Guidance

High needs place change process: academic year 2023 to 2024

Updated 8 June 2023

Applies to England

About this guidance

This guidance is primarily for local authorities, schools and colleges. It sets out the process for local authorities to notify ESFA of provider level changes to their 2023 to 2024 high needs place numbers.

The guidance should be read alongside the ‘High needs funding 2023 to 2024: operational guide’ which sets out further details about the allocation of place and top-up funding and the ‘How to complete the high needs place change workbook’ guidance. Where we refer to schools and colleges, this relates only to those in scope of the place change process.

For changes to hospital education funding, local authorities should also read the ‘Hospital education funding guidance 2023 to 2024’.

New for 2023 to 2024

The place change process is similar to last year. We have added a new date for when a signed deed of variation should be with ESFA for a change to be agreed.

Changes requiring a deed of variation

A deed of variation is required for requests relating to a new age range at academies or for new resourced provision at mainstream academies. For this change to be reflected in the academy’s general annual grant (GAG) statement, the deed of variation must be signed and submitted by the trust to ESFA by 9 December 2022. However, for the 2023 to 2024 academic year, we can update the initial allocation, provided the deed of variation is signed and with ESFA by 28 April 2023. In this instance, a revised allocation will be sent by the end of August 2023.

Section 1: the place change process

The place change notification process enables provider local authorities (the local authority in which the school or college 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.

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.

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 18 November 2022.

It is important schools and colleges are proactive and engage with their provider local authorities, especially if they believe the number of places funded in the current academic year may not be appropriate for the following year. Similarly, local authorities commissioning places at a school or college for which they are not the provider authority, should ensure their places are included. This is particularly important if there is likely to be a significant change in the numbers commissioned.

We expect local authorities and schools and colleges to agree the number of places to be funded in writing before completing the high needs place change workbook. This helps avoid disagreements and disputes at a later point. We recognise there may be exceptional cases where local authorities, and schools and colleges 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’. ‘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.

Providers in scope of the place change notification process

The following providers are funded from a local authority’s DSG, via ESFA, and are, therefore, within scope of the 2023 to 2024 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) colleges
• 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 2023 to 2024 place numbers for:

• special post-16 institutions (SPIs) that meet the initial eligibility criteria for receiving place funding directly from ESFA in 2023 to 2024 as set out in ‘Section 2.3 SPIs: due diligence process’, and are not currently funded by ESFA in 2022 to 2023 (they will normally be providers that already receive funding from the commissioning local authority, but may include new providers)
• 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 2023
• post-16 place numbers at academies, or pre-16 place numbers for special education needs (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 and submitted by the trust to ESFA by 9 December 2022 for changes to be reflected in initial funding allocations issued by the end of March 2023. If the deed of variation is not in place by 9 December, a further deadline of 28 April will be provided for changes to be reflected in revised funding allocations issued by the end of August 2023

Changes to local authority hospital education funding

As in previous years, local authorities can request changes to the hospital education funding factor in their DSG 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 high needs place change workbook.

We have published separate guidance explaining the criteria for requesting additional hospital education funding for 2023 to 2024 and the evidence required.

Providers 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 pupil referral units (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 DfE project lead of the current place numbers before conversion
• AP free schools – ESFA will contact AP free schools in November 2022 for information to determine their place funding allocations for the 2023 to 2024 academic year
• non-maintained special schools (NMSS), SPIs (except for the SPIs seeking place funding from ESFA for the first time in the 2023 to 2024 academic year) 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
• where there is an age range change at academies, or pre-16 place numbers for SEN units at mainstream academies, and an appropriate signed deed of variation is not received by ESFA by 28 April 2023. In such cases, a local arrangement should be made
• FE colleges and ILPs that will not receive element 1 funding from ESFA in 2023 to 2024 academic year

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

October 2022

DfE:

• launches the process and publishes guidance
• publishes the January 2022 school census data for special academies and free schools (2021 to 2022 R06 data was issued to local authorities with the import/export adjustment for the 2022 to 2023 financial year in June 2022)
• publishes the 2022 to 2023 high needs place allocations to providers (opened as of 1 October 2022)

Local authorities:

• continue discussions with providers about 2023 to 2024 place numbers
• engage with other local authorities where they commission a number of places at a provider in their area, to ensure the total number of places reflects this

