Guidance

19+ allocations technical guidance for 2023 to 2024

Updated 7 July 2023

Applies to England

1. Introduction and purpose of the document

This document sets out the methodologies and technical details for the following allocations for the 2023 to 2024 funding year:

• ESFA funded adult education budget (AEB)
• 19 to 24 traineeships
• Advanced learner loan facilities and bursaries
• 16 to 18 traineeships (for providers that do not have 16 to 19 funding)
• Apprenticeships non-levy (procured)
• Apprenticeships carry-in (non-procured)

You should read this document together with the relevant funding and performance management rules for the 2023 to 2024 funding year.

2. How this document can help you

We have divided this document into sections about general information on allocation statements and business cases. The final section has the funding methodologies specific to the funding agreements and separate allocation lines you hold with ESFA.

A glossary is included at the end to explain technical terms.

3. Understanding the terminology

The terms ‘we’ and ‘ESFA’ refer to the ‘Education and Skills Funding Agency’ and associated staff.

When we refer to ‘you’, ‘institution’ or ‘providers’, this includes colleges, higher education institutions, training organisations, local authorities and employers that receive funding from us to deliver education and training.

We will use the generic term ‘you’ or ‘provider’ unless the section only applies to a specific provider type.

We use the term ‘grant’ to include provider funded through a:

• financial memorandum
• conditions of funding (grant)

We use the term ‘contract for services’ to include provider funded through a:

• contract for services
• conditions of funding (grant) – employer

When we refer to ‘ESFA funded AEB’, this is funding you can claim from us for delivery of AEB provision, and/or the traineeship programme to learners outside of devolved areas.

The 2023 to 2024 funding year runs from 1 August 2023 to 31 July 2024.

We use the term ‘allocation line’ as the separate values or ‘of which’ within your funding agreement that we will use to manage your contract value.

4. Allocation statement

All allocations covered in this document are calculated as a cash value. Institutions must manage and earn this funding following the relevant funding formula and rules and will be managed in line with published performance management arrangements, when published.

Allocation statements are not legally binding. They do not create any legal obligation against the Secretary of State for Education, acting through the Education and Skills Funding Agency.

We reserve the right to remove or reduce your allocation if we find incorrect data or audit errors as part of our funding assurance and monitoring work.

4.1 How to access your statement

Your allocation statement is available to view on Manage your Education and Skills Funding.

Manage your Education and Skills Funding is an online service that gives you access to information about contracting and payments. We use this service to share your contract documents, allocation statements, remittance reports (payments), subcontracting declarations and reconciliation statements.

You need one of the following roles to view your allocation statement:

• contract authoriser
• contract manager
• contract user
• data returns and claims authoriser

You can request a new role through the Identity and Access Management Service (IDAMs) or by asking your organisation’s super user.

Your allocation statement will show how much we have allocated to you for the 2023 to 2024 funding year and how this spans financial years (August 2023 to March 2024 and April 2024 to July 2024).

You can understand how we have calculated your allocation by using our calculators. You will need to enter information when prompted and it will show the steps in our calculations. Calculators will be available after allocations are issued at the end of March. Should you have further requirements in addition to the calculators provided please contact us using our online enquiry form.

If we change your allocation, we may update your original allocation statement. You will be able to view all versions of your statements on Manage your Education and Skills Funding.

4.2 Why a statement is not issued

You will not see a funding line on your allocation statement where we have calculated a £0 allocation. We will write to you separately if you currently have a contract for the relevant funding stream and this applies to you. Please review the business process for more information.

You will not receive an allocation statement if:

• you are about to merge with another organisation or take on learners from a failing provider for example
• you are subject to an investigation, or we are reviewing your allocation due to a complication or known data error
• you have received notice that we are terminating your contract

4.3 How we apply infrastructure changes

If you merged or were part of a disaggregation before we issued allocation statements, and we have received confirmation from your organisation, we have reflected this in your allocation/s. We have calculated allocations separately for each of the providers involved in a merger and then aggregated them for the continuing provider. For disaggregations, we have split the allocation using the agreed proportions.

If we have not received confirmation of a merger or disaggregation, then you will not receive a merged or disaggregated allocation.

4.4 Quality standards to statements

We use historic delivery and performance to calculate your allocation to make sure provision is of a high quality. We will use your track record to assess your ability to deliver education and training to the required standard and may reduce your allocation if one or more of the following is true:

• your Ofsted grade is inadequate
• you are in formal intervention for minimum standards or inspection
• you have been issued with a notice for financial control
• you have been issued with a notice to improve, additional conditions of funding or additional contractual obligations in relation to minimum quality standards for 19+ education and training
• you have significantly underdelivered against your contract value in previous years
• you are subject to an investigation for breach of contract and/or failed audit

5. Business case process

5.1 For allocations issued in March 2023

This section applies to:

• Education and Skills Funding agreement (grant), including Level 3 free courses for jobs (FCFJ)
• Advanced learner loans
• Apprenticeships non-levy (procured)

You can raise a business case if:

• you had a significant data error that has affected for your allocation

• you had a contract value for the 2022 to 2023 funding year but did not receive a 2023 to 2024 allocation because you have not used it for the following allocation lines:

• you are a grant funded provider and have an ESFA funded AEB agreement
• you have an advanced learner loans facility
• you have an Apprenticeships non-levy procured contract for services

The maximum you can request is £25,000 or your current contract value, whichever is lower.

