Guidance

16 to 19 revenue funding allocation guide: 2025 to 2026

Updated 10 March 2025

Applies to England

Introduction

This guide explains how we have calculated your 16 to 19 revenue funding allocation and the factors we have applied. The guide is for academic year 2025 to 2026 and continues to use the 16 to 19 funding formula as the basis of your allocation.

We will base your funding allocation on lagged student numbers plus any agreed exceptions, where relevant. Your allocation statement includes student numbers and other factors that affect your funding for 2025 to 2026.

Who this note is for

This guide is for further education (FE) institutions, school and academy sixth forms (including special academies and special free schools) and special post-16 institutions (SPIs).

Further information regarding the high needs funding system is available in the high needs funding arrangements 2025 to 2026 guidance. 

When we refer to academies in this document, we are referring to all types, including free schools, university technical colleges (UTCs) and studio schools, unless otherwise stated.

The ‘changes for 2025 to 2026’ section explains the changes to 16 to 19 funding in academic year 2025 to 2026 and where these changes are reflected in your allocation statement.

Further advice and guidance

We have produced this guide to walk you through your allocation statement.

It is important that you also refer to our 16 to 19 funding guidance for 2025 to 2026. The guides will help you to understand how we have calculated your funding allocation for 2025 to 2026. We publish these guides on GOV.UK before the start of the academic year.

You should read this note alongside our detailed guidance on:

• allocation calculation toolkit
• funding rates and formula
• business cases
• financial support for students
• how the 16 to 19 funding formula works
• 2025 to 2026 high needs funding arrangements

Allocation changes

The allocation statement shows your current allocation based on the data available to us at this point.

We reserve the right to reduce or withdraw your allocation at any stage should issues arise through audit or other processes which:

• significantly affect the data underlying your allocation calculation (such as errors in the individualised learner record (ILR) or school census returns)
• significantly affect contract compliance, or
• we believe that by making an allocation we will be putting public funds at risk

We also reserve the right to change your allocation if there are significant policy or data changes that impact on the calculated figures.

By exception, we will consider evidenced and credible business cases from institutions where there has been a significant error in the data returned by the institution. If you wish to submit a case, please refer to our guidance for submitting a business case.

This process does not cover business cases for high needs place funding for institutions that are within scope of the high needs place change notification process. The high needs place change notification process is now complete, and we will not review any requests for changes.     

Allocation changes for SPIs

Once you have submitted your 2024 to 2025 ILR R14 data in October 2025, we will use this to check the accuracy of the R06 data, which was used to calculate your allocated student numbers. If using the R14 data, we determine that your R06 data was materially inaccurate, we may reduce your allocation in-year. These checks and potential reductions will apply to both programme funding (element 1) and high needs funding (element 2).

In addition, we will use your academic year 2024 to 2025 R06 return to calculate local authority import/export adjustments for the financial year 2025 to 2026. Local authorities will have the opportunity to review the number of high needs students you have recorded in your data and, if we determine that your R06 data was materially inaccurate because of an enquiry raised by a local authority, we may reduce your element 2 allocation for high needs students in-year.

Please note that, for funding purposes, the definition of a high needs student is one where the institution is receiving top-up funding from a local authority because the authority has agreed that the student’s additional support costs are in excess of £6,000.

How to resolve your enquiries

If you have questions after reading this and other published guidance, or if there’s anything else you need help with, you can find more support in our customer help centre.  

Changes for 2025 to 2026

The autumn Budget delivered on 30 October 2024 provided an additional £300 million funding for further education for financial year 2025 to 2026 to ensure young people are developing the skills this country needs.

We have made approximately £50 million of this funding available to FE colleges and sixth-form colleges for the period April to July 2025 via the post-16 budget grant. This one-off grant will enable colleges to respond to current priorities and challenges, including workforce recruitment and retention.

This £50 million funding for colleges is in addition to the grant funding for schools and academies with 16 to 19 provision, which will continue over this period.

We will use the remainder of the £300 million budget uplift to support 16 to 19 funding from August 2025 onwards.

Funding rate

We have increased the funding rate for students aged 16 and 17 and students aged 18 and over with high needs in band 5 to £5,026. We have built this into the increases in each of the funding bands, which have also increased proportionately.

	From	To
Band 5	£4,843	£5,026
Band 4	£4,006	£4,157
Band 3	£3,258	£3,381
Band 2	£2,576	£2,673
Band 1	£4,843 proportion of band 5	£5,026 proportion of band 5

The figures shown on your allocation statement and in the table below are the annual equivalent of the 2 year T Level rates for 2025 to 2026.

	From	To
Band 9	£7,665	£7,232
Band 8	£7,028	£6,631
Band 7	£6,391	£6,030
Band 6	£5,541	£5,228

Disadvantage funding

For academic year 2025 to 2026 funding allocations, we will adjust the rate for disadvantage block 2 (which reflects the additional cost of teaching and supporting students who have low prior attainment) in line with the increase to the national funding rate. We will also adjust the care leavers rate.

We will increase the disadvantage block 1 rate to:

• £570 for students who are in care or who have recently left care

We will increase the disadvantage block 2 rate to:

• £570 for bands 4 and 5 students
• £347 for bands 2 and 3 students
• £772 for T Level students

High value courses premium

We will continue to fund high value courses premium (HVCP) in academic year 2025 to 2026 at £600. This is to further encourage delivery and enrolments in courses with higher wage returns. We have published the list of qualifying A level subjects and sector subject areas that we use to calculate HVCP for 2025 to 2026 allocations.

Maths funding

Advanced maths premium

We removed core maths qualifications from the advanced maths premium in academic year 2024 to 2025.

We will continue to pay the advanced maths premium for other qualifications in scope in academic year 2025 to 2026 at £900.

In academic year 2024 to 2025, we revised the updated baseline we used to calculate the premium to use advanced maths enrolments recorded between academic year 2019 to 2020 and academic year 2020 to 2021 to remove core maths qualifications.  

