Guidance

16 to 19 further education revenue funding allocation guide: 2023 to 2024 explanatory note for special post-16 institutions (SPIs)

Updated 6 September 2023

This guidance was withdrawn on 4 September 2024

Read the latest information about 16 to 19 funding allocations.

Applies to England

1. Introduction

This guide helps you understand how we have calculated your 16 to 19 revenue funding allocation for the 2023 to 2024 academic year.

1.1 Who this note is for

This guide is for special post-16 institutions (SPIs).

Further information regarding the high needs funding system is available in the publication High needs funding arrangements 2023 to 2024.

The ‘Changes for 2023 to 2024’ section shows the changes in academic year 2023 to 2024 at a glance and where the changes are reflected in your allocation statement.

1.2 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 2023 to 2024. The guides will help you to understand how we have calculated your funding allocation for 2023 to 2024. 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
• funding for high needs students

1.3 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 ILR or school census returns)

• significantly affect contract compliance, or

• leads us to 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.

Please be aware that once you have submitted your 2022 to 2023 individualised learner record (ILR) R14 data in October 2023, 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, you should expect to have your allocation reduced 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 2022 to 2023 R06 return to calculate local authority import/export adjustments for the financial year 2023 to 2024. 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, you should expect to have your element 2 allocation for high needs students reduced 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.

1.4 Enquiries

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

2. Changes for 2023 to 2024

On 13 July 2023 we announced a further investment of £185 million in 2023 to 2024 financial year and £285 million in 2024 to 2025 financial year to drive forward skills delivery in the further education sector.

This funding will help colleges and other 16 to 19 providers to address key priorities as they see fit, including tackling recruitment and retention issues in high-value technical, vocational, and academic provision which are of critical importance to our economic growth and prosperity.

2.1 National funding rate

In July 2023 we announced a further increase to the national funding rate in addition to the announcement made in October 2021. We have increased the national funding rate for students aged 16 and 17 and students aged 18 and over with high needs in band 5, by a further £111 per student, to £4,753, and other funding bands will increase proportionately. We will continue to fund an extra 40 hours per student. This is a 4.6% increase compared to academic year 2022 to 2023.

	National funding rate academic year 2022 to 2023	National funding rate academic year 2023 to 2024
Band 5	£4,542	£4,753
Band 4	£3,757	£3,932
Band 3	£3,056	£3,198
Band 2	£2,426	£2,528
Band 1	£4,542 proportion of band 5	£4,753 proportion of band 5

2.2 Programme cost weighting

In July 2023 we announced increases to all PCWs. This funding will help colleges and other providers to address key priorities as they see fit, including tackling recruitment and retention issues in high-value technical, vocational, and academic provision which are of critical importance to our economic growth and prosperity.

2.3 Disadvantage funding

For academic year 2023 to 2024 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) to take account of the change to GCSE results in 2020 and 2021. We will also adjust the care leavers rate.

We will increase the disadvantage block 1 rate to:

• £559 for students who are in care or who have recently left care

We will increase the disadvantage block 2 rate to:

• £559 for bands 4 and 5 students
• £341 for bands 2 and 3 students
• £758 for T Level students

2.4 Advanced maths premium

We will continue to pay the advanced maths premium in academic year 2023 to 2024 at a rate of £600. The baseline used to calculate the premium has been updated to use advanced maths enrolments recorded between academic year 2019 to 2020 and academic year 2020 to 2021.

2.5 Bursary – T Level industry placements

This year, we have introduced element 2bii, student costs for T Level industry placements. Previously, 16 to 19 bursary funding included an element which recognised the additional costs that might be required to support students on capacity and delivery fund (CDF) industry placements.

CDF funding is being phased out (2023 to 2024 will be the last year) but will help inform 16 to 19 bursary allocations this year (as element 2bi).

In addition, we have introduced element 2bii to provide funding that might be needed to support students who are undertaking an industry placement as part of their T Level programme. We will use the proportion of total funded students living in the top 60% most deprived areas, based on IMD 2019 data, to calculate how many of your funded T Level students are eligible for funding.

We will only allocate bursary funding for T Level industry placements to institutions who are funded for T Level delivery in the 2023 to 2024 academic year.

2.6 16 to 19 Bursary fund – funding rates

The 3 16 to 19 bursary funding rates (for disadvantage, travel and industry placements) have each increased by 10% compared to the rates from the 2022 to 2023 academic year.

