16 to 19 special post-16 institution (SPI) revenue funding allocation guide:2020 to 2021
Updated 29 September 2020
1. Introduction
This guide helps you understand how we have calculated your 16 to 19 revenue funding allocation for the 2020 to 2021 academic year.
2. Who this note is for
This guide is for special post-16 (SPI) institutions. In relation to delivery for 2019 to 2020, you should also refer to the separate guides and the 16 to 19 funding guidance for 2019 to 2020. Further information regarding the high needs funding system is available in the high needs funding arrangements for 2020 to 2021.
The āChanges for 2020 to 2021ā section shows the changes in academic year 2020 to 2021 at a glance, and where the changes are reflected in your allocation statement.
3. Further advice and guidance
We have produced this guide to walk you through your allocation statement.
Itās important that you also refer to our 16 to 19 funding guidance for 2020 to 2021. The guides will help you to understand how we have calculated your funding allocation for 2020 to 2021. We publish these guides on 51²č¹Ż before the start of the academic year. You should read this note alongside our detailed guidance on:
- Funding rates and formula
- Business cases
- Financial support for students
- How the 16 to 19 national funding formula works
- Funding for high needs students
4. If there is an error in your data
The figures in the statement are your final funding allocation, which under normal circumstances will not be changed. We reserve the right to reduce or withdraw your allocation at any stage should issues arise through audit or other processes which
- significantly affect the data underlying your allocation calculation
- significantly affect contract compliance, or
- if we believe that by making an allocation we will be putting public funds at risk
By exception, we will consider evidenced and credible business cases from institutions where there has been a significant error in the data returned by the institution.
Please be aware that once you have submitted your 2019 to 2020 R14 data in October 2020, we will use this to check the accuracy of the R06 data, which was used to calculate your allocated student numbers. If, using the R14 data, we determine that your R06 data was materially inaccurate, you should expect to have your allocation reduced in year. These checks and potential reductions will apply to both elements 1 and 2.
In addition, we will use your academic year 2019 to 2020 ILR R06 return to calculate local authority import/export adjustments for the financial year 2020 to 2021. Local authorities will have the opportunity to review the number of high needs students you have recorded in your data and, if we determine that your R06 data was materially inaccurate because of an enquiry raised by a local authority, you should expect to have your element 2 allocation for high needs students reduced in year.
Please note, for funding purposes, the definition of a high needs student is one where the institution is receiving top-up funding from a local authority because it agrees the studentās additional support costs are in excess of Ā£6,000.
5. Enquiries
If you have any questions that we do not cover in this or other published guidance, please contact us using our .
6. Changes for 2020 to 2021
2019 to 2021 ILR R06
- we have used your academic year 2019 to 2020 ILR R06 return to calculate your funding allocation for academic year 2020 to 2021. We have used it to calculate both your student numbers and high needs student numbers
Where student numbers exceed allocated places
- most other Further Education (FE) institutions and Independent Learning Providers (ILP) have a single āprovider local authorityā responsible for returning to the ESFA, the number of element 2 places required for all the institutionās high needs students in the following academic year
- in the case of SPIs, however, the ESFA is responsible for determining the allocations of both element 1 and element 2 and does so based on prior year ILR data
- element 2 funding is initially included within local authoritiesā overall high needs allocations. The national funding formula that calculates local authoritiesā allocations includes adjustments, also based on ILR data, that remove from their final dedicated schools grant allocations, the element 2 Ā£6,000 per high needs place
- this means that the ESFA is acting like the āprovider local authorityā and is responsible for considering the need for further funding where the actual number of high needs students exceeds the high needs places that have been funded
- therefore, if any SPI has had high needs students placed by any local authority above their allocated place volumes, they should not seek to agree any additional element 1 and element 2 funding with that local authority
In normal circumstances, the lagged funding methodology will fund SPIs for any additional students in the following year
- where local authorities place in SPIs significantly more students compared to their allocated places, the ESFA may increase allocations in-year. In these circumstances, we will review the student numbers recorded in in-year ILR data returns. As this is a data driven exercise, it is not necessary for SPIs to submit a business case in these circumstances
- we will also consider under-delivery at the institution in the previous year and the national picture of placements. We will base any additional funding on a standard threshold determined by affordability. It is possible that we will calculate additional funding using marginal rates. We may also require additional eligibility or audit checks before allocating any additional funding. Institutions receiving exceptional in-year funding will be notified by April 2021
Discretionary bursary allocations
- we have changed the way we calculate discretionary bursary allocations for 2020 to 2021. For SPIs, we will use a national average to identify instances per student for financial disadvantage and travel. We have published information and videos to help you understand why we have made this change
Teachersā pension scheme payments
- we will continue to meet the costs of the additional employer contributions from the Teachersā pension scheme (TPS) up to the end of March 2021. A small number of eligible special post-16 institutions will see a new field on their allocation statement for this TPS
On the 31 August 2019, the Chancellor announced an additional £400m for 16 to 19 education for academic year 2020 to 2021. We have published information online about what this means for your 16 to 19 revenue funding allocation. The national funding rates for full-time 16 and 17 year olds and students aged 18 and over with high needs will increase by 4.7%. The new band 5 rate will be £4,188.