We will apply the allocation methodology as set out in this document when reviewing business cases using a nationally consistent formulaic calculation.

The deadline to submit a business case was 28 April 2023. We have published our business case template, and we will only accept cases where the template has been fully completed and submitted by the deadline.

We will not accept requests for growth or cases that are not related to errors or not delivering your allocation.

For information about how to raise a business case, please see the business case section of our 19+ funding allocations page.

5.2 For carry-in allocations issued in July 2023

This section applies to:

• Education and Skills Funding agreement (grant): 19 to 24 traineeships
• ESFA funded AEB contract for services (procured from August 2021)
• 19 to 24 traineeships contract for services (2020 procurement)
• 16 to 18 traineeships without a 16 to 19 study programme
• 16 to 18 traineeships without a 16 to 19 study programme (awarded through market entry)
• Apprenticeships carry-in (non-procured)

You can raise a business case if:

• you had a significant data error that has affected for your allocation
• your allocation does not sufficiently cover additional learner starts in 2022 to 2023 that were not submitted by the May (R10) ILR data return
• you had a contract value for 2022 to 2023 but did not receive a 2023 to 2024 allocation and you have ‘continuing learners’

We will apply the allocation methodology as set out in this document when reviewing business cases using a nationally consistent formulaic calculation.

You must raise your business case by completing the business case template

The deadline for submitting a business case is 6 September 2023. We have published our business case template, and we will only accept cases where the template has been fully completed and submitted by the deadline.

We aim to communicate outcomes of business cases in October 2023. Please see the business case process section of this document for more information.

6. Contact us

If you have any queries, please visit Get help with Education and Skills Funding Agency services. You can also talk to your territory lead or use the web form to submit an enquiry.

7. Allocation methodologies

The allocation methodologies are split by the funding agreement(s) and allocation lines you have with ESFA. It is essential that you read the rules that apply to you. You may have more than one agreement and will need to read the parts that relates to that funding agreement, funding stream and allocation line.

The allocations that we issue are to set the value at which a provider will be managed and paid for the funding year. Your allocation is the maximum amount you can earn in the 2023 to 2024 funding year and not necessarily the amount you will be paid.

We allocate funding on a lagged basis, whereby funding in one year informs the allocation in the next. This means that the allocation for an academic year is based on the last/historic full academic year delivery (£). For example, 2023 to 2024 allocations are largely based on 2021 to 2022 R14 ILR data submissions. Some allocations may differ and more information is provided in each allocation methodology.

When processing allocations, we abide by the following standards:

• calculate allocations on an annual basis using nationally consistent methodologies, taking into account the current policy position and affordability
• reflect historic (lagged) full year delivery and current allocations to ensure future allocations are in line with what providers can realistically earn
• ensure all providers are treated fairly and equitably
• protect public funds and meet principles of public law
• enable providers to respond to government priorities

8. Education and Skills Funding agreement (grant)

The Education and Skills Funding agreement (grant) section of this document applies to grant funded with a financial memorandum/funding agreement with ESFA.

This section refers to your ESFA funded AEB allocation. If you have a query about the AEB funding allocated by a Mayoral Combined Authority (MCA) or the Greater London Authority (GLA), please contact them directly.

Devolution of AEB came into effect from 1 August 2019. The MCAs/GLA are now responsible for commissioning and funding AEB provision for learner’s resident in their areas.

We will fund learners resident outside devolved areas and will continue to support continuing learners resident in devolved areas. Please read section on continuing learners for funding arrangements.

Following the reclassification of further education (FE) colleges, sixth-form colleges and designated institutions in England to the public sector, DfE amended the existing payment profile for all institutions who receive AEB grant funding. Full details are available in the January ESFA Update. The revised profiles have been reflected in your ESFA funded AEB allocation.

It is important that you pay close attention to the different allocation values you may have for each element of your ESFA funded AEB allocation. You can do this in Manage your Education and Skills Funding by reviewing the detailed allocation table. Where applicable, your allocation is formed of separate methodologies. See sections within this document for details of each methodology:

• adult skills: this includes learning support and learner support
• community learning: non-formula funded community learning value
• Funding for innovative provision
• National Skills Fund: level 3 FCFJ
• 19 to 24 traineeships for continuing learners only

8.1 ESFA funded adult education budget (grant)

We have calculated your ESFA funded AEB allocations for the 2023 to 2024 funding year for institutions that:

• are grant funded,
• have a 2022 to 2023 ESFA funded AEB contract value (excluding continuing learners), and
• delivered ESFA funded AEB between August 2021 and July 2022

We have used the following methodology to calculate ESFA funded AEB allocations:

We calculate your 2020 to 2021 delivery to learners resident outside of devolved areas.