2.7 16 to 19 Bursary fund – baseline and thresholds

We introduced a new 16 to 19 Bursary funding methodology in the 2020 to 2021 academic year. Since then, for the past 3 academic years, allocations have been baselined against an institution’s 16 to 19 bursary allocation from the 2019 to 2020 academic year and couldn’t vary from that 2019 to 2020 academic year allocation by more than a set percentage.

For the 2023 to 2024 academic year, this approach will change, and institutions will receive the actual, calculated amount of 16 to 19 bursary allocation. The only exception to this will be if the calculated value of an allocation is greater than £0 but less than £500, then the allocation will be increased to £500.

2.8 Free meals in further education

In August 2023, we confirmed an increase in the funding for free meals in further education from £2.41 to £2.53 per student per meal for the 2023 to 2024 academic year.

We will increase the free meals in further education funding rate to:

• £376 for bands 4 and 5 students and band 1 FTEs
• £186 for bands 2 and 3 students

Your 16 to 19 bursary fund allocation is not affected by this change, though you may continue to use 16 to 19 bursary funding and free meals in further education funding as a single allocation to best meet the needs of your students, providing all students who are eligible for free meals receive the appropriate support.

3. Special post-16 institution funding allocation

SPIs who will be delivering their first year of ESFA funded provision are currently completing the ESFA high needs due diligence process and, where successful, we expect to issue allocations to them by the end of June 2023. For these SPIs, we will allocate element 1 and element 2 using the place numbers returned to us by local authorities through the 2023 to 2024 high needs place change notification process.

For SPIs who will be delivering at least their second year of ESFA funded provision, we will allocate programme funding (element 1) and high needs funding (element 2) using counts of valid students from 2022 to 2023 ILR R06 data returns. We will use a reference date of 1 February 2023.

For 2023 to 2024, we will continue to use the 16 to 19 national funding formula to calculate programme funding (element 1) for SPIs.

For all SPIs, the total high needs place number allocation (element 2) is described in ‘high needs student table’ of the funding statement.

3.1 Where student numbers exceed allocated places

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

In the case of SPIs, however, ESFA is responsible for determining the allocations of both element 1 and element 2 and does so based on the prior year’s ILR data.

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

Where local authorities place significantly more students compared to their allocated places, the ESFA may, exceptionally, increase allocations in-year. In these circumstances, we will review the student numbers recorded in 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. Institutions receiving exceptional in-year funding will be notified by April 2024. We do not adjust element 2 growth awards for under delivery.

3.2 Programme funding formula

This section shows the various elements of the funding formula that apply to SPI funding allocations shown on page 1 of your allocation statement and the resulting funding from the application of each.

Retention factor

This remains 0.983. This was the average factor used in calculating 2022 to 2023 allocations for SPIs.

Programme cost weighing

We have applied the 30% uplift announced in July 2023. The average factor used to calculate your 2023 to 2024 allocation has increased from 1.054 to 1.0702.

Level 3 programme maths and English payment

As set out in the level 3 programme maths and English payment section.

Disadvantage funding – block 1

This remains 3.80%. This was the average factor used in calculating 2022 to 2023 allocations for SPIs.

Disadvantage funding – block 2

A default value of 2 instances per student has been used for all SPIs, which attract the £559 funding rate.

Large programme funding

Not applicable to SPIs.

Area cost allowance

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

The values on your statement are rounded 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.

3.3 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.

2022 to 2023 ILR R06 students

Student numbers taken from the 2022 to 2023 ILR R06 data return, with a reference date of 1 February 2023.

Exceptional variations to lagged student number

An increase or decrease applied to the lagged student numbers. This is where we’ve agreed an exceptional case.

Total student numbers for 2023 to 2024

The sum of:

• ‘2022 to 2023 ILR R06 students’ + ‘exceptional variations to lagged student number’

Student number methodology used

The data source used to calculate student numbers. For all SPIs this is the 2022 to 2023 ILR R06 return.

3.4 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.

3.5 Breakdown of funding by band

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

Student numbers 2021 to 2022

The student numbers for each funding band, as recorded in your 2021 to 2022 ILR R14 data return.

Proportions used in 2023 to 2024 allocation

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

Number of students allocated in 2023 to 2024

The percentage proportion for band 5 applied to the ‘total student numbers for 2023 to 2024’ shown in the ‘student numbers’ table.

National funding rate

The base amount of funding for each student in the band.

