Guidance

Common findings from assurance work on post-16 education providers: 2023 to 2024 assurance year

Updated 5 June 2025

Applies to England

Overview

This guidance raises awareness of the common post-16 funding rules’ compliance issues identified from our assurance work on the 2023 to 2024 assurance programme. This will help providers:

  • check their compliance with post-16 funding rules
  • make improvements where necessary to ensure they are compliant

This guidance covers the common compliance issues for:

  • 16 to 19 study programmes
  • apprenticeships
  • adult education budget (AEB)
  • advanced learner loans
  • learning support and subcontracting

Who this report is for

The information is useful for senior leaders, managers and staff in:

  • colleges, sixth forms and general further education settings
  • agricultural and other specialist further education settings
  • independent training providers
  • higher education institutions
  • academy trusts
  • schools with sixth forms

It is also useful for:

  • members of governing bodies and boards of providers
  • local authorities funded by the Department for Education (DfE)
  • auditors and advisors
  • sector bodies including the Association of Colleges (AOC), the Sixth Form College Association (SFCA) and the Association of Employment and Learning Providers (AELP)

Our language

In this guidance we use the following terms:

  • providers - to refer to colleges, independent training providers and higher education institutions
  • learners - to refer to all learners, students and apprentices funded by DfE

Assurance work on post-16 funding claims

DfE is responsible for an annual programme of assurance work on post-16 funding claims, submitted by:

  • further education (FE) and sixth-form colleges
  • independent training providers (ITPs)
  • higher education institutions
  • education providers
  • schools

The primary purpose of the work we perform is to verify the completeness and accuracy of data provided in support of the funding claimed. DfE produces a range of documents, which set out the funding rules for different funding streams. The section on funding rules guidance has more information.

At the conclusion of each review, we send a report to the provider. This sets out:

  • the areas of non-compliance with the funding rules that were identified
  • funding errors
  • recommendations on how to address non-compliance

If funds have been incorrectly claimed, we will seek to recover the funding, including funding overclaimed in previous years. 

If funding or data errors are found, the provider needs to correct their learner data, so that funding adjustments can be made to payments, where appropriate.

If it is not possible to correct the learner data in the individualised learner record (ILR) and funding is at risk, funds are recovered by:

  • offset from future payments
  • invoice, where there are no future payments

Data accuracy: the ILR

The ILR is a learner level data return that publicly funded providers must collect and return at specific periods for each funding year.

It is the primary data sourced used by:

  • DfE to make payments to providers
  • auditors to reconcile against the evidence held by providers at learner level

Therefore, it is essential that the ILR reflects not only learner activity, but also the information and evidence held within the learner files.

We expect providers to:

  • maintain ILR data and other learner documents properly and accurately
  • keep evidence, as required by the funding rules
  • record learner starts, withdrawals and breaks-in-learning, promptly and accurately so that ILR data accurately reflects the providers’ learner population at any point in time
  • regularly review their ILR data, to make sure that only accurate ILRs that comply with the funding rules and follow the ILR guidance are submitted
  • review the post-16 monitoring reports to make sure data returns and funding claims are correct

How to check your data

Providers should check their data each month. The following tools are available to help with this:

The Financial Assurance: Monitoring post-16 funding for 2023 to 2024 has guidance on how to correct ILR data quality or funding errors.

Many funding and data errors identified during assurance visits could be prevented, if providers review their learner data in these reports for completeness and accuracy throughout the year. Regular reviews will also prevent possible clawback of funding and help provider more certainty over funding.

16 to 19 Study Programme

Planned hours

We check that the number of planned hours has been correctly recorded on the ILR and that there is evidence to support this.

Planned hours recorded incorrectly on the ILR is the cause of the majority of funding errors for the 16 to 19 study programme. These errors may cause a funding overclaim and can affect future allocations.

Providers should make sure the correct planned hours are claimed by using:

Hours that do not match the evidence

We found in many cases that:

  • the hours stated on the learner’s timetable did not match those in the ILR, learning agreement or registers
  • the planned hours had been incorrectly calculated resulting in the learner being put in the wrong funding band
  • there were incorrect start and end dates

Completing full-time funding early

In a number of instances, too many learners were found to be completing full time funding very early as “early completers/achievers”. Providers were found to have been claiming for full time funding, but learners had only attended for much shorter time periods. This indicates that providers are not using average planned hours which would take into account students who both complete early and finish later than average.

