Post-16 National Insurance contributions (NICs) grant 2025 to 2026
Published 18 March 2025
Applies to England
© Crown copyright 2025
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1. Guidance
This guidance is for those settings eligible for the post-16 NICs grant:
- maintained school and academy sixth forms
- 16 to 19 academies
- 16 to 19 schools
- sixth-form colleges
- general further education colleges
- local authorities
We are making approximately £155 million available in financial year 2025 to 2026 to support institutions with the increase to employers’ National Insurance contributions arising from their post-16 education from April 2025. We plan to distribute this primarily by sharing the budget in proportion to relevant funding or income.
There will be 3 elements to the post-16 NICs grant:
- 16 to 19
- non 16 to 19 funded students and apprentices (in eligible settings)
- local authority centrally employed teachers (CETs) and centrally employed support staff
Settings will only receive the elements relevant to their circumstances.
For 16 to 19 delivery in further education colleges, schools, academies and local authorities, we will calculate each setting’s share of the grant based on their total 16 to 19 programme funding in the department’s academic year 2024 to 2025 allocations.
For non 16 to 19 funded students and apprentices delivery in colleges, we will calculate each institution’s share of the grant based on its relevant income figures in its 2023 to 2024 financial statement.
The grant will provide additional funding in respect of CETs and centrally employed support staff for post-16 delivery. We are working to finalise how this will be done.
The elements are based on the most current data the department holds to calculate the share of the grant.
Additional funding for pre-16 provision will be allocated through the National Insurance contributions (NICs) grant.
Funding for high needs settings is being allocated via the core schools budget grant (CSBG) 2025 to 2026.
2. Methodology
We expect to publish the full methodology for the grant later in April 2025.
3. Conditions of grant
We expect to publish the conditions of grant in May 2025.
4. Allocations and payment
We expect to publish allocations in May 2025 and pay the grant as a single payment in September 2025.