Guidance

Formula protection funding

Information on formula protection funding and how it will be applied in 2018 to 2019 academic year.

Introduction

This information is for institutions that received formula protection funding (FPF) in academic year 2017 to 2018. We will only pay FPF in 2018 to 2019 to those institutions that received FPF in 2017 to 2018.

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 and then to review it.

We confirmed in January 2016 that FPF would be phased out over 6 years. We made the first reduction in 2016 to 2017 and the last payments will be made to institutions in 2020 to 2021.

We explain how FPF fits within the 16 to 19 funding formula within our funding guidance books.

Purpose

The purpose of this information is:

  • to detail how FPF will be applied in the 2018 to 2019 academic year, and
  • to support institutions to understand how it will apply to their own allocation

Principles

We will pay FPF in 2018 to 2019 on the following principles:

  • we will only pay FPF to those institutions that received FPF in 2017 to 2018
  • the reduction in FPF per student in 2018 to 2019 will be the same as the reduction per student applied in 2017 to 2018
  • the number of students that attract FPF will not be greater than it was in 2015 to 2016
  • the calculation of FPF will be reviewed and confirmed each academic year

Calculating FPF for the 2018 to 2019 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 2017 to 2018 FPF per student
  • the reduction in FPF per student used in calculating the 2017 to 2018 allocation
  • the number of funded students in 2015 to 2016
Figures brought forward Institution A Institution B Institution C
FPF per student in 2017 to 2018 (A) £270 £550 £60
Reduction in FPF applied in calculating the 2017 to 2018 allocation (B) £100 £110 £90
Number of funded students in 2015 to 2016 (C) 3000 250 600

Step 2

We will reduce the 2017 to 2018 FPF per student by the same amount that we used when calculating the FPF value in the 2017 to 2018 allocation (figure B from step 1).

If this gives a figure above zero, that is the FPF per student in 2018 to 2019. If the figure is zero or lower, then no FPF will be paid in 2018 to 2019 or subsequent years.

Calculation of FPF per student in 2018 to 2019 Institution A Institution B Institution C
FPF per student in 2017 to 2018 (A) £270 £550 £60
Reduction applied in 2017 to 2018 (B) £100 £110 £90
FPF per student in 2018 to 2019 – A-B with a minimum of zero (D) £170 £440 £0

Step 3

We will compare the 2018 to 2019 student numbers to the number of funded students in 2015 to 2016. The student numbers eligible for FPF in 2018 to 2019 will be the lower of these 2 figures.

Calculation of number of students eligible for FPF in 2018 to 2019 Institution A Institution B Institution C
Number of funded students in 2015 to 2016 (C) 3000 250 Not applicable – no FPF in 2018 to 2019
Number of funded students in 2018 to 2019 (E) 3100 240 Not applicable – no FPF in 2018 to 2019
Number of students eligible for FPF in 2018 to 2019 – lower of C and E (F) 3000 240 Not applicable – no FPF in 2018 to 2019

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 2018 to 2019 Institution A Institution B Institution C
FPF per student in 2018 to 2019 (D) £170 £440 Not applicable – no FPF in 2018 to 2019
Number of students eligible for FPF in 2018 to 2019 (F) 3000 240 Not applicable – no FPF in 2018 to 2019
Total FPF in 2018 to 2019 – DxF (G) £510,000 £105,600 Not applicable – no FPF in 2018 to 2019

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 21 December 2016 + show all updates
  1. The formula protection funding page has been updated
  2. First published.