Guidance

16 to 19 revenue funding allocation guide: 2026 to 2027

Updated 13 March 2026

Applies to England

Introduction

This guide explains how we have calculated your 16 to 19 revenue funding allocation and the factors we have applied. The guide is for academic year 2026 to 2027 and continues to use the 16 to 19 funding formula as the basis of your allocation.

We will base your funding allocation on lagged student numbers plus any agreed exceptions, where relevant. Your allocation statement includes student numbers and other factors that affect your funding for 2026 to 2027.

Who this note is for

This guide is for further education (FE) institutions, school and academy sixth forms (including special academies and special free schools) and special post-16 institutions (SPIs).

Further information regarding the high needs funding system is available in the high needs funding arrangements 2026 to 2027 guidance .

When we refer to academies in this document, we are referring to all types, including free schools, university technical colleges (UTCs) and studio schools, unless otherwise stated.

Further advice and guidance

We have produced this guide to walk you through your allocation statement.

It is important that you also refer to our 16 to 19 funding guidance for 2026 to 2027. The guides will help you to understand how we have calculated your funding allocation for 2026 to 2027. We publish these guides on GOV.UK before the start of the academic year.

You should read this note alongside our detailed guidance on:

• allocation calculation toolkit 
• funding rates and formula
• business cases
• financial support for students
• how the 16 to 19 funding formula works
• 2026 to 2027 high needs funding arrangements

Changes for 2026 to 2027 

We’ve set out the changes in the following sections:

• national funding rate
• T Level national funding rate
• high value courses premium (HVCP) for construction
• large programme uplift (LPU)

National funding rate for students funded via the 16 to 19 funding formula

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 £5,133 and have increased other funding bands proportionately.

Table 1: national funding rate for students funded via the 16 to 19 funding formula

Band (study programmes)	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	£5,133
4a	485+ hours	students aged 18 and over who are not high needs	£4,246
4b	485 to 579 hours	16 and 17 year olds and students aged 18 and over with high needs	£4,246
3	385 to 484 hours	all students	£3,453
2	300 to 384 hours	all students	£2,730
1	up to 299 hours	all students	£5,133 proportion of band 5

Table 2: national funding rate per student for T Levels

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	1,730 hours	1,830 hours	£14,772
8 uplifted	1,580 hours	1,680 hours	£14,222
8	1,580 hours	1,680 hours	£13,544
7 uplifted	1,380 hours	1,530 hours	£12,932
7	1,380 hours	1,530 hours	£12,316
6 uplifted	1,180 hours	1,330 hours	£11,214
6	1,180 hours	1,330 hours	£10,680

We do fund some T Levels at band 5. Band 5 T Levels are those where the programmes are not large enough to require funding in band 6 or above. As with other T Levels, you must record the planned hours across the full 2-year programme. Our funding approach allows flexibility where those hours are distributed unevenly over the 2 years, for example due to industry placements falling mostly in one or other year.

High value courses premium

In academic year 2026 to 2027, there is also high value courses premium (HVCP) for construction. This is additional funding to encourage and support delivery of selected level 2 and level 3 qualifications in sector subject area 5.2 (building and construction) to support an increase in skilled construction workers.

Large programme uplift

From academic year 2026 to 2027, the large programme uplift will only apply to the costs of specific larger than normal maths and high value A level programmes to support the progression of students into priority sectors.

Free meals in FE

There will be new eligibility criteria in respect of which students are in scope to receive free meals in academic year 2026 to 2027, bringing students from all households in receipt of Universal Credit (UC) into scope.

As well as the institution types already in scope for free meals in FE, the scope of the grant has been expanded to include school sixth forms. This includes 16 to 19 provision in all-through or secondary schools.

We will provide more information in the Free meals in further education guide.

Allocation statement 2026 to 2027 – detailed notes

The values on your statement are shown 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 yourself.

Summary of 2026 to 2027 funding allocation

The table on page 1 summarises the various elements of the funding allocation formula shown in the statement and provides the total funding allocation value for the academic year.

Core programme funding

This section on page 1 shows the various elements of the funding formula and the resulting funding from the application of each element.

Student numbers for 2026 to 2027

As set out in the student numbers section.

National funding rate per student

As set out in the breakdown of funding by band section.

Retention factor

• retention rate = retained students ÷ total funded students
• retention factor = (retention rate ÷ 2) + 0.5

We calculate this from the 2024 to 2025 data individualised learner record (ILR) R14 or autumn census 2025).

Where historic data is not available (often due to the institution being new and therefore not having submitted any data), we use national averages for the relevant institution type.

We use 0.98300 for SPIs, this is the average factor also used to calculate 2025 to 2026 allocations.

Programme cost weighting

The programme cost weighting (PCW) used is the average for your institution and has been weighted by the funded hours for each student. We base PCW on the sector subject area (SSA) classification for each student’s core aim.

For T Level programmes, the PCW value is attracted by the occupational specialism recorded. Like study programmes, PCW for T Levels is based on the SSA, however this is linked to the occupational specialism via a mapping to apprenticeship standards.