Level 3 programme maths and English payment
- we have given extra funding to providers to deliver maths and English to students doing substantial level 3 study programmes and T Levels
High value courses premium
- the high value courses premium (HVCP) supports providers to increase the number of students studying substantial programmes in particular subjects
7. Special post-16 institution funding allocation
SPIs who will be delivering their first year of ESFA funded provision are currently completing the ESFA high needs due diligence process and where successful we expect to issue allocations to them by the end of June 2020. For these SPIs, we will allocate programme funding (element 1) and high needs funding (element 2) using the place numbers returned to us by local authorities through the .
For SPIs who will be delivering at least their second year of ESFA funded provision we will allocate programme funding (element 1) and high needs funding (element 2) using counts of valid students from 2019 to 2020 ILR R06 data returns. We will use a census date of the 1 February 2020.
For 2020 to 2021, weāll continue to use the 16 to 19 national funding formula to calculate programme funding (element 1) for SPIs.
For all SPIs, the total high needs place number allocation (element 2) is described in table 5 of the funding statement.
8. Programme funding formula
This section shows the various elements of the funding formula that apply to SPI funding allocations shown on page 1 of your allocation statement and the resulting funding from the application of each. The dates on your allocation statement will show as ā2020/21ā. We have written the dates out in full in this guidance for clarity.
Retention factor
- this remains 0.983. This was the average factor used in calculating 2019 to 2020 allocations for SPIs
Programme cost weighing
- this remains 1.054. This was the average factor used in calculating 2019 to 2020 allocations for SPIs
Disadvantage funding ā block 1 (table 2a)
- this remains 3.80%. This was the average factor used in calculating 2019 to 2020 allocations for SPIs
Disadvantage funding ā block 2 (table 2a)
- two instances per student has been used for SPIs, which attract the £480 funding rate
Large programme funding (table 2b)
- not applicable to SPIs
Area cost allowance
- some areas of the country are more expensive to teach in than others, and the area cost weights the allocation to reflect this. The area cost reflects the location of delivery of the provision, and is normally based on delivery postcodes from the ILR
The values on your statement are rounded to various numbers of decimal places. However, we calculate your funding using un-rounded values. This may result in some slight differences when you work through the calculation yourselves.
9. Student numbers (including students aged 19 to 24 with Education, Health and Care plans)
This section explains how we have calculated the student numbers in table 1a of your 16 to 19 revenue funding allocation statement.
2019 to 2020 ILR R06 students
- student numbers taken from the 2019 to 2020 ILR R06 data return, with a reference date of 1 February 2020
Exceptional variations to lagged student number
- an increase or decrease applied to 1.1
Total student numbers for 2020 to 2021
- ā2019 to 2020 ILR R06 studentsā + āexceptional variations to lagged student numberā
Student number methodology used
- the data source used to calculate student numbers. For all SPIs this is the 2019 to 2020 ILR R06 return
10. Student number methodology
Our funding rates and formula guidance has full details of how we calculate student numbers for different types of institutions. Our default approach is to base allocations on lagged numbers. The lagged approach applies when there is a reasonably consistent level of delivery over time and applies in most but not all circumstances.