Where applicable, the values we use exclude 19 to 24 traineeships and NSF FCFJ for jobs. This is calculated separately. Please see sections 8.4 and 8.5 for more information.

For each of the previous 2 years, we have compared your ESFA funded AEB final funding claim delivery to your ESFA funded AEB allocation for the following years as a percentage. We compare your percentage to the published funding claims reconciliation threshold for that year, as follows:

Funding year	Reconciliation threshold
2020 to 2021	90%
2021 to 2022	97%

If you delivered below the reconciliation threshold in each of the last 2 years, we take your 2021 to 2022 delivery. We then add a buffer by adding 10% of your 2022 to 2023 contract value.

If you delivered below the reconciliation threshold in each of the last 2 years, but your 2020 to 2021 delivery percentage is greater than 2021 to 2022, we rebased the 2021 to 2022 delivery value using the 2020 to 2021 delivery percentage.

If you have delivered within the reconciliation threshold at least once in the last 2 years, your allocation is equal to your 2022 to 2023 contract value as above.

If you delivered above 100% in 2021 to 2022, we have awarded you an increase up to the value of your 2021 to 2022 delivery or 10% of your 2022 to 2023 contract value, whichever is lower.

Delivery used within your allocation calculation includes monitoring and audit adjustments to accurately reflect final delivery.

We calculate adult skills, learner support and non-formula funded community learning values separately. These are explained later in this document.

Where eligible, your ESFA funded AEB will be less the funding which may be used for funding for innovative provision. For more information, please see section 8.3.

We have applied a minimum allocation of £10,000. If the allocation, we have calculated for you is less than £10,000 you will not receive an allocation and we will notify you separately.

We have not adjusted 2023 to 2024 allocations based on policy or application of the ‘earnings boost’. This will be applied at the end of the funding year.

If you had an AEB allocation in the 2021 to 2022 funding year but have not been issued with an allocation for 2022 to 2023, you can request an allocation of up to £10,000 through our business case process. Please see the business case process section of this document for more information.

If you have a track record issue, then your 2023 to 2024 allocation will be no greater than your 2022 to 2023 ESFA funded AEB contract value.

AEB continuing learners in areas that devolved before 1 August 2023

We will continue to be responsible for AEB learners that are resident in a devolved/delegated area and in learning before authority’s devolution date but did not complete by 31 July 2022 (continuing learners). You must ensure you meet the cost of continuing learners from within your ESFA funded AEB allocation, as you have always done.

Information on which areas devolved and when is available on adult education devolution.

The arrangements for additional funding related to continuing learners were for one year only and funding has not been consolidated into your ESFA funded AEB allocation for 2022 to 2023.

Learners that started since the date of devolution are the relevant devolved authority’s responsibility.

8.2 Non-formula funded community learning

Where applicable, delivery excludes non-formula funded over-delivery. Our performance management rules set out that we will not fund non-formula funded community learning over-delivery, nor offset non-formula funded community learning over-delivery against adult skills under-delivery.

Institutions with a non-formula funded community learning allocation have the flexibility to spend non-formula funded community learning funding on adult skills. Where institutions have used that flexibility, we are maintaining your non-formula-funded community learning at its current level.

8.3 Funding for innovative provision

Where applicable, a proportion of your ESFA funded AEB has moved to funding for innovative provision.

Details of the innovation fund were set out in the announcement on 30 January 2023 at Further education adult skills funding rates and funding for innovative provision.

To be eligible to earn up to 3% of your ESFA AEB grant allocation for the development of new innovative provision, you must:

• have delivered ESFA funded AEB learning aims in 2021 to 2022, excluding FCFJ, 19 to 24 traineeships and community learning
• must have a 2023 to 2024 AEB allocation (excluding FCFJ) over £500,000
• have 2021 to 2022 non-qualification provision of less than 20% of your adult skills funding delivery

To calculate bullet 3, we must divide your non-qualification provision by your total AEB funded (including any adjustments for funding and monitoring errors or agreed exceptions) in 2021 to 2022. The non-qualification provision is sourced by adding together your:

• Community Learning allocation 2021 to 2022
• Non-regulated formula funded delivery in 2021 to 2022
• Support funding associated with the non-regulated formula funded delivery in 2021 to 2022

The support funding (bullet 3) includes learning support for non-regulated formula funded delivery, as well as a proportion of adult skills learner support and excess learning support funding.

This proportion is calculated by looking at the formula funded non-regulated adult skills delivery (excluding learning support) as a proportion of all formula funded adult skills delivery in 2021 to 2022 (excluding learning support).

This percentage is multiplied by your learner support funding and excess learning support funding to give an assumed amount relating to the non-regulated formula funded delivery.

Further details of how we will manage funding for innovative provision will be available in the Funding and performance management rules (when published).

8.4 National Skills Fund: level 3 free courses for jobs (grant)

Level 3 FCFJ is an ‘of-which’ of ESFA funded AEB allocations, and we will manage it as a separate allocation line. We will not allow virement of funds between allocation lines.