T Level transition programme PCW is an average of all the occupational specialism PCW values within the associated T Level route.

We calculate this from the 2024 to 2025 data (ILR R14 or autumn census 2025).

Where historic data is not available, we use national averages for the relevant institution type.

We use 1.07862 for SPIs, this is the average factor also used to calculate 2025 to 2026 allocations.

English and maths funding

As set out in the English and maths funding section.

Disadvantage funding

As set out in the distribution of disadvantage funding section.

Large programme funding

As set out in the large programme uplift section.

Area cost allowance

Some areas of the country are more expensive to teach in than others, and the area cost allowance weights the allocation to reflect this. The area cost uplift factor is either based on the head office postcode of the institution or, if you return the ILR (2024 to 2025 R14) and your delivery is widely dispersed across delivery locations, delivery postcodes from the ILR.

Student numbers

This section explains how we have calculated the student numbers in your 16 to 19 revenue funding allocation statement. Some of the information set out below may not be relevant to your institution and therefore may not be shown on your statement.

Students in FE providers

Student number taken from the data return shown in the first row of the table. For some institutions, we have used a different student number methodology.

Students in school and academy sixth forms

This figure is taken from the autumn census 2025 (2025 to 2026 data). The number of students recorded as on roll (main or current main) on census day 2 October 2025 at the institution in national curriculum years 12, 13 or 14.

For some institutions, we have used a different student number methodology.

Ratio

If shown, this is the ratio used to uplift the student number taken from the data return shown in the row above. The ratio is based on 2024 to 2025 data using the student number at the reference date of 1 November 2024 (taken from either the R04 or R06 return) and the full year student number at R14. Where we have used the R06 return and applied the R04 reference date, it is referred to as R46.

Total lagged student number

If a ratio is shown, this figure is calculated by multiplying the student number by the ratio.

Exceptional variations to lagged student number

An increase or decrease applied to the lagged student number. This is where we have agreed an exceptional case.

Total student numbers for 2026 to 2027

This is the ‘total lagged student number’ plus ‘exceptional variations to lagged student number’.

If your statement does not display the ‘total lagged student number’ row, your total students funded will be the sum of ‘total lagged student number’ and ‘exceptional variations to lagged student number’.

Student number methodology used

The methodology used to calculate your total student number to be funded in 2026 to 2027.

For SPIs, this is the 2025 to 2026 ILR R06 return (from the second year of delivery), with a reference date of 1 February 2026.

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.

SPIs that will be delivering their first year of Department for Education (DfE) funded provision will complete the high needs due diligence process. Where successful, we expect to issue allocations to these SPIs by the end of June 2026. 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 high needs place change process. For 2026 to 2027, we will continue to use the 16 to 19 funding formula to calculate programme funding (element 1) for SPIs.

Breakdown of funding by band

This section explains how we calculate funding bands in the 16 to 19 revenue funding allocation statement.

T Level bands

The following applies if you have T Level students. If you are not in receipt of T Level student funding, refer to mainstream bands.

Number of students allocated in 2026 to 2027 – T Level

Student numbers are placed into T Level bands 9 to 5 based on the occupational specialism undertaken by the student taken from a combination of:

• the estimated new starter student numbers provided by institutions for 2026 to 2027, these are the students starting on their first year of study in academic year 2026 to 2027 
• students recorded in academic year 2025 to 2026 data (ILR R04 or autumn census 2025) whose latest T Level programme aim has no actual end date and a planned end date after 31 July 2026 - this is for students who started their T Level before 2026 to 2027 who are carrying on their programme into academic year 2026 to 2027

We expect institutions to deliver at least the minimum planned hours, unless there are exceptional circumstances. More information on the circumstances in which it is acceptable to record planned hours below the minimum is in our T Level funding guidance.

When a planned T Level programme is smaller than the minimum hours for the band, we use the planned hours recorded to determine the appropriate funding band. Where students are recorded with less than the minimum hours for T Level band 6 they are placed into the appropriate funding band for their hours, either T Level band 5 or bands 1 to 4.

Where all the components of the T Level are recorded, all the additional features of a T Level will be retained. There will be no reduction in the band 5 rate for 18-year-olds, and additional industry placement and bursary funding element 2b will be retained. 

We do not fund T Levels at a higher band than the one set for the student’s occupational specialism, even when the planned hours exceed the minimum for a higher band. 

Usually, a T Level programme will last 2 years and we publish the funding rate for the whole programme. We pay 50% of the funding rate each year, at the applicable rate for that year. We do not usually pay any additional funding for students who continue their T Level into a third year. We will only fund students for one further year when they meet the criteria for a funded retake set out in the funding rules. Students whose T Level only lasts one year will receive 50% of the T Level rate for the specific year in question.

The planned hours recorded for T Levels must not include industry placements or additional qualifications that are not part of the T Level. Industry placements have a separate funding rate and the large programme uplift gives extra funding for AS and A levels.

National funding rate 

Most T Level students attract a higher rate of programme funding linked to the minimum delivery hours (determined by the occupational specialism being studied) and will typically be funded in bands 6 to 9. One T Level will not attract band 6 to 9 but will attract band 5 instead, this is because the delivery hours for this occupational specialism (assisting teaching) will be funded as T Level band 5.

