Guidance

High needs place change process: academic year 2021 to 2022

Updated 16 February 2021

This guidance was withdrawn on 29 December 2023

This has been withdrawn as it is out of date.

Find the latest guidance on high needs funding on GOV.UK.

Applies to England

About this guidance

This guide is primarily for local authorities and institutions. It sets out the process for local authorities to notify ESFA of institution level changes to their 2021 to 2022 high needs place numbers. Information on how to complete the high needs place change workbook is also available. It should be read alongside the high needs funding 2021 to 2022: operational guide.

For changes to hospital education funding, local authorities should also read the 2021 to 2022 local authority hospital education funding changes: guidance.

This guidance will be reviewed in autumn 2021.

Section 1: the place change process

The place change notification process enables provider local authorities (the local authority in which the institution is located) to notify ESFA of any changes to the number of high needs or hospital education places at those institutions funded via ESFA. Through this process local authorities can also request a change to their hospital education funding if there is a change in healthcare or medical provision in their area. The principles of the place change notification process remain largely unchanged from 2020 to 2021.

1.1 Changing place numbers

Overview

Discussions should begin as soon as possible to ensure local authorities can submit their returns to ESFA by the deadline of 13 November 2020. It is important institutions are pro-active and engage with their provider local authorities, especially if they believe places funded in the current academic year may not be appropriate for the following year. Similarly, local authorities commissioning places at an institution for which they are not the provider authority should contact the institution or provider local authority to ensure these places will be reflected in the total places funded. This is particularly important if there is likely to be a significant change in the numbers commissioned.

We would expect local authorities and institutions to reach agreement over the number of places to be funded. We recognise, however, there may be exceptional cases where local authorities and institutions do not agree on the number of places to be funded. In these cases, the provider local authority may submit a return but must record it as ‘not agreed’ with the institution. ‘Section 2: outcomes’ explains how these are determined by ESFA, and reflected in the published outcomes.

ESFA will issue the outcomes of the place change notification process in mid to late January. There will be a 2-week window for local authorities and institutions to query outcomes following their publication in January.

Local government reorganisation

Northamptonshire County Council will be reorganised to form 2 local authorities on 1 April 2021 (North Northamptonshire Council and West Northamptonshire Council). Local authority returns for the 2021 to 2022 academic year and outcomes published in January will reflect the new local authorities and institutions in those areas. Those local authorities should engage closely with all their institutions and current authorities when discussing place numbers for institutions affected by the reorganisation.

Institutions in scope of the place change notification process

The following institution types are funded from a local authority’s dedicated schools grant (DSG), via ESFA, and are therefore within scope of the 2021 to 2022 place change notification process:

• mainstream primary and secondary academies with special units, resourced provision or sixth forms
• mainstream free schools with special units, resourced provision or sixth forms
• studio schools
• university technical colleges (UTCs)
• special academies
• special free schools
• alternative provision (AP) academies
• further education (FE) institutions
• independent learning providers (ILPs)

In addition, this process should be used to notify ESFA of 2021 to 2022 place numbers for:

• special post-16 institutions (SPIs) that meet the initial eligibility criteria for receiving place funding directly from ESFA in 2021 to 2022, and which are not currently funded by ESFA in 2020 to 2021 (they will normally be institutions that already receive funding from the commissioning local authority, but may include new institutions)
• maintained primary and secondary schools with special units, resourced provision or sixth forms, maintained special schools and PRUs that convert to academy status on, or by, 1 January 2021

Changes to local authority hospital education funding

As in previous years, local authorities can request changes to their hospital education funding where there has been a change to medical provision locally, or where such a change will occur during the next funding period. Local authorities must submit requests for changes through the place change notification workbook. Advice on how to do this can be found in the ‘How to complete the high needs place change workbook’ guidance. We have published a separate guide explaining the criteria for requesting additional 2021 to 2022 local authority hospital education funding and the evidence required.

