Guidance

16 to 19 further education revenue funding allocation guide: 2022 to 2023

Updated 30 March 2022

This guidance was withdrawn on 7 February 2023

This page has been withdrawn as it is out of date. You can find the latest supporting documents for 2023 to 2024 on GOV.UK.

Applies to England

Introduction

This guide helps you understand how we have calculated your 16 to 19 revenue funding allocation and the factors we have applied. The guide is for the 2022 to 2023 academic year 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 2022 to 2023.

Who this note is for

This guide is for further education institutions. Separate guides are available for school and academy sixth forms (including special academies and special free schools) and special post-16 institutions.

The ‘changes for 2022 to 2023’ section shows the changes to 16 to 19 funding in academic year 2022 to 2023 at a glance, and where the changes are reflected in your allocation statement.

Further advice and guidance

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

It’s important that you also refer to our 16 to 19 funding guidance for 2022 to 2023. The guides will help you to understand how we have calculated your funding allocation for 2022 to 2023. 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 national funding formula works
• 2022 to 2023 high needs funding arrangements

If there is an error in your data

The figures in the statement are your final funding allocation, which under normal circumstances will not be changed.

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
• significantly affect contract compliance, or
• if we believe that by making an allocation we will be putting public funds at risk

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 on thresholds.

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.

How to resolve your enquiries

If you have any questions that we have not covered in this or other published guidance, please contact us using our online enquiry form.

Changes for 2022 to 2023

On 27 October 2021, the Chancellor announced a three-year spending review outcome for 16 to 19 education, making available an extra £1.6 billion in 2024 to 2025 financial year compared with 2021 to 2022. This is in addition to the £291m for 16 to 19 education in 2021 to 2022 and the £400m that the government provided in 2020 to 2021.

National funding rate

The national funding rate will increase to incorporate funding for teachers’ pay grant into the 16 to 19 allocation. The increase will also help cover the cost of inflation and the delivery of additional hours.

We will increase funding rates as follows:

	From	To
Band 5	£4,188	£4,542
Band 4	£3,455	£3,757
Band 3	£2,827	£3,056
Band 2	£2,234	£2,426
Band 1	£4,188 proportion of band 5	£4,542 proportion of band 5

We will increase T Level funding rates as follows (the figures shown are the annual equivalent of the two year T Level rates):

	From	To
Band 9	£6,108	£6,534
Band 8	£5,584	£5,991
Band 7	£5,061	£5,448
Band 6	£4,363	£4,723

Retention factor

We will revert to calculating this from data following an alternative approach for 2021 to 2022 allocations. The funding rates and formula guidance provides information on how we determine if a student is retained and how we calculate an institution’s retention factor.

Programme cost weighting

From academic year 2022 to 2023, we are making further increases to PCW factors in 5 subject areas. The subject area tier 2 codes and descriptions are as follows:

• 1.1 Medicine and dentistry
• 1.2 Nursing, and subjects and vocations allied to medicine
• 4.3 Transportation operations and maintenance
• 5.2 Building and construction
• 5.3 Urban, rural and regional planning

Disadvantage block 1

The block 1 rate for students who are in care or who have recently left care will increase from £480 to £504.

Disadvantage block 2

We will adjust the rate for disadvantage block 2 (which reflects the additional cost of teaching and supporting students who have low prior attainment) to take account of the change to GCSE results in 2020. The disadvantage block 2 rate will increase from £480 to £504 for students attracting the higher and FTE rate. The equivalent rate for students attracting the lower rate will increase from £292 to £307. The rate for T Level students will rise proportionally to £683.

Advanced maths premium

We will continue to fund the advanced maths premium in academic year 2022 to 2023.

High value courses premium

We will continue to fund high value courses premium in academic year 2022 to 2023. We will increase the uplift from £400 to £600, to further encourage courses with higher wage returns and support the Industrial Strategy.

