19+ allocations technical guidance for 2025 to 2026
Published 6 February 2025
Applies to England
1. Purpose
This guidance sets out the methodologies and technical details for the following allocations for the 2025 to 2026 funding year:
- apprenticeships non-levy (procured)
We will publish information and updates to this page as we issue funding allocations for the rest of the 19+ funding streams.
We have divided this guidance into sections, which include general information on allocation statements and the business case process.
The allocation methodologies section explains the funding methodologies specific to the funding agreements and separate allocation lines you hold with ESFA.
We have included a glossary to explain technical terms.
2. Contact us
If you have questions after reading our guidance, or if there is anything else you need help with, you can find more support in our customer help centre.
3. Understanding the terminology
The 2025 to 2026 funding year runs from 1 August 2025 to 31 July 2026.
We will use the generic term ‘you’ or ‘provider’ unless the section only applies to a specific provider type.
We use the term ‘non-procured’ to include providers funded through a:
- financial memorandum
- conditions of funding (grant)
We use the term ‘contract for services’ to include providers funded through a:
- contract for services
- conditions of funding (grant) – employer
When we refer to ‘ESFA ASF’, this is funding that you can claim from us for delivery of ESFA adult skills fund to learners outside of devolved areas.
4. Allocation statement
You must follow the relevant funding formula and rules guidance when managing your funding.
We will monitor how you use the funding and adjust in line with performance management arrangements, when published.
4.1 Disclaimer
Allocation statements are not legally binding. They do not create any legal obligation against the Secretary of State for Education, acting through ESFA.
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.
4.2 How to access your allocation 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.
To use this service, you need to:
- have a DfE Sign-in account
- add the ‘Manage your education and skills funding’ service
- request the ‘View allocation statements’ subservice
Your allocation statement will show how much we have allocated to you for the 2025 to 2026 funding year and how this spans financial years (August 2025 to March 2026 and April 2026 to July 2026).
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.
4.3 Why a statement is not issued
You will not see a funding line on your allocation statement if we have calculated zero allocation. We will write to you separately if you currently have a contract for the relevant funding stream and this applies to you. Please see the business case process section for more information.
You will not receive an allocation statement if:
- your provision is about to change, for example you are about to merge with another organisation or take on learners from a failing provider
- you are subject to an investigation or we are reviewing your allocation due to a complication or known data error
- you have not recorded any delivery for the last 2 years
- you have received notice that we are terminating your contract
4.4 How we apply infrastructure changes
If you merged or were part of a disaggregation before we issue allocation statements, and we have received confirmation from your organisation, we reflect this in your allocation. We aggregate your data for each of the providers into the continuing provider.
For disaggregation cases, we 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.
4.5 Quality standards to statements
We use historic delivery and performance data 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. We 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 How to submit a business case
Please use our online digital business case form to submit your request. The form will be open from 7 February 2025.
We have also published digital business case guidance to support you submitting the digital business case form.
5.2 When to submit a business case
There are different deadlines to submit a business case dependent on when you received your allocation. Business cases can be submitted from the day following allocations being published to the published deadline.
For allocations issued in February 2025
These refer to apprenticeships non-levy (procured) allocations. The deadline to submit a business case is 28 March 2025.
5.3 Why submit a business case
You can raise a business case if:
- you had a significant data error that has affected your allocation
- you have a contract value for the 2024 to 2025 funding year (for the relevant funding stream) but did not receive a 2025 to 2026 allocation because you have not used it
- you want to request a reduced allocation amount
5.4 When not to submit a case
We do not accept requests for growth. We review this as part of in-year performance reviews within the relevant funding rules or through final reconciliation.
5.5 Thresholds for business cases
If we issued you with a zero allocation, the maximum you can request is £25,000 or your current contract value, whichever is lower.
For cases where you have significant data errors that affected your funding allocation, the minimum overall impact must be more than 5% of the allocation value.
We will apply the allocation methodology as set out in this guidance when reviewing business cases using a nationally consistent formulaic calculation.
5.6 When you will receive a response
We aim to communicate the outcomes for business cases submitted before 28 April in June 2025 via Document exchange.
6. Allocation methodologies
We have split the allocation methodologies in this guidance 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 relate to that funding agreement, funding stream and allocation line.
We have updated the following sections:
We will publish information in the following section when we start to issue these allocations:
- ESFA ASF (non-procured)
- ESFA ASF contract for services (procured from August 2023)
- advanced learner loan facilities and bursaries
- apprenticeships carry-in (non-procured)
The allocations that we issue set the value at which we will manage and pay a provider for the funding year. Your allocation is the maximum amount you can earn in the 2025 to 2026 funding year and not necessarily the amount you will be paid.