Out of scope of the place change notification process

The following types of institution are outside the scope of this process:

• maintained primary and secondary schools, maintained special schools and PRUs
  • changes to pre-16 and post-16 place numbers in maintained institutions are funded directly by the maintaining local authority and ESFA does not need to be informed of changes to place numbers at a maintained institution that is not converting to an academy on, or by, 4 January 2021
  • when a local authority maintained school converts to an academy, the local authority must notify the project lead of the current place numbers before conversion
• AP free schools - ESFA will contact AP free schools in November 2020 for information to determine their place funding allocations for the 2021 to 2022 academic year
• non-maintained special schools (NMSS) and special post-16 institutions (SPIs) - NMSS and SPIs are funded directly by ESFA using school census and Individualised Learner Record (ILR) data respectively, except for the SPIs seeking place funding from ESFA for the first time in 2021 to 2022 (aside from that exception, the place change notification process is not used to fund NMSS and SPIs)

Although local authorities do not need to return place numbers for these institutions to ESFA, they should consider:

• the entirety of the high needs provision available across both mainstream and specialist institutions
• how that provision is currently meeting the needs of children and young people
• what changes are necessary to meet their needs in future

This should be an important feature of local authorities’ strategic planning processes and discussions with all institutions offering special provision for their young people.

1.2 Important dates and actions

22 September 2020

Department for Education:

• publishes the ‘High needs funding 2021 to 2022: Operational guide’

7 October 2020

Department for Education:

• issues the local authority workbooks and publishes guidance on the place change process and how to complete the high needs place change workbook
• publishes the January 2020 school census data for special academies and free schools - we will not publish the 2019 to 2020 ILR R10 data because we have recently shared 2019 to 2020 R06 data with local authorities when we confirmed the import/export adjustment for the 2020 to 2021 financial year (the 2019 to 2020 R14 data will be published as part of a January 2021 update)
• publishes the 2020 to 2021 high needs place allocations to institutions (opened as at 1 October 2020)

Local authorities:

• engage in discussions with institutions about funded 2021 to 2022 place numbers

Institutions:

• engage with local authorities commissioning places about their high needs places for 2021 to 2022
• liaise with their provider local authority to agree the total 2021 to 2022 funded places for the institution

13 November 2020

Local authorities:

• deadline to submit to ESFA their:
  • 2021 to 2022 high needs place number changes
  • requests for changes to local authority hospital education funding

End November 2020

Department for Education:

• completes the initial validation of returns (ESFA may request a resubmission)

Local authorities:

• should be ready to respond to any ESFA requests to resubmit templates

Mid to late January 2021

Department for Education:

• publishes the outcomes of the place change notification process
• publishes the 2019 to 2020 ILR R14 data
• writes to relevant local authorities confirming outcome of hospital education funding requests

Local authorities:

• check published outcomes are correct

Institutions:

• (within scope of the place change notification process) should check the published outcomes are correct

Early February 2021

Local authorities:

• 2-week enquiry window closes for issues relating to the published outcomes

Institutions:

• 2-week enquiry window closes for issues relating to the published outcomes

March 2021

Department for Education:

• issues the 2021 to 2022 high needs allocations to FE institutions, free schools, academies, NMSS, SPIs and ILPs

Institutions:

• check the 2021 to 2022 allocations are correct, inclusive of high needs place numbers (ESFA may not change place numbers if not previously notified through the place change notification process)

April 2021

Department for Education:

• updates the 2021 to 2022 DSG to reflect the outcome of the 2021 to 2022 place change notification process and high needs place deductions (DSG allocations are updated termly for in-year academy conversions)
• publishes the 2021 to 2022 high needs place numbers at institution level

1.3 How to determine the number of places funded

As in 2020 to 2021, places funded should broadly reflect both local authorities’ recent commissioning activity and strategic planning to secure suitable special educational needs and disabilities (SEND) provision and AP in line with their statutory responsibilities. In determining the number of funded places, local authorities should consider all high needs providers in their area and must take account not only their own commissioning decisions but also the commissioning decisions of other local authorities. In the case of AP, they should also consider local schools’ commissioning activity and plans.

Collaborative relationships and early dialogue between local authorities and institutions play an important part in the preparations for academic year 2021 to 2022. In order to agree appropriate allocations of high needs place funding to institutions:

• provider local authorities should discuss both current numbers of places being taken up, and the number of places required in future with their institutions
• institutions should raise with their provider local authorities cases where they believe they are not being funded for the correct number of currently commissioned places, or where the number of commissioned places is likely to change
• local authorities commissioning places for which they are not the provider local authority should engage with the institution so that they are aware of any change in the number of places to be commissioned - where there is likely to be a significant change to the number of places they commission, they should also proactively contact the provider local authority to ensure this is reflected in the number of places funded

The funded places should include the total number of places required to meet the needs of all local authorities, not just those of the provider local authority.