Industry placements: Capacity and delivery funding (CDF)

For the 2022 to 2023 academic year, the CDF funding rate has been reduced to £160 per qualifying student for both level 2 and level 3 students.

Teachers’ pension scheme employer contribution grant

We will fund the teachers’ pension employer contribution grant for the full academic year 2022 to 2023.

Allocation statement 2022 to 2023 – detailed notes

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. The dates on your allocation statement will show as ‘2022/23’. We have written the dates out in full in this guidance for clarity.

Student numbers for 2023 to 2023

• set out in the student numbers section

National funding rate per student

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

Retention factor

• retention rate = retained students ÷ total funded students

retention factor = (retention rate ÷ 2) + 0.5

we calculate this from the 2020 to 2021 ILR R14 data return

Programme cost weighting

• the programme cost weighting used is the average for your institution, and has been weighted by the funded hours for each student. We base programme cost weighting on the sector subject area classification for each student’s core aim. We calculate this from the 2020 to 2021 ILR R14 data return

Disadvantage funding

• as set out in the distribution of disadvantage funding section

Large programme funding

• as set out in the large programme uplift section

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 reflects the delivery location of the institution’s provision and is normally based on delivery postcodes from the ILR.

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

• 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

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 2020 to 2021 data using the student number at the census date of 1 November 2020 (taken from either the R04 or R06 return) and the full year student number at R14. Where we’ve used R06 it’s 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’ve agreed an exceptional case

Total student numbers for 2022 to 2023

• 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 2022 to 2023

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’ section.

Number of students allocated in 2022 to 2023 – T Level

• student numbers for T Level bands 9 to 6 are taken from the estimated student participation figures provided by institutions

National funding rate

• the national funding rates for T Levels. We base the funding rate for a student on the planned hours for the whole programme

Student funding

• ‘number of students allocated in 2022 to 2023’ × ‘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 2020 to 2021

For 2022 to 2023 allocations, we will use your 2020 to 2021 ILR R14 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 timetabled hours of 540 and over, except students aged 18+ who are not high needs. For 2022 to 2023 band 5 students include students aged 18 who meet the high value courses for school and college leavers criteria. 

Band 4 students are split into 2 categories:

• 4a is those students who are aged 18+, not high needs and timetabled for over 450 hours per year
• 4b is 16 and 17 year olds and students aged 18+ with high needs who are timetabled for between 450 and 540 hours per year

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

In addition, students in band 1 (up to 279 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 2022 to 2023 allocation

• proportions of students to be funded in each band based on the total student numbers in 2020 to 2021

Number of students allocated in 2022 to 2023

• the percentage proportions for bands 5 to 1 applied to the ‘total student numbers for 2022 to 2023’ 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 2022 to 2023’ shown in the ‘student numbers’ table

The following applies if you have T Level students:

• the number of band 5 students allocated in 2022 to 2023 is adjusted to remove T Level students

National funding rate

The base amount of funding for each student in the band. The funding rates for 2022 to 2023 are explained in the published guidance.

Please note that, as described above, for the purpose of calculating the number of students in each funding band in the 2022 to 2023 funding allocation we have used data from your 2020 to 2021 full year data return. For that purpose we have therefore applied the definitions of the funding bands in 2020 to 2021. The funding rates applied to the bands for the allocation calculation are the increased rates that reflect the new hours ranges that apply in the 2022 to 2023 academic year.

Student funding

• ‘number of students allocated in 2022 to 2023’ (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’

Level 3 programme maths and English payment

This section explains how we have calculated the level 3 programme maths and English payment in the 16 to 19 revenue funding allocation statement. We give extra funding to providers to deliver maths and English to students doing substantial level 3 study programmes and T Levels.

