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Sports Premium Scrapped: 2027 Guide for Schools and Clubs

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Managing the 2026–27 transition? Book a free MagicBooking demo and keep full visibility over contracts, bookings, and payments while the funding model changes.

What was the PE and sport premium?

The PE and sport premium launched in 2013 as part of the legacy of the London 2012 Olympics. The government introduced it to improve the quality and breadth of PE and sport in primary schools across England.

The funding went directly to state-funded primary schools. Schools received a set amount based on pupil numbers. The total pot was approximately £320m per year, and schools in Years 1 to 6 were eligible.

Schools used the premium to fund external coaches, after-school sports clubs, competitive fixtures, swimming lessons, and staff PE training. Many schools contracted external activity providers to deliver these programmes on their behalf.

The premium operated with relatively few restrictions. Schools had flexibility over how they spent the money, as long as they could demonstrate it improved PE and sport outcomes. Schools were required to report annually on how they used the funding.

For over a decade, the sports premium shaped how primary schools bought in sport provision. Many external sport providers built their school contracts around it. That model is now changing.

What is replacing the PE and sport premium?

The government announced the PE and School Sport Partnerships Network on 21 May 2026. This new programme replaces the premium from spring 2027.

The partnerships network is different in several important ways.

First, it covers both primary and secondary schools. The old premium applied only to primary schools. The new network extends to secondary for the first time.

Second, money no longer goes directly to schools. Instead, a national delivery partner manages the funding and commissions provision through local partnerships.

Third, the network offers both a targeted offer (for schools with lower levels of sport participation) and a universal offer (available to all schools). The exact structure of these offers is still being finalised by the DfE.

The total funding is £580m over seven school terms. This equates to approximately £193m per year – a reduction of around 22% compared to the old premium.

The government also announced:

• A £100m one-off transition payment for schools in 2026-27 to manage the gap between the old and new funding
• A £200m capital fund to improve school sport facilities over the same period

How does the funding compare?

The headline figures matter, but the bigger structural change is the funding route. Schools that previously received money automatically will now access provision through a commissioned network. This shifts the relationship between schools, providers, and funding considerably.

What does this mean for schools?

The timing creates real pressure. A Schools North East survey of more than 150 school leaders conducted in June 2026 found that:

• 65% of schools expect to have to cut coaching staff
• 46% expect cuts to extra-curricular clubs and sports teams
• 39% forecast cuts to competitive fixtures
• 33% expect cuts to SEND-inclusive sport provision
• 75% of schools had already committed to external contracts for the following year, most worth between £10,000 and £20,000

Paul Whiteman, General Secretary of NAHT, said: “School leaders will be deeply concerned at the loss of a well-established funding stream.”

James Bowen, also at NAHT, added: “Leaders are having to rethink their long-term budget planning, including commitments that may already have been made.”

These concerns are not abstract. Many schools signed contracts in good faith – before the announcement – based on the expectation that premium funding would continue. The transition payment provides some breathing room, but it does not cover the full shortfall for schools with significant existing commitments.

The Youth Sport Trust annual report (2026) gives context for why this matters beyond budget: PE curriculum time has fallen from 8.6% to 7.3% since 2012, only 57% of teachers say their school delivers the recommended minimum of two hours of PE per week, and PE is currently the most frequently cancelled subject in schools.

MagicBooking’s payments tools give schools complete financial visibility – from tracking provider contracts to reconciling income – so you stay in control when funding changes.

What schools need to do now:

The 2025-26 reporting requirement remains in place. Schools must still complete their annual sports premium report for this academic year, regardless of the upcoming changes.

Managing a funding transition mid-budget cycle is stressful enough without chasing payments or juggling provider contracts manually. MagicBooking gives schools complete visibility over bookings, payments, and provision in one place – so you stay in control when funding changes. Book a free demo today.

Read our previous blog on budget planning in 2026.

What does this mean for external sport and activity providers?

This change directly affects external providers contracted by schools. Many sport coaching businesses, dance companies, gymnastics providers, and multi-sport organisations rely on school contracts funded by the premium.

