What is GAG Pooling for MATs & Why Is It Important?

General Annual Grant pooling, or GAG pooling for short, is a financial strategy for Multi-Academy Trusts (MATs) to pool a portion of GAG funding to create a central fund, which can be spread across the entire MAT when needed.

Why Have A GAG Pooling Policy?

One of the benefits of a MAT over an individual school is having a combined back office. This means that, among many functions, the finance team for a MAT oversee the income and spend for all of their individual academies.

Surely it makes sense to combine the income from General Annual Grants and use it on a case-by-case basis when required.

This can mean that high performing, efficient schools with lots of pupils getting increased GAGs can share resources with less efficient schools to bring them out of their rut and help increase the overall MAT’s performance in the long run.

GAG Pooling Benefits

As mentioned above, redistributing funds from ‘richer’ schools to ‘poorer’ schools can increase investment in improvements, but there are a few other benefits to GAG Pooling.

More Strategic Use of Money

When the MAT holds some of the GAG centrally, it becomes easier to plan ahead. The Trust can decide where that money will make the biggest difference. It could go towards shared technology, targeted school support, or even helping a school in the middle of a tricky year.

Less Risk for Individual Schools

Schools can hit unexpected costs. A heating system fails. A building needs urgent repairs. With a pooled pot, the Trust can step in and cover these kinds of surprises without knocking a school’s budget out of balance.

Targeted Support for Schools That Need It

Not all schools are at the same place in their journey. Some might need a push to improve results or help stabilising staff turnover. GAG pooling gives MATs the ability to react quickly and send money where it’s needed most.

Better Deals Across the Trust

When schools buy separately, the cost adds up. Pooling funds can support central procurement, which helps secure better pricing and avoids every school doing their own thing. This means more money going towards the classroom, not admin.

Keeps the Trust’s Vision on Track

If your MAT has a long-term goal or set of values it’s working towards, GAG pooling gives you the ability to fund those priorities fairly across the Trust. It helps make sure every school, not just the top performers, is on the same page.

Is It for Everyone?

GAG pooling isn’t a one-size-fits-all solution. It needs the right policies in place and buy-in from every school in the Trust. It also relies on clear communication. Everyone should know how the money will be used and what the process is for requesting funds. Get that right, and you’ve got a powerful tool to support your whole Trust.

Final Thought

GAG pooling is about making the most of what you’ve got. Instead of each school standing alone, it’s a way to share resources, reduce risk and put money where it matters most. For MATs that want to grow and improve across the board, it’s well worth exploring.

And if you want even more control over where your money goes and when, have a look at Compleat’s Purchasing Automation and Budget Management tools. They help you keep an eye on spend before it happens and make sure every penny is working for your MAT.