Guidance

19+ allocations technical guidance: 2024 to 2025

Updated 21 March 2024

Applies to England

1. Purpose

This guidance sets out the methodologies and technical details for the following allocations for the 2024 to 2025 funding year:

• Education and Skills Funding Agency (ESFA) adult skills fund (ASF)
• advanced learner loan facilities and bursaries
• apprenticeships non-levy (procured)

The 2024 to 2025 funding year runs from 1 August 2024 to 31 July 2025.

We will publish information and updates to this page as we issue funding allocations for the rest of the 19+ funding streams.

We have divided this guidance into sections, which include general information on allocation statements and the business case process.

The allocation methodologies section explains the funding methodologies specific to the funding agreements and separate allocation lines you hold with ESFA.

We have included a glossary to explain technical terms.

2. Contact us

If you have questions after reading our guidance, or if there is anything else you need help with, you can find more support in our customer help centre.

3. Understanding the terminology

We will use the generic term ‘you’ or ‘provider’ unless the section only applies to a specific provider type.

We use the term ‘non-procured’ to include providers funded through a:

• financial memorandum
• conditions of funding (grant)

We use the term ‘contract for services’ to include providers funded through a:

• contract for services
• conditions of funding (grant) – employer

When we refer to ‘ESFA ASF’, this is funding that you can claim from us for delivery of ESFA adult skills fund to learners outside of devolved areas.

4. Allocation statement

We calculate all allocations covered in this guidance as a cash value.

You must follow the relevant funding formula and rules guidance when managing your funding.

We will monitor how you use the funding and adjust in line with performance management arrangements, when published.

4.1 Disclaimer

Allocation statements are not legally binding. They do not create any legal obligation against the Secretary of State for Education, acting through ESFA.

We reserve the right to remove or reduce your allocation if we find incorrect data or audit errors as part of our funding assurance and monitoring work.

4.2 How to access your allocation statement

Your allocation statement is available to view on manage your education and skills funding.

Manage your education and skills funding is an online service that gives you access to information about contracting and payments. We use this service to share your contract documents, allocation statements, remittance reports (payments), subcontracting declarations and reconciliation statements.

To use this service, you need to:

• have a DfE Sign-in account
• add the ‘Manage your education and skills funding’ service
• request the ‘View allocation statements’ subservice

Your allocation statement will show how much we have allocated to you for the 2024 to 2025 funding year and how this spans financial years (August 2024 to March 2025 and April 2025 to July 2025).

If we change your allocation, we may update your original allocation statement. You will be able to view all versions of your statements on manage your education and skills funding.

4.3 How to understand your allocation

You can use this guidance alongside our calculators to understand how we calculate your allocation. Within the calculators, you will need to enter information when prompted and it will show the steps in our calculations.

Please note that we will provide a calculator for ESFA ASF (non-procured) allocations through Document exchange. This is due to some values not being readily available to you.

4.4 Why a statement is not issued

You will not see a funding line on your allocation statement if we have calculated zero allocation. We will write to you separately if you currently have a contract for the relevant funding stream and this applies to you. Please see the business case process section for more information.

You will not receive an allocation statement if:

• your provision is about to change, for example you are about to merge with another organisation or take on learners from a failing provider
• you are subject to an investigation or we are reviewing your allocation due to a complication or known data error
• you have not recorded any delivery for the last 2 years
• you have received notice that we are terminating your contract

4.5 How we apply infrastructure changes

If you merged or were part of a disaggregation before we issue allocation statements, and we have received confirmation from your organisation, we reflect this in your allocation. We aggregate your data for each of the providers into the continuing provider.

For disaggregation cases, we split the allocation using the agreed proportions.

If we have not received confirmation of a merger or disaggregation, then you will not receive a merged or disaggregated allocation.

4.6 Quality standards to statements

We use historic delivery and performance data to calculate your allocation to make sure provision is of a high quality. We will use your track record to assess your ability to deliver education and training to the required standard. We may reduce your allocation if one or more of the following is true:

• your Ofsted grade is inadequate
• you are in formal intervention for minimum standards or inspection
• you have been issued with a notice for financial control
• you have been issued with a notice to improve, additional conditions of funding or additional contractual obligations in relation to minimum quality standards for 19+ education and training
• you have significantly underdelivered against your contract value in previous years
• you are subject to an investigation for breach of contract and/or failed audit

5. Business case process

5.1 How to submit a business case

Please use our online digital business case form to submit your request.