Student funding

The total student funding for each band:

• ‘number of students allocated in 2023 to 2024’ × ‘national funding rate’

Total student funding

The total student funding for all bands.

3.6 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 for the small number of SPIs that receive this funding. 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 level 3 study programme taken from the 2021 to 2022 ILR R14 data return:

• a student without a grade 4 or C (or above) in maths AND English counts as 2 instances
• a student without a grade 4 or C (or above) in one of maths OR English counts as 1 instance
• a student with grade 4 or C in both counts as 0 instances

Number of instances

• ‘instances per student’ × ‘total student numbers for 2023 to 2024’ in ‘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’

3.7 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

The block 1 average factor of 3.80% 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 2021 to 2022 for vulnerable students who were ‘in care’ or ‘care leavers’, at a rate of £559 per student.

Total block 1 funding

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

Disadvantage block 2

Total instances attracting funding per student

For SPIs, the instances per student value is defaulted to 2.

Total funded instances

• ‘instances per student applied in 2023 to 2024’ × ‘total student numbers for 2023 to 2024’ in ‘student numbers’ table

Total funded instances, funded instances attracting the full time/part time/full time equivalent (FTE) rate

‘Total funded instances for 2023 to 2024’ split between the full time and part time bands according to the proportions in breakdown of funding by bands’ table. In SPIs, all students attract the higher rate:

• ‘number of funded instances in each band’ (higher rate) × ‘block 2 funding rate’

Total block 2 funding

The sum of block 2 funding:

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

Minimum top up if applicable

If the total disadvantage funding (‘total block 1 funding’ + ‘total block 2 funding’) for an institution is less than £6,000, disadvantage funding is topped up to £6,000.

Total disadvantage funding

The sum of disadvantage funding:

• ‘total block 1 funding’ + ‘total block 2 funding’ + ‘minimum top up’

3.8 Large programme uplift

The large programme uplift is not applicable to SPIs in the 2023 to 2024 academic year.

3.9 Maths and English condition of funding (CoF)

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.

Note that the condition of funding 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 2021 to 2022

The 2021 to 2022 national funding rates are used to calculate the CoF adjustment.

Total students (2021 to 2022 R14)

The total number of students in 2021 to 2022, as recorded in your 2021 to 2022 ILR R14 data return, split by funding bands 1 to 5. Student numbers in this table exclude T Level students and 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 (2021 to 2022 R14)

The student funding associated with the total number of students:

• ‘total students (2021 to 2022 R14)’ (FTEs for band 1) × ‘national funding rate in 2021 to 2022’

Students not meeting CoF (2021 to 2022 R14)

The number of students not meeting the CoF in 2021 to 2022, as recorded in your 2021 to 2022 ILR R14 data return, split by each funding band.

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 (2021 to 2022 R14)’ (FTEs for band 1) × ‘national funding rate in 2021 to 2022’

Total

Shows the sum of bands 1 to 5 for ‘total students (2021 to 2022 R14)’, ‘national funding rate applied to total students (2021 to 2022 R14)’, students not meeting CoF (2021 to 2022 R14) and ‘national funding rate applied to CoF non-compliant students’.

5% of national rate funding for total 2021 to 2022 R14 students

The 5% tolerance before any adjustment is applied:

• 5% of total ‘national funding rate applied to total students (2021 to 2022 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 2021 to 2022 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’

3.10 Advanced maths premium funding

This section explains how we calculate 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.

Eligible students

Number of students studying an eligible level 3 maths qualification in academic year 2022 to 2023, taken from the 2021 to 2022 ILR R04 data return.

Eligible minus baseline

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

Rate per student

The rate of funding per student for 2023 to 2024 is £600.

Advanced maths premium funding

• ‘eligible minus baseline’ x ‘rate per student’

3.11 High value courses premium

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

Qualifying students

The number of qualifying students in your 2021 to 2022 ILR R14 data return.

Rate

The rate of funding per student for 2023 to 2024 is £600.

Funding

• ‘qualifying students’ × ‘rate’

3.12 Industry placements funding

No SPIs will receive industry placement funding for 2023 to 2024 academic year.

3.13 Care standards

This section explains how we calculate care standards funding in the 16 to 19 funding allocation statement. The funding rates and formula guide provides more information about care standards.

Eligible students

The total number of eligible students (≥12) taken from the 2021 to 2022 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’

3.14 2023 to 2024 total programme funding

This table shows your 2023 to 2024 total programme funding per student.

