Guidance

High needs place change process: academic year 2022 to 2023

Updated 29 March 2023

This guidance was withdrawn on 28 December 2023

This has been withdrawn as it is out of date.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, schools and colleges. It sets out the process for local authorities to notify ESFA of institution level changes to their 2022 to 2023 high needs place numbers. Information on how to complete the high needs place change workbook is also available. The guide should be read alongside the high needs funding 2022 to 2023: operational guide, which sets out further details about the allocation of place and top-up funding.

For changes to hospital education funding, local authorities should also read the 2022 to 2023 local authority hospital education funding guidance.

We have now published the 2022 to 2023 high needs place change outcomes.

New for 2022 to 2023

The place change process is broadly the same as last year. We have introduced a deadline for receiving deed of variations signed by the trust, where a change in the age range at academies, or pre-16 place numbers for special educational needs (SEN) units at mainstream academies have been agreed but were not funded in 2021 to 2022.

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 schools and colleges 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 2021 to 2022.

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 12 November 2021. It is important schools and colleges are proactive 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 (in writing) over the number of places to be funded before submitting the template. This would help to avoid disagreements and disputes at a later point. However, we recognise 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, schools and colleges to query outcomes following their publication in January.

Institutions in scope of the place change notification process

The following are funded from a local authority’s dedicated schools grant (DSG), via ESFA, and are, therefore, within scope of the 2022 to 2023 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)

The process should be used to notify ESFA of changes to the number of funded high needs places, hospital education places and changes to the hospital education per place funding amount at the above schools and colleges.

In addition, this process should be used to notify ESFA of 2022 to 2023 place numbers for:

• special post-16 institutions (SPIs) that meet the initial eligibility criteria for receiving place funding directly from ESFA in 2022 to 2023 and are not currently funded by ESFA in 2021 to 2022 (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 2022
• post-16 place numbers at academies, or pre-16 place numbers for SEN units at mainstream academies being funded as part of the place change process for the first time. An appropriate deed of variation must be signed by the trust and received by DfE by 10 December 2021

Changes to local authority hospital education funding

As in previous years, local authorities can request changes to the hospital education funding factor in their dedicated schools grant where there has been a permanent 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 2022 to 2023 local authority hospital education funding and the evidence required.

Institutions out of scope of the place change notification process

The following 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 schools are funded directly by the maintaining local authority and do not need to be notified to ESFA through this process

  • 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 2021 for information to determine their place funding allocations for the 2022 to 2023 academic year
• non-maintained special schools (NMSS), SPIs and a small group of FE colleges and ILPs – these schools and colleges 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 2022 to 2023 (aside from that exception, the place change notification process is not used to fund these schools and colleges)
• post-16 place numbers at academies, or pre-16 place numbers for SEN units at mainstream academies, where an appropriate signed deed of variation is not received by the department by 10 December 2021. In such cases, local authorities may fund places at academies directly

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

• the entirety of the high needs provision available across both mainstream and specialist schools and colleges
• 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 schools and colleges offering special provision for their young people.

1.2 Important dates and actions

6 October 2021

DfE:

• launches the process by issuing local authority workbooks and publishes guidance on the place change process and how to complete the workbook
• publishes the January 2021 school census data for special academies and free schools (2020 to 2021 R06 data was issued to local authorities when the import/export adjustment for the 2021 to 2022 financial year was made in June 2021)
• publishes the 2021 to 2022 high needs place allocations to schools and colleges (opened as at 1 October 2021)

Local authorities:

• continue discussions with schools and colleges about funded 2022 to 2023 place numbers
• engage with other local authorities where they commission a number of places at a school or colleges in their area, to ensure the total number of places reflects this

Institutions:

• continue discussions with local authorities commissioning places about their high needs places for 2022 to 2023
• liaise with their provider local authority to agree the total 2022 to 2023 funded places for the institution, including places commissioned by other local authorities

12 November 2021

Local authorities:

• deadline to submit 2022 to 2023 high needs place number changes
• deadline to submit requests for changes to local authority hospital education funding

End of November 2021

DfE:

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

Local authorities:

• respond to ESFA requests to resubmit templates

10 December 2021

• signed deed of variation received by DfE for change in age range at academies, or pre-16 place numbers for SEN units at mainstream academies being funded as part of the place change process for the first time

Mid to late January 2022

DfE:

• publishes the outcomes of the place change notification process
• 2-week enquiry window opens for issues relating to the published outcomes
• publishes the 2020 to 2021 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 2022

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 2022

DfE:

• issues the 2022 to 2023 high needs allocations to FE institutions, free schools, academies, NMSS, SPIs and ILPs

Institutions:

• check the 2022 to 2023 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 2022

DfE:

• updates the 2022 to 2023 DSG to reflect the outcome of the 2022 to 2023 place change notification process and high needs place deductions (DSG allocations are updated termly for in-year academy conversions)
• publishes the 2022 to 2023 high needs place numbers at institution level

1.3 How to determine the number of places funded

As in 2021 to 2022, 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 2022 to 2023.