A link to the form guidance is also available within the form.

5.2 When to submit a business case

There are different deadlines to submit a business case dependent on when you received your allocation.

For allocations issued in February 2024

These refer to procured non-levy apprenticeship allocations. The deadline to submit a business case was 28 March 2024.

For allocations issued in March 2024

These refer to:

• ESFA ASF
• advanced learner loans

The deadline to submit a business case is 28 April 2024.

5.3 Why submit a business case

You can raise a business case if:

• you had a significant data error that has affected your allocation
• you have a contract value for the 2023 to 2024 funding year (for the relevant funding stream) but did not receive a 2024 to 2025 allocation because you have not used it.

5.4 When not to submit a case

We do not accept requests for growth. We review this as part of in-year performance reviews within the relevant funding rules or through final reconciliation.

5.5 Thresholds for business cases

If we issued you with a zero allocation, the maximum you can request is £25,000 or your current contract value, whichever is lower.

For cases where you have significant data errors that affected your funding allocation, the minimum overall impact must be more than 5% of the allocation value.

We will apply the allocation methodology as set out in this guidance when reviewing business cases using a nationally consistent formulaic calculation.

5.6 When you will receive a response

We aim to communicate the outcomes in June 2024 via Document exchange.

6. Allocation methodologies

We have split the allocation methodologies in this guidance by the funding agreement(s) and allocation lines you have with ESFA.

It is essential that you read the rules that apply to you. You may have more than one agreement and will need to read the parts that relate to that funding agreement, funding stream and allocation line.

We have updated the following sections:

We will publish information in these 2 sections when we start to issue these allocations:

The allocations that we issue set the value at which we will manage and pay a provider for the funding year. Your allocation is the maximum amount you can earn in the 2024 to 2025 funding year and not necessarily the amount you will be paid.

We allocate funding on a historic (lagged) basis, whereby funding in one year informs the allocation in the next. This means that we base the allocation for an academic year on the last full academic year delivery. For example, 2024 to 2025 allocations are largely based on 2022 to 2023 R14 individualised learner record (ILR) data submissions. Some allocations may differ and more information is provided in each allocation methodology.

When processing allocations, we abide by the following standards:

• calculate allocations on an annual basis using nationally consistent methodologies, taking into account the current policy position and affordability
• reflect lagged full-year delivery and current allocations to ensure that future allocations are in line with what providers can realistically earn
• ensure that we treat all providers fairly and equitably
• protect public funds and meet principles of public law
• enable providers to respond to government priorities

7. ESFA adult skills fund (non-procured)

If you have a query about the ESFA ASF funding allocated by a Mayoral Combined Authority (MCA) or the Greater London Authority (GLA), please contact them directly.

You should not use this section for contract for services. Please see the ESFA ASF contract for services (procured from 2023) section in this guidance.

This section refers to your education and skills agreement.

There are 2 ring-fenced budgets within ESFA ASF (non-procured):

• ESFA ASF (adult skills core, tailored learning and funding for innovative provision)
• ESFA free courses for jobs (FCFJ)

It is important that you pay attention to the different allocation lines. Each allocation line has its own calculation method and is also subject to separate funding and performance management rules. You can view this in manage your education and skills funding by reviewing the detailed allocation table. Please see the relevant sections within this guidance for details of each method:

We will fund learners who are resident outside devolved areas and will continue to support continuing learners who are resident in devolved areas. Please read the section on continuing learners for more information on these funding arrangements.

7.1 Changes for allocations 2024 to 2025

As part of the government’s response to the skills for jobs consultation, the adult education budget (AEB) is now ESFA ASF. The key changes affecting your allocation value for 2024 to 2025 are: 

• new funding rates
• reforming non-qualification provision
• further devolution deals

You can find more information on ESFA ASF in our adult skills fund: funding rules for 2024 to 2025.