Distance learning

Errors occurred where learners enrolled on distance learning provision but the planned hours on the ILR were not always supported by timetables or attendance evidence - usually leading to funding overclaims.

Withdrawing within 42 days

If learners withdraw from a learning aim within the first 42 days of the study programme, the remaining planned hours must be amended correctly. However, we identified a number of cases where the remaining planned hours had not been amended correctly.

Study programmes of less than 450 hours and between 2 and 24-weeks duration

If learners enrolled on these programmes complete, transfer or withdraw within the first 6 weeks, their planned hours must be amended to match the actual hours delivered. A number of providers had not updated the ILR to reflect this requirement.

Recording core aims

Instances were noted where the core aims were flagged incorrectly on the ILR. This would have implications on funding claims in future years as it is used to calculate the retention factor.

Activities not eligible for funding

Activities not eligible for funding, in particular self-study, were incorrectly included in the planned hours recorded on the ILR.

Incorrectly calculating planned hours

To avoid errors, planned hours should be:

  • correctly calculated and recorded
  • accurately apportioned over 2 funding years

Qualifying periods

We check that the learner has met the qualifying period, especially checking attendance where the learner withdrew shortly after the qualifying period.

There were instances where learners did not meet the start qualifying period for their programme of study, because they had withdrawn within that period. Their evidenced last day of actual learning showed that they left before the end of the qualifying period. This resulted in a funding error where the full planned hours were claimed for the aims that were withdrawn.

The start qualifying period is set at:

  • 6 weeks for students with study programmes of 485 or more planned hours or programmes of more than 24 weeks
  • 2 weeks for all part time students below 485 planned hours whose programme is due to take between 2 weeks and 24 weeks

The Funding rates and formula guidance has more information on the qualifying period.

Learning start date

We check that funding for a learning aim or programme has been claimed only from the date on which learning activity directly related to the learning aim or programme started and is evidenced.

There were instances where the start date was incorrect on the ILR or there was no evidence of attendance. These resulted in funding errors.

Withdrawals

We check that:

  • the learning end date recorded in the ILR reflects the last date that there is evidence of learning activity for each learning aim
  • the completion status and planned hours have been recorded correctly

There were instances where the ILR had not been updated with the withdrawal date, or the wrong date had been used, which did not reflect the last date of learning activity as evidenced by attendance records.

Condition of funding

All providers delivering 16 to 19 study programmes have to apply the condition of funding requirements set out in the funding rules.

If providers do not comply with these requirements, they may find that their lagged funding allocation is reduced in future years, if they breach published tolerance levels.

The main issues identified in respect of the condition of funding were:

  • exemption codes recorded incorrectly or omitted from the ILR
  • learners not undertaking an appropriate learning aim or enrolled onto a learning aim that they had already achieved
  • inaccurate recording of the learner’s prior attainment level and grades

  • where learners were considered to be exempt, there was no evidence to support the exemptions.

Qualification or non qualification hours and planned employment, enrichment and pastoral hours (EEP)

Providers need to accurately record the split between planned qualification hours, also known as planned learning hours, and planned employment, enrichment and pastoral (EEP) hours. We found many instances where the split between the different hours had not been recorded correctly on the ILR.

This is usually because providers do not:

  • understand which learning aims contribute towards qualification or EEP hours
  • capture enough evidence of how the planned EEP hours have been calculated - for example the learner’s timetable and attendance records

We expect non-qualification activity to:

  • be included in study programmes
  • support the delivery of nationally recognised qualifications for all students

If the number of planned hours towards EEP activity makes up more than half the total planned hours for the programme, providers need to have evidence of costs that directly relate to education delivery.

If providers do not have this, then we will recover the funding claimed for EEP hours.

You can find examples of recognised educational costs in Advice: funding regulations for post-16 provision 2023 to 2024 (Annex B Table 1b).

