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Top-slicing vs GAG pooling: financial models in multi-academy trusts (MATs)

Understand what it means to top-slice or GAG pool budgets and to pool reserves, and how trustees can make an informed decision. Get to grips with the rules and what pros and cons to consider, as well as questions to ask.

Last reviewed on 30 April 2025See updates
School types: All•School phases: All•Ref: 31322
Contents
  1. The difference between top-slicing and GAG pooling
  2. Trusts use these funds to provide services centrally
  3. The rules
  4. Pros, cons and important considerations
  5. Trustees' role
  6. Questions for trustees to ask
  7. Local governing bodies' role
  8. Pooling reserves
  9. Example policies from trusts

The difference between top-slicing and GAG pooling

Top-slicing

This is when a trust collects a proportion of each school’s budget, or general annual grant (GAG), to fund central services. The schools within the trust keep most of their own GAG funding.

Some trusts set a flat-rate contribution. Some have a variable top-slice, taking into account factors such as phase, pupil numbers or performance data with the intention that each school pays according to the level of support it will need from the trust.

See examples at the end of this article.

GAG pooling

This is when the trust holds the GAG from all schools centrally and delegates smaller amounts of funding to each school for it to control. The idea is that schools will need smaller individual budgets as the trust provides many services centrally.

You can find examples at the end of this article.

A diagram showing top-slicing and GAG pooling in MATs.

Trusts