I can do no better than quote the Department’s web site on this one:
“In October 2010 the white paper The Importance of Teaching announced the intention, subject to legislation, to close the Young People’s Learning Agency (YPLA) and set up a new Education Funding Agency (EFA) as an executive agency of the Department. The EFA would have responsibility for the direct funding of the growing number of academies and Free Schools and all 16–19 provision. This will include the funding of 16–19 provision in further education colleges, sixth form colleges and independent provision. The EFA will also distribute school funding resources to local authorities for them to pass on, as now, to those schools that are not yet academies.
In June 2011, in a Written Statement to Parliament, the Secretary of State announced that, following Sebastian James’s proposals for a new system for managing capital expenditure and the wider reform of arms length bodies, he had decided to bring together, in a single agency, the allocation and management of revenue and capital funding, including the delivery of capital programmes. The announcement confirmed that Partnerships for Schools would also close in March 2012, with its staff and functions also moving to the EFA.
The Secretary of State also announced that the YPLA’s chief executive, Peter Lauener, will become chief executive of the EFA.
The EFA will fund the education system for 3-19 year olds and it will manage the school and sixth form college estate. It will be responsible for the allocation and distribution of approximately £50 billion revenue and capital funding each year, as well as the delivery of capital investment in schools. More information on the EFA’s functions can be found in the following pages.
The Department, YPLA and PfS are working together to create the EFA. In doing so, it is critical that the important business of funding the education system is maintained, with no risk to the continuity of service as we move to the new arrangements.”