To agree appropriate allocations of high needs and hospital education 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 cases with their provider local authorities 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 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. This is important as the import/export adjustment should ensure that funding in the local authority’s DSG reflects those pupils and students with high needs resident in one local authority area who attend a school or college in other areas. Read the how local authority high needs allocations are calculated section of the high needs funding arrangements for 2022 to 2023 for more information on the import/export adjustment.

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 2022 to 2023 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 2022 to 2023 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 2022 to 2023 high needs funding block of the DSG for each local authority (calculated using the high needs national funding formula) in December 2021.

Section 2: outcomes

ESFA will publish the outcomes of this process in January 2022. 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 2021 to 2022 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 is not included on the published outcomes, they will continue to be funded on the same place numbers as in 2021 to 2022.

2.1 Changes recorded as agreed with the institution

ESFA will update an institution’s 2022 to 2023 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 there is an age range change at academies, or pre-16 place numbers for SEN units at mainstream academies have been agreed but were not funded in 2021 to 2022, ESFA will check that the academy’s funding agreement allows for the change in the age range, or specialist provision for a SEN unit. For these changes to be considered as part of this process, the signed deed of variation needs to be received by the department by 10 December 2021.

If the deed of variation is received after this date, the local authority may fund the places directly for the 2022 to 2023 academic year. 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 2021 to 2022 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 12 November 2021.

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 schools and colleges. 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 2022 to 2023 academic year place numbers (published in January 2022), 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 2021 school census and 2020 to 2021 ILR R14 data. We will publish the ILR R14 data for the 2020 to 2021 full academic year in January 2022. These principles should assist local negotiations and can be used to resolve any disputes.

We will only consider 2022 to 2023 place change notifications that are not agreed with the institution, where the change is either:

• at least 10% of the total 2021 to 2022 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 2021 to 2022 academic year

For those changes that do not meet the above thresholds, we will use the 2021 to 2022 place numbers. For those changes that exceed the above thresholds, we will determine the 2022 to 2023 place number by using 2020 to 2021 ILR R14 (for FE colleges, ILPs and 16 to 19 academies and free schools returning ILR data) and the January 2021 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 2021 to 2022 place data, we will change the 2022 to 2023 place numbers to the higher of the ILR/census data or the notification (see institution A below)
• where the notification and ILR or school census data confirm an increase to the 2021 to 2022 place data, we will change the 2022 to 2023 place numbers to the lower of the ILR/census data or the notification (see institution B below)
• where a notification to change the 2021 to 2022 place data is not confirmed by the trend in the ILR or school census data, we will not make any change to the place numbers and the 2021 to 2022 numbers will be used (see institution C below)

Examples of how this will work for these schools and colleges are shown below:

	Institution	2021 to 2022 high needs places	Local authority notified	Per cent change notified	ILR/census data	ESFA decision	Basis for ESFA decision
Decrease to the 2021 to 2022 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 2021 to 2022 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 2021 to 2022 places	C	50	44	-12%	51	50	Notification shows a decrease to high needs places, but data is higher. ESFA therefore roll forward 2020 to 2021 high needs places.
Decrease to the 2021 to 2022 places – below the threshold	D	40	36	-10%	36	40	Notification change is 10%, but for 4 places which is below the 5 place threshold. Change not agreed.
Increase to the 2021 to 2022 places on the 5 place threshold	E	30	35	17%	36	35	Change notification is on the 5 place threshold. Notification and data show increase to high needs places. Agree to 35 places.

2.3 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 2022 to 2023. 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 2022 to 2023
• 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 2022 to 2023 academic year.

The deadline for the workbook return is 12 November 2021. 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 schools and colleges must meet to become eligible for ESFA funding will be published in October 2021. 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. Therefore, it is 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.

Enquiry window

There will be a 2-week window for local authorities and institutions to review the information and raise any enquiries with us following publication of the place change outcomes in January 2022. 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 schools and colleges outside their local authority area to ensure the place numbers at these schools and colleges accurately reflect their needs. If an enquiry is raised in relation to a commissioning position that has not been agreed, we would 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 2022 to 2023 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 2021 to 2022 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 2021 to 2022 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 within the 2-week enquiry window in January 2022 and include ‘2022 to 2023 high needs place number: enquiry’ in the subject line. 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 consider all available pupil number and other data when considering the requested change. The 2021 to 2022 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 based on a higher place number, until a place number can be agreed.