Work experience

We found that on occasion, the code used for work experience was recorded in the ILR without evidence of any work experience taking place or the work experience had not been recorded in the ILR.

We also identified a number of instances where work experience was part of the study programme but there was no evidence to confirm that this had been:

  • planned, organised and supervised
  • delivered

Data quality and compliance - individualised learner record (ILR)

DfE uses the ILR to make payments to providers, so the ILR must reflect the evidence held on the:

  • individual learning plan
  • learner’s timetable

  • provider’s attendance records

Providers must make sure that there is an accurate record of:

  • learning aims
  • planned hours and the split between qualification and EEP hours
  • start and planned end dates
  • actual end dates
  • achievement outcomes

Any changes or amendments should be recorded and evidenced in the appropriate documentation.

Providers should use the funding guidance for young people: ILR funding returns at Annex E to help them make accurate 16 to 19 funding data returns. This guidance gives the recommended minimum data checks that use both our funding monitoring reports and PDSATs.

Apprenticeships

Off-the-job-training

Off-the-job training (OTJT) is the main cause of apprenticeships funding errors and control recommendations. All apprentices must spend at least 20% of their normal working hours (capped at 30 hours per week from 2022 to 2023, unless part time) engaged in off-the-job training. We check that the calculation of OTJT is correct, OTJT is planned and there is evidence of delivery.

The assurance reviews have identified a high volume of issues in relation to the planning and calculation of OTJT hours. These included:

  • incorrect calculations leading to the apprentice not working towards or not achieving the minimum required hours
  • the planned OTJT hours did not match between the apprenticeship agreement, training plan and the ILR 

  • the OTJT plan did not detail what the training activity consisted of and how this was to be delivered

When reviewing OTJT delivery we identified many issues, including:

  • OTJT hours included ineligible activities that cannot be counted towards the off-the-job requirement resulting in the apprentice not achieving the minimum hours
  • no quantified records exist or are insufficient to gain assurance that 20% OTJT hours have been achieved
  • OTJT hours are undertaken outside working hours
  • no evidence of learning activity every calendar month

  • completion has been recorded and claimed but there is no evidence to support the 20% OTJT requirement

OTJT is a legal requirement of an apprenticeship and an essential criterion for funding. If this condition is not met, there is a risk that the whole apprenticeship for that learner is ineligible and, therefore, all funds paid in respect of that learner are at risk.

Consequently, it is important that providers comply with the OTJT requirements, including evidence requirements, set out in the apprenticeship funding rules. Providers should also refer to the apprenticeships off-the-job training guidance.

Apprenticeship agreement and training plan

We check that there is a valid apprenticeship agreement and training plan for all learners. Many issues were identified in this area - non-compliance with the funding rules included:

  • no apprenticeship agreement or training plan
  • the agreement or training plan did not meet all the criteria set out in the funding rules
  • details within the agreement did not match the ILR or the training plan and visa versa
  • the agreement or training plan was not fully completed or signed
  • the agreement or training plan was not updated after a break in learning or change in circumstances or where it was updated, it had not been signed to confirm changes
  • electronic signatures that were not robust enough to protect the authenticity and security of the signature due to cut and pasting or being editable or removable

If there is no apprenticeship agreement between the employer and apprentice, then this is classed as an ineligible apprenticeship and all funds for that learner may be at risk. We can work with providers to rectify this in most cases, but this issue can be avoided by providers establishing appropriate controls to ensure they have apprenticeship agreements for all apprentices at the start of training.

Providers should refer to the apprenticeship rules and the apprenticeship agreement: template. A template for the training plan is also available.

Negotiated price and ineligible costs

We check that funds are being used for evidenced eligible costs and activities within the agreed price. Documentation and costs relating to negotiated price were also an area where funding and control issues were identified. These included:

  • the breakdown of costs for delivery and assessment was not in the written agreement with the employer
  • ineligible costs included in the price
  • actual costs not being charged where the provider is the employer
  • no cost breakdown provided

  • the price in the ILR not matching supporting evidence

End Point Assessment costs (TNP2)

We also check that the:

  • total negotiated price for the End Point Assessment Organisation is correct
  • provider has entered a known cost rather than an estimate

TNP2 is funding to allow the provider to make a payment to the end point assessment organisation for a learner. We have found many instances where the TNP2 value is higher than the actual cost resulting in a funding error for the difference. This is usually because the provider has decided to use an estimate rather than the actual cost.