The rates shown on your allocation statement and below are the annual equivalent of the 2 year T Level rates for 2026 to 2027:

• Band 9, £7,386
• Band 8 - uplifted, £7,111
• Band 8, £6,772
• Band 7 - uplifted, £6,466
• Band 7, £6,158
• Band 6 - uplifted, £5,607
• Band 6, £5,340
• Band 5, £5,133

Student funding

‘number of students allocated in 2026 to 2027’ × ‘national funding rate’

Total T Level bands

The sum of student funding for T Level bands 9 to 5 is:

• ‘student funding’ T Level band 9 + student funding’ T Level band 8 uplifted + ‘student funding’ T Level band 8 + student funding’ T Level band 7 uplifted + ‘student funding’ T Level band 7 + student funding’ T Level band 6 uplifted + ‘student funding’ T Level band 6 + ‘student funding’ T Level band 5

Mainstream bands

Student numbers 2024 to 2025

For 2026 to 2027 allocations, we use your academic year 2024 to 2025 data (ILR R14 or autumn census 2025) to determine the number of students in each band based on the definition of the bands that applied in that year.

Band 5 students are all students with annual planned hours of 580 and over, except students aged 18+ who are not high needs and not studying a T Level.

Band 4 students are split into 2 categories:

• 4a for those students who are aged 18+, not high needs with planned hours over 485 per year
• 4b is 16 and 17 year olds and students aged 18+ with high needs with planned hours between 485 and 579 per year

Bands 1 to 3 show all 16 to 19 funded students with annual planned hours in that band.

In addition, students in band 1 (up to 299 hours) shows the total number of band 1 full time equivalents (FTEs) for the student numbers shown.

You can view the student level data behind each funding band in your allocation calculation toolkit (ACT). Read our guidance on how to use your ACT file.

Proportions used in 2026 to 2027 allocation

Proportions of students to be funded in each band based on the student numbers in 2024 to 2025.

All students in SPIs are funded at the band 5 rate.

Number of students allocated in 2026 to 2027

The percentage proportions for bands 5 to 1 applied to the ‘total student numbers for 2026 to 2027’ shown in the ‘student numbers’ table.

The values in this column are displayed as whole numbers and this may result in a slight difference to the ‘total student numbers for 2026 to 2027’ shown in the ‘student numbers’ table.

If the funding allocation includes T Level students, the calculated number of band 5 students is adjusted to remove students funded in the T Level bands 5 to 9.

National funding rate 

The rates shown on your allocation statement and below are the annual rates for 2026 to 2027:

• Band 5, £5,133
• Band 4, £4,246
• Band 3, £3,453
• Band 2, £2,730
• Band 1, £5,133 (FTE)

Student funding

‘number of students allocated in 2026 to 2027’ (or the number of FTEs) × ‘national funding rate’

Total / Total mainstream bands

The sum of student funding for bands 5 to 1:

• ‘student funding’ band 5 + ‘student funding’ band 4 + ‘student funding’ band 3 + ‘student funding’ band 2 + ‘student funding’ band 1 FTEs

Total student funding

The following applies if you have T Level students

• ‘total mainstream bands’ + total T Level bands’

English and maths funding

This section explains how we have calculated English and maths funding in the 16 to 19 revenue funding allocation statement. For more information, read our English and maths funding guide.

Instances per student

We use your 2024 to 2025 data (ILR R14 or autumn census 2025) to identify qualifying students as those who:

• are an eligible 16 to 19 student who has passed the funding qualifying period
• are recorded in the ILR or school census as not having prior attainment in English and/or maths GCSE grade 9 to 4 or equivalent - we will not count students with a prior attainment of a GCSE grade 2 or below but who hold a pass in level 2 Functional Skills

Qualifying students attract an instance of funding for each subject in which they do not hold a GCSE grade 9 to 4 or equivalent at the start of their programme. Those without English or without maths will receive 1 instance and those without English and without maths will receive 2 instances. An institution’s average instances per student factor is calculated from this.

If historic data is not available, we use national averages for the relevant institution type.

Total funded instances

‘instances per student’ × ‘total student numbers 2026 to 2027’ (Student numbers table)

Students attracting the higher rate (bands 4 and above), the lower rate (bands 2 and 3), and the FTE rate

This is the ‘total funded instances’ split between students attracting the higher rate (band 4 and above) and students attracting the lower rate (band 2 and band 3) according to the proportions in the ‘breakdown of funding by band’ table.

‘number of funded instances in each band’ (higher, lower, FTE,) × ‘rate’

Total English and maths funding

This is the sum of English and maths funding:

• ‘students attracting the higher rate’ + ‘students attracting the lower rate’ + ‘students attracting the FTEs Rate’

Distribution of disadvantage funding

This section explains how we have calculated the disadvantage block 1 and block 2 funding in the 16 to 19 revenue funding allocation statement. For more information on disadvantage funding, read our funding rates and formula guide.