Exceptions to the lagged approach include student numbers for new institutions, closing provision, transferred provision (including in relation to subcontracting), exceptional in-year growth, and in-year closures. In these situations, we may remove an institution from the lagged approach at any point, which may result in a change to their funding allocation.
11. Breakdown of funding by funding band
This section explains how we calculate funding bands in table 1b of your 16 to 19 revenue funding allocation statement. You can find further information about national funding rates in the funding rates and formula guidance.
Student numbers 2018 to 2019
- the student numbers for each funding band as recorded in your 2018 to 2019 ILR R14 data return
Proportions used in 2020 to 2021 allocation
- band 5 students are students with annual timetabled hours of 540 and over. All students in SPIs are funded at the band 5 rate
Number of students allocated in 2020 to 2021
- the percentage proportion for band 5 applied to the ātotal student numbers for 2020 to 2021ā (table 1a)
National funding rate
- the base amount of funding for each student in the band
Student funding
- the total student funding for each band
- band 5 āNumber of Students allocated in 2020 to 2021ā Ć ānational funding rateā
Total student funding
- the total student funding for all bands
12. Maths and English condition of funding (CoF)
This section explains how we have calculated the maths and English condition of funding (CoF) adjustment in table 1c of the 16 to 19 revenue funding allocation statement, for the small number of SPIs that will see this adjustment. For more information please see the condition of funding interactive tool and 16 to 19 maths and English condition of funding guidance.
National funding rate in 2018 to 2019
- the 2018 to 2019 national funding rates are used to calculate the CoF adjustment
Total students (2018 to 2019 R14)
- the total number of students in 2018 to 2019 as recorded in your 2018 to 2019 ILR R14 data return, split by funding bands 1 to 5. Student numbers in this table exclude 19+ continuing students and may differ from the student numbers shown in table 1b
National funding rate applied to total students (2018 to 2019 R14)
- the student funding associated with the total students
- ātotal students (2018 to 2019 R14)ā (FTEs for band 1) Ć ānational funding rate in 2018 to 2019ā
Students not meeting CoF (2018 to 2019 R14)
- the number of students not meeting the CoF in 2018 to 2019 as recorded in your 2018 to 2019 ILR R14 data return, split by each funding band. You can identify these students in your allocation calculation toolkit (ACT)
National funding rate applied to CoF non-compliant students
- the student funding associated with the students not meeting the CoF
- āstudents not meeting the CoF (2018 to 2019 R14)ā (FTEs for band 1) Ć ānational funding rate in 2018 to 2019ā
Total
- shows the sum of bands 1 to 5 for ātotal students (2018 to 2019 R14)ā, ānational funding rate applied to total students (2018 to 2019 R14)ā, students not meeting CoF (2018 to 2019 R14) and ānational funding rate applied to CoF non-compliant studentsā
5% of national rate funding for total 2018 to 2019 R14 students
- the 5% tolerance before any adjustment will be applied
- 5% of total ānational funding rate applied to total students (2018 to 2019 R14)ā
Funding for non-compliant students less 5% of funding
- the resulting adjustment following the 5% tolerance
- total ānational funding rate applied to CoF non-compliant studentsā - ā5% of national rate funding for total 2018 to 2019 R14 studentsā
Final CoF adjustment (at 50%)
- in order to mitigate the effect of the CoF adjustments, the final adjustment is at 50%
- 50% of āfunding for non-compliant students less 5% of fundingā
13. Distribution of disadvantage funding
This section explains how we have calculated the disadvantage block 1 and 2 funding in table 2a of the 16 to 19 revenue funding allocation statement. For more information on disadvantage funding please refer to the funding rates and formula guide.