7.2 ESFA adult skills fund allocations

We have calculated your ESFA ASF allocations for the 2024 to 2025 funding year for institutions that:

• are non-procured (grant funded)
• have a 2023 to 2024 ESFA funded AEB contract value (excluding continuing learners)
• delivered ESFA funded AEB between August 2021 and July 2023

Figure 1 shows the methodology we have used to calculate ESFA ASF allocations.

7.3 Figure 1

Step 1: identifying your baseline 

To calculate your initial allocation (baseline), we assess your performance, compare it with a benchmark and adjust your funding accordingly.

We calculate your ESFA ASF final funding claim delivery percentage using your ESFA ASF final funding claim delivery for the last 2 full academic years (2021 to 2022 and 2022 to 2023).

We compare this percentage with the published 97% funding claims reconciliation threshold.

Your 2024 to 2025 allocation baseline will fall into one of 3 categories based on your last 2 full years’ delivery percentages (2021 to 2022 and 2022 to 2023):

• below the reconciliation threshold in both 2021 to 2022 and 2022 to 2023 and delivery below your 2023 to 2024 contract value
• within the reconciliation threshold (97% to 100%) in either 2021 to 2022 or 2022 to 2023
• above the reconciliation threshold in 2022 to 2023

If your delivery is above the threshold, we will use a baseline value of delivery up to 110% of your current contract value.

Step 2: applying funding rate changes

The new ASF rates mean that the value you can earn in 2024 to 2025 will be different to previous years.

Example

A diploma in engineering, in the engineering sector subject area (SSA), has 360 guided learning hours (GLH) and currently receives £2,583.

In academic year 2024 to 2025, the new funding rate for this qualification will be £3,456. This is calculated as £9.60 (the new hourly skills funding rate for engineering SSA) multiplied by 360 GLH.

We calculate the value of your delivery in 2022 to 2023 using the new ESFA ASF funding rates for 2024 to 2025. We then calculate the difference between this value and your delivery value for 2022 to 2023.

We add the difference to your 2022 to 2023 baseline delivery value calculated in step 1.

Funding rate changes can be both increases and decreases. If most of your courses were for aims that have decreased, your funding rate change can be a reduction.

Step 3: adjustments

To achieve delivery stability, we adjust your funding allocation in specific areas. This is to allow for maximum future delivery.

Baseline below reconciliation threshold

If your baseline falls below the reconciliation threshold, and the sum of your funding rate changes is less than your actual delivery plus 10% of your current contract value, we will apply an uplift.

This uplift will ensure that your adjusted baseline is at least your delivery in 2022 to 2023 plus 10% of your 2023 to 2024 contract value.

Baseline within reconciliation threshold

If your baseline is within the reconciliation threshold (between 97% and 100%), and the sum after applying your funding rate changes is less than your 2023 to 2024 contract value, we will uplift your allocation.

The adjusted baseline will match your current contract value.

Baseline above reconciliation threshold

If your baseline is above the reconciliation threshold and the sum of your funding rate change is a negative value, we will disregard the funding rate change.

Baseline exceptions

There are situations where contract values may have changed since 2022 to 2023 compared with delivery. If your delivery does not reflect the 3 conditions, baseline allocation will be equal to your 2023 to 2024 contract value. This applies if 2022 to 2023 delivery is:

• below the reconciliation threshold but above the 2023 to 2024 contract value
• above the reconciliation threshold but below the 2023 to 2024 contract value

If your calculated allocation is greater than £0 but less than £10,000, we have uplifted your allocation to £10,000.

Step 4: calculating tailored learning value 

Tailored learning is the new term for AEB community learning and formula-funded AEB non-regulated learning (previously delivered through adult skills).

The main purpose of tailored learning is to support learners into employment and to progress to further learning, in line with the overall purpose of ESFA ASF. It will, however, also support wider outcomes, as the current system does, including using it to improve health and wellbeing, equip parents/carers to support their child’s learning and develop stronger and more integrated communities.

For more information, see the adult skills fund: funding rules for 2024 to 2025.