Providers must:

  • retain evidence to confirm how the total negotiated price for delivery is calculated for each learner
  • include a breakdown of the total negotiated price

It must be clear that only eligible costs have been included, and costs related to end-point assessment are not included.

Ineligible costs included in the total price will give rise to a funding error. Use the paying for an apprenticeship and eligible and ineligible costs in the apprenticeship funding rules for more information.

Learning start dates

We check that funding has been claimed only from the date on which learning activity, funded by the apprenticeship budget, begins, and is evidenced. It can include off-the-job training and English and maths.

The common errors identified were that the:

  • start date is not supported by evidence of learning activity
  • induction date has been used as the start date when no learning activity had taken place
  • ILR start date does not match the apprenticeship agreement or training plan

Where incorrect start dates result in a potential funding error and the learner is still in learning, this can be rectified by an ILR adjustment. Where the learner has withdrawn, funding will be recovered as monthly payments are likely to have been claimed in error.

Use the apprenticeship funding rules for guidance on learning activity. Funding can only be claimed from the date on which learning activity that is directly related to the apprenticeship and documented in the training plan, starts and can be evidenced.

Learning end dates

We check that the actual learning end dates reflect the last date of learning activity, where a learner has taken a break in learning or has withdrawn.

There were many funding errors where learners had either taken a break-in-learning or had withdrawn without achievement and the actual end dates on the ILR were:

  • not recorded
  • incorrectly recorded
  • not supported by underlying records

This results in a funding error for the time from the learner’s last learning activity for any of the funded learning aims. We seek to recover funding where an overpayment has occurred.

Use the apprenticeship funding rules and the Provider Support Manual for help with recording information about:

  • active learning
  • learning end dates
  • learner absence or withdrawal

Knowledge, skills and behaviours

Many issues were identified, including:

  • lack of evidence of an appropriate assessment to confirm the learner’s knowledge, skills, and behaviours prior to commencing the apprenticeship
  • assessment outcomes showing that there is prior learning but no reduction in price, content or duration has been applied or any justification as to why no reduction is required

No evidence of initial assessment may result in a funding error (full recovery from the start of learning). This is because we do not know if the learner is eligible after recognition of prior learning or on the correct programme, especially where they have already achieved or withdrawn. Retrospective evidence can be considered for continuing learners.

Where the assessment is missing or lacks information, we may be unable to confirm that the total negotiated price is correct. There have been instances where providers have had to retrospectively check the assessment or total negotiated price for a high number of learners and where funding has been recovered.

For functional skills in English and maths, where a learner resumes learning (following a break in learning or transfer), errors have been identified in the ‘funding adjustment for prior learning field’ in the ILR causing too much funding to be paid. The apprenticeship funding rules has information on programme eligibility and recognised prior learning.

The ILR Provider Support Manual has support on ‘Funding adjustment for prior learning and other funding adjustments’.

Eligibility for funding

We check that the learner satisfies the eligibility criteria. This includes ensuring that the learner fulfils the following requirements set out in the apprenticeship funding rules:

  • residency
  • age
  • employment status
  • right to work

We identified a number of issues which in many cases put funds at risk of clawback:

  • learners taking English and maths functional skills, but hold an exemption
  • lack of evidence of residency status
  • nothing to confirm the that the apprentice is not contributing to the cost of their apprenticeship
  • lack of evidence to give assurance that the apprentice is able to complete their apprenticeship within the planned duration
  • evidence of eligibility was after the apprentice started

Make sure you refer to the apprenticeship funding rules in respect of learner eligibility and the evidence requirements to support this.

English and maths

We check that the apprentice has been assessed to see whether they have English and maths exemptions.

If learners have an exemption, the provider must stop payments immediately.

