Correspondence

DfE Update further education: 23 July 2025

Published 23 July 2025

Applies to England

1. Information: Publication of the financial handbook for independent training providers 2025

We have published an updated version of the Financial handbook for independent training providers (ITPs), which will come into effect on Friday 1 August 2025.

The handbook applies to ITPs in receipt of funds provided directly by the Department for Education (DfE), for the duration of providers’ contracts of service with DfE.

It focuses on the themes of financial governance, management, oversight, and assurance, outlining requirements and recommendations for ITPs dependent on their level of DfE funding.

There are no new requirements for ITPs in this version of the handbook, with only a small number of changes, primarily reflecting Education and Skills Funding Agency (ESFA) functions moving into DfE.

See the ‘what has changed in this edition’ section for more details.

Using the new handbook

You can print or save a PDF copy of the handbook by clicking ‘Print this page’ under the contents list and choosing ‘Save as PDF’.

2. Information: Update of the college financial handbook 2025

We have refreshed the 2025 edition of the college financial handbook which comes into effect from Friday 1 August 2025.

This is to reflect recent changes in the thresholds for senior pay approvals, published by HM Treasury.

3. Information: Updated guidance for the statutory further education sector on streamlined energy and carbon reporting

We have updated our guidance for colleges on streamlined energy and carbon reporting to reflect the latest emissions conversion factors.  

This guidance will help finance directors, accounting officers, principals, and governors of colleges to report energy consumption in their 2024 to 2025 accounts and develop good practice in their colleges.

4. Information: Change to payment date for adult skills fund (contract for services): effective August 2025

Following the closure of ESFA, from August 2025 the payment date for the following non-grant funded funding streams will move from the 16th working day to the 14th working day of each month:

• adult skills fund 
• advanced learner loans
• free courses for jobs

This change applies to the 2025 to 2026 funding year and all subsequent years.

The 14th working day typically falls around the 20th calendar day of the month, depending on weekends and public holidays.

This means payments will generally be made slightly earlier than under the current schedule, which falls around the 22nd calendar day.

In addition, any legacy funding (recovery or payment) for 16 to 18 traineeships, 19 to 24 traineeships and national skills funds will be made on 14th working day.

Please ensure your systems and processes are updated accordingly.

5. Information: 16 to 19 Bursary Fund guide updated

In response to your feedback, we have made some updates to the 16 to 19 Bursary Fund guide for academic year 2025 to 2026.

The updates do not change any of the funding rules but are intended to improve clarity on some points.

These include how you can manage the requirement for receipts and the discretion about whether you undertake household income checks annually for the discretionary bursary, or just once at the beginning of a student’s study programme.

The updates give more clarity to support your decision making if a student moves course or changes course level during their studies with you.

6. Reminder: 16 to 19 funding allocation and outturn statement R10 2024 to 2025

We notified you in the 11 December 2024 ESFA Update that following insight from user research, outturn statements will only be available after R14 for the 2024 to 2025 funding year.

Therefore, the allocation R10 outturn statement will not be issued in August 2025 as in previous years.

The 16 to 19 funding claim reports will still be available in Submit learner data.