FE Teachers’ pension scheme employer contribution grant 

We have amended the methodology and from 2025 to 2026 we are uplifting the employer contributions at the 16.4% rate by estimated average increases in earnings. This is to remove a long standing inconsistency in the way the grant is calculated.

Allocation statement 2025 to 2026 – detailed notes

SPI funding allocations

SPIs that will be delivering their first year of Department for Education (DfE) funded provision are currently completing the high needs due diligence process. Where successful, we expect to issue allocations to these SPIs by the end of June 2025. We will allocate programme funding (element 1) and high needs funding (element 2) using the place numbers returned to us by local authorities through the high needs funding arrangements for 2025 to 2026.

For SPIs that will be delivering at least their second year of DfE funded provision, we will allocate programme funding (element 1) and high needs funding (element 2) using counts of valid students from 2024 to 2025 ILR R06 data returns. We will use a reference date of 1 February 2025.

For 2025 to 2026, we will continue to use the 16 to 19 funding formula to calculate programme funding (element 1) for SPIs.

For all SPIs, we detail the total high needs place number allocation (element 2) in the ‘high needs student table’ of the funding statement. There is further information on this in the high needs funding section of this guidance.

Where student numbers exceed allocated places

Most FE institutions and independent learning providers (ILPs) have a single ‘provider local authority’ responsible for returning to us the number of element 2 places required for all the institution’s high needs students in the following academic year.

For SPIs, we are responsible for determining the allocations of both element 1 and element 2. We do so based on the previous year’s ILR data.

Element 2 funding is initially included within local authorities’ overall high needs allocations. The funding formula that calculates local authorities’ allocations includes adjustments, also based on ILR data, that remove the element 2 £6,000 per high needs place from their final dedicated schools grant allocations. This is known as the import/export adjustment.

This means that we are acting like the ‘provider local authority’ and are responsible for considering the need for further funding where the actual number of high needs students exceeds the high needs places that have been funded. In normal circumstances, the lagged funding methodology will fund SPIs for any additional students in the following year.

If local authorities give places to significantly more students than their allocated places, we may, exceptionally, increase allocations in-year. In these circumstances, we will review the student numbers recorded in the in-year ILR data returns. As this is a data-driven exercise, it is not necessary for SPIs to submit a business case.

For element 1 growth awards, we will also consider under-delivery at the institution in the previous year and the national picture of placements. We will base any additional funding on a standard threshold determined by affordability. It is possible that we will calculate additional funding using marginal rates. We may also require additional eligibility or audit checks before allocating any additional funding. We will notify institutions receiving exceptional in-year funding by April 2025. We do not adjust element 2 growth awards for under-delivery.

Programme funding formula

This section explains the various elements of the funding formula that apply to SPI funding allocations, which is shown on page 1 of your allocation statement.

Retention factor

This remains at 0.983. This was the average factor we used to calculate your 2024 to 2025 allocations.

Programme cost weighing

This is 1.0702. This was the average factor we used to calculate your 2024 to 2025 allocation.

English and maths funding

See the English and maths funding section in this guidance.

Disadvantage funding – block 1

This remains at 3.80%. This was the average factor we used to calculate your 2024 to 2025 allocations.

Disadvantage funding – block 2

We use a default value of 2 instances per student for all SPIs, which attracts the £570 funding rate.

Large programme funding

This is not applicable to SPIs.

Area cost allowance

Some areas of the country are more expensive to teach in than others and the area cost allowance weights the allocation to reflect this. We calculate area cost either from the institution’s head office location or from the institution’s learning delivery location, depending on the geographical spread of provision.

We round the values on your statement to various numbers of decimal places. However, we calculate your funding using un-rounded values. This may result in some slight differences when you work through the calculation yourselves.

Student numbers

This section explains how we have calculated the student numbers in your 16 to 19 revenue funding allocation statement. Student numbers include students aged 19 to 24 with education, health and care plans.

2024 to 2025 ILR R06 students

This refers to student numbers taken from the 2024 to 2025 ILR R06 data return, with a reference date of 1 February 2025.

Exceptional variations to lagged student number

This is an increase or decrease applied to the lagged student number that we’ve agreed to as an exceptional case.

Total student numbers for 2025 to 2026

We calculate total student numbers for 2025 to 2026 by:

• ‘2024 to 2025 ILR R06 students’ + ‘exceptional variations to lagged student number’

Student number methodology used

This is the data source we use to calculate student numbers. For all SPIs, this is the 2024 to 2025 ILR R06 return.

Student number methodology

Our funding rates and formula guidance has full details of how we calculate student numbers for different types of institutions. Our default approach is to base allocations on lagged numbers. The lagged approach applies when there is a reasonably consistent level of delivery over time and applies in most but not all circumstances.

Exceptions to the lagged approach include student numbers for new institutions, closing provision, transferred provision (including in relation to subcontracting), exceptional in-year growth and in-year closures. In these situations, we may remove an institution from the lagged approach at any point, which may result in a change to their funding allocation.

Core programme funding 

This section references the various elements of the funding formula shown on page 1 of your allocation statement and the resulting funding from the application of each.

Student numbers for 2025 to 2026

• set out in the student numbers section below

National funding rate per student

• as set out in the breakdown of funding by band section below

Further education retention factor

• retention rate = retained students ÷ total funded students
• retention factor = (retention rate ÷ 2) + 0.5
• we calculate this from the 2023 to 2024 ILR R14 data return

Where historic data is not available (often due to the institution being new and therefore not having submitted any data), we use national averages for the relevant institution type.

Programme cost weighting

The programme cost weighting (PCW) used is the average for your institution and has been weighted by the funded hours for each student. We base PCW on the sector subject area (SSA) classification for each student’s core aim. We calculate this from the 2023 to 2024 ILR R14 data return.

