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As the academies budget forecast return (BFR) goes live on 3 June 2025, it's crucial to be aware of the latest guidance from the Department of Education (DfE) for this year's submission, which is due on 28 August 2025.
All academy trusts must complete the BFR if they were active on 30 April 2025.
What you need to know
- The return must be completed on an accruals and prepayments basis.
- The BFR covers the previous, current, and future financial years.
- The DfE has published updated workbooks that you can use to prepare for submitting your online form.
- Following the closure of the Education and Skills Funding Agency (ESFA), administration of the BFR has now been transferred to the DfE.
Key changes to the 2025/26 budget forecast return
1] ICT expenditure reporting
Requirements to detail ICT spending introduced last year continue to apply, but only for financial years 2023/24 and 2024/25. Your mandatory ICT lines (within revenue and capital) are:
- ICT costs – connectivity
- ICT costs – onsite servers
- ICT costs – IT learning resources
- ICT costs – admin software & systems
- ICT costs – laptops, desktops & tablets
- ICT costs – other hardware
- ICT costs – IT support.
ICT costs must be reported under either revenue or capital expenditure, not both.
Take a look at the ICT guidance here.
2] Non-capitalised building expenditure
Trusts must continue to report the amount they are spending on building repairs, maintenance, and/or building improvements that have not been capitalised. The trust may decide to set up nominal codes for these items to ease the population of the BFR.
3] Staff pay assumptions
Trusts must state their assumptions for any teaching and support staff pay awards they have applied in their 3-year medium-term financial plan.
A quick DfE reference guide can be found here.
4] National funding formula integration
From 2025/26, the DfE have integrated the following grants into the National Funding Formula (NFF)
- Teachers’ Pay Additional Grant (TPAG)
- Teachers’ Pensions Employer Contribution Grant (TPECG)
- Core Schools Budget Grant (CSBG)
These grants have been built into the NFF through adjustments to baselines, per-pupil rates, FSM6 funding and lump sums, ensuring that the funding model is unified and transparent.
The DfE takeover
With the ESFA's closure on 31 March 2025, operations have now moved to the DfE. Any queries surrounding the return must now be submitted through the DfE.
A quick DfE reference guide can be found here Schools operational guide: 2025 to 2026 - GOV.UK
Our tips for a smooth and accurate budget forecast return
- Understand the DfE’s current guidance – Take advantage of the DfE workbook to help you plan and complete your BFR return.
- Collaborate internally- Work with your HR teams and senior leadership team to ensure pupil numbers, staffing forecasts, inflation, assumptions and funding changes are realistic.
- Double check your data- Before submission, cross-reference your return with your trust's internal finance system, last year's BFR and your audited financial statements. You can use the validation tool in the DfE workbook to flag and fix errors early.
- Build in time to review and sign off- Setting an internal deadline at least two weeks before the DfE submission deadline will allow more time for trustees or governors to approve the return before the final submission.
- Reach out for support when needed- You're not alone in completing your Budget forecast return, there's plenty of support on offer- From SBM and CFO networks to weekly Q and A sessions hosted by the DfE, seeking guidance will help you understand what's required and keep you compliant with the latest guidance.
