ESFA functions to move to the Department for Education

The Education and Skills Funding Agency (ESFA) is set to close, with its current functions moving into the Department for Education.

Since 2017, the ESFA has administered funding to deliver education and skills, from early years through to adulthood.  Under the new structure, this work will continue, but will be delivered from within the department, giving education settings a single point of contact for financial management and support.

The ESFA’s Schools Financial Support and Oversight (SFSO) teams will move to Regions Group from 1 October. This will support the launch of Regional Improvement Teams by January 2025.

Other core functions will be moved into the department as part of the Operations and Infrastructure Group in March 2025, centralising the agency’s centres of excellence together with related functions in the department.

Susan Acland-Hood, Permanent Secretary at the Department for Education, said: "The ESFA has been an important part of the education landscape since 2017. Now is the right time to move the agency’s functions back into the Department, building on the good work done, and enabling a single, joined-up approach to funding and regulation to improve accountability and drive school improvement seamlessly and well.

"We will be working closely with stakeholders across the education sector as well as with our excellent staff to finalise and deliver our plans for bringing the agency into the heart of the Department."

Establishing Regional Improvement Teams is a key element of the government’s plan for raising school standards – a single regulator model with governance and accountability sitting in one place. These teams will, from early 2025, work with struggling schools to quickly and directly address areas of weakness.

This new structure will therefore ensure the department is set up to deliver its priorities, while ensuring ESFA’s expertise, service delivery and functions are protected.