For T Level programmes, the PCW value is attracted by the occupational specialism recorded. Like study programmes, PCW for T Levels is based on SSA, however this is linked to the occupational specialism via a mapping to apprenticeship standards.

T Level transition programme PCW is an average of all the occupational specialism PCW values within the associated T Level route.

School and academy sixth form retention factor

• retention rate = retained students ÷ total funded students
• retention factor = (retention rate ÷ 2) + 0.5
• calculated from the autumn census 2024 (full year 2023 to 2024 data)
• where historic data is not available (often due to the institution being new and therefore not having submitted any data), we use national averages for the relevant institution type

Programme cost weighting

The PCW used is the average for your institution, and has been weighted by the funded hours for each student. We base PCW on the SSA classification for each student’s core aim. We calculate this from the autumn census 2024 (full year 2023 to 2024 data).

For T Level programmes, the PCW value is attracted by the occupational specialism recorded. Like study programmes, PCW for T Levels is based on SSA, however this is linked to the occupational specialism via a mapping to apprenticeship standards.

T Level transition programme PCW is an average of all the occupational specialism PCW values within the associated T Level route.

Where historic data is not available, we use national averages for the relevant institution type.

English and maths funding

• As set out in the English and maths funding section below.

Disadvantage funding

• as set out in the distribution of disadvantage funding section below

Large programme funding

• as set out in the large programme uplift section below

Area cost allowance

Some areas of the country are more expensive to teach in than others, and the area cost allowance weights the allocation to reflect this. The area cost either based on the head office postcode of the institution or delivery postcodes from the ILR depending on the how dispersed your delivery locations are.

The values on your statement are shown to various numbers of decimal places. However, we calculate your funding using un-rounded values. This may result in some slight differences when you work through the calculation yourselves.

Student numbers

This section explains how we have calculated the student numbers in your 16 to 19 revenue funding allocation statement. Some of the information set out below may not be relevant to your institution and therefore may not be shown on your statement.

Students in FE providers

Student number taken from the data return shown in the first row of the table. For some institutions, we have used a different student number methodology.

Students in school and academy sixth forms

This figure is taken from the autumn census 2024 (2024 to 2025 data). The number of students recorded as on roll (main or current main) on census day 5 October 2024 at the institution in national curriculum years 12, 13 or 14.

For some institutions, we have used a different student number methodology.

Ratio

If shown, this is the ratio used to uplift the student number taken from the data return shown in the row above. The ratio is based on 2023 to 2024 data using the student number at the reference date of 1 November 2023 (taken from either the R04 or R06 return) and the full year student number at R14. Where we have used the R06 return and applied the R04 reference date, it is referred to as R46.

Total lagged student number

If a ratio is shown, this figure is calculated by multiplying the student number by the ratio.

Exceptional variations to lagged student number

An increase or decrease applied to the lagged student number. This is where we have agreed an exceptional case.

Total student numbers for 2025 to 2026

This is the ‘total lagged student number’ plus ‘exceptional variations to lagged student number’.

If your statement doesn’t display the ‘total lagged student number’ row, it is the student number shown in the first row plus ‘exceptional variations to lagged student number’.

Student number methodology used

The methodology used to calculate your total student number to be funded in 2025 to 2026.

Student number methodology

Our funding rates and formula guidance has full details of how we calculate student numbers for different types of institutions. Our default approach is to base allocations on lagged numbers. The lagged approach applies when there is a reasonably consistent level of delivery over time and applies in most, but not all, circumstances.

Exceptions to the lagged approach include student numbers for new institutions, closing provision, transferred provision (including in relation to subcontracting), exceptional in-year growth, and in-year closures. In these situations, we may remove an institution from the lagged approach at any point, which may result in a change to their funding allocation.

Breakdown of funding by band

This section explains how we calculate funding bands in the 16 to 19 revenue funding allocation statement. You can find further information about national funding rates in the funding rates and formula guidance.

In this guidance, ‘full-time’ means the 16 to 19 funding band 5 or T Level bands, and ‘part-time’ means the funding band 4 or lower.

T Level bands

The following applies if you have T Level students. If you are not in receipt of T Level student funding, please refer to ‘mainstream bands’.

Number of students allocated in 2025 to 2026 – T Level

Student numbers are placed into T Level bands 9 to 6 based on the occupational specialism undertaken by the student taken from a combination of:

• the estimated student participation figures provided by institutions for 2025 to 2026 these are just the students starting on their first year of study in academic year 2025 to 2026 
• the 2023 to 2024 ILR R04 data or autumn census 2024 data whose latest T Level programme aim has no actual end date and a planned end date after 31 July 2025. This is for students who started their T Level before 2025 to 2026 who are carrying on their programme into academic year 2025 to 2026

We expect institutions to deliver at least the minimum planned hours, unless there are exceptional circumstances. More information on the circumstances in which it is acceptable to record planned hours below the minimum is in our T Level funding guidance.

When a planned T Level programme is smaller than the minimum hours for the band, we use the planned hours recorded to determine the appropriate funding band. Where the student is recorded in band 5 or below, and where all the components of the T Level are recorded, all the additional features of a T Level will be retained: there will be no reduction in rate for 18 year olds, and additional industry placement and bursary funding element 2b will be retained. 

We do not fund T Levels at a higher band than the one set for the student’s occupational specialism, even when the planned hours exceed the minimum for a higher band. 

Usually, a T Level programme will last 2 years, so the funding rate is for the whole programme and half the funding rate is paid in each year. Students whose T Level only lasts for one year will receive half the national rate. Students who continue their T Level into a third year do not receive any additional funding. We will fund students for one further year when they meet the criteria for a funded retake set out in the funding regulations. 

The planned hours recorded for T Levels must not include industry placements or additional qualifications that are not part of the T Level. Industry placements have a separate funding rate and the large programme uplift gives extra funding for AS and A levels. From 2024 to 2025, institutions must include the hours for maths and English qualifications in the T Level hours. You can find more information on how to record your T Level data correctly.    