Disadvantage block 1

Economic deprivation funding

We use the student’s home postcode from the 2024 to 2025 data (ILR R14 or autumn census 2025) and the IMD 2019 to calculate the block 1 factor.

The block 1 factor is an average across the whole institution, weighted by the funded hours for each student.

The uplift is applied to the programme funding total, up to and including the English and maths funding.

Where historic data is not available, we use local authority averages for the relevant institution type.

For SPIs we apply the block 1 average factor of 1.03800 to the programme funding total, up to and including English and maths funding. This remains the same as in 2025 to 2026 allocations.

This is the sum for block 1 funding:

• ‘block 1 factor’ × ‘funding including programme cost weighting’

Where historic data is not available, we use local authority averages for the relevant institution type.

We use 1.03800 for SPIs, this is the average factor also used to calculate 2025 to 2026 allocations.

Care leavers

The number of successful 16 to 19 bursary fund claims for 2024 to 2025 for vulnerable students who were ‘in care’ or ‘care leavers’, at a rate of £609 per student.

This is the sum for care leaver funding:

• ‘number of qualifying students’ × ‘rate per qualifying student’

Total block 1 funding

‘block 1 funding’ + ‘care leaver funding’

Disadvantage block 2

Instances per student

This factor is based on the number of instances when a student does not have at least a grade 4 in GCSE maths or English at the end of year 11.

Students attract an instance of funding for each subject in which they do not hold a GCSE grade 9 to 4 or equivalent at the end of year 11. Those without English or without maths will receive 1 instance and those without English and without maths will receive 2 instances. An institution’s average instances per student factor is calculated from this.

We use 2024 to 2025 data (ILR R14 or census 2025) to determine the number of instances per student.

Where historic data is not available, we use national averages for the relevant institution type.

For SPIs, we default the instances per student value to 2.

Total funded instances

‘instances per student’ × ‘total student numbers 2026 to 2027’ (student numbers table)

Students attracting the higher rate, lower rate, FTE rate and the T Level rate

This is the ‘total funded instances’ split between students attracting the higher rate (band 4, 5 and T Level band 5), students attracting the lower rate (band 2 and band 3) and students attracting the FTE rate according to the proportions in the ‘breakdown of funding by band’ table.

If there are funded T Level students, the number of instances for students attracting the T Level rate is determined by multiplying the ‘instances per student’ by ‘total T Level bands’ (band 6 to 9). This is then removed from the calculated higher rate instances.

Block 2 funding rates

• T Level rate for students in bands 6 to 9, £825.
• Higher rate for students in bands 4, 5 and T Level band 5, £609.
• Lower rate for students in bands 2 and 3, £371.
• FTE rate for students in band 1, £609.

Block 2 funding

The sum for block 2 funding:

• ‘number of funded instances in each band’ (higher, lower, FTE and T Level) × ‘block 2 funding rates’

Total block 2 funding / Total block 2 funding including T Levels

The sum of total block 2 funding:

• ‘students attracting the higher rate’ + ‘students attracting the lower rate’ + ‘students attracting the FTEs rate’ + ‘students attracting the T Level rate’ (if applicable)

Minimum top up if applicable

If the total disadvantage funding (‘total block 1 funding’ + ‘Total block 2 funding’ or ‘total block 2 funding including T Levels’) for an institution is less than £6,000, disadvantage funding will be topped up to £6,000.

Total disadvantage funding

The sum of disadvantage funding:

• ‘total block 1 funding’ + ‘total block 2 funding’ or ‘total block 2 funding including T Levels’ + ‘minimum top up’

Large programme uplift

This section explains how we have calculated the LPU funding in the 16 to 19 revenue funding allocation statement.

The LPU reflects that some specific programmes are larger than the usual size in terms of hours and supports maths and high value subjects. The funding has been reprioritised for the academic year 2026 to 2027 following consideration of the Spending Review to ensure that 16 to 19 education funding is better aligned to support the government’s Plan for Change and the Industrial Strategy. Read the LPU guidance for 2026 to 2027.

LPU at 10% of national rate funding

We apply an uplift of 10% to the band 5 national funding rate per student to specific large programmes that meet the criteria.

We double the uplift in the allocation to reflect the 2 years of delivery for the programmes that attract this funding.

We calculate this by:

• ‘students meeting large programme uplift criteria’ × ‘funding uplift per student per year’ × 2

To reflect the change this year we will allocate transitional protection to institutions where the 2026 to 2027 LPU allocation is £20,000 or more lower than in 2025 to 2026. The calculation will compare the 2026 to 2027 funding to the prior year allocation. Transitional protection is 50% of the reduction over £20,000. 

We add the total funding value after we have applied retention, programme cost weighting and disadvantage to the national funding rate per student. The uplift will attract the area cost uplift where it applies.

Large programme transitional funding

The sum of transitional funding, applicable where there is a reduction in funding over £20,000 compared to 2025 to 2026:

• 50% of (‘2025 to 2026 large programme funding’ – ‘LPU at 10% of national rate funding’ - 20,000)

Total large programme funding

The sum of large programme funding:

• ‘LPU at 10% of national rate funding’ + ‘Large programme transitional funding’

The uplift is not applicable to SPIs.