• the total programme funding from the summary table on page 1 of your statement / the total student numbers for 2023 to 2024

3.15 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 your 2022 to 2023 R06 ILR data return.

2022 to 2023 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 2022 to 2023 ILR R06 data return, with a reference date of 1 February 2023.

2022 to 2023 R06 total high needs student proportions by age

The percentage proportions of students split by age.

Exceptional variations to lagged high needs student number

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

High needs element 2

‘2022 to 2023 R06 total high needs student proportions by age’ is applied to ‘2022 to 2023 R06 total high needs students’ to calculate place numbers by split by age.

• ‘2022 to 2023 R06 total high needs students’ (total students) + ‘Exceptional Variations to lagged high needs student number’

High needs total

• ‘high needs element 2’ (total students) multiplied by rate.

3.16 Student financial support funding

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

Number of funded students / Number of funded T Level students

For element 1: financial disadvantage’ and ‘element 2a: student costs – travel’, the ‘number of funded students’ is the ‘total student numbers for 2023 to 2024’ shown in the ‘student numbers’ table.

For ‘element 2bii: student costs – T Level Industry Placements’, we use your funded T Level student number. No SPIs are in receipt of T Level funded students.

Instances per student

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.

Proportion of students from 60% most deprived areas

For ‘element 2bii: student costs – T Level industry placements’, we use the student postcode from the 2021 to 2022 ILR R14 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’
• No SPIs receive ‘element 2bi: student costs - CDF industry placements’ and ‘element 2bii: student costs – T Level industry placements’ funding.

Rate

The funding rate for each element of the discretionary bursary for 2023 to 2024. 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 2023 to 2024. That is the number of students eligible for and in receipt of free meals in FE in either the 2021 to 2022 ILR R14 data return or the 2020 to 2021 ILR R14 data return if no students were flagged as supported with free meals in FE in the 2021 to 2022 ILR R14 data return.

The total adjustment amount is £15 million so, if there are 100,000 free meals in FE students who inform 2023 to 2024 free meals in FE allocations, and Institution A recorded 1,000 of those students in their 2021 to 2022 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
• experiences a reduction that is greater than the reduction applied in 2022 to 2023, and
• 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 2bi: student costs CDF industry placements’ + ‘element 2bii: student costs T Level industry placements’ - ‘bursary adjustment in respect of free meals’

Bursary adjustment by exception

An increase or decrease applied to your discretionary bursary funding relating to an 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.

Free meals in FE funding

Total students

This is the number of 16 to 19 students recorded in either the 2021 to 2022 ILR R14 data return or the 2020 to 2021 ILR R14 data return if no students were recorded as supported with free meals in FE in the 2021 to 2022 ILR R14 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 2021 to 2022 ILR R14 data return or the 2020 to 2021 ILR R14 data return if no students were recorded as supported with free meals in FE in the 2021 to 2022 ILR R14 data return.

Proportion of students on free meals

• ‘free meals students’ ÷ ‘total students’

Total students in 2023 to 2024 funded for free meals

This is the number of students that will attract free meals funding in 2023 to 2024:

• ‘proportion of students on free meals’ × ‘total student numbers for 2023 to 2024’ in the ‘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 table 1b and applying the percentage proportions to the ‘total students in 2023 to 2024 funded for free meals’. For SPIs, all students attract the higher rate.

Free meals funding

• ‘free meals students’ (higher) × ‘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

• 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 an academy or another exceptional situation.

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’ + ‘total free meals funding’

3.17 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.

2021 to 2022 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 2021 to 2022 including employer contributions annual payments at the rate of 23.6%.

As the employer contribution rate changed prior to the 2021 to 2022 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 2021 to 2022 at 23.6% for the full year

Employer contributions annual payments made for financial year 2021 to 2022 at 23.6%.

5.9% uplift for 2022 to 2023

5.9% uplift reflects the Office for Budget Responsibility’s (OBR’s) estimated average increase in earnings for 2022.

4.2% uplift for 2023 to 2024

4.2% uplift reflects the OBR’s estimated average increase in earnings 2023.

Revised annual cost

• ‘payments made to Capita for TPS, financial year 2021-2022 at 23.6% for the full year’ + ‘5.9% uplift for 2022 to 2023’ + ‘4.2% uplift for 2023 to 2024’

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

• ‘revised annual cost’ - ‘2021-2022 financial year annual payments reduced to 16.4% for the full year’