The tailored learning part of the allocation line is the total of your non-qualification delivery. We calculate the tailored learning value by adding:

• the 2023 to 2024 community learning allocation value
• the higher of non-qualification delivery in 2021 to 2022 or 2022 to 2023, plus a proportion of support funding associated with formula-funded non-regulated provision from funding claims

When the tailored learning value is below 5% of the overall allocation, we apply a minimum tailored learning value of 5% of the overall allocation for all non-procured providers.

We may limit your tailored learning value to the overall allocation if your community learning and formula-funded non-regulated provision is greater. This is the maximum amount of funding you can draw down for this purpose.

Step 5: removing delivery for devolved areas

Subject to statutory requirements, the North East MCA will take control of ESFA ASF from August 2024. The North East MCA brings together the current North of Tyne MCA with 4 additional local authorities: Durham, Gateshead, South Tyneside and Sunderland.

We will remove delivery to residents of these local authorities from ESFA ASF allocations. Providers that previously delivered to residents in these areas will therefore receive reduced allocation based on historic delivery.

We will use the 2022 to 2023 delivery data for both the adult skills core and the tailored learning allocation lines to identify the percentages of learners resident in the newly devolved areas within the North East. We will then adjust the allocation to remove delivery that will be the responsibility of the devolved area using these proportions.

We base the calculation for learners resident in these areas on each ESFA ASF learner’s home postcode prior to enrolment.

Continuing learners in the newly devolved areas will continue to form part of ESFA ASF. However, we will list their allocation amount separately (see the ‘Step 7: adding continuing learners in newly devolved areas’ section for more information).

Step 6: calculating funding for innovative provision

Where applicable, a proportion of your ESFA ASF has moved to funding for innovative provision.

We set out details of the innovative provision in our further education adult skills funding rates and funding for innovative provision guidance.

To be eligible to earn up to 3% of your ESFA ASF non-procured allocation for the development of new innovative provision, you must have:

• delivered ESFA AEB learning aims in 2022 to 2023 (excluding ESFA FCFJ), 19 to 24 traineeships and community learning
• a 2024 to 2025 ESFA ASF allocation (excluding ESFA FCFJ) over £500,000
• a 2024 to 2025 tailored learning value of less than 20% of your total ESFA ASF allocation post-devolution

We use post-devolution adjustment values for tailored learning and total ESFA ASF allocations.

Step 7: adding continuing learners in newly devolved areas

We will continue to be responsible for ESFA ASF learners who are resident in a devolved area and in learning before the authority’s devolution date but who did not complete their learning by 31 July 2024 (continuing learners).

You must ensure that you meet the cost of continuing learners from within your ESFA ASF allocation, as you have always done.

For 2024 to 2025 only, we will add funds to your ASF for learners who were resident in the newly devolved authorities (4 additional local authorities) and were in learning in 2023 to 2024 but did not complete their programmes by 31 July 2024.

We include an illustrative value for continuing learners in your allocation statement. This is a provisional value to help you understand the value you may receive later. We will exclude the illustrative value from your initial contract.

We calculated the illustrative continuing learner value by looking at the funding in 2022 to 2023 (based on R14 data) for residents who were in learning in 2022 to 2023 and continued into 2023 to 2024.

We calculate the final value for continuing learners following the completion of the 2023 to 2024 funding year. We will update your contract shortly after to include funding for continuing learners. We calculate the full-year cost of learners and assume all learners achieve on their planned end date.

We show continuing learner funding as a separate value on your allocation statement. However, this will form part of your overall ESFA ASF allocation and we will not manage it separately. We will not consolidate this into your ESFA ASF allocation beyond 31 July 2025. We show this separately on your statement so you know the value we will remove from your 2025 to 2026 allocation.

We have provided information on which areas will devolve and when in our adult education devolution guidance.

Learners who started after the devolution date are the relevant devolved authority’s responsibility.

Over-delivery and December review point

The over-delivery threshold is 110%. This means that you will be able to claim 10% more than your allocation. This is paid after final claims from December 2025.

To mitigate large reductions, we will carry out a review as part of in-year performance management. We will allow a provider that had an unusual set of circumstances in academic year 2022 to 2023 to increase their delivery at this point.

