Guidance

16 to 19 funding: formula protection funding

Information on formula protection funding and how it will be applied in 2020 to 2021 academic year.

Introduction

This information is for institutions that received formula protection funding (FPF) in academic year 2019 to 2020. We will only pay FPF in 2020 to 2021 to those institutions that received FPF in 2019 to 2020.

We introduced FPF in academic year 2013 to 2014 to moderate the impact of the funding formula changes. We originally committed to providing FPF for 3 years, up to and including academic year 2015 to 2016. We then confirmed in January 2016 that FPF would be phased out over 6 years. We made the first reduction in 2016 to 2017 and 2020 to 2021 will be the final year for FPF payments to institutions.

The purpose of this information is to explain how we will apply FPF payments in academic year 2020 to 2021 to your allocation.

We will pay FPF in academic year 2020 to 2021 on the following principles:

• the reduction in FPF per student in 2020 to 2021 will be the same as the reduction per student applied in 2019 to 2020
• the number of students that attract FPF will not be greater than it was in 2015 to 2016.

Our ESFA funding guidance books explains how FPF fits within the 16 to 19 funding formula. The following information explains how FPF will be applied and how it will impact on your allocation in 2020 to 2021.

Calculating FPF for the 2020 to 2021 academic year

We will calculate FPF as shown in the 4 steps below.

Step 1

We will bring forward the following values from previous years:

• the 2019 to 2020 FPF per student
• the reduction in FPF per student used in calculating the 2019 to 2020 allocation
• the number of funded students in 2015 to 2016
Figures brought forward Institution A Institution B Institution C
FPF per student in 2019 to 2020 (A) £370 £340 £60
Reduction in FPF applied in calculating the 2019 to 2020 allocation (B) £200 £190 £90
Number of funded students in 2015 to 2016 (C) 3000 250 600

Step 2

We will reduce the 2019 to 2020 FPF per student by the same amount that we used when calculating the FPF value in the 2019 to 2020 allocation (figure B from step 1).

If this gives a figure above zero, that is the FPF per student in 2020 to 2021. If the figure is zero or lower, then no FPF will be paid in 2020 to 2021.

Calculation of FPF per student in 2020 to 2021 Institution A Institution B Institution C
FPF per student in 2019 to 2020 (A) £370 £340 £60
Reduction applied in 2019 to 2020 (B) £200 £190 £90
FPF per student in 2020 to 2021 – A-B with a minimum of zero (D) £170 £150 £0

Institution C is therefore not eligible for FPF in 2020 to 2021 and so is not shown in the subsequent steps.

Step 3

We will compare the 2020 to 2021 student numbers to the number of funded students in 2015 to 2016. The student numbers eligible for FPF in 2020 to 2021 will be the lower of these 2 figures.

Calculation of number of students eligible for FPF in 2020 to 2021 Institution A Institution B
Number of funded students in 2015 to 2016 (C) 3000 250
Number of funded students in 2020 to 2021 (E) 3100 240
Number of students eligible for FPF in 2020 to 2021 – lower of C and E (F) 3000 240

Step 4

We will calculate the total FPF by multiplying the final FPF per student by the eligible student numbers.

Calculation of total FPF in 2020 to 2021 Institution A Institution B
FPF per student in 2020 to 2021 (D) £170 £150
Number of students eligible for FPF in 2020 to 2021 (F) 3000 240
Total FPF in 2020 to 2021 – D x F (G) £510,000 £36,000

Queries on formula protection funding

If you would like any further information on formula protection funding, please complete the:

ESFA enquiries

For all enquiries for the Education and Skills Funding Agency

Published 4 February 2016
Last updated 17 December 2019 + show all updates
1. We have provided details on how FPF has been calculated for academic year 2020 to 2021. We also confirm that 2020 to 2021 will be the final year FPF payments will be made.

2. We have published updated information on formula protection funding for 2019 to 2020.

3. The formula protection funding page has been updated

4. First published.