bring schools on board. A step-by-step process might include:

1. Centralise cash into one bank account to instil a Trust-wide view of resources.

2. Centralise budgeting, with allocation based on need, not income. Local factors (Ofsted status, SEN levels, facilities) should still inform planning.

3. Introduce GAG pooling, starting with income, and optionally progressing to reserves pooling later.

4. Update governance structures, including the Scheme of Delegation and reserves policy, to reflect the new operating model.

While this approach may result in some schools receiving more or less than their original GAG allocation, the Trust as a whole becomes more agile, resilient, and strategic.

Lessons from Practice

A number of MATs—such as Cygnus Academies Trust and Rivermead Inclusive Trust—have successfully implemented GAG pooling and reaped the benefits. Others, like Accord MAT, have published detailed GAG Reserve Pooling policies that serve as useful templates for those starting the journey.

Evidence from Schools Week and UHY Hacker Young also shows that MATs using pooled reserves are better placed to respond to emergencies, support school improvement plans, and attract future growth—while those relying on top-slicing may struggle to deliver value across the Trust.

Final Thoughts

While GAG pooling may seem like a radical change, it aligns closely with the future direction of Trust finance. With the right leadership, strong communication, and a commitment to shared goals, it can unlock long-term sustainability, reduce duplication, and improve outcomes for all pupils—especially at a time when every pound counts.

If you're a Trust considering GAG pooling, or simply want to explore how your funding strategy could evolve, SJC, Chartered Accountants can help you weigh the risks, model the benefits, and prepare the policies needed to move forward with confidence.