We allocate funding on a historic (lagged) basis, whereby funding in one year informs the allocation in the next. This means that we base the allocation for an academic year on the last full academic year delivery. For example, 2025 to 2026 allocations are largely based on 2023 to 2024 R14 individualised learner record (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 lagged full-year delivery and current allocations to ensure that future allocations are in line with what providers can realistically earn
- ensure that we treat all providers fairly and equitably
- protect public funds and meet principles of public law
- enable providers to respond to government priorities
7. Apprenticeships non-levy (procured)
This section sets out how we have calculated apprenticeship non-levy extension allocations for 1 April 2025 to 31 March 2026. This section will be of interest to training providers with an apprenticeship non-levy contract for services.
From 1 April 2021, you can no longer use this allocation to fund new starters. All new starters must be funded through the apprenticeship service from this date.
This allocation is for the purpose of carry-in learners only. The funding that we calculate is for apprentices who started on this contract on or before 31 March 2021 and who continue and require funding between 1 April 2025 to 31 March 2026.
Where necessary, we will allocate and extend your contract for services on an annual basis until apprentices who 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 use the R04 (December 2024) data return and our standard carry-in allocations methodology to calculate the funding required in 2025 to 2026.
We work out your allocation by calculating all future costs occurring between 1 April 2025 and 31 March 2026.
We assume that:
- all apprentices remain on programme until their planned end date
- no apprentices 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 2024 to 2025 financial year are still in learning (for example, late achievements)
We apply a £1,000 minimum allocation. If you have a non-levy apprenticeship contract (split between age bands) for 2024 to 2025 and your allocation was less than this, then we have uplifted your allocation to this value.
This minimum allocation reduces to £1 to allow you to submit data if:
- you received and not used a minimum allocation in 2024 to 2025
- you had no recorded delivery in 2024 to 2025 or
- all your apprentices are recorded as break in learning or learners with late achievements greater than 3 years.
Please read apprenticeship performance management rules for how we will review your contract value in-year, including payments and capping.
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.
Your contract is for the financial year and we will manage it as such.
Your procured non-levy apprenticeships contract remains separate from:
- apprenticeships carry-in allocations for starters before 1 January 2018
- any funding you may be earning through the apprenticeship service
We will inform you of your future apprenticeship non-levy funding for the 2026 to 2027 later in this financial year.
8. ESFA adult skills fund (non-procured)
Further details on how we calculated your 2025 to 2026 ESFA adult skills fund (non-procured) allocation will be provided when allocation statements are released.
9. ESFA adult skills fund contract for services (procured from August 2023)
Further details on how we calculated your 2025 to 2026 ESFA funded adult skills fund contract for services (procured from August 2023) allocation will be provided when allocation statements are released.
10. Advanced learner loan facilities and bursaries
Further details on how we calculated your 2024 to 2025 Advanced learner loans allocation will be provided when allocation statements are released.
11. Apprenticeships carry-in (non-procured)
This section sets out how we calculate your apprenticeship carry-in extension allocations for 2025 to 2026. These allocations will be issued in July 2025 using your R10 (May 2025) data return.
Further details on how we calculated your 2025 to 2026 Apprenticeships carry-in (non-procured) allocation will be provided in July 2025 when allocation statements are released.
12. Glossary
Term | Description |
---|---|
Allocation line | 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. |
Approved, attended and paid loan applications | To have studies funded by the Student Loans Company (SLC), individuals need to qualify and apply to student finance for support with tuition fees. Approved applications are submitted and accepted applications that meet the criteria. Attended applications are from individuals who have participated. Paid applications are those that are fully paid for. You can find more detailed context on the SLC website. |
Carry-in | Apprentices or learners who started in the previous funding year where the contract has ended but we continue to pay if they have not completed their programme. |
Continuing learners | Learners who started in the previous funding year and did not complete their programme into the following funding year. |
Devolution | 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) split into separate organisations and we adjust the allocations. |
Financial year | Our financial year starts on 1 April and finishes on 31 March. |
Funding agreement (or contract) | The agreement between the Secretary of State for Education, acting through ESFA, and providers that receive funding for education and skills training. |
Funding claim | Providers that 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 | Our adult funding year starts on 1 August and finishes on 31 July. |
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. 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. |
Late Achievement | To be confirmed |
Learner support | Funding to enable providers to support 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 to form one organisation. |
Non-formula community learning funding | Where applicable, providers receive a non-formula funded community learning allocation as part of their ESFA ASF 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 in. 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 that 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 |
Virement | The process of moving money from one contract period or budget to a different one. |