National funding rate

T Level students attract a higher rate of programme funding linked to the minimum delivery hours (determined by the occupational specialism being studied), so will typically be funded in band 6, 7, 8 or 9.

Student funding

• ‘number of students allocated in 2025 to 2026’ × ‘national funding rate’

Total T Level bands

The sum of student funding for bands 9 to 6:

• ‘student funding’ T Level band 9 + ‘student funding’ T Level band 8 + ‘student funding’ T Level band 7 + ‘student funding’ T Level band 6

Mainstream bands

Student numbers 2023 to 2024

For 2025 to 2026 allocations, we will use your 2023 to 2024 ILR R14 and census data to determine the number of students in each band based on the definition of the bands that applied in that year.

Band 5 students are all students with annual planned hours of 580  and over, except T Level students and students aged 18+ who are not high needs.

Band 4 students are split into 2 categories:

• 4a for those students who are aged 18+, not high needs with planned hours over 485 per year
• 4b is 16 and 17 year olds and students aged 18+ with high needs with planned hours between 485 and 579 per year

Bands 1 to 3 show all 16 to 19 funded students with annual planned     hours in that band. The planned hours for each band are set out in the funding rates and formula guidance.

In addition, students in band 1 (up to 299 hours) shows the total number of band 1 full time equivalents (FTEs) for the student numbers shown.

You can view the student level data behind each funding band in your allocation calculation toolkit (ACT). We have published guidance on how to use your ACT file.

Proportions used in 2025 to 2026 allocation

Proportions of students to be funded in each band based on the total student numbers in 2023 to 2024.

All students in SPIs are funded at the band 5 rate.

Number of students allocated in 2025 to 2026

The percentage proportions for bands 5 to 1 applied to the ‘total student numbers for 2025 to 2026’ shown in the ‘student numbers’ table.

The values in this column are displayed as whole numbers and this may result in a slight difference to the ‘total student numbers for 2025 to 2026’ shown in the ‘student numbers’ table.

The following applies if you have T Level students:

The number of band 5 students allocated in 2025 to 2026 is adjusted to remove students funded in the T Level bands National funding rate.

The base amount of funding for each student in the band. The funding rates for 2025 to 2026 are explained in our published guidance.

As described above, for the purpose of calculating the number of students in each funding band in the 2025 to 2026 funding allocation, we have used data from your 2023 to 2024 full year data return. For that purpose, we have therefore applied the definitions of the funding bands in 2023 to 2024.

Student funding

• ‘number of students allocated in 2025 to 2026’  (or the number of FTEs) × ‘national funding rate’

Total / Total mainstream bands

The sum of student funding for bands 5 to 1:

• ‘student funding’ band 5 + ‘student funding’ band 4 + ‘student funding’ band 3 + ‘student funding’ band 2 + ‘student funding’ band 1 FTEs

Total student funding

The following applies if you have T Level students

• ‘total mainstream bands’ + total T Level bands’

English and maths funding

This section explains how we have calculated English and maths funding in the 16 to 19 revenue funding allocation statement. For more information please refer to the English and maths funding guide.

Total instances attracting funding per student

Using the last full year of data (for example, we will use data from the end of academic year 2023 to 2024 to inform allocations for 2025 to 2026) we identify eligible students as those who:

a) are an eligible 16 to 19 student who has passed the funding qualifying period

b) are recorded in the ILR or school census as not having prior attainment in English and/or maths GCSE grade 9 to 4 or equivalent. We will not count students with a prior attainment of a GCSE grade 2 or below but who hold a pass in level 2 Functional Skills

Qualifying students attract an instance of funding for each subject in which they do not hold a GCSE grade 9 to 4 or equivalent at the start of their programme. Those without English or without maths will receive 1 instance and those without English and without maths will receive 2 instances.

If historic data is not available, we use national averages for the relevant institution type.

Total funded instances

• ‘instances per student’ × ‘total student numbers 2025 to 2026’ (Student numbers table)

Students attracting the higher rate (bands 4 and above), the lower rate (bands 2 and 3), and the FTE rate  

This is the ‘total funded instances’ split between students attracting the higher rate (band 4 and above) and students attracting the lower rate (band 2 and band 3) according to the proportions in the ‘breakdown of funding by band’ table.

• ‘number of funded instances in each band’ (higher, lower, FTE, T Level) × ‘English and maths funding rate’

Total English and maths funding

This is the sum of English and maths funding:

• ‘students attracting the higher rate’ + ‘students attracting the lower rate’ + ‘students attracting the FTEs Rate’

Distribution of disadvantage funding

This section explains how we have calculated the disadvantage block 1 and block 2 funding in the 16 to 19 revenue funding allocation statement. For more information on disadvantage funding, please refer to the funding rates and formula guide.

Disadvantage block 1

Economic deprivation funding for FE

We use the student’s home postcode from the 2023 to 2024 ILR R14 data return and the IMD 2019 to calculate the block 1 factor.

The block 1 factor is an average across the whole institution, weighted by the funded hours for each student.

The uplift is applied to the programme funding total, up to and including the English and maths funding.

Economic deprivation funding for SPIs

We apply the block 1 average factor of 3.80% to the programme funding total, up to and including English and maths funding.

Economic deprivation funding for school and academy sixth forms

We use the student’s home postcode from the autumn census 2024 (2023 to 2024 full year data) and the index of multiple deprivation (IMD) 2019  to calculate the block 1 factor.

The block 1 factor is an average across the whole institution, weighted by the funded hours for each student.

The uplift is applied to the programme funding total, up to and including the English and maths funding.

Where historic data is not available, we use local authority averages for the relevant institution type.

Care leavers

The number of successful 16 to 19 bursary fund claims for 2023 to 2024 for vulnerable students who were ‘in care’ or ‘care leavers’, at a rate of £570 per student.