Schools and colleges:

• continue discussions with local authorities about commissioning high needs places for 2023 to 2024
• consult with their provider local authority to agree the total 2023 to 2024 funded places, including places commissioned by other local authorities

18 November 2022

Local authorities:

• deadline to submit 2023 to 2024 high needs place number changes
• deadline to submit requests for changes to local authority hospital education funding

End of November 2022

DfE:

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

Local authorities:

• respond to ESFA requests to resubmit the workbook

9 December 2022

Schools:

• submit signed deed of variation to ESFA for changes 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, in order for the change to be reflected in the allocation sent by the end of March 2023

Mid to late January 2023

DfE:

• publishes the outcomes of the place change notification process
• 2-week enquiry window opens for issues relating to the published outcomes
• publishes the 2021 to 2022 ILR R14 data
• writes to relevant local authorities confirming outcome of hospital education funding requests

Local authorities:

• check published outcomes are correct

Schools and colleges:

• check the published outcomes are correct

Early February 2023

Local authorities:

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

Schools and colleges:

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

March 2023

DfE:

• issues the 2023 to 2024 high needs allocations to FE colleges, free schools, academies, NMSS, SPIs (funded by ESFA in academic year 2022 to 2023) and ILPs, including those with changes requiring a deed of variation in place by 9 December 2022

Schools and colleges:

• check the 2023 to 2024 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 2023

DfE:

• updates the 2023 to 2024 DSG to reflect the outcome of the 2023 to 2024 place change notification process and high needs place deductions (DSG allocations are updated termly for in-year academy conversions)
• publishes the 2023 to 2024 high needs place numbers at provider level

28 April 2023

Schools:

• submit signed deed of variation to ESFA for a 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, in order for the change to be reflected in revised allocations sent by end of August 2023

May to August 2023

DfE:

• issues allocations to new SPIs being funded for high needs places in academic year 2023 to 2024 for the first time. Allocations will be issued once SPIs have passed the due diligence process and relevant set up actions have been completed. Details of the actions required will be sent to each institution directly
• issues revised 2023 to 2024 allocations for schools with changes requiring a deed of variation be signed and received by ESFA by 28 April 2023

1.3 How to determine the number of funded places

As in 2022 to 2023, 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 discussion between local authorities, and schools and colleges plays an important part in the preparations for the 2023 to 2024 academic year.

To agree appropriate allocations of high needs and hospital education place funding to providers:

• provider local authorities should discuss both current numbers of places being taken up, and the number of places required in future with their schools and colleges
• school and colleges 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 school or college 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, local authorities commissioning the places 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: 2023 to 2024’ for more information on the import/export adjustment.

It is important that local authorities and schools and colleges 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 allocation is appropriate and reduces the need for commissioning places in excess of the allocated place numbers.

Read the ‘High needs place funding’ section in the ‘High needs funding: 2023 to 2024 operational guide’ 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 2023 to 2024 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 2023 to 2024 high needs funding block of the DSG for each local authority (calculated using the high needs national funding formula) in December 2022.

Section 2: outcomes

ESFA will publish the outcomes of this process in January 2023. If a provider does not appear on the published outcomes, this is because it was not entered on the local authority’s return and the 2022 to 2023 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 schools and colleges need to check these to ensure the place numbers are correct. If a provider does not appear on the published outcomes, they will continue to be funded on the same place numbers as in 2022 to 2023.

2.1 Changes recorded as agreed with the school or college

ESFA will update the 2023 to 2024 place funding to reflect the numbers notified by the local authority, where recorded as ‘agreed’ with the school or college. This will be reflected in the outcomes published in January 2023.

Where there is an agreed age range change at academies, or new resourced provision at mainstream academies were not funded in 2022 to 2023, ESFA will check that the academy’s funding agreement allows for the change. For these changes to be considered as part of this process, local authorities should ensure during their discussions with academies that the required deed of variation has been signed and provided to ESFA by 9 December 2022. This will result in changes being reflected in initial funding allocations issued by the end of March 2023. If the deed of variation is not in place by 9 December, a further deadline of 28 April will be provided for changes to be reflected in revised funding allocations issued by the end of August 2023.