For providers that have had a reduction of more than 10% (excluding devolved changes) in 2024 to 2025 or a reduction of more than £500,000, we will review your allocation following 2023 to 2024 final claims, as we did in academic year 2023 to 2024.

We will only offer an uplifted ESFA ASF allocation if you meet the criteria.

We will provide more information on dates and criteria in funding and performance management rules, when updated.

Further notes

If you have a track record issue, then your 2024 to 2025 allocation will be no greater than your current allocation as of February 2024.

All delivery that we use within your allocation calculation includes monitoring and audit adjustments and exception cases to accurately reflect final delivery.

8. ESFA free courses for jobs (non-procured)

ESFA FCFJ (non-procured) are a component (‘of which’) of ESFA ASF allocations. We will manage these on separate allocation lines. We will not allow virement of funds between allocation lines.

This section applies to non-procured providers only.

8.1 Changes for 2024 to 2025

We have increased the threshold for delivery from 80% to 97%, which is in line with performance management rules.

We have taken the full year’s delivery data for 2022 to 2023 from final claims and compared this with the contract value for FCFJ in 2022 to 2023.

Figure 2 shows the methodology we have used to calculate FCFJ (non-procured) allocations.

8.2 Figure 2

We have calculated your FCFJ allocations for the 2024 to 2025 funding year for providers that received a FCFJ allocation in 2023 to 2024 or that successfully submitted a request for first-time delivery.

We have used the delivery and contract values for the last 2 full years and will use the best delivery percentage. We compare this percentage with the 97% funding claims reconciliation threshold.

Step 1: identifying your baseline 

To calculate your initial allocation (baseline), we assess your performance, compare it with a benchmark and adjust your funding accordingly.

We calculate your FCFJ ESFA final funding claim delivery percentage using your ESFA FCFJ final funding claim delivery for the last 2 full academic years (2021 to 2022 and 2022 to 2023).

Your 2024 to 2025 allocation baseline will fall into one of 3 categories based on your last 2 full years’ delivery percentages (2021 to 2022 and 2022 to 2023):

• below the reconciliation threshold in both 2021 to 2022 and 2022 to 2023 and delivery is below your 2023 to 2024 contract value
• within the reconciliation threshold in either 2021 to 2022 or 2022 to 2023 or your initial 2023 to 2024 contract value that was increased at the review in January
• above the reconciliation threshold in 2022 to 2023

If your delivery is above the threshold, we will use a baseline value of delivery up to 150% of your current contract value.

Step 2: applying funding rate changes 

We calculate your funding rate change by taking the value of your delivery in 2022 to 2023 using the new ESFA ASF funding rates for 2024 to 2025. We then calculate the difference between this value and your delivery value for 2022 to 2023 using the 2023 to 2024 rates.

We add the difference to your 2022 to 2023 baseline delivery value calculated in step 1.

Funding rate changes may be both increases and decreases. If most of your courses were for aims that have decreased, your funding rate change can be a reduction.

Step 3: adjustments

To achieve delivery stability, we adjust your funding allocation in specific areas. This is to allow for maximum future delivery.

Baseline below reconciliation threshold

If your baseline falls below the reconciliation threshold, and the sum of your funding rate changes is less than your actual delivery plus 10% of your current contract value, we will apply an uplift.

This uplift will ensure that your adjusted baseline is at least your delivery in 2022 to 2023 plus 10% of your 2023 to 2024 contract value.

Baseline within reconciliation threshold

If your baseline is within the reconciliation threshold (between 97% and 100%), and the sum of your funding rate changes is less than your 2023 to 2024 contract value, we will uplift your allocation.

The adjusted baseline will match your current contract value.

Baseline above reconciliation threshold

If your baseline was reduced to 150% and the sum of your funding rate changes brings your allocation below this value, we will uplift the adjusted baseline plus your funding rate to a minimum of 150%.

Baseline exceptions

If your calculated allocation is not equal to £0 but less than £10,000, we have uplifted your allocation to £10,000.