Maths and English condition of funding adjustment

This section explains how we have calculated the maths and English condition of funding (CoF) adjustment in the 16 to 19 revenue funding allocation statement. For more information, read the condition of funding interactive tool and 16 to 19 maths and English condition of funding guidance.

National funding rate in 2024 to 2025

We use academic year 2024 to 2025 data, ILR R14 or autumn census 2025 (shown on the statement as R14 or S05). We therefore use the national funding rates that applied in 2024 to 2025 to calculate the CoF adjustment.

Total students (2024 to 2025 R14 or S05)

The total number of students in 2024 to 2025 as recorded in your data return split by each funding band.

National funding rate applied to total students (2024 to 2025 R14 or S05)

The student funding associated with the total students:

• ‘total students (2024 to 2025 R14 or S05)’ (FTEs for band 1) × ‘national funding rate in 2024 to 2025’

Students not meeting CoF (2024 to 2025 R14 or S05)

The number of students not meeting CoF in 2024 to 2025 as recorded in your data return, split by each funding band. You can identify these students in your ACT.

National funding rate applied to CoF non-compliant students

This is the student funding associated with the students not meeting CoF:

• ‘students not meeting the CoF (2024 to 2025 R14 or S05)’ (FTEs for band 1) × ‘national funding rate in 2024 to 2025’

Total

This shows the sum of bands 9 to 1 for ‘total students (2024 to 2025 R14 or S05)’, ‘national funding rate applied to total students (2024 to 2025 R14 or S05)’, students not meeting CoF (2024 to 2025 R14 or S05) and ‘national funding rate applied to CoF non-compliant students’.

5% of national rate funding for total 2024 to 2025 R14 or S05 students

The 5% tolerance before any adjustment will be applied:

• 5% of total ‘national funding rate applied to total students (2024 to 2025 R14 or S05)’

Funding for non-compliant students less 5% of funding

This is the resulting adjustment following the 5% tolerance:

• total ‘national funding rate applied to CoF non-compliant students’ - ‘5% of national rate funding for total 2024 to 2025 R14 or S05 students’

Final CoF adjustment (at 50% of the per student funding rate)

In order to mitigate the effect of the CoF adjustments, the final adjustment is at 50%:

• 50% of ‘funding for non-compliant students less 5% of funding’

Advanced maths premium

This section explains how we have calculated the advanced maths premium in the 16 to 19 revenue funding allocation statement. 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 2019 to 2020 and 2020 to 2021 from the ILR R14 data returns for FE and SPIs. For school and academy sixth forms we used the autumn census 2020 full year 2019 to 2020 data and the autumn census 2021 full year 2020 to 2021 data to determine this number.

Eligible students

Number of students studying an eligible level 3 maths qualification in academic year 2025 to 2026 taken from the ILR R04 data or autumn census 2025.

Eligible minus baseline

‘eligible students’ - ‘baseline students’ or zero, whichever is higher

Rate

The rate of funding per student for 2026 to 2027 is £900.

Funding

‘eligible minus baseline’ x ‘Rate’

Core maths premium

This section explains how we have calculated the core maths premium in the 16 to 19 revenue funding allocation statement. For more information, read the core maths premium guide.

Eligible students

The number of eligible students studying a core maths qualification in the first year of their 16 to 19 programme. Second year core maths students will not attract the funding. This data is taken from the academic year 2025 to 2026 ILR R04 or autumn census 2025.

Students are eligible for the core maths premium if they:

• are 16 to 19 funded
• have prior attainment equivalent to GCSE grade 9 to 4 in maths
• pass a qualifying period of either 6 weeks for a qualification with a planned length of 24 weeks or more, or 2 weeks for a qualification with a planned length of less than 24 weeks
• are studying an eligible core maths qualification

Rate

The rate of funding per student for 2026 to 2027 is £900.

Funding

‘eligible students’ x ‘rate’

High value courses premium

This section explains how we have calculated the HVCP in the 16 to 19 revenue funding allocation statement. HVCP supports institutions to increase the number of students studying substantial programmes in particular subjects.

Eligible students

HVCP funding, this is the number of eligible students in your academic year 2024 to 2025 data (ILR R14 or autumn census 2025).

HVCP funding – construction and uplift to full rate, this is the number of eligible students in your academic year 2024 to 2025 data (ILR 14 or autumn census 2025) with an uplift of 15% applied.

Rate

The rate of funding per HVCP eligible students for 2026 to 2027 is £600 plus £400 for the uplift to full rate for construction.

Funding

• ‘funded students HVCP, HVCP Construction, HVCP Uplift to full rate’ × ‘rate’

Funding for HVCP construction will be reconciled against the final data return for the academic year 2026 to 2027 (ILR R14 or autumn census 2027).

T Level industry placements funding

This section explains how we have calculated T Level industry placements funding in the 16 to 19 revenue funding allocation statement. This table is displayed if you have T Level students.

T level students band 1 to 4

The number of continuing T Level students from 2025 to 2026 data (ILR R04 or autumn census 2025) whose latest T Level programme aim has no actual end date and a planned end date after 31 July 2026.