Total block 1 funding

• ‘block 1 funding’ + ‘care leaver funding’

Disadvantage block 2

Total instances attracting funding per student

The factor is based on the number of instances when a student does not have at least a grade 4 in GCSE maths or English at the end of year 11:

• a student without a grade 4 in maths and English counts as 2 instances
• a student without a grade 4 in either maths or English counts as 1 instance
• a student with grade 4 (or above) in both counts as 0 instances

We use 2023 to 2024 ILR R14 or school census 2024 data to determine the number of instances per student.

For SPIs, we default the instances per student value to 2.

Where historic data is not available, we use national averages for the relevant institution type.

Total funded instances

• ‘instances per student’ × ‘total student numbers 2025 to 2026’ (student numbers table)

Students attracting the higher rate, lower rate, FTE rate and the T Level rate

This is the ‘total funded instances’ split between students attracting the higher rate (band 4 and band 5) and students attracting the lower rate (band 2 and band 3) according to the proportions in the ‘breakdown of funding by band’ table.

If there are funded T Level students, the number of students attracting the T Level rate is determined by multiplying the ‘instances per student’ by ‘total T Level bands’ (band 6 to 9) The following applies if you have T Level students:

• for students attracting the T Level rate, the ‘total funded instances’ is determined by multiplying the ‘instances per student’ by ‘Total T Level Bands’

• ‘number of funded instances in each band’ (higher, lower, FTE and T Level) × ‘block 2 funding rate  ’

Total block 2 funding / Total block 2 funding including T Levels

The sum of block 2 funding:

• ‘students attracting the higher rate’ + ‘students attracting the lower rate’ + ‘students attracting the FTEs rate’

• if you have T Level students + ‘students attracting the T Level rate’

Minimum top up if applicable

If the total disadvantage funding (‘total block 1 funding’ + ‘total block 2 funding’ or ‘total block 2 funding including T Levels’) for an institution is less than £6,000, disadvantage funding will be topped up to £6,000.

Total disadvantage funding

The sum of disadvantage funding:

• ‘total block 1 funding’ + ‘total block 2 funding’ or ‘total block 2 funding including T Levels’ + ‘minimum top up’

Large programme uplift

This section explains how we have calculated the large programme uplift factor in the 16 to 19 revenue funding allocation statement. For more information, please refer to the large programme uplift and the funding rates and formula guide.

Students meeting large programme uplift criteria

The number of students meeting the large programme uplift criteria for the 10% uplift and 20% uplift respectively. Numbers are based on the Young People’s Matched Administrative Dataset (YPMAD) for 2022 to 2023.

Funding uplift per student per year

This is 10% or 20% of the band 5 national funding rate.  

Total large programme uplift (2 years)

The total uplift for the 2 years – that is double the funding uplift per year.

• ‘students meeting large programme uplift criteria’ × ‘funding uplift per student per year’ × 2

Total large programme uplift

• ‘total large programme uplift (2 Years)’ at 20% + ‘total large programme uplift (2 years)’ at 10%

The large programme uplift is not applicable to SPIs in the 2025 to 2026 academic year.

Maths and English condition of funding adjustment

This section explains how we have calculated the maths and English condition of funding (CoF) adjustment in the 16 to 19 revenue funding allocation statement. For more information, please see the condition of funding interactive tool and 16 to 19 maths and English condition of funding guidance.

CoF is the aspect of 16 to 19 allocations where the most data issues have arisen for SPIs in the past. Please ensure that you submit accurate data for this element of funding, using the above tools as appropriate. If you identify a data error in this element of your allocation, please follow the usual process for raising business cases.

National funding rate in 2023 to 2024

The 2023 to 2024 national funding rates are used to calculate the CoF adjustment.

Total students (2023 to 2024 R14 for FE and SPIs and autumn census 2024 for school and academy sixth forms)

The total number of students in 2023 to 2024 as recorded in your 2023 to 2024 ILR R14 data return or autumn census 2024 full year 2023 to 2024 data, split by each funding band. This table excludes 19+ continuing students, therefore the total may differ from the student numbers shown in the ‘breakdown by funding band’ table.

National funding rate applied to total students (2023 to 2024 R14)

The student funding associated with the total students:

• ‘total students (2023 to 2024 R14)’ (FTEs for band 1) × ‘national funding rate in 2023 to 2024’

National funding rate applied to total students (autumn census 2024)

This is the student funding associated with the total students:

• ‘total students (autumn census 2024)’ (FTEs for band 1) × ‘national funding rate in 2023 to 2024’

Students not meeting CoF (2023 to 2024 R14)

The number of students not meeting CoF in 2023 to 2024 as recorded in your 2023 to 2024 ILR R14 data return, split by each funding band. You can identify these students in your ACT.

Students not meeting CoF (autumn census 2024)

This is the number of students not meeting CoF in 2023 to 2024 as recorded in your autumn census 2024 full year 2023 to 2024 data, split by each funding band. You can identify these students in your ACT.

National funding rate applied to CoF non-compliant students

This is the student funding associated with the students not meeting CoF:

• ‘students not meeting the CoF (2023 to 2024 R14)’ (FTEs for band 1) × ‘national funding rate in 2023 to 2024’

National funding rate applied to CoF non-compliant students

This is the student funding associated with the students not meeting CoF:

• ‘students not meeting the CoF’ (FTEs for band 1) × ‘national funding rate in 2023 to 2024’

Total

This shows the sum of bands 5 to 1 for ‘total students (2023 to 2024 R14 or autumn census 2024)’, ‘national funding rate applied to total students (2023 to 2024 R14 or autumn census 2024)’, students not meeting CoF (2023 to 2024 R14 or autumn census 2024) and ‘national funding rate applied to CoF non-compliant students’.

