Guidance

Post- 16 schools budget grant: conditions of grant for the 2024 to 2025 financial year

Updated 30 September 2024

Applies to England

1. Introduction

1.1 Legislation

The post-16 schools budget grant will be paid by the Secretary of State for Education as a grant under section 14 of the Education Act 2002. In accordance with section 16 of that Act, the Secretary of State attaches the following terms to the grant payable. 

1.2 Purpose 

The post-16 schools budget grant is for the purpose of supporting eligible settings with their overall costs in the 2024 to 2025 financial year, following confirmation of the 2024 teacher pay award.

We have published the funding methodology and grant allocations at institutional level. These should be read in conjunction with the conditions of grant. 

1.3 Period 

The conditions of grant cover the financial year 2024 to 2025, and for the period September 2024 to March 2025. 

2. Eligibility 

2.1 Types of settings  

The following settings are eligible to receive funding provided they meet the criteria as set out at 2.2: 

Local authorities – this includes local authority maintained: 

• mainstream schools 

Academies – this includes: 

• mainstream academies  

• 16 to 19 academies  

• alternative provision academies 

• free schools 

• studio schools 

• university technical colleges 

• city technology colleges 

2.2 Criteria 

Eligible settings providing education for young people aged 16 to 19 and those aged 19 to 24 with an education, health and care (EHC) plan and in receipt of a 16 to 19 funding allocation in the academic year 2024 to 2025. 

3. Payments 

The total value of the post-16 schools budget grant for the financial year 2024 to 2025, and for the period September 2024 to March 2025 is up to £63 million.  

3.1 Calculation 

Allocations for this grant have been calculated by using the funding methodology set out in the published guidance. Grant allocations at setting level have also been published.  

3.2 Payment timetable 

Payments will be aligned to planned post-16 payments: 

	local authority maintained settings	academy settings
payment (seven- twelfths)	November 2024	December 2024

3.3 School closures, openings and academy conversions 

The value of the post-16 schools budget grant for the period between September 2024 to March 2025 is capped at £63m. New local authority mainstream settings and academy settings, including sixth form colleges converting to academies and opening after October 2024, will not receive an allocation of the post-16 schools budget grant for the period September 2024 to March 2025.  

This grant is allocated on a setting basis. ESFA will not seek to clawback any grant funding from a local authority if a school converts to academy status after the payment is made. The grant allocation is intended for the school, and it will be assumed the local authority passed on the entire grant funding to the school immediately upon receipt from ESFA. In addition, any unspent grant funding should remain with the school after it converts.  

If a setting closes during the financial year, the local authority (for maintained settings) or ESFA (for academy settings) should take all endeavours to recover any unused grant for the proportion of the financial year that remains after the setting closes. 

3.4 Additional local authority duty 

Local authorities will be required to certify that they have passed on the correct amount of funding to schools or, where funding has been spent centrally, that it has been spent in line with these conditions of grant. DfE will issue a certification form in Spring 2025. Local authorities must pass funding on to their maintained schools in a timely manner in line with their scheme for financing schools. 

4. Assurance 

4.1 Eligible spend 

Funding must be spent on supporting a settings’ overall costs in the 2024 to 2025 financial year, in particular following confirmation of the 2024 teacher pay award. 

4.2 Carry forward  

Funds may be carried forward past 31 March 2025 for the purposes outlined under 4.1 eligible spend  

5. Further information 

Books, other documents and records relating to the recipient’s accounts shall be open to inspection by the Secretary of State and by the Comptroller and Auditor General. 

The Comptroller and Auditor General may, under section 6 of the National Audit Act 1983, carry out examinations into the economy, efficiency and effectiveness with which the recipient has used its resources. 

Local authorities and settings shall provide information as may be required by the Secretary of State to determine whether they have complied with these conditions. 

6. Variation 

The basis for allocation of grant may be varied by the Secretary of State from that set out above. 

7. Recovery of funding 

If a local authority or setting fails to comply with the terms and conditions set out in this document, the Secretary of State may recover some or all of the post-16 schools budget grant that has been allocated. This will be notified in writing to the local authority or setting.  

Recoveries will be made by invoice or by offsetting the amount against subsequent payments due from the department. 

The recipient must notify  ESFA  immediately through the customer help portal  if it becomes aware of any instance of error, suspected fraud or financial irregularity in the use of the funds. 

8. Overpayments 

If a setting or local authority identifies that it has been overpaid, it must contact ESFA to arrange repayment of the excess. Where ESFA identifies an overpayment, it may seek to recover the excess. The local authority or setting will be notified of this in writing. 

9. Enquiries  

For queries relating to these terms and conditions please use the customer help portal .