Correspondence

DfE Update local authorities: 25 June 2025

Published 25 June 2025

Applies to England

1. Information: Publication of the College financial handbook 2025

We have published the College financial handbook 2025, which will come into effect on Friday 1 August 2025.

It describes the financial responsibilities of colleges, reflecting their status as charitable corporations acting in the public interest and classified as central government bodies.

It applies to all further education (FE) and sixth form college corporations, and designated institutions who have an accountability agreement with the Secretary of State for Education.

There are minimal changes from last year’s edition, that are detailed in the summary section.

We have also incorporated some responsibilities previously included in the Post-16 Audit Code of Practice. 

This letter from Andrew Thomas, Director of Funding and Financial Oversight, provides more information.

Using the new handbook

You can print or save a PDF copy of the handbook by clicking ‘Print this page’ under the contents list. Choosing ‘Save as PDF’ will allow you to save a copy.

2. Information: Pupil premium allocations for 2025 to 2026 financial year: confirmed allocations

We have published the confirmed pupil premium allocations for 2025 to 2026 financial year and will make first payments to local authorities on Monday 30 June 2025.

3. Information: Universal infant free school meals conditions of grant for 2025 to 2026

We have published the UIFSM conditions of grant and provisional allocations for academic year 2025 to 2026.

These allocations will apply the updated per meal rate of £2.61.

We have also published the final UIFSM allocations for 2024 to 2025.

4. Information: Individualised learner record returns

We have published the individualised learner record (ILR) returns for 2025 to 2026 academic year, which is for all institutions that complete the ILR data return.

• We have made changes on the requirements for returning final claims for the 2025 to 2026 funding year. We have clarified the process and dates on under performance and overperformance calculations.   

• We have updated Annex C to reflect the most up to date calculation steps and timelines for recoveries.  

• We have updated the list of PDSAT reports to reflect the post-16 funding reports that are available.  

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

5. Information: 16 to 19 funding update

We have published increased rates and programme cost weightings to reflect the £190 million additional investment we announced in May for colleges and other 16 to 19 providers.

Revised funding allocations reflecting these changes and where applicable, confirming free meals funding, have now been issued. Payments will begin from the start of academic year 2025 to 2026.

6. Information: Financial assurance: monitoring post-16 funding for 2025 to 2026 guidance

We have published Financial assurance: monitoring (FRM) post-16 funding for 2025 to 2026.  

We are continuing to monitor the same areas as last year with the following changes:

• the FRM37 report will continue to review planned and actual off-the-job training hours for apprentices who started before 1 August 2025 but will not be used to monitor starts from Friday 1 August 2025 onwards, as these apprentices will be subject to different off-the-job requirements
• apprenticeship frameworks can no longer be reported in the ILR, as the last date on which providers or apprentices could apply for certification by an issuing authority to certify frameworks was Monday 31 March 2025. These have now been de-scoped

We will share our findings through the post-16 monitoring dashboard on view your education data.

The first dashboard will be available from December and published monthly, once the individualised learner record (ILR) submission window closes and we have quality assured the data.

7. Your feedback: Tell us about your experience of our funding service

If you receive education and skills funding, we want to hear about your experience.

Complete this short survey by 11.59pm Wednesday 2 July 2025; it should take you 5 to 10 minutes to complete.

We aspire to run an excellent education and skills funding service that gives providers as much certainty as possible.

The survey, run twice a year, asks whether we deliver:

• certainty on what we pay you and when
• clarity on how to comply with funding rules
• services that are accessible and easy to use
• answers when you have funding-related queries

We will keep your personal data confidential, and your feedback will help us to improve the service.

8. Your feedback: Complete the 2025 survey of school business professionals

We are inviting school business professionals (SBPs) to complete a short online survey.

We are asking for details about their role as an SBP, their training and development needs, their school or trust’s use of integrated curriculum and financial planning (ICFP) and their approach to income generation.

The survey is open to SBPs whose responsibilities include one or more of finance, procurement, estate management, HR, and operational leadership roles.

Complete the SPB 2025 survey by Friday 11 July 2025; if you have any questions, contact the sbp.policy@education.gov.uk.

You can find out more about how we protect your information on Privacy information: education providers’ workforce, including teachers.

9. Webinar: Get help buying for schools

Get help buying for schools

 Tuesday 8 July 2025, 9:30am to 10:00am. Register online.

10. Webinar: Hiring supply teachers and agency workers for your school or trust

Hiring supply teachers and agency workers for your school or trust

Tuesday 8 July 2025, 11:00am to 11:30am. Register online.

11. Webinar: RPA members only: Crime resilience workshop

RPA members only: Crime resilience workshop

Thursday 10 July 2025, 10am to midday. Register online.