Funding errors may occur, if payments have been made in error because apprentices:

  • are taking English and maths functional skills, but hold an exemption
  • do not have an exemption but are not taking English and maths functional skills

We recognise that there are times when the provider has acted in good faith by putting learners forward for their functional skills because the learner:

  • has not declared prior attainment
  • did not have proof of prior attainment

However, providers should have a robust process to show they have tried to ascertain the learner’s prior attainment.

Use the apprenticeship rules for support with recognised prior learning and English and maths.

Learning activity and breaks-in-learning

We check the learner’s continued participation in learning, including English and maths by reviewing evidence of learning activity. 

Provider’s must have evidence that an apprentice is:

  • involved in active learning like off-the-job training or English and maths training from the apprenticeship learning start date to the learning end date
  • on a break-in-learning if they are not in learning for a calendar month or more

Where there had been a break-in-learning, often the ILR had not been updated or there was little evidence to confirm the:

  • reason why
  • last date of learning activity to support the date of the start of the break-in-learning

Funding errors happen if:

  • there is no evidence of learning activity provided
  • the learning activity did not cover the period of the ILR claim
  • a break-in-learning has not been applied

Data quality and compliance - individualised learner record (ILR)

Government contributions, including additional payments are driven by the underlying ILR data. This must agree with information confirmed by the learner in the evidence pack, including planned and actual off-the job training hours in the respective ILR fields. It is important that the data fields, used to match with apprenticeship service for funding purposes, are accurate.

The ILR is the primary data source for funding claims and ILR data accuracy is critical. There were large volumes of data errors found in providers’ ILRs, when reviewed alongside the evidence required to support that data.

It is important that providers hold evidence that they are using apprenticeship funding appropriately and that the ILR data is correct. The apprenticeship funding rules list all evidence requirements. Most evidence will occur naturally from the normal business process. If evidence is not held funds may be at risk.

Ensure that you refer to the apprenticeship funding rules, which provide details of the evidence required.

Adult Education Budget (AEB)

Learner eligibility

We check that the learner satisfies the eligibility criteria. This will include ensuring that the learner fulfils the residency requirements as set out in the rules.

The testing revealed that evidence to support eligibility was not robust enough to give assurance that the learner was eligible when they started their funded course. Examples include lack of signed confirmation of residency or where confirmation had been sought, it was after the learner had already started and funding had been claimed.

Make sure you follow the rules for eligibility and the evidence pack requirements.

Prior attainment

We check that any qualifications or other certificates already held, are taken into account when:

  • establishing whether a learning aim can be funded
  • establishing whether accreditation of prior learning applies
  • calculating the proportion of funding remaining

Our testing found a number of errors in this area (as with apprenticeships programmes) relating to providers claiming funding without taking into account the learners’ attainment and study of prior qualifications. Where the proportion of funding has not been correctly calculated, we classify any overpaid funding as an error. 

We also test to ensure that the level on which the learner is enrolled for English and maths is correctly determined by the outcome of the initial assessment.

We found learners that were not enrolled on a level of learning in English or maths (and English as a second language (ESOL) qualifications) that was beyond their assessed level. There were numerous examples of learners studying at the same level at which they had been assessed. This resulted in funding being claimed incorrectly.

Use the AEB funding rules for more information on recognised prior learning and English and maths for those aged 19 and over.

Learning activity

We check that funding claimed for the learner’s continued participation in learning is confirmed by evidence of learning activity from the start date of each aim, up to the learning actual end date.

Instances were identified where funding claimed for learners’ continued participation on the AEB programme could not be confirmed from the evidence of learning activity. Errors related to lack of evidence to support for periods of learning, a learner’s start date or the actual end date where the learner had withdrawn

Make sure you refer to the AEB funding rules in respect of participation.

Full and co-funding

We check that claims for full or co-funding are supported by:

  • an assessment of the learner’s circumstances
  • confirmation from the learner that they are eligible for a financial contribution from the government

Errors happen when:

  • full funding is claimed incorrectly for learners who were not entitled to full funding
  • co-funding is claimed, when full funding should have been claimed
  • unemployment is used as the eligibility criteria to claim full funding but there is not enough evidence

If the wrong level of funding is claimed this will be classed as an error.

