16 to 19 funding: how it works
Source: gov.uk (2025-03-05)

An overview of 16 to 19 education funding and how we calculate.

Summary

We fund sixth-form colleges, further education (FE) colleges, sixth forms in schools, sixth forms in academies, special schools, special academies, independent learning providers (ILPs), local authorities, special post-16 institutions (SPIs) and some higher education institutions (HEIs). We fund these institutions to provide study programmes and T Levels for young people.

We fund:
- students aged 16 to 19
- students up to the age of 25 when they have an education, health and care (EHC) plan
- 14 to 16-year-olds who are directly enrolled into eligible FE institutions
- home educated students of compulsory school age at any FE college
We use the 16 to 19 funding formula to calculate an allocation of funding to each institution, each academic year. We fund special schools and special academies using place numbers only. We do not use the 16 to 19 funding formula for these institutions.

We calculate the basic funding for institutions using funding rates, which depend on the size of their students’ study programmes or T Levels. These rates are regardless of which type of institution they study at or what they study. We then apply the other elements of the funding formula (#funding-formula). To attract funding, a student must meet the published eligibility criteria, such as residency requirements. These are set out in the funding regulations guide (https://www.gov.uk/government/publications/advice-funding-regulations-for-post-16-provision) for the appropriate academic year. Students must stay on their study programme or T Level for a certain amount of time to qualify for funding. Further information about qualifying periods is available in the student numbers section.

What’s new

We publish pages (https://www.gov.uk/government/collections/funding-education-for-16-to-19-year-olds) for each academic year so it’s easy to see what has changed.

Funding formula and study programmes

We use the 16 to 19 funding formula to fund institutions to deliver study programmes and T Levels to their students. At enrolment, the institution and the student agree what each student is going to study. The institution provides a learning agreement/timetable showing what the programme is and the qualification and non-qualification planned hours that make up the programme. You can read more about planned hours in the planned hours for study programmes section in our funding regulations for post-16 provision (https://www.gov.uk/government/publications/advice-funding-regulations-for-post-16-provision).

The institution must tailor study programmes to the prior attainment of each student, have clear study and/or employment goals reflecting the student’s prior attainment, show progression in learning, and should include:
- substantial qualifications that stretch students and prepare them for education at the next level or for employment, although this is not a requirement for the T Level foundation year (https://www.gov.uk/government/publications/t-level-transition-programme-framework-for-delivery-2022-to-2023)
- English and maths (https://www.gov.uk/16-to-19-funding-maths-and-english-condition-of-funding), where students have not yet achieved a GCSE grade 4
- work experience (https://www.gov.uk/government/publications/16-to-19-study-programmes-guide-for-providers) to give students the opportunity to develop their career choices and to apply their skills in real working conditions, and
- other non-qualification activity to develop students’ character, broader skills, attitudes and confidence and support progression
Most study programmes have a core aim (https://www.gov.uk/government/publications/funding-rates-and-formula). The core aim of a study programme is either a substantial qualification, which can be academic or vocational, or work experience. The core aim will usually be the component with the largest amount of timetabled activity associated with it. Study programmes can only have one core aim at a time. Core aims are an essential part of the funding allocations calculation.

How the 16 to 19 funding formula works

We use a funding formula to calculate institutions’ allocations each academic year. There are several elements within the 16 to 19 funding formula that make up the core programme funding and total programme funding. The diagram below shows the elements of the funding formula.

Figure 1: 16 to 19 funding formula

Core programme funding

To calculate core programme funding, we take the student numbers and multiply them by:
- funding rate per student (dependent on funding band)
- retention factor
- programme cost weighting
We then add:
- English and maths funding
- disadvantage funding
- large programme funding
and multiply the total by:
- area cost
Total programme funding

To calculate total programme funding, we take the total core programme funding and:
- subtract the condition of funding adjustment, then add
- advanced maths premium
- core maths premium
- high value courses premium
- T Level industry placement funding
Total funding

We add the following elements where appropriate to the total funding:
- care standards funding
- high needs students funding
- student support funding, above the minimum discretionary bursary funding of £500
You will find a full description of each element within the 16 to 19 funding formula and how we use them on this page.

We take the data to calculate each element from data returns submitted by institutions. This information is mainly collected via the individualised learner record (ILR) (https://www.gov.uk/government/collections/individualised-learner-record-ilr), for FE institutions, and the autumn school census (https://www.gov.uk/education/school-censuses-and-slasc), for schools and academies. Institutions must submit regular and accurate data returns to the Department for Education (DfE).

For FE institutions, both the Funding Information Service (FIS) (https://submit-learner-data.service.gov.uk/publicdownloads/Desktop) and Submit learner data (https://submitlearnerdatabeta.fasst.org.uk/) provide funding reports. This enables institutions to check their data is accurate.