T Level students bands 5 to 9

The number of funded T Level students in bands 5 to 9 taken from the student funding table.

Total T Level students

‘T Level students bands 1 to 4’ + ‘T Level students bands 5 to 9’

Rate

The funding rate for a T Level industry placement is £550. As T Levels are designed to be 2 year programmes, £275 is paid in years 1 and 2 of a student’s T Level.

Funding

‘Total T Level students’ × ‘rate’

Care standards

This section explains how we have calculated care standards funding in the 16 to 19 revenue funding allocation statement. Read the funding rates and formula guide for more information.

Eligible students

The total number of eligible students (≥12) taken from the academic year 2024 to 2025 ILR R14 data return for eligible institutions.

Rate

Funding per student is £817.

Care standards institution lump sum funding

Lump sum funding of £12,252 per institution for eligible institutions.

Total care standards funding

(‘eligible students’ × ‘rate’) + ‘care standards institution lump sum funding’

High needs funding

This section explains how we have calculated high needs funding in the 16 to 19 revenue funding allocation statement.

Most FE institutions and independent learning providers (ILPs) have a single ‘provider local authority’ responsible for returning to us the number of element 2 places required for all the institution’s high needs students in the following academic year.

We have based allocations for high needs place funding on the outcomes of the high needs place change process for 2026 to 2027. At the time initial allocations are issued we will be processing a small number of enquiries raised during the high needs place change notification enquiry window in February 2026. In these cases, your allocation statement will reflect the outcomes of the 2026 to 2027 local authority place change process published prior to the enquiry window. We may issue a revised allocation depending on the outcome of the enquiry. For further information, read the published high needs place change process guidance.

For SPIs and a small number of centrally funded institutions we have calculated your 2026 to 2027 allocation based on allocations of high needs place funding in your academic year 2025 to 2026 R06 ILR data return, with a reference date of 1 February 2026.

SPIs high needs element 2 funding is initially included within local authorities’ overall high needs allocations. The funding formula that calculates local authorities’ allocations includes adjustments, also based on ILR data, that remove the element 2 £6,000 per high needs place from their final dedicated schools grant allocations.This is known as the import/export adjustment. Read section 4.2 in the high needs funding 2026 to 2027 operational guide and annex B in the national funding formula for schools and high needs 2026 to 2027. This means that we are acting like the ‘provider local authority’ and are 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. In normal circumstances, the lagged funding methodology will fund SPIs for any additional students in the following year.

If local authorities give places to significantly more students than their allocated places, we may, exceptionally, increase allocations in-year. In these circumstances, we will review the student numbers recorded in the in-year ILR data returns. As this is a data-driven exercise, it is not necessary for SPIs to submit a business case.

For element 1 growth awards, 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. We do not adjust element 2 growth awards for under-delivery.

High needs element 2, total students

• ’16 to 19 students’ + ’19 to 24 students’

For SPIs we show that the number of students from 2025 to 2026 ILR R06 and the proportion of students that are 16 to 19 and 19 to 24. The proportions are used to calculate the split of students to fund should an ‘Exceptional variation to high needs student number’ be made to the total high needs student volume.

Rate

For mainstream and alternative provision academies, the rate of funding per student is £6,000.

High needs funding

We calculate the high needs funding by:

‘high needs element 2’ (total students) × ‘rate’

High needs adjustment by exception

This is an increase or decrease applied to the high needs funding agreed to as an exceptional case, if applicable.

High needs total

Where applicable we calculate the high needs total funding by:

• ‘high needs funding’ + ‘high needs adjustment by exception’

Student financial support funding

This section explains how we have calculated student financial support funding in the 16 to 19 revenue funding allocation statement.

Read our advice for institutions on the financial support young people may be able to access to help them participate in education and training.

Discretionary bursary fund

Number of funded students

For ‘element 1: financial disadvantage’ and ‘element 2a: student costs – travel’, the ‘number of funded students’ is the ‘total student numbers for 2026 to 2027’ shown in the ‘student numbers’ table.

Instances per student

For ‘element 1: financial disadvantage’, we use the student postcode from the academic year 2024 to 2025 data (ILR R14 or autumn census 2025) and the IMD 2019 to determine the number of instances per student.

For ‘element 2a: student costs – travel’, we use the student postcode and delivery location postcode from the academic year 2024 to 2025 data (ILR R14 or autumn census 2025) and the IMD 2019 to determine the number of instances per student.

The student level data used to determine the instances per student value for all elements of 16 to 19 bursary funding can be seen in your ACT file.

The maximum ‘instances per student’ value is 1.00000.

Where historic institution level data is not available to complete the calculation, we use local authority averages for the relevant institution type.

For SPIs we use national average instances per student values, ‘element 1: financial disadvantage’ is 0.26621 and ‘element 2a: student costs – travel’ is 0.13985.

Number of T Level students bands 1 to 9

For ‘element 2b: student costs – T Level Industry Placements’, we use the total number of T Level students from bands 1 to 9 as described in the industry placement section.

