16 to 19 education (non-apprenticeship): market entry
Source: gov.uk (2025-08-15)

Information for providers and local authorities about funding for post-16 education and training.

This guidance contains information for providers and local authorities on funding for education and training for students aged 16 to 19 and for high-needs learners aged up to 25 with an education, health and care (EHC) plan.

Organisations wishing to tender for funding to deliver education and training for adults should visit find a tender (https://www.find-tender.service.gov.uk/Search) to search for current opportunities.

Training organisations wishing to offer apprenticeships are required to apply to join the apprenticeship provider and assessment register (APAR) (https://www.gov.uk/guidance/apply-to-the-apar-as-an-apprenticeship-training-provider).

Becoming a new provider for funded post-16 education and training

There are a number of ways to enter this market, dependent on the type of institution and the type of provision proposed.

It is a legislative presumption under section 6a of the Education and Inspections Act 2006 that new schools be opened as academies. This is known as the free school presumption route (https://www.gov.uk/government/publications/establishing-a-new-school-free-school-presumption). You can apply to open different types of academy, including:
- free schools – applications to open a free school (https://www.gov.uk/government/collections/opening-a-free-school)
- university technical colleges (UTCs) – applications to open a UTC (https://www.gov.uk/government/collections/opening-a-utc)
Establishing a further education (FE) or sixth-form college

As specified in section 33C of the Further and Higher Education Act 1992, any person or body can request that the Secretary of State establish, by order, a new sixth-form college corporation.

The legal power to establish and incorporate FE corporations sits with the Secretary of State through the Further and Higher Education Act 1992.

Further information about the process can be found in the Association of Colleges’ dissolution, merger and establishment of FE corporations (https://www.aoc.co.uk/about/college-mergers) guidance.

Expanding a school or academy by adding a sixth form

A maintained school can go through the statutory prescribed alterations process if it wishes to change the age range of its school to add a sixth form. For more information, refer to the guidance on making significant changes (‘prescribed alterations’) to maintained schools (https://www.gov.uk/government/publications/school-organisation-maintained-schools).

The Secretary of State retains responsibility for decisions to make significant changes to academies. If an academy wishes to change its age range to add a sixth form, it should submit a significant-change application to the Department for Education (DfE). Applications to add sixth-form provision must evidence a clear need for additional post-16 places in the local area.

Refer to the guidance on making significant changes to an existing academy (https://www.gov.uk/government/publications/making-significant-changes-to-an-existing-academy) for more information.

Delivering high-needs provision for students aged 16 to 25

The due diligence process (https://www.gov.uk/government/publications/high-needs-funding-due-diligence-process-for-new-special-post-16-providers) for special post-16 providers is the means by which DfE assures itself that institutions commissioned by local authorities for 10 or more high-needs places are suitable to receive public funding from DfE for the delivery of high-needs provision.

Meeting gaps in 16 to 19 education provision

Local authorities’ duties include securing sufficient suitable education and training provision for all young people in their area who are over compulsory school age but under 19 or aged 19 to 25 with an EHC plan. To fulfil this duty, they need to have a strategic overview of the provision available in their area and to identify and resolve gaps in provision.

Statutory guidance outlining a local authority’s duties in relation to the participation of young people in education, employment and training (https://www.gov.uk/government/publications/participation-of-young-people-education-employment-and-training) is available.

Local authorities must attempt to meet the gap in provision through the existing provider infrastructure. Once all local solutions have been exhausted, they may submit a case regarding a gap in provision to DfE using the gaps in provision or study programmes for young people (16 to 19) – local authority application template (https://assets.publishing.service.gov.uk/media/689f07f6b4b6acd341133a41/16_to_19_gaps_local_authority_application_template.odt) (ODT, 348 KB).

We will apply standard criteria to consider whether we agree there is a need to secure additional places. Whether funding is available will be discussed as a distinct part of the process and will be subject to affordability.

We will mainly use local negotiation to secure appropriate places. Tendering for additional places will be rare and subject to affordability.

In support of local authorities’ statutory duty to secure provision in an area, we will consider their requests to fill a gap in provision. Where evidenced gaps cannot be filled through negotiation with good existing institutions, they may be put out to tender through open competition and advertised through find a tender (https://www.find-tender.service.gov.uk/Search).

Tendering for replacement provision

We may seek to replace provision lost through a market failure or forced exit by government intervention or a voluntary exit created by a provider’s own business decision.

We may negotiate with local providers about replacing provision. Where replacement provision cannot be secured through an appropriate existing provider, it will normally be put out to tender through open competition and advertised through find a tender (https://www.find-tender.service.gov.uk/Search).

Where the need to secure alternative provision for existing students is urgent, we may elect to make a single tender award in line with our internal scheme of delegation.

Subcontracting DfE-funded provision

DfE’s subcontracting control regulations (https://www.gov.uk/government/collections/post-16-education-subcontracting-using-funding-to-offer-education-and-training) set out our expectations and requirements of directly funded institutions entering into subcontracting arrangements in respect of DfE-funded provision.

Maintained schools and academies are reminded that they are required to record subcontracted activity in their school census return.

Contract transfer

Organisations cannot replace or hand over DfE contracts to another party. We may sanction the transfer of a contract from a lead contractor to an existing subcontractor.

A contract transfer to a subcontractor can only occur with the written agreement of the lead contractor. The written agreement of the lead contractor must include confirmation that they are willing to relinquish the funding associated with the subcontracted provision in the year in which it transfers. DfE must also be satisfied that the subcontractor has the capacity and facilities to deliver high-quality provision in its own right.

Any applications should be sent via the customer help portal (https://customerhelpportal.education.gov.uk/).

The appropriate funding limit for the existing subcontractor will be set as part of the financial information supplied as part of due diligence.

Mergers, takeovers and other structural changes

An organisation should inform DfE of any plans involving a merger or takeover of the provider, or of any other change that will have a serious bearing on the contract or funding agreement it holds with DfE, as soon as it becomes aware of such a change.

It is a requirement of the funding agreement with DfE that providers give a minimum of 12 weeks’ notice of the proposed change coming into effect. Giving notice of a change in business model does not constitute consent to a transfer of our contract.

DfE will review any proposed changes on a case-by-case basis and undertake due diligence and other necessary assurances. We reserve the right to terminate the contract if any proposed assignment, transfer, sale or other arrangement gives cause for serious concern.

Academies wishing to make significant changes to their organisational structure must refer to the making significant changes or closure by agreement (https://www.gov.uk/government/publications/making-significant-changes-to-an-existing-academy) guidance.

Providing education and training to children of compulsory school age as an independent learning provider

Independent learning providers are required to register with DfE that they are running an independent school if the school meets the definition set out in law. The independent school registration (https://www.gov.uk/government/publications/independent-school-registration) guidance explains the requirements.

Those responsible for running an independent learning provider that meets the definition of an independent school that is not registered as such would be committing an offence under section 96 of the Education and Skills Act 2008 (‘the 2008 Act’) and may be liable to prosecution.