16 to 19 funding: information for 2022 to 2023
Details for 16 to 19 funded institutions on how funding will work in academic year 2022 to 2023
Applies to England
Purpose and latest updates
The purpose of this guide is to show the changes we are making for 16 to 19 funding for the academic year 2022 to 2023 and to provide you with the latest updates.
Changes for 2022 to 2023
On 27 October 2021, the Chancellor announced a three-year spending review outcome for 16 to 19 education, making available an extra £1.6 billion in 2024 to 2025 financial year compared with 2021 to 2022. This is in addition to the £291m for 16 to 19 education in 2021 to 2022 and the £400m that the government provided in 2020 to 2021.
This page explains what the announcement means for 16 to 19 funding.
National funding rate for academic year 2022 to 2023
We have increased the national funding rate for students aged 16 and 17 and students aged 18 and over with high needs in band 5 to £4,542 using funding as follows.
Teachers’ pay grant
We will use the funding available from the 16 to 19 funding of the teachers’ pay grant, to increase the national funding rate for institutions currently receiving this grant. We will increase the national funding rate to this same level for all other 16 to 19 institutions.
As the teachers’ pay grant will be incorporated into mainstream 16 to 19 funding from academic year 2022 to 2023, we will no longer pay this as a separate grant for 16 to 19 provision.
Inflation
We have included an extra uplift to the funding rate for inflationary pressures.
Extra 40 hours per student in band 5 and T level student
We will allocate funding for an additional 40 hours for band 5 study programmes and for T levels, and for a proportionate increase in hours for other study programmes. We expect all T Levels and students funded in band 5, to receive an additional 40 hours (and other students to receive a proportional increase) and we will monitor this. If a provider already delivers more hours to the students than the new minimum required for their funding band, we still expect them to proportionately increase hours for students in future years to provide them with this additional time in education.
National funding rate for students funded via the 16 to 19 funding formula
Table 1
| Band (study programmes excluding T levels) | Annual planned hours | Students | National funding rate per student |
|---|---|---|---|
| 5 | 580+ hours | 16- and 17-year-olds and students aged 18 and over with high needs | £4,542 |
| 4a | 485+ hours | students aged 18 and over who are not high needs | £3,757 |
| 4b | 485 to 579 hours | 16- and 17-year-olds and students aged 18 and over with high needs | £3,757 |
| 3 | 385 to 484 hours | all students | £3,056 |
| 2 | 300 to 384 hours | all students | £2,416 |
| 1 | up to 299 hours | all students | £4,542 proportion of band 5 |
National funding rates for T Levels
Table 2
| Band (T levels) | Minimum planned hours for the programme 2 years | Average planned hours for the programme 2 years | National funding rate per student, per programme 2 years |
|---|---|---|---|
| 9 | 1730 hours | 1830 hours | £13,068 |
| 8 | 1580 hours | 1680 hours | £11,982 |
| 7 | 1380 hours | 1530 hours | £10,896 |
| 6 | 1180 hours | 1330 hours | £9,446 |
We calculated the additional funding for these extra hours at a rate of 70% of the 2021 to 2022 academic year band 5 national funding rate. This is on the basis that when the number of hours of education provided to a student increase, not all costs for delivering that student’s education rise in the same proportion.
For example, the costs of recruiting and registering students, covering exam fees, and other administration costs plus, other fixed costs, will remain the same. We believe the hours will be deliverable at this marginal rate. We will continue to liaise with the sector to monitor this over the period of the spending review. However, the funding is provided as part of an overall increase in the funding rate and institutions will be able to use this increase flexibly to deliver 16 to 19 education to their students.
We are looking into how we will hold providers to account for the delivery of the additional hours and associated funding. This may include funding reconciliation where providers have not delivered the policy. We will discuss our plans with sector representatives early in the new year. We will publish further guidance about this in February before we start to issue 16 to 19 funding allocations for 2022 to 2023.
In parallel, there will be extra funding to give greater support to students with high needs. As with other high needs funding, we will distribute this through additional high needs funding allocations to local authorities.
Specific formula elements
High value courses premium
We will continue to fund high value courses premium in academic year 2022 to 2023. We will increase the uplift from £400 to £600, to further encourage courses with higher wage returns and support the Industrial Strategy.
Programme cost weightings
We will increase the programme cost weightings related to 5 subject areas considered to be currently under-weighted.
| Sector Subject Area (SSA) | Current cost weighting factor | New cost weighting factor |
|---|---|---|
| SSA 1.1 - Medicine and dentistry | 1.0 | 1.1 |
| SSA 1.2 - Nursing, and subjects and vocations allied to medicine | 1.0 | 1.1 |
| SSA 4.3 - Transportation operations and maintenance | 1.3 | 1.4 |
| SSA 5.2 - Building and construction | 1.3 | 1.4 |
| SSA 5.3 - Urban, rural and regional planning | 1.0 | 1.2 |
Disadvantage block
For 2022 to 2023 allocations, we will adjust the rate for disadvantage block 2 (which reflects the additional cost of teaching and supporting students who have low prior attainment) to take account of the change to GCSE results in 2020.
The disadvantage block 2 rate will increase to £504 for bands 4 and 5 students and the equivalent rate for bands 2 and 3 will be £307. The rate for T Level students will rise proportionally to £683. The block 1 rate for students who are in care or who have recently left care will increase to £504.
Retention factor
For 2022 to 2023 academic year allocations, we will revert to the established data for this calculation. To establish whether a student has completed the year, we will review whether the student was still in learning on the last working day in June 2022. We will continue to treat students recorded on a 2-year programme who withdraw before that date as not retained and the 50% funding reduction will apply.
Advanced maths premium
We will continue to fund the advanced maths premium in academic year 2022 to 2023.
Other funding rates
We can confirm the following other rates for 16 to 19 funding in academic year 2022 to 2023
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we will base the condition of funding penalty in allocations for 2022 to 2023 on delivery in 2020 to 2021, therefore using the national rates for that year
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the funding rates for 14 to 16 provision in further education continue to be aligned with the 16 to 19 rates. We make funding allocations for 14 to 16 funding each January based on actual in-year delivery.
Teachers’ pension scheme employer contribution grant
We can confirm we will fund the teachers’ pension employer contribution grant for the full academic year 2022 to 2023. We will provide details of the arrangements for this grant in due course.