The Schools North East data is a warning signal: 75% of schools had already committed to external contracts, and 65% now expect to cut coaching staff. That means some external providers will face contract reviews they were not expecting.

But this is also an opportunity. Schools will still need quality sport provision. The partnerships network is designed to commission external delivery – the question is whether providers are well-positioned to participate in that model.

External providers should take three steps right now:

1. Contact your school partners directly.

   Do not wait for schools to come to you. Reach out, acknowledge the funding change, and open a conversation about what happens to your existing arrangement. Schools that hear from their providers first will feel supported. Schools that hear nothing may quietly cancel and not renew.

2. Review your admin and communications systems.

   The new partnerships network will likely require providers to demonstrate they can manage bookings, registers, payments, and safeguarding records clearly. Providers who use professional systems are in a stronger position than those managing this through spreadsheets and emails.

3. Understand the new commissioning model.

   The national delivery partner model is new. When the DfE publishes further detail on how the partnerships network will commission local provision, providers who have already read and understood the structure will be ahead of those who have not.

External providers who manage school relationships, registers, and payments through a professional system are easier to commission and harder to cut. MagicBooking helps you run your school contracts cleanly, from first booking to final payment.

JS Sports, a children’s sport and activity provider in Cambridge, saved 50–75% of their admin time and grew their business after switching to MagicBooking.

Read their story or book a free demo to see how it works for your club.

Common mistakes to avoid during the funding transition

Schools and providers are both at risk of making avoidable errors in the next twelve months. These are the most common ones to watch for.

• Waiting for full DfE guidance before acting. Further detail on the partnerships network will emerge over the coming months, but the transition begins now. Waiting for certainty before reviewing contracts or communicating with partners wastes time schools and providers do not have.
• Assuming the transition payment covers everything. The £100m one-off payment is welcome, but it is not designed to replace the full value of the old premium for all schools simultaneously. Schools with large existing commitments will feel the gap.
• External providers not making the first move. Providers who wait to be contacted by schools may find those schools have already made other plans. Proactive communication is a competitive advantage in this market.
• Cancelling external partnerships too early. Some schools may consider pulling back on external contracts before they fully understand what provision the partnerships network will replace. This could leave pupils with less sport, not more.
• Failing to complete 2025-26 sports premium reporting. This is still a legal requirement. Schools must report how they used the premium for the current academic year, regardless of what happens from spring 2027.
• Not documenting existing commitments. Both schools and providers should document what has been agreed, by whom, and on what basis – before any renegotiation conversations begin.

What can schools still spend sports premium on?

The sports premium is still active for 2025-26 and the transition year (2026-27, supported by the £100m payment). The existing guidance on eligible spending still applies.

Eligible areas include:

• Funding external coaches and sports organisations to work alongside teachers in PE lessons
• Paying for professional development and training for teachers in PE and sport
• Providing or improving after-school and lunchtime sport provision
• Entering and funding pupils’ participation in competitive sport
• Swimming lessons and water safety education
• Purchasing equipment that is used directly for PE and sport

The requirement remains that spending must improve the quality and breadth of PE and sport – not replace funding that schools would otherwise have spent from their own budgets. Schools should continue to track and report spending against these categories.

If you are unsure whether a particular use of the premium qualifies, the DfE guidance on PE and sport premium remains the authoritative source.

PE and sport premium transition: what schools and clubs should do now

For schools

• Complete your 2025-26 sports premium report. This is still required. Do not let the announcement distract from your current-year reporting obligations.
• Audit your contracted provider commitments. List every external sport provider you have contracted, the value of those contracts, and when they run until.
• Communicate with your providers. Tell them where you stand. They are managing uncertainty too. A brief, clear message now avoids difficult conversations later.
• Claim the £100m transition payment. Ensure your school business manager knows how to apply for the transition payment when the DfE opens the process.
• Brief your governors. They need to understand the budget implications before the partnerships network launches.
• Monitor DfE updates. The national delivery partner for the partnerships network has not yet been announced. Sign up for DfE updates at gov.uk/education to receive guidance as it is published.