This section applies to grant funded providers only. If you have an ESFA funded AEB contract for service, please review allocation methodology set out in separate section.

We have calculated level 3 FCFJ allocations for the 2023 to 2024 funding year for providers that have funding within the national skills fund: level 3 adult offer in 2022 to 2023, including those who successfully submitted a request for first-time delivery.

We have used full-year 2020 to 2021 and 2021 to 2022 R14 data to calculate your allocation for level 3 using the following methodology:

For each of the previous 2 full funding years (2020 to 2021 and 2021 to 2022), we calculate the percentage you delivered against your contract by comparing your FCFJ funding claims delivery against contract value.

If you delivered below the 80% delivery threshold in each of the last 2 years, we take your 2021 to 2022 delivery. We then add a buffer by adding 10% of your 2022 to 2023 contract value.

If you did not meet the 80% delivery threshold in either 2020 to 2021 or 2021 to 2022, but your 2022 to 2023 delivery proportion to date at R06 is greater, we rebase the 2021 to 2022 delivery value using the 2022 to 2023 delivery proportion.

If you delivered above the 80% in either of the last 2 years, but not exceeded 100%, your allocation is equal to your 2022 to 2023 FCFJ contract value (as of February 2023).

If you delivered more than 100% in either of the last 2 years, you will receive an allocation based on your 2022 to 2023 contract value plus 10%.

If your 2022 to 2023 FCFJ contract value was increased at the performance management review point (January 2023), your allocation is equal to your 2022 to 2023 FCFJ contract value (as of February 2023).

We have applied a minimum allocation of £10,000. If your calculated allocation is not equal to £0 but less than £10,000, we have uplifted your allocation to £10,000.

Where a calculated allocation is between £10,000 and £45,000 and the 2022 to 2023 contract value was greater than £45,000, we have uplifted your allocation to £45,000.

Funding will be available in year, at set points only, for growth. We will offer more FCFJ funding to providers meeting the criteria set out in funding and performance management rules, when published.

If you have a track record issue, then your 2023 to 2024 allocation will be no greater than your current allocation as of February 2023.

All delivery used within your allocation calculation includes monitoring and audit adjustments and exception cases to accurately reflect final delivery.

8.5 19 to 24 traineeships (grant)

These allocations will be added to your agreement in July 2023 so we can reflect traineeship learners that started prior 31 July 2023.

On 10 December 2022, the government announced that traineeship provision would be integrated into adult education provision from 1 August 2023. This means the Department for Education will no longer fund the delivery of traineeships through a national programme.

The last date on which funded providers can enrol an eligible learner on a traineeship under the current programme is 31 July 2023.

We will provide funding for the completion of all eligible traineeships started on or before 31 July 2023 and not completed by this date and therefore carry-over into 2023 to 2024 academic year (continuing learners) for a maximum of 12-months.

We have used your R10 (May 2023) ILR data return to calculate the funding needed in 2023 to 2024.

Allocations will only include funding for providers who:

• have a 19 to 24 traineeships allocation for the 2022 to 2023 funding year and
• have learners on a traineeship who started prior to 31 July 2023 and will still be in learning on 1 August 2023

We have worked out your allocation by finding the learners that will continue into 2023 to 2024 and adding up the on-programme payments, achievement cost and learning support for the remaining months based on learners planned end date.

Our methodology assumes:

• all learners will complete by 31 July 2024
• all learners remain on programme until their planned end date and earn all on programme payments due
• there is no drop-out
• learners who passed their planned end date in 2022 to 2023 funding year and not yet achieved are still in learning (i.e. late achievements)

We have applied a £1,000 minimum allocation. We have uplifted your 2023 to 2024 allocation to £1,000 if the allocation we calculated is lower than this.

We have also added an element for 19 to 24 traineeships learner support. To calculate this, we:

• divide your 2021 to 2022 19 to 24 traineeships learner support delivery as a percentage of your 19 to 24 traineeships programme delivery in the 2021 to 2022 funding year
• then multiply this percentage by the 19 to 24 traineeships allocation we have calculated for 2023 to 2024 funding year

We have applied a £100 minimum allocation for learner support. If the allocation we calculated for you was less than this, then we have uplifted your allocation to this value.

You can raise a business case by the deadline and if you meet the criteria set out in section 5.2.

Guidance for providers and employers can be found in Traineeships: framework for delivery 2022 to 2023, which still applies to learners who start a traineeship under the national programme on or before 31 July 2023.

We are currently reviewing the rules for new starts for learners from 1 August 2023. This will include how we fund work preparation and work placement within AEB. For up-to date information, please read the ESFA funded AEB: funding rules 2023 to 2024.

9. ESFA funded AEB contract for services (procured from August 2021)

We can confirm the ESFA funded AEB procured contract for services will not be extended for new starts for 2023 to 2024 funding year.

If you want to deliver ESFA funded AEB from 2023 to 2024 you must apply to the procurement application via the e-Procurement portal Jaggaer.

Your ESFA funded AEB procured contract for service will end on 31 July 2023. This means you will not be able to recruit new learners after this date.