If the deed of variation is not in place by 28 April 2023, the places will not be funded by ESFA in the 2023 to 2024 academic year and a local arrangement should be made. For further advice regarding this, please refer to the section on ‘Where pupil and student numbers differ from allocated places’ in the ‘High needs funding 2023 to 2024 operational guide.

SPIs will be agreed subject to the due diligence process described in ‘section 2.3 SPIs: due diligence process’.

2.2 Changes recorded as not agreed with the provider

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 2023 published outcomes will remain as the 2022 to 2023 place numbers that have been funded.

We expect there to be continuing dialogue between the relevant local authorities and schools and colleges to agree the place numbers. Local authorities, schools or colleges may then use the enquiry window to notify ESFA of changes in place numbers that are agreed after 18 November 2022.

Special academies, special free schools, 16 to 19 academies, FE colleges 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 colleges or ILPs. We expect to receive very few requests that are not agreed. If a change is not agreed, 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 provider is seeking.

We will use the principles set out below to determine the 2023 to 2024 academic year place numbers (published in January 2023), where place numbers are marked as ‘not agreed’ with special academies, special free schools, 16 to 19 academies, 16 to 19 free schools, FE colleges and ILPs. Decisions will be informed by the [published January 2022 school census and 2021 to 2022 ILR R14 data](published January 2022 school census and 2021 to 2022 ILR R14 data. We will publish the ILR R14 data for the 2021 to 2022 full academic year in January 2023.

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

We will only consider 2023 to 2024 place change notifications that are not agreed with the provider, where the change is either:

• at least 10% of the total 2022 to 2023 academic year places for a provider with more than 50 high needs places
• at least 5 places for a provider with less than 50 high needs places in the 2022 to 2023 academic year

For those changes that do not meet the above thresholds, we will use the 2022 to 2023 place numbers. For those changes that exceed the above thresholds, we will determine the 2023 to 2024 place number by using 2021 to 2022 ILR R14 (for FE colleges, ILPs and 16 to 19 academies and free schools returning ILR data) and the January 2022 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 2022 to 2023 place data, we will change the 2023 to 2024 place numbers to the higher of the ILR/census data or the notification (see provider A below)
• where the notification and ILR or school census data confirm an increase to the 2022 to 2023 place data, we will change the 2023 to 2024 place numbers to the lower of the ILR/census data or the notification (see provider B below)
• where a notification to change the 2022 to 2023 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 2022 to 2023 numbers will be used (see provider C below)

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

	Provider	2022 to 2023 high needs places	Local authority notified	Per cent change notified	ILR/census data	ESFA decision	Basis for ESFA decision
Decrease to the 2022 to 2023 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 2022 to 2023 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 2022 to 2023 places	C	50	44	-12%	51	50	Notification shows a decrease to high needs places, but data is higher. ESFA therefore roll forward 2021 to 2022 high needs places.
Decrease to the 2022 to 2023 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 2022 to 2023 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 2023 to 2024. The local authority in which the SPI is located is responsible for including these 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 must take account, not only their own commissioning decisions, but also the commissioning decisions of other local authorities.

To be eligible for consideration for ESFA funding, these SPIs must:

• have at least 10 student places identified for 2023 to 2024
• 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 2023 to 2024 academic year.

The deadline to submit the place change workbook is 18 November 2022.

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 providers must meet to become eligible for ESFA funding will be published in October 2022. Local authorities can 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 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 schools and colleges to review the information and raise any enquiries with us following publication of the place change outcomes in January 2023. 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, school or college. 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 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 school or college 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 2023 to 2024 place number between the local authority, school or college 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 2022 to 2023 academic year places for a provider with more than 50 high needs places
  • at least 5 places for a provider with less than 50 high needs places in the 2022 to 2023 academic year

To submit an enquiry about the outcome of the process, a local authority, school or college must contact highneeds.ESFA@education.gov.uk within the 2-week enquiry window in January 2023 and include ‘2023 to 2024 high needs place number: enquiry’ in the subject line.

If a local authority is requesting a change, the relevant school or college must be copied into the email. If a school or college 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, schools and colleges 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 2022 to 2023 place numbers may be used, unless there is evidence that another number would be more appropriate. Alternatively, ESFA may hold funding back from the school or college 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.