We created the post-16 interactive school census tool (https://www.gov.uk/guidance/use-the-esfa-post-16-census-tool) to help schools and academies submit accurate autumn census returns. This interactive tool also provides information on how we use the data returned in the autumn census to calculate funding for schools and academies. 16 to 19 funding reports are available in COLLECT (https://www.gov.uk/government/publications/collect-guides-for-schools-and-local-authorities), DfE’s centralised data collection and management system, throughout the autumn census returns window. We also publish 16 to 19 funding reports guidance (https://www.gov.uk/guidance/complete-the-school-census/check-your-data) within the school census user manual.

For 16 to 19 institutions, we provide an allocation calculation toolkit (ACT) to support allocation statements. This toolkit shows institutions how we have used their data to calculate the funding allocation for their organisation. We publish allocation guides (https://www.gov.uk/government/collections/funding-education-for-16-to-19-year-olds#funding-allocations-guidance) when we issue statements to help institutions understand their allocation.

Further information is in the funding regulations guide (https://www.gov.uk/government/publications/advice-funding-regulations-for-post-16-provision) and the rates and formula guide (https://www.gov.uk/government/publications/funding-rates-and-formula).

Core programme funding

We publish more information about these core elements in the relevant sections of the funding rates and formula guidance (https://www.gov.uk/government/publications/funding-rates-and-formula).

These are the data sources (https://www.gov.uk/guidance/16-to-19-education-funding-allocations#data-sources) we use to calculate funding allocations for the academic year. Where there is no historic data, for example for new institutions, we use averages for a similar type of institution.

Funding rate

We determine the funding rate for each student by the size of their study programme or T Level based on their planned hours (https://www.gov.uk/government/publications/advice-funding-regulations-for-post-16-provision#_Planned_hours_for).

We fund all 16 and 17-year-old full-time students at the same funding rate per student, per year, where the size of programme is the same. The funding rate can vary between academic years.

We publish the funding rates each academic year:
- 2025 to 2026 (https://www.gov.uk/guidance/16-to-19-funding-information-for-2025-to-2026)
- 2024 to 2025 (https://www.gov.uk/guidance/16-to-19-funding-information-for-2024-to-2025)
Retention factor

Retention means whether a student completed their programme (were retained) or withdrew/dropped out. The 16 to 19 funding formula recognises that there is a cost to institutions in delivering programmes to students who do not complete. We apply this through the retention factor, which has the effect of funding withdrawn students at 50% of their funding band’s rate.

We explain retention criteria and funding for withdrawn students in more detail in the funding rates and formula guidance (https://www.gov.uk/government/publications/funding-rates-and-formula) for the relevant year.

Programme cost weightings

Programme cost weightings (PCWs) (https://www.gov.uk/guidance/16-to-19-funding-programme-cost-weighting-changes) provide an uplift for subjects that cost more to deliver. We decide a programme’s PCWs by the core aim’s sector subject area (SSA) tier 2 classification for study programmes. For T Level programmes the PCW is determined by mapping occupational specialisms to apprenticeship standards to determine the most appropriate SSA and, therefore, PCW.

We publish a list of PCWs in the funding rates and formula guidance (https://www.gov.uk/government/publications/funding-rates-and-formula) for the relevant year.

English and maths funding

This additional English and maths funding (https://www.gov.uk/government/publications/16-to-19-funding-english-and-maths-funding) is intended to support students who have not achieved a GCSE grade 4 or above in English and maths to participate across all study programmes and T Levels by ensuring institutions have the resources to provide tailored education or other extra support where needed alongside qualifications.

Students do not need to be studying a specific level or programme to attract this funding. The maths and English condition of funding (https://www.gov.uk/guidance/16-to-19-funding-maths-and-english-condition-of-funding) applies to all students that attract the English and maths funding element.

Disadvantage funding

Disadvantage funding consists of 2 blocks: one to account for students’ economic deprivation, and one to account for low prior attainment in English and maths. We do not separate disadvantage funding and institutions are free to choose the best ways to use this additional funding to attract, retain and support disadvantaged students and those with learning difficulties and disabilities.

Large programme uplift element

Large programme funding supports students who take much larger study programmes to prepare for work and higher education. It gives institutions the ability to stretch their most able students by offering a broad range of qualifications.

Area cost uplift

The costs of delivering education in London and the south-east are higher than the rest of England. Institutions in these parts of England get additional funding through the area cost uplift.

Programme funding: additional elements

We have published more information about these additional elements in the relevant sections of the funding rates and formula guidance (https://www.gov.uk/government/publications/funding-rates-and-formula).

Maths and English condition of funding

Students must be supported to improve their maths and/or English skills as part of their 16 to 19 study programme or T Level, where they do not hold a GCSE grade 9 to 4 (a level 2 pass grade) or equivalent qualification in these subjects.