Instances per student

• the number of instances where a student does not hold a GCSE grade 4 or C (or above) in GCSE maths or English as their highest prior attainment and are on a 1 year or 2 year study programme taken from the 2020 to 2021 ILR R14 data return

Number of instances

• ‘instances per student’ × ‘total student numbers for 2022 to 2023’ (student numbers table)

Rate

• the rate of funding per student for a 1 year programme and a 2 year programme

Funding

• ‘number of instances’ × ‘rate’

Level 3 Programme maths and English payment funding total

• the sum of level 3 programme maths and English payment

‘level 3 programme maths and English payment - 1 year programme’ + ‘level 3 programme maths and English payment - 2 year programme’

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

• we use the student’s home postcode from the 2020 to 2021 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 level 3 programme maths and English payment

Care leavers

• the number of successful 16 to 19 bursary fund claims for 2020 to 2021 for vulnerable students who were ‘in care’ or ‘care leavers’, at a rate of £504 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 or C in GCSE maths or English at the end of year 11:

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

We use 2020 to 2021 ILR R14 data to determine the number of instances per student.

Total funded instances

• ‘instances per student’ × ‘total student numbers 2022 to 2023’ (student numbers table)

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

• 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

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 2019 to 2020

Funding uplift per student per year

• this is 10% or 20% of the 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%

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.

National funding rate in 2020 to 2021

• the 2020 to 2021 national funding rates are used to calculate the CoF adjustment

Total students (2020 to 2021 R14)

• the total number of students in 2020 to 2021 as recorded in your 2020 to 2021 ILR R14 data return, split by each funding band. Student numbers in this table exclude 19+ continuing students and may differ from the student numbers shown in the ‘breakdown by funding band’ table

National funding rate applied to total students (2020 to 2021 R14)

• the student funding associated with the total students

‘total students (2020 to 2021 R14)’ (FTEs for band 1) × ‘national funding rate in 2020 to 2021’

Students not meeting CoF (2020 to 2021 R14)

• the number of students not meeting the CoF in 2020 to 2021 as recorded in your 2020 to 2021 ILR R14 data return, split by each funding band. You can identify these students in your allocation calculation toolkit (ACT)

National funding rate applied to CoF non-compliant students

• the student funding associated with the students not meeting the CoF ‘students not meeting the CoF (2020 to 2021 R14)’ (FTEs for band 1) × ‘national funding rate in 2020 to 2021’

Total

• shows the sum of bands 5 to 1 for ‘total students (2020 to 2021 R14)’, ‘national funding rate applied to total students (2020 to 2021 R14)’, students not meeting CoF (2020 to 2021 R14) and ‘national funding rate applied to CoF non-compliant students’

5% of national rate funding for total 2020 to 2021 R14 students

• the 5% tolerance before any adjustment will be applied

5% of total ‘national funding rate applied to total students (2020 to 2021 R14)’

Funding for non-compliant students less 5% of funding

• the resulting adjustment following the 5% tolerance

Total ‘national funding rate applied to CoF non-compliant students’ - ‘5% of national rate funding for total 2020 to 2021 R14 students’

Final CoF adjustment (at 50%)

• 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 2015 to 2016 and 2016 to 2017 from the ILR R14 data returns

Eligible students

• number of students studying an eligible level 3 maths qualification in academic year 2021 to 2022 taken from the ILR R04 data return

Eligible minus baseline

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

Rate

• the rate of funding per student for 2022 to 2023 is £600

Advanced maths premium funding

• ‘eligible minus baseline’ x ‘student’

High value courses premium (HCVP)

This section explains how we have calculated the high value courses premium in the 16 to 19 revenue funding allocation statement. The high value courses premium supports providers to increase the number of students studying substantial programmes in particular subjects.

Qualifying students

• the number of qualifying students in your 2020 to 2021 ILR R14 data return

Rate

• the rate of funding per student for 2022 to 2023 is £600

Funding

• ‘qualifying students’ × ‘rate’

Industry placements funding

This section explains how we have calculated industry placements funding in the 16 to 19 revenue funding allocation statement. We have published arrangements for delivering industry placements through the capacity and delivery fund (CDF) in 2022 to 2023.