5% of national rate funding for total 2023 to 2023 R14 or S05 students

The 5% tolerance before any adjustment will be applied:

• 5% of total ‘national funding rate applied to total students (2023 to 2024 R14 or autumn census 2024)’

Funding for non-compliant students less 5% of funding

This is the resulting adjustment following the 5% tolerance:

• total ‘national funding rate applied to CoF non-compliant students’ - ‘5% of national rate funding for total 2023 to 2024 R14 or autumn census 2024 students’

Final CoF adjustment (at 50% of the per student funding rate)

In order to mitigate the effect of the CoF adjustments, the final adjustment is at 50%:

• 50% of ‘funding for non-compliant students less 5% of funding’

Advanced maths premium

This section explains how we have calculated the advanced maths premium in the 16 to 19 revenue funding allocation statement. We give institutions additional funding to increase the number of students studying for certain advanced maths qualifications. The funding will help institutions remove barriers to advanced maths study and build their capacity to deliver this provision.

Baseline students

Average number of students studying an eligible level 3 maths qualification in academic years 2019 to 2020 and 2020 to 2021 from the ILR R14 data returns for FE and SPIs. For school and academy sixth forms we used the autumn census 2020 full year 2019 to 2020 data and the autumn census 2021 full year 2020 to 2021 data to determine this number.

Eligible students

Number of students studying an eligible level 3 maths qualification in academic year 2024 to 2025 taken from the 2024 to 2025 ILR R04 data return for FE and SPIs. For school and academy sixth forms taken from the autumn census 2024.

Eligible minus baseline

• ‘eligible students’ - ‘baseline students’ or zero, whichever is higher

Rate

The rate of funding per student for 2025 to 2026 is £900.

Funding

• ‘eligible minus baseline’ x ‘Rate’

Core maths premium

This section explains how we have calculated the core maths premium in the 16 to 19 revenue funding allocation statement. For more information, please refer to the core maths premium guide.

Eligible students

The number of eligible students studying a core maths qualification in the first year of their 16 to 19 programme. Second year core maths students will not attract the funding. This data is taken from the 2024 to 2025 ILR R04 or autumn census 2024.

Students are eligible for the core maths premium if they:

• are 16 to 19 funded
• have prior attainment equivalent to GCSE grade 9 to 4 in maths
• pass a qualifying period of either 6 weeks for a qualification with a planned length of 24 weeks or more, or 2 weeks for a qualification with a planned length of less than 24 weeks
• are studying an eligible core maths qualification

Rate

The rate of funding per student for 2025 to 2026 is £900.

Funding

• ‘eligible students’ x ‘rate’

High value courses premium

This section explains how we have calculated HVCP in the 16 to 19 revenue funding allocation statement. HVCP supports institutions to increase the number of students studying substantial programmes in particular subjects.

Qualifying students

This is the number of qualifying students in your 2023 to 2024 ILR R14 data return or autumn census 2024 full year 2023 to 2024 data.

Rate

The rate of funding per student for 2025 to 2026 is £600.

Funding

• ‘qualifying students’ × ‘rate’

T Level industry placements funding

This section explains how we have calculated T Level industry placements funding in the 16 to 19 revenue funding allocation statement. This table is displayed if you have T Level students.

T level students band 1 to 5

The number of continuing T Level students from 2024 to 2025 ILR R04 or 2023 to 2024 from autumn census 2024  whose latest T Level programme aim has no actual end date and a planned end date after 31 July 2025.

T Level students bands 6 to 9

The number of funded T Level students in bands 6 to 9.

Total T Level students

‘T Level students bands 1 to 5’ + ‘T Level students bands 6 to 9’.

Rate

The funding rate for a T Level industry placement is £550. As T Levels are designed to be 2 year programmes, £275 is paid in years 1 and 2 of a student’s T Level.

Funding

• ‘number of funded T Level students’ × ‘rate per student’

Care standards

This section explains how we have calculated care standards funding in the 16 to 19 revenue funding allocation statement. Please refer to the funding rates and formula guide for more information.

Eligible students

The total number of eligible students (≥12) taken from the 2023 to 2024 ILR R14 data return from eligible institutions.

Care standards funding rate

Funding per student is £817.

Care standards institution lump sum funding

Lump sum funding of £12,252 per institution for eligible institutions.

Care standards funding

• (‘eligible students’ × ‘care standards funding rate’) + ‘care standards institution’

High needs funding

This section explains how we have calculated high needs funding in the 16 to 19 revenue funding allocation statement.

We have based allocations of high needs place funding on the outcomes of the 2025 to 2026 local authority place change notification process. We are still processing a small number of enquiries raised during the high needs place change notification enquiry window in February 2025. In these cases, your allocation statement will reflect the outcomes of the 2025 to 2026 local authority place change process published prior to the enquiry window. We may issue a revised allocation depending on the outcome of the enquiry. For further information, please refer to high needs funding arrangements: 2025 to 2026.

For all maintained school sixth forms and maintained special schools, you will need to discuss and agree your 16 to 19 high needs funding directly with your local authority because this funding is allocated to local authorities in the dedicated schools grant (DSG). For further information, please refer to our high needs funding arrangements: 2024 to 2025.

For SPIs we have based allocations of high needs place funding on your 2024 to 2025 R06 ILR data return.

2024 to 2025 R06 total high needs students

This is the high needs student number count split by age 16 to 19 years and 19 to 24 years, as recorded in the 2024 to 2025 ILR R06 data return, with a reference date of 1 February 2025.

2024 to 2025 R06 total high needs student proportions by age

This is the percentage proportions of students split by age.

Exceptional variations to lagged high needs student number

This is an increase or decrease applied to the high needs student number that we’ve agreed to as an exceptional case.

High needs element 2

We apply the ‘2024 to 2025 R06 total high needs student proportions by age’ to ‘2024 to 2025 R06 total high needs students’ to calculate place numbers by age split. We calculate this by:

• ‘2024 to 2025 R06 total high needs students’ (total students) + ‘exceptional variations to lagged high needs student number’

High needs total

We calculate the high needs total by:

• ‘high needs element 2’ (total students) × ‘rate’

High needs funding

The number of high needs students split by age groups, 16 to 19 and 19 to 24.