We can confirm that it is our intention to apply clause 2.3 where we will extend the contract period to allow you to complete your learner’s programmes, where they were enrolled in 2022 to 2023 academic year but have a planned end date on or later than 1 August 2023. The longstop date will end no later than 31 July 2024.

You should not use more funding than the amount set out in your contract (including over-delivery tolerances). Any new starts that would cause you to exceed your contract value is at your own risk.

If you deliver above your 2022 to 2023 contract value, we will not fund your over-delivery, we will adjust your carry-in funding to reflect this over-delivery.

We have used the same calculation for adult skills funding and National Skills Fund – FCFJ funding but we have run them separately.

We have used your R10 (May 2023) ILR data return to calculate the funding needed in 2023 to 2024.

Allocations will only include funding for providers who:

• have an AEB and/or NSF FCFJ contract allocation for the 2022 to 2023 funding year and
• have learners who started prior to 31 July 2023 and will still be in learning on 1 August 2023

We have worked out your allocation by finding the learners that will continue into 2023 to 2024 and adding up the on-programme payments, achievement cost and learning support for the remaining months based on learners planned end date.

Our methodology will assume:

• all learners will complete by 31 July 2024
• there is no drop-out
• all learners achieve on their planned end date and earn their achievement payment on this date
• learners who passed their planned end date in 2022 to 2023 funding year and are still in learning (i.e. late achievements)

We will apply a £1,000 minimum allocation. We have uplifted your 2023 to 2024 allocation to £1,000 if the allocation we calculated is lower than this.

We have also added an element for AEB and/or NSF FCFJ learner support. To calculate this, we:

• divide your 2021 to 2022 learner support delivery as a percentage of your programme delivery in the 2021 to 2022 funding year
• then multiply this percentage by the AEB and/or NSF FCFJ allocation we have calculated for 2023 to 2024 funding year

You can raise a business case by the deadline and if you meet the criteria set out in section 5.2.

We will not allocate funds beyond 31 July 2024.

Please read the AEB performance management rules for how we will review your contract value in year, including payments and capping. These will be published in July 2023.

10. 19 to 24 traineeships contract for services (2020 procurement)

These allocations will be issued in July 2023 so we can reflect traineeship learners that started prior 31 July 2023.

On 10 December 2022, the government announced that traineeship provision would be integrated into adult education provision from 1 August 2023. This means the Department for Education will no longer fund the delivery of traineeships through a national programme.

The last date on which funded providers can enrol an eligible learner on a traineeship under the current programme is 31 July 2023.

We will provide funding for the completion of all eligible traineeships started on or before 31 July 2023 and not completed by this date and therefore carry-over into 2023 to 2024 academic year (continuing learners) for a maximum of 12-months.

We have used your R10 (May 2023) ILR data return to calculate the funding needed in 2023 to 2024.

Allocations will only include funding that will be earned between 1 August 2023 and 31 July 2024 for providers who:

• have a 19 to 24 traineeships contract for the 2022 to 2023 funding year and
• have learners on a traineeship who started prior to 31 July 2023 and will still be in learning on 1 August 2023

We have worked out your allocation by finding the learners that will continue into 2023 to 2024 and adding up the on-programme payments, achievement cost and learning support for the remaining months based on learners planned end date.

Our methodology assumes:

• all learners will complete by 31 July 2024
• all learners achieve on their planned end date and earn their achievement payment on this date
• there is no drop-out
• learners who passed their planned end date in 2022 to 2023 funding year and not yet achieved are still in learning (i.e. late achievements)

We have applied a £1,000 minimum allocation. We have uplifted your 2023 to 2024 allocation to £1,000 if the allocation we calculated is lower than this.

If you do not have continuing learners in 2023 to 2024 funding year you will not receive an allocation and a zero-allocation letter will be sent to you.

We have also added an element for 19 to 24 traineeships learner support. To calculate this we:

• divide your 2021 to 2022 19 to 24 traineeships learner support delivery as a percentage of your 19 to 24 traineeships programme delivery in the 2021 to 2022 funding year
• then multiply this percentage by the 19 to 24 traineeships allocation we have calculated for 2023 to 2024 funding year

We have applied a £100 minimum allocation for learner support. If the allocation we calculated for you was less than this, then we have uplifted your allocation to this value.

You can raise a business case by the deadline and if you meet the criteria set out in section 5.2.

Guidance for providers and employers can be found in the Traineeships Framework for Delivery 2022 to 2023 which still applies to learners who start a traineeship under the national programme on or before 31 July 2023.

