What is a service grant? – Government Grants For Schooling

The current funding model is the grant scheme. Funding is allocated between all local councils across England and it has to cover the full cost of the project and the services involved. The government makes additional funding available for a range of other projects within the scheme. For example, the NHS England Community Engagement Service Fund, available to local councils, provides resources for community health campaigns on the causes of poor health and the impact of various interventions.

How do councils decide what projects to fund?

In this consultation, councils have asked to see evidence on how different types of funding mechanisms, such as local authority grants, help to ensure that local areas are properly funded. To better understand the impact of different types of funding, we want to hear from you. In order to find out more:

you need to have the data we have asked councils to gather, and have the opportunity to share your views using the form in the Local Government Finance Questions and Analysis module of the government’s Spending Review

it isn’t appropriate to publish the full consultation due to its scope and sensitivity


We’re particularly interested in feedback from residents in areas with higher levels of deprivation (such as Manchester and Leeds), or high rates of deprivation (such as the south-west).

What counts as a ‘Service Grant’?

If the local authority wants to use the grant scheme the funding must be available at the local level to enable the project to go ahead, as per the service grant rules for service grant proposals. The following are examples of how these projects can be funded:

In the area where two local councils are working together to encourage health in children and teens who would otherwise not be in school, they can both get financial assistance from the same fund.

A local authority can also use a service grant to run one of its community health schemes by:

contributing to the fund, for example by running a school health project

contributing to the scheme itself (see How we fund community services),

contributing some or all of the work, from some or all of the local authorities involved in the scheme (see What is a community health scheme),

contributing some or all of the funding directly to the service provider, such as a GP clinic, by paying some or all of the service providers and providing some or all of the support needed to operate the scheme by using local funds, or

a local authority can also pay part of the costs for a service provider, such

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