Use the AEB rules for more information on the criteria for full and co-funding, including the government contribution charts.

Advanced learner loans and loans bursary

Learner information

We check that the information recorded about learners is consistent. The data should be the same across the:

  • individuals’ Learning and Funding Information Letter
  • Student Loans Company’s (SLC’s) learning provider portal data
  • learning agreement
  • ILR

Errors were found in advanced loans funding where the:

  • learning start and planned end dates were recorded incorrectly
  • providers claimed for learners, who were entitled to be funded through for their first level 3 qualification and learners had not waived their right to this (for advanced loans funding)
  • learning was delivered outside England, which is not eligible under the funding rules

Other issues identified included:

  • instances where the loan had not been approved, and the learners’ data had not been removed from the ILR
  • breaks in Learning not recorded in the ILR
  • lack of evidence of learning activity throughout the programme

Find out more from the:

Loans bursary funding

We check that the learner is eligible for loans bursary funding and that the correct monthly rate has been claimed.

Issues identified which included:

  • lack of assessment to confirm the support the learner needs
  • incorrect delivery post code resulting in the area cost uplift being claimed incorrectly

These issues can result in funding errors. Make sure you use advanced learner loans bursary and learner support sections of the advanced learner loans rules to ensure that claims are accurate.

Generic issues

Data quality and ILR - duplicate learners

Duplicate claims for learners were noted through a review of sector-wide ILR data across all funding lines. There were instances where learners were incorrectly enrolled and funded at one provider for learning aims or part or full time courses, and also correctly enrolled and funded at another provider in part or full-time courses. This was during the same academic year or undertaking the same aims at the same time.

We share data reports with providers, which would identify these duplicate learners, through the post-16 monitoring reports dashboard on View your education data. This dashboard contains a set of reports, which identify data quality and eligibility issues.

Providers should ensure they review the reports and correct data regularly.

Learning support

Learning support is claimed at a monthly rate of £150 on the ILR. Excess learning support is claimed on the earnings adjustment statement.

For all funding streams, the funding rules clearly specify that learning support is available to meet the costs of putting in place a reasonable adjustment. It is for all learners with a learning difficulty or disability that affects their ability to continue and achieve their learning goal. This is set out in section 20 of the Equality Act 2010,

We provide learning support for apprentices with learning difficulties or disabilities as defined in Section 15ZA(6) of the Education Act 1996 (as amended by section 41 of the Apprenticeships, Skills, Children and Learning Act 2009).

This includes individuals who:

  • self-declare a learning difficulty or disability
  • do not have a diagnosis of a learning difficulty or disability, but the main provider has identified a learning need to us

We check that the:

  • the claims for learning support are for learners with disabilities and difficulties
  • there is evidence of an assessment to determine the support required and evidence of delivery of that support
  • the support is reviewed to ensure it is still fit for purpose or continues to be needed
  • the support is delivered, each month the support is claimed

Providers need to make sure that:

  • learning support is not claimed for learners who did not have a disability or learning difficulty
  • the reasons for learning support are not to fill a skills gap
  • the assessment and support plans and reasonable adjustment has been considered

If there is no evidence to support the learner’s eligibility, all learning support funds for the learner are at risk.

If the learner is eligible, but there is a lack of evidence to support delivery each month where learning support is claimed, we class this as a funding error for those months where this is missing.

Use the relevant funding rules for learning support, including, for apprenticeships.

Subcontracting

We check that subcontracting provision complies with the funding rules. We do not check for compliance with the subcontracting standard.

To avoid funding errors, providers need to make sure that:

  • subcontracts are in place and are signed before delivery starts
  • funding delivered under subcontracts does not exceed the limits set out in the contracts
  • contracts contain all the minimum clauses required by the funding rules, including adequate document retention clauses - for new starts these should be in the provider agreement and non-levy contract

Funding errors can happen for AEB and apprenticeships, if the:

  • details and subcontractors listed on the subcontractor declaration do not match the details recorded on the ILR
  • provision is not declared on the subcontractor declaration, the ILR, or both

Funding rules guidance

Find out more information on the funding rules from:

Get help with collecting, returning and checking the quality of ILR and other learner data.