Academies providing post-16 education should have received a letter from Peter Mucklow, National Director of Young People @ the ESFA, detailing post 16 funding for the 2018/19 academic year.
A summary of the key points:
2018/19 funding
The national base rates are maintained as follows:
Band 5 £4,000
Band 4 £3,300
Band 3 £2,700
Band 2 £2,133
Band 1 £4,000
Formula protection funding
Formula protection funding (FPF) was introduced in 2013/14 following funding formula changes. The protection is being phased out over 6 academic years with the last payments made in 2020/21.
FPF will be paid in 2018/19 as follows:
- FPF will only be paid to those institutions that received FPF in 2017/2018
- The reduction in FPF per student in 2018/2019 will be the same as the reduction per student applied in 2017/2018
- The number of students that attract FPF will not be greater than it was in 2015/2016
- The calculation of FPF will be reviewed and confirmed each academic year
Growth in Maths
There will be a change to the large programme uplift following the recommendations of Sir Adrian Smith’s review of post 16 maths. The changes will apply to students starting their study programme in the 2018/19 academic year and will feed into funding allocations from 2022/23. Students studying A level further maths will attract the large programme uplift funding when they achieve grade C in this subject and the remainder of their results are at grade B or higher (currently the criteria requires a grade B pass).
Additional payments to institutions for any additional students taking a level 3 maths qualification when compared with a baseline year will also be introduced. This will initially apply to students starting their study programme in 2018/19 with payment made in 2019/20. Further details on implementing this payment will be published at a later date.
Maths and English condition of funding
In 2018/19 a 5% tolerance for students not compliant with Maths & English condition of funding will apply.
Funding reductions will apply where non-compliant students (those without 9 to 4 or A*-C GCSE in English and/or Maths who did not enrol on an approved qualification in these subjects) form more than 5% of total students.
Retention
Following a review of the impact of two-year linear A levels on retention rates, an amendment to the retention calculation will apply in 2018/19. All students recorded on a two-year academic or vocational programme will be treated as retained in their first year if they have completed that year. This will apply to academic year 2018/2019 funding allocations and will continue until further notice however it is anticipated that this will not be a permanent arrangement.
To establish whether the student on the first year of a two-year programme has completed the year, the ESFA will review whether the student was still in learning on 30th June. Students recorded on a two-year programme who withdraw before that date will continue to be treated as not retained and the 50% funding reduction will apply.
Work Placement Capacity & Delivery Fund (CDF)
CDF is available to help build capacity and capability to deliver substantive work placements and their subsequent delivery. The placements are for students on vocational and technical study programmes at level 2 and level 3.
Institutions that submitted a plan by the deadline of the 24th November (that was subsequently assessed as complete) should receive notification of their CDF allocation on the funding statements sent from February 2018 onwards. Academies will be paid from September 2018.
Student Support
ESFA will continue to calculate the 16 to 19 discretionary bursary and free meals in FE allocations separately but, as previously, there is no ring fence between the two funds.
High Needs Students
High needs funding has 2 main components, core funding & top up funding
In September 2017, the Secretary of State confirmed the introduction of a national funding formula (NFF) for schools and high needs funding.
Post 16 places for 16-18-year olds in mainstream maintained schools, academies and free schools (including those in SEN units or resourced provision) are funded on the basis of core funding (elements 1 & 2) & top up funding (element 3).
Element 1 - the 16-19 national funding formula
Element 2- an amount per high needs place of £6000 from the high needs block
The core funding (elements 1 & 2) are intended to meet the costs of the study programme and contribute to the cost of additional support up to £6000.
Element 3- Top up funding for specific students
Further details can be found in the high needs funding arrangements 2018 to 2019 and Peter Mucklow’s letter
Lagged Student numbers
For most institutions the funding allocation is based on lagged student numbers. (There are some exceptions where there is a material change in the volume of provision offered).
Lagged numbers will be based on 2017 to 2018 student numbers recorded in the autumn 2017 census. Some academies are funded on estimated numbers where their funding agreement states this.
19+ continuing students
From 2018 to 2019, ESFA will embed 19+ continuing students in the ESFA 16 to 19 allocation and will no longer show them as a separate entry on the allocation statements. This means these students will now be included in all aspects of the funding formula.
Allocations timeline
ESFA will start to inform institutions of their allocation from February 2018 with all institutions being informed by the end of March 2018.
Full details of the letter can be found here