Where a calculated allocation is between £10,000 and £45,000 and the 2023 to 2024 contract value was greater than £45,000, we have uplifted your allocation to £45,000.

Step 4: removing delivery for devolved areas

Subject to the statutory requirements, the North East MCA will take control of ESFA ASF (non-procured) from August 2024. The North East MCA brings together the current North of Tyne MCA with 4 additional local authorities: Durham, Gateshead, South Tyneside and Sunderland.

We will remove delivery to residents of these local authorities from ESFA ASF (non-procured) allocations. Providers that previously delivered to residents of these local authorities will therefore receive a reduced allocation based on historic delivery.

We will use your 2022 to 2023 delivery data to identify the percentage of learners resident in the newly devolved areas within the North East. We will then adjust the allocation to remove delivery that will be the responsibility of the devolved area using these proportions.

Continuing learners in the newly devolved areas will continue to form part of the ESFA FCFJ. However, we will list their allocation amount separately (see the ‘Step 5: adding continuing learners in newly devolved areas’ section).

Step 5: adding continuing learners in newly devolved areas

We will continue to be responsible for ESFA ASF learners who are resident in a devolved area and in learning before the authority’s devolution date but who did not complete their learning by 31 July 2024 (continuing learners).

You must ensure that you meet the cost of continuing learners from within your ESFA FCFJ allocation, as you have always done.

For 2024 to 2025 only, we will add funds to your ESFA FCFJ for learners who were resident in the newly devolved authorities and were in learning in 2023 to 2024 but did not complete their programmes by 31 July 2024.

We include an illustrative value for continuing learners in your allocation statement. This is a provisional value to help you understand the value you may receive later. We will exclude the illustrative value from your initial contract, which we expect to issue in July.

We calculated the illustrative continuing learner value by looking at the funding in 2022 to 2023 (based on R14 data) for residents who were in learning in 2022 to 2023 and continued into 2023 to 2024.

We show continuing learner funding as a separate value on your allocation statement. However, this forms part of your overall allocation and we will not manage it separately. We will not consolidate this into your allocation beyond 31 July 2025. We show this separately on your statement so you know the value that we will remove from your 2025 to 2026 allocation.

We calculate the final value for continuing learners following the completion of the 2023 to 2024 funding year. We will update your contract shortly after to include funding for continuing learners. We calculate the full-year cost of learners and assume all learners achieve on their planned end date.

We have provided information on which areas will devolve and when in our adult education devolution guidance.

Further notes

If you have a track record issue, then your 2024 to 2025 allocation will be no greater than your current allocation as of February 2024.

All delivery that we use within your allocation calculation includes monitoring and audit adjustments and exception cases to accurately reflect final delivery.

Funding will be available in-year, at set points only, for growth. We will offer more ESFA FCFJ funding to providers meeting the criteria set out in the funding and performance management rules, when published.

9. ESFA adult skills fund contract for services (procured from 2023)

We will explain how we calculate your 2024 to 2025 ESFA ASF (procured from 2023) allocation when we release allocation statements.

10. Advanced learner loan facilities and bursaries

10.1 Loans facility

We have calculated advanced learner loan facility allocations for the 2024 to 2025 funding year for providers that:

• have an advanced learner loan facility for the 2023 to 2024 funding year
• delivered between August 2022 and January 2024

Figure 3 shows the methodology that we use to calculate allocations.

10.2 Figure 3

To calculate your advanced learner loans facility allocation (starting point), we use the higher of your approved, attended and paid loans applications from:

• 2022 to 2023 funding year or
• funding at 1 February 2024 in the 2023 to 2024 funding year, uplifted to a full-year value by multiplying it by your February to July 2023 delivery in the 2022 to 2023 funding year divided by your 2022 to 2023 full-year delivery (as a percentage). This enables us to have a full-year picture of your 2023 to 2024 delivery, using your 2022 to 2023 data as a guide

We have aligned allocations with the performance management and growth thresholds for 2023 to 2024:

• if your 2023 to 2024 loans facility reduced or remained the same at the review points (October 2023 or February 2024), your allocation is the lower of the starting point 2023 to 2024 loans facility (as of February 2024)
• if your 2023 to 2024 loans facility increased at the review points (October 2023 or February 2024), your allocation is the starting point or 2023 to 2024 loans facility (as of February 2024), whichever is higher
• growth in the calculated 2024 to 2025 allocation is limited to the maximum growth limits within the funding and performance management rules, less growth received in-year

Table 1 shows how the growth limits are applied, depending on the value of the facility as at the beginning of the previous year.

