Correspondence

ESFA Update local authorities: 20 March 2024

Published 20 March 2024

Applies to England

Information: National non-domestic rates (NNDR) accounting guidance updates for 2024 to 2025 for local authorities and academies

We have updated the national non-domestic rates (NNDR) accounting guidance which provides details on how local authorities and academies should account for their NNDR.  

Local authorities should refer to their completed 2024 to 2025 financial year authority proforma tool (APT), alongside the NNDR accounting guidance.  

Academies should refer to the Academies Accounts Direction and submitting your audited 2022 to 2023 financial statements alongside the NNDR accounting guidance.

Information: Teachers’ pay additional grant 2023 to 2024 financial year – alternative provision (AP) and special schools allocations

We have published the Teachers’ pay additional grant (TPAG) updated allocations for 2023 to 2024 for AP and special schools. 

This shows both the additional top-up allocation which local authorities will receive in March 2024, and the total allocation which local authorities are therefore receiving in the 2023 to 2024 financial year. 

We paid an initial allocation for special schools and AP schools in October 2023. This allocation was based on place numbers as reported to ESFA in July 2023.

As outlined in the TPAG methodology, we will pay local authorities a top up of 2023 to 2024 TPAG funding for special schools and AP schools in March 2024. This will provide funding at £260 per place for the number of additional places opened between the time of the announcement and March 2024. 

We apply the same area cost adjustment (ACA) to the funding rate as used for the high needs national funding formula for 2023 to 2024.

Information: Updated dedicated schools grant (DSG) management plan template and guidance 2024 to 2025 for local authorities

We have published version 7 of the DSG management plan template, which is available on Document exchange and updated the supporting dedicated schools grant (DSG) management plan guidance alongside this.

We encourage local authorities to download this new version of the template. 

The template helps local authorities to meet the requirements of the DSG: conditions of grant. It allows local authorities to forecast and monitor DSG spending and numbers of education, health and care plans (EHC plans) and form evidence-based plans for the provision of children and young people with special educational needs and disabilities (SEND).

The updates we have made to the new template include: 

• removal of 2019 to 2020 section 251 data – the template is now pre-populated for 2022 to 2023 financial year 
• removal of 2019 SEN2 data – the template is now pre-populated for 2023 

If you have any questions about the template or guidance, please contact us via the customer help portal.

Information: Updated dedicated schools grant (DSG) 2023 to 2024 financial year funding allocations

We have updated the 2023 to 2024 DSG funding allocations to reflect in-year recoupment data and high needs deductions.

Information: Individualised learner record (ILR) Tailored Learning Outcome Area field from the academic year 2024 to 2025

We have worked closely with the sector on the Outcome Area field, which will capture the outcomes of Tailored Learning provision from academic year 2024 to 2025. 

There will be 11 Outcome Area codes for this field, which can be viewed on Tailored Learning Outcomes: Field.  

You should record the primary outcome of learning for each individual learner using one of the 11 Outcome Area codes. The Outcome Area does not need to directly correspond to the learner’s primary purpose for learning (that is, the purpose type). 

For example, a learner may have started a course to support their child’s learning, but their primary Outcome Area could be an improvement in their maths or English. This learner would therefore be recorded against ‘improved essential skills’ for that learning aim. 

The Outcome Area will be recorded on the ILR at the end of the course.

Information: Adult funding allocations for the 2024 to 2025 funding year

This week, we will issue allocations for the 2024 to 2025 funding year. These will include: 

• ESFA adult skills fund (non-procured), including free courses for jobs  
• advanced learner loan facilities and bursaries

We aim to issue allocations for adult education budget (AEB) contract for services (procured from August 2023) in July 2024. 

We will issue allocations in a digital format on Manage your education and skills funding.  

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

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

We have published a timeline so that you know when to expect information from us. We will update our 19+ technical guidance before the end of March to explain how we have calculated your allocation.   

For more information, please refer to your funding agreement.  

New method to submit business case requests  

We have replaced the form for business case requests with a new digital form. You can access the form through Manage your education and skills funding or our 19+ funding allocations guidance.

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

Information: 19 to 24 traineeships contract extensions

We are planning to give providers a 6 month extension to their current 19 to 24 traineeship contract to cover potential achievement payments.   

Providers can earn the achievement payment for an eligible traineeship within 6 months of completing the traineeship, when the learner has a successful outcome recorded on the individualised learner record (ILR).

For more information, please see our funding rules guidance.  

This extension is limited and only covers 19 to 24 traineeship learners who may potentially generate an achievement element into the 2024 to 2025 funding year. 

We will base this on your data in May 2024, so please ensure that you record any achievements and withdrawals accurately.

Information: ESFA-funded adult skills fund (ASF) rules for 2024 to 2025

The government’s response to the Skills for jobs consultation confirmed that the ESFA-funded Adult Skills Fund (ASF) will replace the ESFA-funded adult education budget (AEB).  

We have now published the ASF rules for the funding year 2024 to 2025. These new rules apply to all providers of education and training who receive ASF from ESFA.

The purpose of ESFA-funded ASF is to support adult learners in non-devolved areas to gain skills which will lead them to meaningful, sustained, and relevant employment, or enable them to progress to further learning which will deliver that outcome.  

Further updates and support 

• we’re reviewing some minor aspects of the rules for the 2024 to 2025 academic year and aim to publish an update in early summer 2024
• we aim to publish the new ASF funding rates and formula guidance in early spring 2024
• we’re developing a Q&A document and webinar to explain the ASF rules, and we will share details of these in early summer 2024

Information: New General Annual Grant pooling clause available for funding agreements

The Department for Education (DfE) is giving trusts an option to add a clause to their master funding agreement (MFA).

This will put the right to pool general annual grant (GAG) funding on a contractual footing. Trusts can choose to adopt this clause without moving to the latest version of the model MFA. 

The permission to pool GAG funding is currently granted through the Academy Trust Handbook. This change enables trusts to include it in their existing MFA, bringing GAG pooling into line with the other ‘academy freedoms’. 

There is no requirement for trusts to adopt this clause and trusts remain free to decide which financial operating model they use.

Trusts who wish to take up this option can do so by arranging a Deed of Variation to their existing MFA by contacting DfE through their usual channels.