Inclusive mainstream fund for 16 to 19 providers: conditions of grant 2026 to 2027
Updated 25 June 2026
Applies to England
© Crown copyright 2026
This publication is licensed under the terms of the Open Government Licence v3.0 except where otherwise stated. To view this licence, visit nationalarchives.gov.uk/doc/open-government-licence/version/3 or write to the Information Policy Team, The National Archives, Kew, London TW9 4DU, or email: psi@nationalarchives.gov.uk.
Where we have identified any third party copyright information you will need to obtain permission from the copyright holders concerned.
This publication is available at https://www.gov.uk/government/publications/inclusive-mainstream-fund-2026-to-2027/inclusive-mainstream-fund-for-16-to-19-providers-conditions-of-grant-2026-to-2027
Introduction
Legislation
The inclusive mainstream fund (IMF) will be paid by the Secretary of State for Education as a grant under section 14 of the Education Act 2002. In accordance with section 16 of that Act, the Secretary of State attaches the following terms to the grant payable.
Purpose
The IMF provides additional funding to support 16 to 19 settings to become more inclusive. Settings must use their IMF allocation, alongside their core funding, to strengthen their inclusive offer and remove commonly occurring barriers to learning for children and young people with special educational needs and disabilities (SEND). This should include taking meaningful steps to plan and implement inclusive universal provision and support the delivery of effective, evidence-based targeted support for learners with additional needs.
Further information of the purpose of the IMF can be found in the Department for Education (DfE) guidance for leaders of 16 to 19 settings.
The published guidance and the funding methodology available on Inclusive mainstream fund: 2026 to 2027 should be read in conjunction with these conditions of grant. In addition, the overarching policy pages will form part of these conditions of grant.
Period
These conditions of grant cover the period April 2026 to March 2027 (financial year).
Eligibility
Types of settings
The following settings are eligible to receive funding provided they meet the criteria:
- maintained school and academy sixth forms
- 16 to 19 academies
- 16 to 19 schools
- general further education (FE) colleges
- sixth-form colleges
- independent training providers
- designated institutions – including the new designated institutions that form part of higher education provider group structures
- local authorities
Criteria
Eligible settings that are in receipt of annual funding allocations from DfE for the provision of 16 to 19 education.
Payments
Calculation
We have calculated allocations for this grant based on student low prior attainment and by using the Inclusive mainstream fund for 16 to 19 providers: methodology 2026 to 2027.
We have also published grant allocations at institutional level on Inclusive mainstream fund: 2026 to 2027.
A de-minimis of £3,000 has been applied where the calculated value of the grant falls below this threshold, and the setting is not in receipt of an IMF allocation in respect of their 5 to 16 pupils.
Payment timetable
We will make one payment to cover the 2026 to 2027 financial year:
| Setting type | Single payment for 2026 to 2027 financial year |
|---|---|
| Local authorities and maintained school sixth forms and 16 to 19 schools, all colleges and designated institutions | June 2026 |
| Academy sixth forms and 16 to 19 academies | July 2026 |
Closing settings
Closing settings and where the 16 to 19 provision is ceasing for either year 12 or 13 at the end of the 2025 to 2026 academic year, will not be eligible for the IMF grant.
Where a setting has received an allocation and closes during the financial year, the local authority (for maintained settings) or DfE (for academy and FE settings) should take all endeavours to recover any unused grant, for the proportion of the financial year that remains after the setting closes. Local authorities (for maintained settings) must return any recovered unused grant back to DfE.
New settings
Where we have identified new settings opening from the 2026 to 2027 academic year they have been included in the allocations. These new settings will receive a proportion of the amount of grant allocation for the period April 2026 to March 2027 (financial year).
New maintained schools and colleges will receive an allocation of eight twelfths to cover the period August 2026 to March 2027.
New academies will receive an allocation of seven twelfths to cover the period September 2026 to March 2027.
Any new settings opening after June 2026 will not receive an allocation of the IMF grant for the period April 2026 to March 2027.