11. Advanced learner loan facilities and bursaries

11.1 Loans facility

We have calculated advanced learner loan facility allocations for the 2023 to 2024 funding year for providers that:

• have an advanced learner loan facility for the 2022 to 2023 funding year and
• delivered between August 2021 and January 2023

We have used the following methodology to calculate allocations:

To calculate your advanced learner loans facility allocation (starting point), we use the higher of your approved funded and paid loans applications from:

• 2021 to 2022 funding year or
• 1 February 2023 in the 2022 to 2023 funding year uplifted to a full year value by multiplying it by your February to July 2022 delivery in the 2021 to 2022 funding year divided by your 2021 to 2022 full year delivery (as a %)

We have aligned allocations with the performance management and growth thresholds for 2022 to 2023:

• if your 2022 to 2023 loans facility was reduced or did not change at the review points (October 2022 or February 2023), your allocation is the baseline or 2022 to 2023 loans facility (as of February 2023), whichever is lower

• if your 2022 to 2023 loans facility was increased at the review points (October 2022 or February 2023), your allocation is the baseline or 2022 to 2023 loans facility (as of February 2023), whichever is higher

• the growth to 2023 to 2024 allocation is limited to the maximum growth limits within the funding and performance management rules, less growth received in year

Facility as of 1 August 2022	Maximum growth
Up to £100,000	£50,000
£100,000 to £750,000	50%
over £3,000,000	£1,500,000

We have considered your future liabilities to ensure allocation is sufficient for learners continuing into the next funding year. Using February 2022 approved, attended and paid applications liabilities into 2023 to 2024 we ensure that you have sufficient funding to support these learners, allowing a buffer if your liabilities are more than 70% of your allocation.

Where loan applications occur after receiving allocation over and above your historically proportions will create liabilities not consolidated as part of facility.

We have not issued you with a facility if you have not used your loans facility between August 2020 and February 2023.

We have applied a minimum allocation of £5,000. We have uplifted your 2023 to 2024 allocation to £5,000 if the allocation we calculated for you is lower than this (unless you have a track record issue).

If you had an advanced learner loans facility allocation in the 2022 to 2023 funding year but have not been issued with an allocation for 2023 to 2024 because you have not delivered, please review the business case process for more information.

If you have a track record issue, then your 2023 to 2024 facility allocation will be no greater than your 2022 to 2023 contract value as of February 2023.

11.2 Loans bursary

We continue to align bursary allocations to programme delivery and aim to have a proportionate bursary value for learner and learning support to the level of facility.

We have used the following methodology to calculate advanced learner loans bursary allocations:

To calculate your allocation, we have divided how much bursary funding you claimed in the 2021 to 2022 funding year (as of your final funding claim) by the value of your approved, attended and paid loans applications in the 2021 to 2022 funding year as of 1 February 2023.

We then multiply this percentage by the advanced learner loans facility allocation we have calculated for you for the 2023 to 2024 funding year.

We have applied a 50% limit. If the proportion of your bursary delivery was greater than this, we have reduced you to this proportion.

We have set a minimum bursary allocation value of £500. If the allocation we calculated for you was less than this, we uplifted it to this value.

If you did not use your loans bursary in 2021 to 2022, your loans bursary allocation for the 2023 to 2024 funding year will be £100.

If you have a track record issue then your 2023 to 2024 facility allocation will be no greater than your 2022 to 2023 contract value as of February 2023.

12. 16 to 18 traineeships (for providers that do not have 16 to 19 funding)

These allocations will be issued in July 2023 so we can reflect traineeship learners that started prior to 31 July 2023.

This section applies to you if you have a 16 to 18 traineeships contract (either through market entry or a long-standing contract for service).

On 10 December 2022, the government announced that traineeship provision would be integrated into 16 to 19 study programme and adult education provision from 1 August 2023. This means the Department for Education will no longer fund the delivery of traineeships through a national programme.

The last date on which funded providers can enrol an eligible learner on a traineeship under the current programme is 31 July 2023.

We will continue to fund eligible providers for the learners, who started their traineeship and will not complete on or before 31 July 2023 and therefore carry-over into 2023 to 2024 academic year (continuing learners) for a maximum of 12-months.

We have used your R10 (May 2023) ILR data return to calculate funding needed in 2023 to 2024.

We have used the same calculation for providers with market entry and long-standing contract for services but we have run them separately, against the separate contract agreements.

Allocations will only include funding for providers who:

• have a 16 to 18 traineeships contract for the 2022 to 2023 funding year and
• do not have a 16 to 19 funding agreement: these are calculated through different arrangements and
• have learners on a traineeship who commenced prior to 31 July 2023 and will still be in learning on 1 August 2023

We have worked out your allocation by finding the learners that will continue into 2023 to 2024 and multiplying the monthly cost by the number of months remaining based on learners planned end date.

Our methodology assumes:

• all learners will complete by 31 July 2024
• all learners remain on programme until their planned end date and earn all on programme payments due
• there is no drop-out

We have applied a £1000 minimum allocation. We have uplifted your 2023 to 2024 allocation to £1000 if the allocation we calculated is lower than this (unless you have a track record issue).

If you have a track record issue, your 2023 to 2024 allocation will be no greater than your current allocation.

We have also added an element for 16 to 18 traineeships bursary. To calculate this, we:

• divide your 2021 to 2022 16 to 18 traineeships bursary delivery as a percentage of your 16 to 18 traineeships programme delivery in the 2021 to 2022 funding year
• then multiply this percentage by the 16 to 18 traineeships allocation we have calculated for 2023 to 2024 funding year

We have applied a £500 minimum allocation for bursary. If the allocation we calculated for you was less than this, then we have uplifted your allocation to this value.