Disadvantage block 1
Economic deprivation funding
- the block 1 average factor of 3.80% is applied to the programme funding total, up to and including the level 3 programme maths and English payment
Care leavers
- the number of successful 16 to 19 bursary fund claims for 2018 to 2019 for vulnerable students who were āin careā or ācare leaversā, at a rate of Ā£480 per student
Total block 1 funding
- āBlock 1 Fundingā + āCare Leaver Fundingā
Disadvantage block 2
Total 2020 to 2021 instances attracting funding per student
- for SPIs the instances per student is 2
Total funded instances for 2020 to 2021
- āInstances per student applied in 2020 to 2021ā Ć ātotal student numbers for 2020 to 2021ā (table 1a)
Total funded instances, funded instances attracting the full time/part time/FTE rate
- āTotal funded instances for 2020 to 2021ā split between the full time and part time bands according to the proportions in table 1b. In SPIs, all students attract the higher rate
- āNumber of funded instances in each bandā (higher rate) Ć āblock 2 funding rateā
Total block 2 funding
- the sum of block 2 funding
- āStudents attracting the Higher Rateā + āStudents attracting the Lower Rateā + āStudents attracting the FTEs Rateā
Minimum top up if applicable
- if the total disadvantage funding (ātotal block 1 fundingā + ātotal block 2 fundingā) for an institution is less than Ā£6,000, disadvantage funding will be topped up to Ā£6,000
Total disadvantage funding
- the sum of Disadvantage Funding
- āTotal Block 1 Fundingā + āTotal Block 2 fundingā + āMinimum top upā
14. Large programme uplift
No SPI will receive the large programme uplift shown in table 2b in 2020 to 2021 academic year.
15. Care standards
This section explains how we have calculated the care standards funding in table 3 in the 16 to 19 funding allocation statement for the small number of SPIs that receive this funding. The funding rates and formula guide provides more information about care standards.
Eligible Students
- the total number of eligible students (>=12) taken from the 2018 to 2019 ILR R14 data return from eligible institutions
Care Standards Funding Rate
- funding per student is £817
Care Standards Institution Lump Sum Funding
- lump sum funding of £12,252 per institution for eligible institutions
Care standards funding
- (āEligible Studentsā Ć āCare Standards Funding Rateā) + āCare Standards Institutionā
16. 2020 to 2021 total programme funding
Table 4 shows your 2020 to 2021 total programme funding per student. For SPIs this will be the total programme funding from the summary table in page 1 of your statement, divided by the total student numbers for 2020 to 2021.
17. High needs funding
This section explains how we have calculated high needs funding in table 5 of the 16 to 19 revenue funding allocation statement.
We have based allocations of high needs place funding on your 2019 to 2020 R06 ILR.
2019 to 2020 R06 Total High Needs students
- this is the high needs student number count split by age 16 to 19 years and 19 to 24 years as recorded in the 2019 to 2020 ILR R06 data return, with a reference date of 1 February 2020
2019 to 2020 R06 Total High Needs student proportions by age
- the percentage proportions of students split by age
Exceptional Variations to lagged High Needs student Number
- an increase or decrease applied to 5.1
High Needs Element 2 for 2019 to 2020
- ā2019 to 2020 R06 Total High Needs Studentsā (total students) + āExceptional Variations to lagged High Needs Student Numberā
- ā2019 to 2020 R06 Total High Needs Student proportions by ageā is then applied to calculate āHigh Needs Element 2 for 2019 to 2020ā (16 to 19 students) and āHigh Needs Element 2 for 2019 to 2020ā (19 to 24 students)
- āHigh Needs Element 2 for 2019 to 2020ā (total students) Ć rate per student
18. Student financial support funding
This section explains how we have calculated student financial support funding in table 6 of the 16 to 19 revenue funding allocation statement.
We have changed the way we calculate 16 to 19 discretionary bursary allocations following a consultation with the sector. We have published advice for institutions on the financial support young people may be able to access to help them participate in education and training.
Number of funded students
- the ātotal student numbers for 2020 to 2021ā shown in table 1a
Instances per student
- we use the SPI average for the instances per student value
- the average for āelement 1: financial disadvantageā is 0.266
- the average for āelement 2a: student costs ā travelā is 0.140
- the maximum āinstances per studentā value is 1.000
Number of instances
- instances per student for āelement 1: Financial disadvantageā and āelement 2a: student costs ā travelā are multiplied by the ānumber of funded studentsā
-
āinstances per studentā x ānumber of funded studentsā
- no SPIs will receive āelement 2b - student costs for industry placementsā funding
Instance funding rate
- the funding rate for each element of the discretionary bursary for 2020 to 2021. Bursary funding rates are subject to change year on year
Funding
- ānumber of instancesā x āinstance funding rateā
Bursary adjustment in respect of free meals
- refer to our guidance on 16 to 19 bursary funding and free meals in further education
We calculate each institutionās percentage share of the deduction proportionally, using end of 2018 to 2019 academic year data.