Proportion of students from 60% most deprived areas

For ‘element 2b: student costs – T Level industry placements’, we use the student postcode from the academic year 2024 to 2025 data (ILR R14 or autumn census 2025) and the IMD 2019 to determine the proportion of students from the 60% most deprived areas. This is used to gauge the proportion of students on T Level industry placements who are likely to be from the top 60% most deprived areas.

Number of instances

For ‘element 1: Financial disadvantage’ and ‘element 2a: student costs – travel’, the instances per student are multiplied by the ‘number of funded students’ to determine the ‘number of instances’.

• ‘instances per student’ x ‘number of funded students’

For ‘element 2b: student costs – T Level industry placements’, the ‘number of instances’ is determined by multiplying the ‘proportion of students from 60% most deprived areas’ by the ‘number of funded T Level students’.

• ‘proportion of students from 60% most deprived areas’ x ‘number of funded T Level students’

Rate

The funding rate for each element of the discretionary bursary for 2026 to 2027. Bursary funding rates are subject to change year on year.

Funding

‘number of instances’ x ‘rate’

Bursary adjustment in respect of free meals

We calculate each institution’s percentage share of the adjustment proportionally, using data which will inform an institution’s free meals in FE allocation in 2026 to 2027. That is the number of students eligible for and in receipt of free meals in FE in the academic year 2024 to 2025 data (ILR R14 or autumn census) or the academic year 2023 to 2024 data (ILR R14 or autumn census 2024) if no students were flagged as supported with free meals in FE in 2024 to 2025.

The total adjustment amount is £15 million so, if there are 100,000 free meals in FE students who inform 2026 to 2027 free meals in FE allocations, and institution A recorded 1,000 of those students in their academic year 2024 to 2025 data (ILR R14 or autumn census 2025), then institution A will be in scope for an initial adjustment of:

• 1,000 / 100,000 = 1% then
• 1% x £15 million = £150,000

Protection is then applied so that no institution:

• experiences a reduction of greater than 25% of their 16 to 19 bursary fund allocation
• experiences a reduction that is greater than the reduction applied in 2025 to 2026
• has a 16 to 19 bursary fund allocation of less than £500

Discretionary bursary fund sub-total

The sum of each bursary element:

• ‘element 1: financial disadvantage total’ + ‘element 2a: student costs travel total’ + ‘element 2b: student costs T Level industry placements’ - ‘bursary adjustment in respect of free meals’

Bursary adjustment by exception

This is an increase or decrease applied to your discretionary bursary funding. This could relate to a merger, conversion to an academy or another exceptional situation.

Discretionary bursary fund total

This is the sum of:

• ‘discretionary bursary fund sub-total’ + ‘bursary adjustment by exception’

If ‘discretionary bursary fund sub-total’ is greater than £0 but less than £500 then the allocation will be uplifted to £500.

Residential bursary fund

Institutions in receipt of residential bursary fund will see the total amount allocated for the academic year.

For institutions without an allocation, there will be no residential bursary fund information showing on the statement.

Residential support scheme

Institutions in receipt of residential support scheme funding will see the total amount allocated for the academic year.

For institutions without an allocation, there will be no residential support scheme information shown on the statement.

Total students

Total number of confirmed eligible students following verification checks of substantial level qualifications.

Rate

The funding rate per student for institutions outside of London is £3,458.

The funding rate per student for institutions in London Boroughs, eligible for a London weighting, is £4,079.

Residential support scheme funding

‘total students’ x ‘rate’

Residential support scheme administration

5% of ‘residential support scheme funding’

Residential support scheme total

‘residential support scheme funding’ + ‘residential support scheme administration’

Free meals in FE funding

Total students

This is the number of 16 to 19 students recorded in either academic year 2024 to 2025 data (ILR R14 or autumn census 2025) or the academic year 2023 to 2024 data (ILR R14 or autumn census 2024) if no students were recorded as supported with free meals in FE in the 2024 to 2025 data return.

Free meals students

This is the number of students recorded as being eligible for and in receipt of free meals in FE in either the academic year 2024 to 2025 data (ILR R14 or autumn census 2025) or the academic year 2023 to 2024 data (ILR R14 or autumn census 2024) if no students were recorded as supported with free meals in FE in the 2024 to 2025 data return.

Proportion of students on free meals

‘free meals students’ ÷ ‘total students’

Total students in 2026 to 2027 funded for free meals

This is the total number of students that will attract free meals funding in 2026 to 2027:

• ‘proportion of students on free meals’ × ‘total student numbers for 2026 to 2027’ (student numbers table)

Free meals higher rate, lower rate and FTE Rate

‘Free meal students’ at higher, lower and FTE rates are determined by taking the proportions in the ‘breakdown of funding by band’ table and applying the percentage proportions to the ‘total students in 2026 to 2027 funded for free meals’:

• higher rate: ‘band 4 and above proportions used in 2026 to 2027 allocation’
• lower rate: ‘band 3 proportions used in 2026 to 2027 allocation’ + ‘band 2 proportions used in 2026 to 2027 allocation’
• FTE rate: (‘band 1 proportions used in 2026 to 2027 allocation’ × ‘total students in 2026 to 2027 funded for free meals’) × (‘band 1 FTEs student numbers for 2024 to 2025’ ÷ ‘band 1 student numbers for 2024 to 2025’)

Free meals funding

‘free meals students’ (higher, lower and FTEs) × ‘free meals rates’

Free meals administration/free meals administration and minimum top up

5% of ‘total free meals funding’

Free meals adjustment by exception

An increase or decrease applied to your free meals in further education funding. This could relate to a merger, conversion to academy or another exceptional situation.