You can raise a business case by the deadline and if you meet the criteria set out in section 5.2.

Guidance for providers and employers can be found in the Traineeships Framework for Delivery 2022 to 2023 which still applies to learners who start a traineeship under the national programme on or before 31 July 2023.

13. Apprenticeships non-levy (procured)

This section sets out how apprenticeship non-levy extension allocations for 1 April 2023 to 31 March 2024 have been calculated. This section will be of interest to training providers with apprenticeship non-levy contract for services.

From 1 April 2021, you can no longer use this allocation to fund new starts. All new starts must be funded via the Apprenticeship Service from this date.

This allocation is for the purpose of carry-in learners only. Funding calculated is for apprentices that started on this contract on or before 31 March 2021 and continue and require funding between 1 April 2023 to 31 March 2024.

Where necessary, we will allocate and extend your contract for service on an annual basis until apprentices that started on this contract between 1 January 2018 and 31 March 2021 complete their programmes and funding is no longer required.

We have used the same calculation for 16 to 18 and 19+ apprenticeships but we have run them separately, at age band level.

We used R04 (December 2022) data return and our standard carry-in allocations methodology set out below to calculate the funding required in 2023 to 2024.

We have worked out your allocation by calculating all future costs occurring between 1 April 2023 and 31 March 2024.

We assume that:

• all apprentices remain on programme until their planned end date and earn all on programme payments due
• there is no drop-out
• all apprentices achieve on their planned end date and earn their achievement payment on this date
• learners who passed their planned end date in the 2022 to 2023 financial year and are still in learning (i.e. late achievements)

We will apply a £1,000 minimum allocation. If you have a non-levy apprenticeship contract (split between age-bands) for 2022 to 2023 and your allocation was less than this, then we have uplifted your allocation to this value. Unless you also received a minimum allocation for 2022 to 2023 and have not used your allocation.

If you had issues with your R04 data (November 2022 data submitted in December 2022) that you believe have significantly affected your allocation, you can raise a business case. Please complete the business case template if you need to raise a case.

The deadline for submitting a business case was 31 March 2023. We aim to communicate outcomes of business cases in June 2023. Please see the business case process section of this document for more information.

If you need to raise a business case, please ensure you sign your contract variation before 31 March 2023 so it does not expire. Signing your contract will not affect the outcome of your business case.

You must use your allocation within the terms and conditions of your funding agreement. You must operate within the relevant apprenticeship funding rules. If you do not operate within the rules, you will be in breach of your contract.

Please read apprenticeship performance management rules for how we will review your contract value in year, including payments and capping.

Your contract is for the financial year and will be managed as such.

Your procured non-levy apprenticeships contract remains separate from:

• apprenticeships carry-in allocations for starts between prior to 1 January 2018 and
• any funding you may be earning through the Apprenticeship Service

We will let you know your future apprenticeship non-levy funding for the 2024 to 2025 financial year in February 2024.

14. Apprenticeships carry-in (non-procured)

These allocations will be issued in July 2023 using your R10 (May 2023) data return.

Apprenticeship carry-in allocations for the 2023 to 2024 funding year will be issued in July 2023 through Manage your Education and Skills Funding.

We will use your R10 (May 2023) data return, and our standard carry-in allocations methodology set out below to calculate the funding required in 2023 to 2024 for learners that started:

• before 1 May 2017 (under the old funding system)
• with non-levy employers between 1 May and 31 December 2017 (under the new funding system)
• with non-levy employers between 1 January and 31 March 2018 (if you were offered a 3-month run-down extension as a result of being unsuccessful in the non-levy procurement)

We have used the following method to calculate apprenticeship carry-in allocations for the 2023 to 2024 funding year. Allocations will only include funding that will be earned between 1 August 2023 and 31 July 2024.

Before 1 May 2017 (under the old funding system)

For frameworks:

• identified apprentices that started before 1 May 2017, or restarts after 1 May 2017 under the old funding system, and will still be in learning on 1 August 2023
• calculated the future cost of these apprentices including learner support

For standards:

• identified apprentices that started before 1 May 2017, or restarts after 1 May 2017 under the old funding system, and will still be in learning on 1 August 2023
• calculated the future cost of incentives and Maths and English for these apprentices including learner support
• calculated the remaining value of government contributions not yet paid and converted this into a theoretical on-programme payment based on the planned end date

With non-levy employers between 1 May and 31 December 2017 (under the new funding system) or with non-levy employers between 1 January and 31 March 2018 (if you were offered a 3-month run-down extension because of being unsuccessful in the non-levy procurement):

• identified apprentices that started between 1 May and 31 December 2017 and will still be in learning on 1 August 2023
• or identified apprentices that started between 1 January 2018 and 31 March 2018 and will still be in learning on 1 August 2023
• calculated the future cost of these apprentices, including the cost of: maths and English, learning support, additional payments, disadvantage funding and the 16 to 18 framework uplift where appropriate
• used the 90% co-investment rate for programme aim funding except where exemptions apply as set out in the funding rules (for example, where the small employer waiver applies for eligible learners)

We will then round these values up to £100 and added them together to calculate your allocation.