Table 1

Facility as of 1 August 2023	Maximum growth
Up to £100,000	£50,000
£100,000 to £3,000,000	50%
over £3,000,000	£1,500,000

We ensure that your allocation is sufficient to support learners continuing into the next funding year (2024 to 2025).

We use your February 2023 approved, attended and paid loan applications to account for potential liabilities. This allows additional funding for learners continuing into the next funding year to account for only 70% of your allocation.

Loan applications that occur after receiving your allocation over and above your historical proportions will create liabilities not consolidated as part of your loan facility.

We do not issue you with a loans facility if you have not used one between August 2022 and February 2024.

We will uplift your 2023 to 2024 allocation to £5,000 if the allocation we calculated for you is lower than this (unless you have a track record issue).

If you had an advanced learner loans facility allocation in the 2023 to 2024 funding year but we have not issued you with an allocation for 2024 to 2025 because you have not delivered, please review the business case process section for more information.

If you have a track record issue, then your 2024 to 2025 facility allocation will be no greater than your 2023 to 2024 contract value as of February 2024.

10.3 Loans bursary

We directly link the calculation of your bursary allocations to advanced learner loans facility allocation at a proportionate level.

Figure 4 shows the methodology that we use to calculate advanced learner loans bursary allocations.

10.4 Figure 4

To calculate your allocation, we divide your bursary delivery for 2022 to 2023 funding year (from either the ILR or final funding claim) by the value of your approved, attended and paid loans applications in the 2022 to 2023 funding year.

We then multiply this percentage by the advanced learner loan facility allocation we calculated for you for the 2024 to 2025 funding year.

We apply a 50% limit. If the proportion of your bursary delivery was greater than this, we will reduce your funding to this proportion.

If the allocation we calculate is less than £500, we will uplift it to this value.

If you did not use your loans bursary in 2022 to 2023, your loans bursary allocation for the 2024 to 2025 funding year will be £100.

If you have a track record issue, then your 2024 to 2025 facility allocation will be no greater than your 2023 to 2024 contract value as of February 2024.

11. Apprenticeships non-levy (procured)

This section sets out how we have calculated apprenticeship non-levy extension allocations for 1 April 2024 to 31 March 2025. This section will be of interest to training providers with an apprenticeship non-levy contract for services.

From 1 April 2021, you can no longer use this allocation to fund new starters. All new starters must be funded through the apprenticeship service from this date.

This allocation is for the purpose of carry-in learners only. The funding that we calculate is for apprentices who started on this contract on or before 31 March 2021 and who continue and require funding between 1 April 2024 to 31 March 2025.

Where necessary, we will allocate and extend your contract for services on an annual basis until apprentices who started on this contract between 1 January 2018 and 31 March 2021 complete their programmes and funding is no longer required.

We have used the same calculation for 16 to 18 and 19+ apprenticeships but we have run them separately, at age-band level.

We use the R04 (December 2023) data return and our standard carry-in allocations methodology to calculate the funding required in 2024 to 2025.

We work out your allocation by calculating all future costs occurring between 1 April 2024 and 31 March 2025.

We assume that:

• all apprentices remain on programme until their planned end date
• no apprentices drop out
• all apprentices achieve on their planned end date and earn their achievement payment on this date
• learners who passed their planned end date in the 2023 to 2024 financial year are still in learning (for example, late achievements)

We will apply a £1,000 minimum allocation. If you have a non-levy apprenticeship contract (split between age bands) for 2023 to 2024 and your allocation was less than this, then we have uplifted your allocation to this value. This does not apply if you also received a minimum allocation for 2023 to 2024 and have not used your allocation.