Total students

• ‘16 to 19 students’ + ’19 to 24 students’

Rate

For mainstream and alternative provision academies, the rate of funding per student is £6,000.

For special academies, the rate of funding per place is £10,000.

‘total students’ × ‘rate per student’

Student financial support funding

This section explains how we have calculated student financial support funding in the 16 to 19 revenue funding allocation statement.

We have published advice for institutions on the financial support young people may be able to access to help them participate in education and training.

Discretionary bursary fund

Number of funded students

For ‘element 1: financial disadvantage’ and ‘element 2a: student costs – travel’, the ‘number of funded students’ is the ‘total student numbers for 2025 to 2026’ shown in the ‘student numbers’ table.

Instances per student

For ‘element 1: financial disadvantage’, we use the student postcode from the 2023 to 2024 ILR R14 data return or autumn census 2024 full year 2023 to 2024 data return and the IMD 2019 to determine the number of instances per student.

For ‘element 2a: student costs – travel’, we use the student postcode and delivery location postcode from the 2023 to 2024 ILR R14 data return or autumn census 2024 full year 2023 to 2024 data return and the IMD 2019 to determine the number of instances per student.

For SPIs We use the SPI average for the instances per student values:

• the average for ‘element 1: financial disadvantage’ is 0.26621
• the average for ‘element 2a: student costs – travel’ is 0.13985

The student level data used to determine the instances per student value for all elements of 16 to 19 bursary funding in the Programme tab in your ACT file.

The maximum ‘instances per student’ value is 1.00000.

Where historic institution level data is not available to complete the calculation, we use local authority averages for the relevant institution type.

Number of T Level students bands 1 to 9

For ‘element 2b: student costs – T Level Industry Placements’, we use the number of continuing T Level students from 2024 to 2025 ILR R04 or 2023 to 2024 from autumn census 2024 (2024 to 2025) whose latest T Level programme aim has no actual end date and a planned end date after 31 July 2025 in bands 1 to 5 and also the funded T Level student number for bands 6 to 9.

Proportion of students from 60% most deprived areas

For ‘element 2b: student costs – T Level industry placements’, we use the student postcode from the 2023 to 2024 ILR R14 data return or autumn census 2024 full year 2023 to 2024 data return and the IMD 2019 to determine an institution level instance per student average. This average is used to gauge the proportion of students on T Level industry placements who are likely to be from the top 60% most deprived areas.

Number of instances

For ‘element 1: Financial disadvantage’ and ‘element 2a: student costs – travel’, the instances per student are multiplied by the ‘number of funded students’ to determine the ‘number of instances’.

• ‘instances per student’ x ‘number of funded students’

For ‘element 2b: student costs – T Level industry placements’, the ‘number of instances’ is determined by are multiplying the ‘proportion of students from 60% most deprived areas’ by the ‘number of funded T Level students’.

• ‘proportion of students from 60% most deprived areas’ x ‘number of funded T Level students’

Rate

The funding rate for each element of the discretionary bursary for 2025 to 2026. Bursary funding rates are subject to change year on year.

Funding

• ‘number of instances’ x ‘rate’

Bursary adjustment in respect of free meals

We calculate each institution’s percentage share of the adjustment proportionally, using data which will inform an institution’s free meals in FE allocation in 2025 to 2026. That is the number of students eligible for and in receipt of free meals in FE in either the 2023 to 2024 ILR R14 data return  or autumn census 2024 full year 2023 to 2024 data return or the 2022 to 2023 ILR R14 data return or autumn census 2023 full year 2022 to 2023 data return (if no students were flagged as supported with free meals in FE in the 2023 to 2024 ILR R14 data return or autumn census 2024 full year 2023 to 2024 data return).

The total adjustment amount is £15 million so, if there are 100,000 free meals in FE students who inform 2024 to 2025 free meals in FE allocations, and institution A recorded 1,000 of those students in their 2023 to 2024 ILR R14 data or autumn census 2024 full year 2023 to 2024 data return, then Institution A will be in scope for an initial adjustment of:

• 1,000 / 100,000 = 1% then
• 1% x £15 million = £150,000

Protection is then applied so that:

• no institution experiences a reduction of greater than 25% of their 16 to 19 bursary fund allocation
• no institution experiences a reduction that is greater than the reduction applied in 2024 to 2025, and
• no institution has a 16 to 19 bursary fund allocation of less than £500

Discretionary bursary fund sub-total

The sum of each bursary element:

• ‘element 1: financial disadvantage total’ + ‘element 2a: student costs travel total’ + ‘element 2b: student costs T Level industry placements’ - ‘bursary adjustment in respect of free meals’

Bursary adjustment by exception

This is an increase or decrease applied to your discretionary bursary funding. This could relate to a merger, conversion to an academy or another exceptional situation.

Discretionary bursary fund total

This is the sum of:

• ‘discretionary bursary fund sub-total’ + ‘bursary adjustment by exception’

If ‘discretionary bursary fund sub-total’ is greater than £0 but less than £500 then the allocation will be uplifted to £500.

Residential bursary fund

Institutions in receipt of residential bursary fund will see the total amount allocated for the academic year.

For institutions without an allocation, there will be no residential bursary fund information showing on the statement.

Residential support scheme

Institutions in receipt of residential support scheme funding will see the total amount allocated for the academic year.

For institutions without an allocation, there will be no residential support scheme information shown on the statement.

Total students

Total number of confirmed eligible students following verification checks of substantial level qualifications.

Rate

The funding rate per student for institutions outside of London is £3,458.

The funding rate per student for institutions in London Boroughs, eligible for a London weighting, is £4,079.