This requirement is a condition of funding (https://www.gov.uk/government/publications/16-to-19-funding-maths-and-english-condition-of-funding) and we remove funding from future allocations for students who do not meet it.

Advanced maths premium

The advanced maths premium (https://www.gov.uk/guidance/16-to-19-funding-advanced-maths-premium) supports the sector to grow the number of students studying maths qualifications to level 3. Institutions can use the funding to provide whatever support they deem necessary to do this.

Core maths premium

The core maths premium (https://www.gov.uk/government/publications/16-to-19-funding-core-maths-premium) is to encourage the provision of core maths qualifications and expand maths education for students up to the age of 18. It is intended to support students’ participation in programmes with core maths qualifications by ensuring institutions have the resources to provide extra hours of education or other extra support where needed to deliver core maths qualifications.

High value courses premium

The high value courses premium (https://www.gov.uk/guidance/16-to-19-funding-high-value-courses-premium) is additional funding to encourage and support delivery of selected substantial level 3 study programmes and T Levels in selected A level subjects or SSAs (https://www.gov.uk/government/publications/qualifications-getting-approval-for-funding) that lead to higher wage returns.

T Level industry placement funding

Industry providers should deliver placements in line with the industry placements delivery guidance (https://www.gov.uk/government/publications/t-level-industry-placements-delivery-guidance).

This funding is to support the infrastructure and resource needed to plan, source, deliver and monitor industry placements. It is not to support employer costs for hosting placements.

Additional funding elements outside the 16 to 19 funding formula

We calculate some elements of 16 to 19 funding outside the formula.

Care standards

Care standards (residential) funding is for those institutions who have residential accommodation for students under the age of 18. The Care Standards Act 2000 puts extra responsibilities on these institutions, and these mean higher costs.

The funding rates and formula guide (https://www.gov.uk/government/publications/funding-rates-and-formula) provides more information about Care Standards and how we calculate it.

High needs funding

High needs funding (https://www.gov.uk/government/collections/high-needs-funding) is for institutions that have students who are assessed by the local authority in whose area they are resident as having complex special educational needs and disabilities (SEND), which means that the authority assesses the costs of their additional SEND support as more than £6,000 per student. Institutions will receive extra funding directly from the local authority for these students, who will often (always in the case of 19 to 25 year-olds) have an EHC plan drawn up by the local authority. As well as the 16 to 19 programme funding, institutions receive:

High needs place funding

This is sometimes referred to as element 2 funding. We pay £6,000 per place, from deductions made from local authorities’ high needs funding allocations, based on data supplied by authorities or ILR data, depending on the type of institution.

High needs top-up funding

This is sometimes referred to as element 3 funding. This is additional funding determined on a per-student basis and paid directly by the relevant local authority, for the costs of additional support in excess of £6,000.

Student support

Help is available to young people in education via a range of student support schemes (https://www.gov.uk/guidance/16-to-19-education-financial-support-for-students).

Teachers’ pensions scheme employer contribution grant payments

We have published teachers’ pensions scheme employer contribution grant payments guidance for schools (https://www.gov.uk/government/publications/teachers-pension-scheme-employer-contribution-grant-for-maintained-schools-and-academies-with-16-to-19-provision-2024-to-2025) and FE providers (https://www.gov.uk/government/publications/teachers-pension-scheme-employer-contribution-grant-further-education-providers).

Qualifications funded for 16 to 19-year-olds

We fund students to undertake a study programme or T Level that contain qualifications meeting the following criteria:
- they must be offered by an awarding organisation that is recognised by Ofqual (https://www.gov.uk/government/organisations/ofqual)
- they must be approved for delivery by being included in the list of qualifications approved for funding (https://www.qualifications.education.gov.uk/)
Eligible activity that is not part of a qualification can be funded. The planned hours for that activity in the study programme or T Level can be counted for funding purposes as non-qualification activity (https://www.gov.uk/government/publications/advice-funding-regulations-for-post-16-provision#_Planned_hours_for).

14 to 16-year-olds in FE and sixth-form colleges and electively home educated (EHE) students

We fund 14 to 16 year olds when they are enrolled in sixth-form or FE colleges (https://www.gov.uk/government/publications/full-time-enrolment-of-14-to-16-year-olds-in-further-education-and-sixth-form-colleges) that meet certain criteria. We fund 14 to 16-year-olds who are in a school or academy from pre-16 school funding allocations.

We fund EHE students for part-time courses in FE institutions (https://www.gov.uk/guidance/full-time-enrolment-of-14-to-16-year-olds-in-further-education-and-sixth-form-colleges). If an institution recruits an EHE student for a full-time course, then they are no longer home educated, and the institution will need to meet the criteria for direct recruitment.

EHE students are recorded in the ILR in the same way as 16 to 19 funded students.