Our methodology will assume:

• all apprentices remain on programme until their planned end date and earn all on programme payments due
• there is no drop-out
• all apprentices achieve on their planned end date and earn their achievement payment on this date
• learners who passed their planned end date in 2022 to 2023 funding year and not yet achieved are still in learning (i.e. late achievements)

We will apply a £1,000 minimum allocation. If you have an apprenticeships carry-in contract for the 2022 to 2023 funding year you will and delivered in 2022 to 2023 you will receive at least £1,000.

If you received a minimum allocation for the 2022 to 2023 funding year and have not used your allocation (as of your R10 data return) you will not receive an allocation and a zero-allocation letter will be sent to you.

You can raise a business case by the deadline and if you meet the criteria set out in section 5.2.

Please read the apprenticeship performance management rules for how we will review your contract value in year, including payments and capping.

Where necessary, we will allocate funds beyond 31 July 2024 to ensure you can continue to fund apprentices that have not completed their apprenticeship by then. We will let you know your carry-in allocation for the 2024 to 2025 funding year in the Summer of 2024.

Your apprenticeships carry-in allocations remain separate from:

• your procured non-levy apprenticeships contract value for starts between from 1 January 2018 and 31 March 2021 (if you were successful in the procurement)
• any funding you may be earning through the Apprenticeship Service

15. Glossary

Term	Description
Carry-in	Apprentices or learners that started in the prior funding year where the contract has ended but we continue to pay for learners/apprentices that have not completed their programme
Continuing learners	Learners that started in the prior funding year and did not complete or are continuing their programme into the following funding year
Devolution of adult education functions	The devolution of adult education functions refers to the transfer of certain Secretary of State functions in the Apprenticeships, Skills, Children and Learning Act 2009 to specified Mayoral Combined Authorities by way of orders made under section 105A of the Local Democracy, Economic Development and Construction Act 2009, and the delegation of those functions to the Mayor of London under section 39A of the Greater London Authority Act 1999, in relation to their areas
Disaggregation	A disaggregation is when providers (usually colleges) separate into separate organisations. The proportion of the allocation that each separate organisation receives is usually agreed between the relevant parties and then allocations are adjusted by ESFA
Earnings adjustment statement (EAS)	The form providers need to fill in to claim funding that cannot be claimed through the Individualised Learner Record (ILR)
Financial year	The ESFA’s financial year starts on 1 April and finishes on 31 March
Funding claim	Providers who are paid on profile (in instalments based on national profile rather than actual delivery) must submit 3 funding claims each year to tell us how much they expect to deliver and how much they actually delivered at the end of the year. For more information see the ESFA funding claims and reconciliation page
Funding year	The ESFA’s adult funding year start on 1 August and finishes on 31 July
Funding agreement (or contract)	The agreement between the Secretary of State for Education acting through the Education and Skills Funding Agency (ESFA) and providers who receive funding for education and skills training
Individualised learner record (ILR)	The primary data collection requested from learning providers for further education and work-based learning in England. The government uses this data to monitor policy implementation and the performance of the sector. It is also used by organisations that allocate funding for further education
Learner support	Funding to enable providers to support learners with a specific financial hardship that might prevent them from being able to start or complete their learning
Learning support	Funding to enable providers to put in place a reasonable adjustment, set out in the Equality Act 2010, for learners with an identified learning difficulty and/or disability to achieve their learning goal
Merger	A merger is when 2 or more providers (usually colleges) join together to form one organisation. We combine all of the separate allocations into the continuing provider’s allocation
Non-formula community learning funding	Where applicable, providers receive a non-formula funded community learning allocation as part of their AEB which is paid on a monthly profile. Submission of ILR data does not generate a funding value for the learning aim/s a learner participates on. Instead, providers attribute costs up to the value of their non-formula community learning allocation. Providers submit community learning data through funding model 10
non-regulated	Learning which is not subject to awarding organisation external accreditation in the form of a regulated qualification. It may be designed, delivered and certificated by a provider or another organisation. This could include: -independent living skills and engagement learning -employability and work skills -labour market re-entry -technical education tasters - basic digital skills - community learning
National affordability factor	This is a percentage we apply to allocations calculations to ensure the total amount allocated to all providers is within the budget available and the budget is shared equally amongst all providers
Ofqual	The Office of Qualifications and Examinations Regulation, which regulates qualifications, examinations, and assessments in England
Register of training organisations (the register)	A register that provides assurance on organisations that deliver non-apprenticeship education and training services funded by ESFA, or subcontractors with an aggregated contract value of £100,000 or more in our non-apprenticeship supply chain. Organisations apply to enter the register by completing our market-entry pre-qualification process, which includes due diligence questions and testing of capacity and capability
Virement	The process of moving money from one contract period or budget to a different one