Protection is then applied so that:
- no institution experiences a reduction of greater than 25% for their 16 to 19 bursary fund allocation
- no institution experiences a reduction that is greater than the reduction applied in 2019 to 2020, and
- no institution has a 16 to 19 bursary fund allocation of less than £500
Discretionary bursary fund
- the sum of each bursary element before transition arrangements are applied
- āelement 1: financial disadvantage totalā + āelement 2a: student costs travel totalā + āelement 2b: student costs industry placementsā - ābursary adjustment in respect of free mealsā
2019 to 2020 Discretionary bursary funding ā baseline for transition
- your total 2019 to 2020 bursary allocation, which will include any confirmed 2019 to 2020 in-year growth, will be used as a baseline to calculate the transition lower and upper limits (-/+ 25%)
Transition lower limit
- 75% of the baseline for transition amount. In 2020 to 2021 academic year institutions will receive no less than 75% of the baseline transition amount following the change to the methodology
Transition upper limit
- 125% of the baseline for transition amount. In 2020 to 2021 academic year institutions will receive no more than 125% of the baseline for transition amount following the change to the methodology
Exceptional adjustment
- an increase or decrease applied to your discretionary bursary funding. This could relate to funding to help students on the current ESF not in education, employment or training (NEET) programme, merger adjustments, converter adjustments and so on
Discretionary bursary fund total
- your total discretionary bursary fund allocation for the 2020 to 2021 academic year. The minimum allocation value is £500
Residential bursary fund
- total funding allocation for the residential bursary fund
Residential support scheme
- this is the total funding allocation for the residential support scheme
Residential funding total
- the sum of residential funding
- āresidential bursary fundā + āresidential support schemeā
19. Free meals in FE funding
Total students
- the total number of 16 to 19 year olds recorded in end of 2018 to 2019 academic year data returns
Free meals students
- the number of students recorded in end of 2018 to 2019 academic year data returns as being eligible for and in receipt of free meals in further education
Proportion of students on free meals
- āfree meals studentsā Ć· ātotal studentsā
Total students in 2020 to 2021 funded for free meals
- the total number of students that will attract free meals funding in 2020 to 2021
- āproportion of students on free mealsā Ć ātotal student numbers for 2020 to 2021ā (table 1a)
Free meals higher rate, lower rate and FTE Rate
- āfree meal studentsā at higher, lower and FTE rates are determined by taking the proportions in table 1b and applying the percentage proportions to the ātotal students in 2020 to 2021 funded for free mealsā. In SPIs, all students attract the higher rate
Free meals funding
- āfree meals studentsā (higher) Ć āfree meals ratesā
Free meals administration
- 5% of ātotal free meals fundingā
Exceptional adjustment
- an increase or decrease applied to your free meals in further education funding. This could relate to funding to help students on the current ESF NEET programme, merger adjustments, converter adjustments and so on
Total free meals funding
- the sum of free meals funding
- āfree meals fundingā higher + āfree meals fundingā lower + āfree meals fundingā FTEs + āfree meals administrationā + āexceptional adjustmentā
Total student support funding
- the sum of student financial support funding
- ādiscretionary bursary fund totalā + āresidential funding totalā + ātotal free meals fundingā
20. Industry Placements Funding
No SPIs will receive industry placement funding, shown in table 7, for 2020 to 2021 academic year.
21. Advanced Maths Premium Funding
This section explains how we have calculated the advanced maths premium in table 8 of the 16 to 19 revenue funding allocation statement for the small number of SPIs that receive this funding. We give institutions additional funding to increase the number of students studying for certain advanced maths qualifications. The funding will help institutions remove barriers to advanced maths study and build their capacity to deliver this provision.