Mergers, including academy conversions
This grant is allocated on a setting basis. DfE will not seek to recover any grant funding from a local authority if a school converts to academy status after we have made the payment. The grant allocation is intended for the school, and we will assume the local authority passed on the entire grant funding to the school immediately upon receipt from DfE. In addition, any unspent grant funding should remain with the school after it converts.
DfE will not seek to recover any grant funding, nor make any additional payments or adjustments following the merger or academy conversions of any FE setting during the period April 2026 to March 2027.
Additional local authority duty
Local authorities will be required to certify that they have passed on the correct amount of funding to providers or, where funding has been spent centrally, that it has been spent in line with these conditions of grant.
DfE will issue a certification form in spring 2027.
Local authorities must pass funding on to their maintained schools in a timely manner in line with their scheme for financing schools.
Permitted use of funding
The IMF grant must be spent on achieving the purposes set out in the purpose and on activity in line with the 7 principles of inclusion:
- ambitious leadership and governance that embeds inclusion
- evidence-based support prioritising early intervention
- high quality, adaptive teaching
- enriching provision that all learners can access
- a safe and respectful culture fostering belonging and participation in learning
- strong partnerships with families and wider services, where appropriate
- inclusive environments with continuous improvements to accessibility
Funding must not be spent on:
- general running costs or operational expenditure
- subsidising spending on pre-existing activity that does not support the expansion of current inclusive activity set out in purpose
- time for staff to undertake activities unrelated to inclusion
- capital works
- any activity that does not clearly remove barriers to learning or participation
The IMF is not a personal budget for individual students. It is for 16 to 19 settings to decide how to allocate their total funding allocation, after assessing the needs of their overall cohort and the evidence-based activities and approaches that will be effective in their context.
16 to 19 settings do not have to allocate the IMF across every principle of inclusion and have the discretion to decide how best to use their IMF grant allocation on evidence-informed activities. However, 16 to 19 settings should focus on approaches in line with the 7 principles of inclusion that best address barriers to learning and make the biggest difference for their students.
Assurance
Carry forward
16 to 19 settings are not required to spend all the IMF allocation they receive in the 2026 to 2027 financial year. Some or all of it may be carried forward past 31 March 2027 for the purposes outlined in these conditions.
Records required
Local authorities and settings are required to maintain and keep clear records of income and expenditure in relation to this grant including evidence of the use of funds.
Schools will be required to published standalone plans of how they will use this funding across their age range and their sixth form provision will be included within this.
16 to 19 academies are expected to cover special educational needs (SEN) within their own strategic plans.
FE settings should set out how they will use the IMF within their accountability statements, demonstrating how it:
- strengthens inclusive practice
- improves access, participation and outcomes
The use of the IMF will be considered through inspection and performance processes, including Ofsted and annual strategic conversations. This will ensure public accountability.
Further information
Books, other documents and records relating to the recipient’s accounts shall be open to inspection by the Secretary of State and by the Comptroller and Auditor General.
The Comptroller and Auditor General may, under section 6 of the National Audit Act 1983, carry out examinations into the economy, efficiency and effectiveness with which the recipient has used its resources.
Local authorities and settings shall provide information as may be required by the Secretary of State to determine whether they have complied with these conditions.
Variation
The basis for allocation of grant may be varied by the Secretary of State from that set out above.
Recovery of funding
If a local authority or setting fails to comply with the terms and conditions set out in this document, the Secretary of State may recover some or all of the IMF grant allocated. DfE will notify the local authority or setting of this in writing.
We will make recoveries by invoice or by offsetting the amount against subsequent payments due from DfE.
The recipient must notify DfE immediately through the customer help portal if it becomes aware of any instance of error, suspected fraud or financial irregularity in the use of the funds.
Overpayments
If a setting or local authority identifies that we have overpaid them, they must contact DfE to arrange repayment of the excess.
Where DfE identifies an overpayment, we may seek to recover the excess. We will notify the local authority or setting of this in writing.
Enquiries
For queries relating to these terms and conditions use the customer help portal.