Industry placements funding: Capacity and delivery funding

Number of student / Number of funded students minus final T Level students

• the number of level 2 and level 3 qualifying students identified in your 2020 to 2021 ILR R14 data return

If you have estimated T Level students the number of students is adjusted to remove the ‘number of estimated T Level students’. Where the number of T Level students is greater than the number of students there’ll be zero students.

Rate

• the rate of funding per student for 2022 to 2023 is £160

Industry placement: Capacity and delivery funding

• ‘number of funded students minus final T Level students’ × ‘rate’

Industry placements funding: T Level funding

The following applies if you have T Level students:

Number of estimated T Level students

• estimated T Level student numbers provided by institutions

Rate per student

• the rate of funding per student for 2022 to 2023 is £275

Industry placements funding: T Level funding

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

Industry placements funding total

• ‘industry placement: Capacity and delivery funding (CDF)’ + ‘industry placements funding: T Level funding’

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 2020 to 2021 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 2022 to 2023 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 2022. In these cases, your allocation statement will still reflect the outcomes of the 2021 to 2022 local authority place change notification process. We may issue a revised allocation depending on the outcome of the enquiry.

For further information, please refer to our high needs funding arrangements: 2022 to 2023.

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

• the rate of funding per student is £6,000

Funding

• ‘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.

Number of funded students

• the ‘total student numbers for 2022 to 2023’ shown in the ‘student numbers’ table

Instances per student

• for ‘element 1: financial disadvantage’ we use the student postcode from the 2020 to 2021 ILR R14 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 2020 to 2021 ILR R14 data return and the IMD 2019 to determine the number of instances per student
• you can view the student level data used to calculate the instances per student in your ACT file
• the maximum ‘instances per student’ value is 1.00000
• where data is not available to complete the ‘instances per student’ calculation, an average value will be used

Number of instances

• instances per student for ‘element 1: Financial disadvantage’ and ‘element 2a: student costs – travel’ are multiplied by the ‘number of funded students’ ‘instances per student’ x ‘number of funded students’
• for ‘Element 2b: student costs – industry placements’ we use the student’s study programme and their home post code from the 2020 to 2021 ILR R14 data return and the IMD 2019 to determine the number of instances. If the student’s study programme makes them eligible for Industry Placement funding via CDF and they are from the top 60% most deprived areas, we will give them an instance value of 1

Rate

• the funding rate for each element of the discretionary bursary for 2022 to 2023. 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 2022 to 2023. That is the number of students eligible for and in receipt of free meals in FE in either the 2020 to 2021 ILR R14 data return or the 2019 to 2020 ILR R14 data return if no students were flagged as supported with free meals in FE in the 2020 to 2021 ILR R14 data return.

The total adjustment amount is £15 million so, if there are 100,000 free meals in FE students who inform 2022 to 2023 free meals in FE allocations, and Institution A recorded 1,000 of those students in their 2020 to 2021 ILR R14 data, 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 2021 to 2022, and
• no institution has a 16 to 19 bursary fund allocation of less than £500

Discretionary bursary fund

• the sum of each bursary element before transition arrangements are applied ‘element 1: financial disadvantage total’ + ‘element 2a: student costs travel total’ + ‘element 2b: student costs industry placements’ - ‘bursary adjustment in respect of free meals’

2019 to 2020 Discretionary bursary funding – baseline for transition

• your final, total 2019 to 2020 bursary allocation will again be used as a baseline to calculate the transition lower and upper limits (-/+ 75%). The transition lower and upper limits were +/- 50% in 2022 to 2023

Transition lower limit

• In 2022 to 2023, institutions will receive no less than 25% of the baseline transition amount following the change to the methodology

Transition upper limit

• In 2022 to 2023, institutions will receive no more than 175% of the baseline for transition amount following the change to the methodology

Exceptional adjustment

• an increase or decrease applied to your discretionary bursary funding. This could relate to funding to help students on the current ESF not in education, employment or training (NEET) programme, merger adjustments, converter adjustments and so on