If you had issues with your R04 data (November 2023 data submitted in December 2023) that you believe have significantly affected your allocation, you can raise a business case. Please complete the business case form if you need to raise a case.

The deadline for submitting a business case is 28 April 2024. We aim to communicate outcomes of business cases in June 2024. Please see the business case process section for more information.

If you need to raise a business case, please ensure that you sign your contract variation before 29 March 2024 so it does not expire. Signing your contract will not affect the outcome of your business case.

You must use your allocation within the terms and conditions of your funding agreement. You must operate within the relevant apprenticeship funding rules. If you do not operate within the rules, you will be in breach of your contract.

Please read apprenticeship performance management rules for how we will review your contract value in-year, including payments and capping.

Your contract is for the financial year and we will manage it as such.

Your procured non-levy apprenticeships contract remains separate from:

• apprenticeships carry-in allocations for starters before 1 January 2018
• any funding you may be earning through the apprenticeship service

We will inform you of your future apprenticeship non-levy funding for the 2025 to 2026 financial year in February 2025.

12. Apprenticeships carry-in (non-procured)

We will issue these allocations in July 2024 using your R10 (May 2024) data return.

We will publish further details on how we will calculate your 2024 to 2025 apprenticeships carry-in (non-procured) allocation in July 2024 when we release allocation statements.

13. Glossary

Term	Description
Allocation line	We use the term ‘allocation line’ as the separate values or ‘of which’ within your funding agreement that we will use to manage your contract value.
Approved, attended and paid loan applications	To have studies funded by the Student Loans Company (SLC), individuals need to qualify and apply to student finance for support with tuition fees. Approved applications are submitted and accepted applications that meet the criteria. Attended applications are from individuals who have participated. Paid applications are those that are fully paid for. You can find more detailed context on the SLC website.
Carry-in	Apprentices or learners who started in the previous funding year where the contract has ended but we continue to pay if they have not completed their programme.
Continuing learners	Learners who started in the previous funding year and did not complete their programme into the following funding year.
Devolution	The devolution of adult education functions refers to the transfer of certain Secretary of State functions in the Apprenticeships, Skills, Children and Learning Act 2009 to specified Mayoral Combined Authorities by way of orders made under section 105A of the Local Democracy, Economic Development and Construction Act 2009, and the delegation of those functions to the Mayor of London under section 39A of the Greater London Authority Act 1999, in relation to their areas.
Disaggregation	A disaggregation is when providers (usually colleges) split into separate organisations and we adjust the allocations.
Financial year	Our financial year starts on 1 April and finishes on 31 March.
Funding agreement (or contract)	The agreement between the Secretary of State for Education, acting through ESFA, and providers that receive funding for education and skills training.
Funding claim	Providers that are paid on profile (in instalments based on national profile rather than actual delivery) must submit 3 funding claims each year to tell us how much they expect to deliver and how much they actually delivered at the end of the year. For more information, see the ESFA funding claims and reconciliation page.
Funding year	Our adult funding year starts on 1 August and finishes on 31 July.
Individualised learner record (ILR)	The primary data collection requested from learning providers for further education and work-based learning in England. The government uses this data to monitor policy implementation and the performance of the sector. It is also used by organisations that allocate funding for further education. Funding to enable providers to support learners with a specific financial hardship that might prevent them from being able to start or complete their learning.
Learner support	Funding to enable providers to support learners with an identified learning difficulty and/or disability to achieve their learning goal.
Merger	A merger is when 2 or more providers (usually colleges) join to form one organisation.
Non-formula community learning funding	Where applicable, providers receive a non-formula funded community learning allocation as part of their ESFA ASF which is paid on a monthly profile. Submission of ILR data does not generate a funding value for the learning aim(s) a learner participates in. Instead, providers attribute costs up to the value of their non-formula community learning allocation. Providers submit community learning data through funding model 10.
Non-regulated	Learning that is not subject to awarding organisation external accreditation in the form of a regulated qualification. It may be designed, delivered and certificated by a provider or another organisation. This could include: - independent living skills and engagement learning - employability and work skills - labour market re-entry - technical education tasters - basic digital skills - community learning
Virement	The process of moving money from one contract period or budget to a different one.