Baseline students
- average number of students studying an eligible level 3 maths qualification in academic years 2015 to 2016 and 2016 to 2017 from the ILR R14 data returns
Eligible students
- number of students studying an eligible level 3 maths qualification in academic year 2019 to 2020 taken from the 2019 to 2020 ILR R04 data return
Eligible minus baseline
- āeligible studentsā - ābaseline studentsā or zero, whichever is higher
Rate per student
- the rate of funding per student for 2020 to 2021 is £600
Advanced maths premium funding
- āeligible minus baselineā x ārate per studentā
You can find more information on the advanced maths premium on 51²č¹Ż.
22. Level 3 programme maths and English payment
This section explains how we have calculated the level 3 programme maths and English payment in table 9 of the 16 to 19 revenue funding allocation statement for the small number of SPIs that receive this funding. We give extra funding to providers to deliver maths and English to students doing substantial level 3 study programmes and T Levels.
Instances per student
- the number of instances where a student does not hold a GCSE grade 4 or C (or above) in GCSE maths or English as their highest prior attainment and are on a 1 year or 2 year study programme taken from the 2018 to 2019 ILR R14 data return
Number of instances
- instances per studentā Ć ātotal student numbers for 2020 to 2021ā (table 1a)
Rate
- the rate of funding per student for a 1 year programme and a 2 year programme
Funding
- ānumber of instancesā Ć ārateā
23. High value courses premium
This section explains how we have calculated the high value courses premium (HVCP) in table 10 of the 16 to 19 revenue funding allocation statement for the small number of SPIs that receive this funding. The high value courses premium supports providers to increase the number of students studying substantial programmes in particular subjects.
Qualifying students
- the number of qualifying students in your 2018 to 2019 ILR R14 data
Rate
- the rate of funding per student for 2020 to 2021 is £400
Funding
- āqualifying studentsā Ć ārateā
24. Teachersā Pension Scheme Payments
This section explains how we have calculated allocations to meet increased employer contributions to the Teachersā Pension Scheme (TPS) in table 11 of the 16 to 19 revenue funding allocation statement. A small number of eligible SPIs receive this funding. The period covered by this grant is 1 August 2020 until 31 March 2021.
Annual payments for financial year 2018 to 2019
- the latest available audited payments made by institutions to Capita for TPS, related to financial year 2018 to 2019 including employer contributions annual payment increase of 16.4%
Annual payments increased to 23.6% equivalent
- employer contributions annual payment increase of 23.6% to annual payments for financial year 2018 to 2019
3.1% uplift for 2019 to 2020
-
3.1% uplift reflects the Office for Budget Responsibilityās (OBRās) nominal wage growth forecast of 3.1% for 2019 to 2020
-
3% uplift for 2020 to 2021
-
3% uplift reflects the OBRās nominal wage growth forecast of 3% for 2020 to 2021
Revised annual cost funding
- āAnnual Payments increased to 23.6% equivalentā + ā3.1% uplift for 2019 to 2020ā + ā3% uplift for 2020 to 2021ā
Difference between 2018 to 2019 Teachersā Pension Scheme Payments and Revised Annual Cost Funding
- āRevised Annual Cost Fundingā - āAnnual Payments for Financial Year 2018 to 2019ā
August - March grant = 8/12 of difference between payments and revised annual cost Funding
- āDifference between 2018 to 2019 Teachersā Pension Scheme Payments and Revised Annual Cost Fundingā Ć· 12 x 8
25. 16 to 19 tuition fund
This section explains the 16 to 19 tuition fund table on the 16 to 19 revenue funding allocation statement. This table shows the total 16 to 19 tuition fund allocated to your institution where we have received a signed opt-in form.
The 16 to 19 tuition fund is additional funding for one-year to mitigate the disruption to learning arising from coronavirus (COVID-19).
16 to 19 tuition funding
- we have allocated funding based on the disadvantage block 2 instances
- a funding rate of £150 is applied to the higher instances
- the instance values used to calculate this funding are static and will not change throughout the year, should there be other adjustments to the main allocation that would affect them
A breakdown of funding for your institution is shown in the 16 to 19 tuition fund opt-in form available on the .