Read more about 2026 changes that impact schools:

• Free breakfast clubs in schools: 2026 funding guide
• HAF programme 2026
• New Ofsted framework 2026

For external sport and activity providers

• Contact every school you work with now. Do not wait for them to contact you. A brief, professional message demonstrating that you understand the funding changes builds trust.
• Review contracts that run into 2026-27. Understand which agreements are at risk and plan your financial pipeline accordingly.
• Upgrade your admin systems if needed. Providers working from spreadsheets and manual registers are harder to commission and harder to manage. Professional booking and payment systems signal operational credibility.
• Prepare a short summary of your provision. Be ready to articulate what you deliver, the outcomes you achieve, and the evidence you can provide. The partnerships network will commission on quality and accountability.
• Read the DfE guidance when it arrives. The national delivery partner model is new. Understanding how it works before your competitors do is a meaningful advantage.
• Stay visible. Schools that are thinking about restructuring their sport provision are also thinking about which providers they trust. A proactive, professional provider is harder to cut than a passive one.

How MagicBooking supports schools and providers through the transition

When funding structures change, admin clarity matters more than ever. Schools need to know exactly what they have committed to, what they have spent, and what they can demonstrate to governors and the DfE. External providers need to show they operate professionally and can handle booking, payment, and register data reliably.

MagicBooking helps both sides manage this with confidence.

For schools: MagicBooking brings bookings, payments, and communications into one place. You can track provision, manage registers, and produce clear financial reports at any time – exactly the kind of visibility you need when your funding model is changing and your governors are asking questions.

For external providers: MagicBooking gives you a professional system for managing school contracts, registers, and payments. Three in four schools who use MagicBooking call it a game-changer for reducing admin pressure.

80% of schools and clubs using MagicBooking report improved cash flow. 70% save at least 25% of their admin time every week.

If you are managing the 2026-27 transition and want to reduce admin pressure while improving financial visibility across your provision, book a MagicBooking demo and see how it works for your setting.

Frequently asked questions

What is the PE and school sport partnerships network?

The PE and school sport partnerships network is the government’s replacement for the PE and sport premium. It launches in spring 2027 and provides £580m over seven school terms to improve sport participation across both primary and secondary schools. Unlike the old premium, funding is managed through a national delivery partner rather than going directly to schools.

When does the PE and sport premium end?

The PE and sport premium ends when the new partnerships network launches in spring 2027. Schools continue to receive and report on sports premium 2025/26 funding for the 2025-26 academic year. A one-off £100m transition payment supports schools during 2026-27.

Is sports premium funding continuing? What replaces the PE and sport premium?

The PE and School Sport Partnerships Network replaces the PE and sport premium from spring 2027. It covers both primary and secondary schools and funds provision through a commissioned national delivery partner model, rather than allocating money directly to individual schools.

How much funding does the new partnerships network provide?

The partnerships network provides £580m over seven school terms. This equates to approximately £193m per year – around 22% less than the old premium’s £320m annual funding.

Will schools still get PE and sport premium funding in 2026-27?

Yes. Schools continue to receive premium funding for 2025-26. The government has also announced a one-off £100m transition payment to support schools in 2026-27 while the new partnerships network is established.

How do external sport providers join the new partnerships network?

The national delivery partner for the partnerships network has not yet been announced by the DfE. When it is, external providers should review the commissioning process published at gov.uk/education. In the meantime, providers should prepare by documenting their provision, upgrading their admin systems, and maintaining strong relationships with their school partners.

What is the difference between the PE premium and the new partnerships network?

The old PE and sport premium went directly to primary schools as a per-pupil allocation. The new partnerships network delivers funding via a national delivery partner, covers both primary and secondary schools, and operates a targeted plus universal offer rather than an automatic allocation. Annual funding is also lower under the new model.

What can schools spend remaining sports premium 2025-26 on?

Schools can still use the premium for external coaches in PE lessons, teacher training and professional development, after-school sport, competitive sport participation, swimming lessons, and sports equipment. Spending must improve the quality and breadth of PE and sport and must be reported annually.