It is important that local authorities and institutions work together to agree and submit place numbers that reflect the needs of all local authorities, ensuring that place numbers submitted are as accurate as they can be from the start of the academic year. This ensures an institution’s allocation is appropriate and reduces the need for commissioning places in excess of the institution’s allocated place numbers. Read the high needs place funding section in the high needs operational guide 2021 to 2022 for more information. The section ‘Where pupil and student numbers exceed allocated place numbers – an example’ also gives advice on funding arrangements in cases where local authorities commission additional places significantly in excess of the place numbers funded for that year.

Local authorities fund increases in place numbers from their high needs budgets. Changes to 2021 to 2022 high needs place numbers will not change an authority’s allocation of high needs funding, which is calculated through the national funding formula.

We will publish allocations for the 2021 to 2022 high needs funding block of the DSG for each local authority (calculated using the high needs national funding formula) in December 2020.

Section 2: outcomes

ESFA will publish the outcomes of this process in January 2021. If an institution does not appear on the published outcomes, this is because it was not entered on the local authority’s return and the 2020 to 2021 academic year place numbers will roll forward. The outcomes are based on the local authority returns in line with the principles set out below.

Local authorities and institutions need to check these to ensure the place numbers are correct. If an institution does not appear on the published outcomes, they will continue to be funded on the same place numbers as in 2020 to 2021.

2.1 Changes recorded as agreed with the institution

ESFA will update an institution’s 2021 to 2022 place funding to reflect the numbers notified by the local authority where recorded as ‘agreed’ with the institution. This will be reflected in the outcomes published in January.

Where post-16 place numbers at academies, or pre-16 place numbers for SEN units at mainstream academies, have been agreed but were not funded in 2020 to 2021, ESFA will check that the academy’s funding agreement has a sixth form, or specialist provision for an SEN unit. If it does not, the published outcomes will record the change as agreed, subject to approval of such provision through the formal process for making significant changes to an academy. Place funding will not, however, be included in the 2021 to 2022 allocation until a signed deed of variation is received.

Special post-16 institutions (SPIs) will be agreed subject to the due diligence process described in section 2.3.

2.2 Changes recorded as not agreed with the institution

Mainstream academies, free schools and AP academies

Where place number changes are marked as ‘not agreed’ for mainstream academies, free schools or AP academies, we will not make a change in place numbers and the January published outcomes will remain as the 2020 to 2021 place numbers that have been funded.

We expect there to be continuing dialogue between the relevant local authorities and institution in order to agree the place numbers. Local authorities and institutions may then use the enquiry window to notify ESFA of changes in place numbers that are agreed after 13 November 2020.

Special academies, special free schools, 16 to 19 academies, FE institutions and ILPs

ESFA will consider notifications of place changes marked as ‘not agreed’ with a special academy, special free school, 16 to 19 academy, 16 to 19 free school, FE institution or ILP. We expect to receive very few requests that are not agreed with institutions. If a change is not agreed with an institution, local authorities must report the number of places they are prepared to fund, reflecting the needs of all local authorities, and not the number of places the institution is seeking.

We will use the principles set out below to determine the 2021 to 2022 academic year place numbers (published in January 2021), where place numbers are marked as ‘not agreed’ with special academies, special free schools, 16 to 19 academies, 16 to 19 free schools, FE and ILP institutions. Decisions will be informed by the published January 2020 school census and 2019 to 2020 R14 Individualised Learner Record (ILR) data. We’ll publish the ILR R14 data for the 2019 to 2020 full academic year in January 2021.

These principles should assist local negotiations and can be used to resolve any disputes.

We’ll only consider 2021 to 2022 place change notifications that are not agreed with the institution, where the change is either:

• at least 10% of the total 2020 to 2021 academic year places for an institution with more than 50 high needs places
• at least 5 places for an institution with less than 50 high needs places in the 2020 to 2021 academic year

For those changes that do not meet the above thresholds, we will use the 2020 to 2021 place numbers. For those changes that exceed the above thresholds, we’ll determine the 2021 to 2022 place number by using 2019 to 2020 ILR R14 (for FE colleges, ILPs and 16 to 19 academies and free schools returning ILR data) and the January 2020 school census data (for special academies and free schools), and adopt the following 3 principles:

• where the notification and ILR or school census data confirm a reduction to the 2020 to 2021 place data, we’ll change the 2021 to 2022 place numbers to the higher of the ILR/census data or the notification
• where the notification and ILR or school census data confirm an increase to the 2020 to 2021 place data, we’ll change the 2021 to 2022 place numbers to the lower of the ILR/census data or the notification
• where a notification to change the 2020 to 2021 place data is not confirmed by the trend in the ILR or school census data, we’ll not make any change to the place numbers and the 2020 to 2021 numbers will be used