Total free meals funding

The sum of free meals funding:

• ‘free meals funding (higher, lower and FTEs)’ + ‘free meals administration’ + ‘exceptional adjustment’

Student financial support funding total

The sum of student financial support funding:

• ‘discretionary bursary fund total’ + ‘residential bursary fund’ (if applicable) + ‘residential support scheme’ (if applicable) + ‘total free meals funding’ (if applicable)

Start-up and post-opening grant

Those academies in receipt of a start-up grant (SUG) or post-opening grant (POG) which do not receive this funding through their pre-16 allocation will see this table. This section explains the information in this table of the 16 to 19 revenue funding statement.

SUG – part A

SUG is paid to converting academies with the route of project shown as ‘full sponsored’. This is a flat rate allocation that is paid in the first year of opening and any funding applicable to academic year 2026 to 2027 will be shown in this line.

SUG – part B

SUG is paid to converting academies with the route of project shown as ‘full sponsored’. Part B is a formulaic allocation that is intended to contribute to costs, such as leadership as a new academy grows towards full capacity. Consequently, part B may be paid over a number of years as the academy grows.

POG - per pupil resources

For free schools, UTCs and studio schools, this is the total of the resource element of the POG.

POG – leadership diseconomies

For free schools, UTCs and studio schools, this is the total of the diseconomies element of the POG.

Total start-up grant and post-opening grant

‘start-up grant part A’ + ‘start-up grant part B’ + ‘post opening grant per pupil resources’ + post opening grant leadership diseconomies’

FE Teachers’ Pension Scheme Employer Contribution Grant (TPSECG)

This section explains how we have calculated allocations to support increased employer contributions to the Teachers’ Pension Scheme (TPS).

Read the condition of grant for information, including which institutions are eligible for this funding.

We use financial year 2024 to 2025 audited payments made by institutions to the TPS (employer contributions made at 28.6%) to calculate the funding allocation. 

We calculate the original 16.4% value from the 28.6% value, then uplift both the 28.6% value and the calculated 16.4% value by 5.2% and then again by 3.3%, to reflect estimated average earnings increases in 2025 and 2026 respectively. This calculates expected employer contribution values for 2026 to 2027 by accounting for changes in earnings between 2024 to 2025 (source data year from the TPS administrator) and the funding year for the grant, 2026 to 2027.

We use the estimated average increases in earnings from the November 2025 economic and fiscal outlook published by the Office for Budget Responsibility (OBR).

Payments made to TPS in financial year 2024 to 2025, at 28.6%, Revised annual cost

‘Payments made to teachers’ pension scheme in financial year 2024 to 2025, at 28.6%’ + ‘5.2% uplift for 2025 to 2026’ + ‘3.3% uplift for 2026 to 2027’

TPS payments in financial year 2024 to 2025, reduced to 16.4%, Revised annual cost

‘Teachers’ pension scheme payments in financial year 2024 to 2025, reduced to 16.4%’ + ‘5.2% uplift for 2025 to 2026’ + ‘3.3% uplift for 2026 to 2027’

FE TPSECG (difference between revised annual cost at 28.6% and revised annual cost at 16.4%)

‘revised annual cost at 28.6%’ - ‘Revised annual cost at 16.4%’

Allocation changes 

The allocation statement shows your current allocation based on the data available to us at this point.

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 (such as errors in the ILR or school census returns)
• significantly affect contract compliance, or
• we believe that by making an allocation we will be putting public funds at risk

We also reserve the right to change your allocation if there are significant policy or data changes that impact on the calculated figures.

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. If you wish to submit a case, read our guidance for submitting a business case. Submit your business case within 20 working days of receiving your allocation statement. Non-term time does not count as working days, so the working day count will pause during these periods. We will not accept late business cases, so plan ahead to ensure your submission is on time. 

This process does not cover business cases for high needs place funding for institutions that are within scope of the high needs place change notification process.

The high needs place change notification process is now complete, and we will not review any requests for changes.

Allocation changes for SPIs

Once you have submitted your 2025 to 2026 ILR R14 data in October 2026, 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, we may reduce your allocation in-year. These checks and potential reductions will apply to both programme funding (element 1) and high needs funding (element 2).

In addition, we will use your academic year 2025 to 2026 R06 return to calculate local authority import/export adjustments for the financial year 2026 to 2027. 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, we may reduce your element 2 allocation for high needs students in-year.

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 the authority has agreed that the student’s additional support costs are more than £6,000.

How to resolve your enquiries

If you have questions after reading this and other published guidance, or if there’s anything else you need help with, you can find more support in our customer help centre.