Discretionary bursary fund total

• your total discretionary bursary fund allocation for 2022 to 2023 with transition limit applied where necessary. The minimum allocation value is £500

Residential bursary fund

• total funding allocation for the residential bursary fund

Residential support scheme

• total funding allocation for the residential support scheme

Residential funding total

• the sum of residential funding

‘residential bursary fund’ + ‘residential support scheme’

Free meals in FE funding

Total students

• the number of 16 to 19 students recorded in either the 2020 to 2021 ILR R14 data return or the 2019 to 2020 ILR R14 data return if no students were recorded as supported with free meals in FE in the 2020 to 2021 ILR R14 data return.

Free meals students

• the number of students recorded as being eligible for and in receipt of free meals in FE in either the 2020 to 2021 ILR R14 data return or the 2019 to 2020 ILR R14 data return if no students were recorded as supported with free meals in FE in the 2020 to 2021 ILR R14 data return

Proportion of students on free meals

• ‘free meals students’ ÷ ‘total students’

Total students in 2022 to 2023 funded for free meals

• the total number of students that will attract free meals funding in 2022 to 2023

‘proportion of students on free meals’ × ‘total student numbers for 2022 to 2023’ (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 2022 to 2023 funded for free meals’

Higher rate: ‘band 5 proportions used in 2022 to 2023 allocation’ + ‘band 4 proportions used in 2022 to 2023 allocation’.

Lower rate: ‘band 3 proportions used in 2022 to 2023 allocation’ + ‘band 2 proportions used in 2022 to 2023 allocation’.

FTE rate: (‘band 1 proportions used in 2022 to 2023 allocation’ × ‘total students in 2022 to 2023 funded for free meals’) × (‘band 1 FTEs student numbers for 2020 to 2021’ ÷ ‘band 1 student numbers for 2020 to 2021’).

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’

Exceptional adjustment

• an increase or decrease applied to your free meals in further education funding. This could relate to funding to help students on the current ESF NEET programme, merger adjustments, converter adjustments and so on

Total free meals funding

• the sum of free meals funding

‘free meals funding’ higher + ‘free meals funding’ lower + ‘free meals funding’ FTEs + ‘free meals administration’ + ‘exceptional adjustment’

Total student support funding

• the sum of student financial support funding

‘discretionary bursary fund total’ + ‘residential funding total’ + ‘total free meals funding’

Teachers’ Pension Scheme Payments

This section explains how we have calculated allocations to meet increased employer contributions to the Teachers’ Pension Scheme (TPS) in the 16 to 19 revenue funding allocation statement.

2020 to 2021 financial year annual payments reduced to 16.4% for the full year

• the latest available audited payments made by institutions to Capita for TPS, related to financial year 2020 to 2021 including employer contributions annual payments at the rate of 16.4%
• as the employer contribution rate changed prior to the 2020 to 2021 financial year, the figure has been adjusted to reflect what the contributions would have been if a rate of 16.4% had remained

Payments made to Capita for TPS, financial year 2020 to 2021 at 23.6% for the full year

• employer contributions annual payments made for financial year 2020 to 2021 at 23.6%

5.0% uplift for 2021 to 2022

• 5.0% uplift reflects the Office for Budget Responsibility’s (OBR’s) nominal wage growth forecast for 2021

3.9% uplift for 2022 to 2023

• 3.9% uplift reflects the OBR’s nominal wage growth forecast for 2022

Revised annual cost

• ‘Payments made to Capita for TPS, financial year 2020-2021 at 23.6% for the full year’ + ‘5.0% uplift for 2021 to 2022’ + ‘3.9% uplift for 2022 to 2023’

Teachers’ pension scheme grant (difference between payments at 16.4% and revised annual cost)

• ‘revised annual cost’ - ‘2020 to 2021 financial year annual payments reduced to 16.4% for the full year’