Examples of how this will work for these institutions are shown below:

	Institution	2020 to 2021 high needs places	Local authority notified	Per cent change notified	ILR/census data	ESFA decision	Basis for ESFA decision
Decrease to the 2020 to 2021 places	A	93	65	-30%	67	67	Notification and data show reduction to high needs places. ESFA decide on higher number, which in this case is the data.
Increase to 2020 to 2021 places	B	100	120	+20%	130	120	Notification and data show increase to high needs places. ESFA decide on lower number, which in this case is the local authority notification.
Decrease to the 2020 to 2021 places	C	50	44	-12%	51	50	Notification shows increase to high needs places, but data is lower. ESFA therefore roll forward 2020 to 2021 high needs places.
Decrease to the 2020 to 2021 places - below threshold	D	40	36	-10%	36	40	Notification change is 10%, but for 4 places which is below 5 place threshold. Change not agreed.
Increase to the 2020 to 2021 places on 5 place threshold	E	30	35	17%	36	35	Change notification is on 5 place threshold. Notification and data show increase to high needs places. Agree to 35 places.

2.3 Special post-16 institutions (SPIs): due diligence process

Local authorities should submit details of any SPIs that they propose are funded directly by ESFA for the first time in 2021 to 2022. The local authority in which the SPI is located is responsible for including such SPIs in their place change notification return. The return must include the total number of student places for which the SPI is to be funded, and to be eligible for consideration for ESFA funding, these SPIs must:

• have at least 10 student places identified for 2021 to 2022
• have been actively trading for a minimum of 3 months
• be able to supply management accounts for that period

Local authorities should also include SPIs which have been unsuccessful in the due diligence process in previous years if they want them to be considered for ESFA funding in the 2021 to 2022 academic year.

The deadline for the workbook return is 13 November 2020. New SPIs will be subject to a due diligence process undertaken by ESFA to assess if they are eligible to be funded. The costs of these places will mainly be met from local authorities’ high needs allocations, on a lagged basis through the operation of the import/export adjustment in the national funding formula.

Following the place change notification process, ESFA will contact eligible SPIs to begin a due diligence process. Further information on the process and the requirements institutions must meet to become eligible for ESFA funding will be published in October. Local authorities are able to commission and fund the full cost of placements in those SPIs that are not in receipt of funding from ESFA, subject to their own due diligence. It’s therefore only necessary to include in the workbook details of those SPIs for which the local authority is requesting that place funding is paid directly from ESFA for the first time.

2.4 Enquiry window

Following the publication of the place change outcomes in January 2021, there will be a 2-week window for local authorities and institutions to review the information and raise any enquiries with us. This includes where a place number previously marked as ‘not agreed’ in the original return has subsequently been agreed. Queries received outside of the enquiry window are unlikely to be considered.

An enquiry can be made by a local authority or an institution. This is also an opportunity for local authorities who commission places at institutions outside their local authority area to ensure the place numbers at these institutions accurately reflect their needs. If an enquiry is raised in relation to a commissioning position that has not been agreed, we’d expect there to be continuing dialogue between the relevant local authorities and institution in order to resolve the issue.

ESFA will only consider a request to review place change outcomes where either:

• there is clear evidence of agreement on the 2021 to 2022 place number between the local authority and institution after a previous position that was not agreed
• the impact on place numbers is significant - this is a change of either:
  • at least 10% of the total 2020 to 2021 academic year places for an institution with more than 50 high needs places
  • at least 5 places for an institution with less than 50 high needs places in the 2020 to 2021 academic year

To submit an enquiry about the outcome of the process, a local authority, academy or FE institution must contact highneeds.ESFA@education.gov.uk including ‘2021 to 2022 high needs place number: enquiry’ in the subject line, within the 2-week review period in January 2021. If a local authority is requesting a change, the relevant institution must be copied into the email. If an institution is requesting a change, the relevant local authority must be copied into the email. Please set out the nature of the enquiry clearly and include any background information that provides further context to enable us to consider it.

Local authorities and institutions may provide further information via the enquiry window process in the exceptional circumstance that a place number change cannot be agreed. ESFA will consider requests to change the number of places and may seek additional information. We will take into account all available pupil number and other data when considering the requested change. The 2020 to 2021 place numbers may be used, unless there is evidence that another number would be more appropriate. Alternatively, ESFA may hold funding back from the institution by providing an allocation based on a lower place number. We would make a deduction from the local authority’s high needs allocation on the basis of a higher place number, until a place number can be agreed.