Funding

• ‘total students’ x ‘rate’

Residential support scheme administration

• 5% of ‘total students’ x ‘rate’

Residential support scheme total

• ‘residential support scheme funding’ + ‘residential support scheme administration’

Free meals in FE funding

Total students

This is the number of 16 to 19 students recorded in either the 2023 to 2024 ILR R14 data return or autumn census 2024 data return or the 2022 to 2023 ILR R14 data return or autumn census 2023 data return if no students were recorded as supported with free meals in FE in the 2023 to 2024 ILR R14 data return or autumn census 2024 data return.

Free meals students

This is the number of students recorded as being eligible for and in receipt of free meals in FE in either the 2023 to 2024 ILR R14 data return or autumn census 2024 data return or the 2022 to 2023 ILR R14 data return or autumn census 2023  data return if no students were recorded as supported with free meals in FE in the 2023 to 2024 ILR R14 data return or autumn census 2024 data return.

Proportion of students on free meals

• ‘free meals students’ ÷ ‘total students’

Total students in 2025 to 2026 funded for free meals

This is the total number of students that will attract free meals funding in 2025 to 2026:

• ‘proportion of students on free meals’ × ‘total student numbers for 2025 to 2026’ (student numbers table)

Free meals higher rate, lower rate and FTE Rate

‘Free meal students’ at higher, lower and FTE rates are determined by taking the proportions in the ‘breakdown of funding by band’ table and applying the percentage proportions to the ‘total students in 2025 to 2026 funded for free meals’:

• higher rate: ‘band 4 and upwards 5 proportions used in 2025 to 2026 allocation’ used in 2025 to 2026 allocation’
• lower rate: ‘band 3 proportions used in 2025 to 2026 allocation’ + ‘band 2 proportions used in 2025 to 2026 allocation’
• FTE rate: (‘band 1 proportions used in 2025 to 2026 allocation’ × ‘total students in 2025 to 2026 funded for free meals’) × (‘band 1 FTEs student numbers for 2023 to 2024’ ÷ ‘band 1 student numbers for 2023 to 2024’)

Free meals funding

• ‘free meals students’ (higher, lower and FTEs) × ‘free meals rates’

The free meals in FE funding rates are subject to change.

Free meals sub-total

• ‘free meals higher funding’ + ‘free meals lower funding’ + ‘free meals FTE funding’

Free meals administration/free meals administration and minimum top up

• 5% of ‘total free meals funding’

Free meals adjustment by exception

An increase or decrease applied to your free meals in further education funding. This could relate to a merger, conversion to academy or another exceptional situation.

Total free meals funding

The sum of free meals funding:

• ‘free meals sub-total’ + ‘free meals administration’ + ‘exceptional adjustment’

Student financial support funding total

The sum of student financial support funding:

• ‘discretionary bursary fund total’ + ‘residential bursary fund’ (if applicable) + ‘residential support scheme’ (if applicable) + ‘total free meals funding’

Start-up and post-opening grant

Those academies in receipt of a start-up grant (SUG) or post-opening grant (POG) which do not receive this funding through their pre-16 allocation will see this table. This section explains the information in this table of the 16 to 19 revenue funding statement.

Start-up grant – part A

SUG is paid to converting academies with the route of project shown as ‘full sponsored’. This a flat rate allocation that is paid in the first year of opening and any funding applicable to academic year 2025 to 2026 will be shown in this line.

Start-up grant – part B

SUG is paid to converting academies with the route of project shown as ‘full sponsored’. Part B is a formulaic allocation that is intended to contribute to costs, such as leadership as a new academy grows towards full capacity. Consequently, part B may be paid over a number of years as the academy grows.

Post opening grant - per pupil resources

For free schools, UTCs and studio schools, this is the total of the resource element of the POG.

Post opening grant – leadership diseconomies

For free schools, UTCs and studio schools, this is the total of the diseconomies element of the POG.

Total start-up grant and post-opening grant

• ‘start-up grant part A’ + ‘start-up grant part B’ + ‘post opening grant per pupil resources’ + post opening grant leadership diseconomies’

Further Education Teachers’ Pension Scheme Employer Contribution Grant (FE TPSECG)

This section explains how we have calculated allocations to meet increased employer contributions to the Further Education Teachers’ Pension Scheme Employer Contribution Grant (FE TPSECG) in the 16 to 19 revenue funding allocation statement.

This funding is only available for the following types of institution:

• general FE colleges 
• sixth-form colleges 
• designated institutions (including the new designated institutions that form part of higher education (HE) provider group structures) 
• special post-16 institutions

Academic year 2025 to 2026 

We will use financial year 2023 to 2024 audited payments made by providers to Capita for the TPS to calculate funding. 

We will use the employer pension contributions made at a rate of 23.6% to calculate: 

• an adjusted annual total that would be the equivalent amount if the 16.4% rate had still applied, we will do this by dividing the total payments made by 23.6 and multiplying by 16.4 
• an adjusted annual total that would be the equivalent amount if the 28.6% rate had already applied, we will do this by dividing the total payments made by 23.6 and multiplying by 28.6 

We uplift both these adjusted annual total figures by 4.7% and then again by 3.6%, to reflect estimated average earnings increases in 2024 and 2025 respectively. This calculates the employer contribution values for 2025 to 2026 by accounting for changes in earnings between 2023 to 2024 (source data year from Capita) and the funding year for the grant, 2025 to 2026.

The grant provides funding for the difference between the calculated employer contribution values for 2025 to 2026 at the old rate (16.4%) and the new rate (28.6%).

We use the estimated average increases in earnings from the October 2024 economic and fiscal outlook  published by the Office for Budget Responsibility (OBR).

Revised annual cost

• ‘payments made to Capita for TPS, financial year 2023 to 2024 at 28.6% for the full year’ + ‘4.7% uplift for 2024’+ ‘3.6% uplift for 2025

FE TPSECG allocation (difference between payments at 16.4% uplifted and revised annual cost)

• ‘revised annual cost’ - ‘financial year 2023 to 2024 employer contributions at 16.4% uplifted’