16 to 19 funding allocations: academic year 2022 to 2023

1. Introduction

This publication covers funding allocations to 16-19 schools funded by the Education and Skills Funding Agency (ESFA). We release 16-19 funding allocations each year, and previously released allocations are also available.

We have published 16-19 funding allocation supporting documents for 2022-2023 to help institutions interpret changes to the funding system and allocation statements.

The academic year 2022 to 2023 covers the period from September 1, 2022 to August 31, 2023 for the academies; and from August 1, 2022 to July 31, 2023 for all other establishments.

2. Changes in 2022 to 2023

We have released 16 to 19 funding information for 2022 to 2023 which sets out the main policy and funding rates for the year.

2.1 Main changes

  • we have increased national funding rates to take account of three factors – to incorporate funding for the teacher wage subsidy, for inflationary pressures and to support overtime delivery
  • we have increased the Tier T funding rate in line with other rate increases
  • we reverted to calculating the retention factor from the data using an alternative approach for 2021 to 2022 stipends. Funding rates and formula guidance provide insight into how we determine if a student is retained and how we calculate an institution’s retention factor.
  • we have increased the program cost weights related to 5 subjects considered underweight
  • we have adjusted the Disadvantage Block 2 rate (which reflects the additional cost of teaching and supporting students who have low previous results) to take account of changes in GCSE results in 2020. The block rate Disadvantage 2 will drop from £480 to £504 for students attracting the top rate and ETP. For students on the lower rate, this will increase from £292 to £307. The fee for T-level students will increase proportionally from £650 to £683
  • the Block 1 disadvantage rate for students who are in care or have recently left care has also been reduced from £480 to £504
  • we have increased the premium for high value courses from £400 to £600, to further incentivize courses with higher salary returns and support industry strategy
  • the capacity and delivery funding rate has been reduced to £160 per eligible student for Tier 2 and Tier 3 students

3. Scope of published data

The publication provides 16 to 19 revenue funding allocation data for ESFA-funded institutions for 2022 to 2023.

ESFA-funded education through the published funding formula for ages 16-19 and funding for high-needs places after age 16 are included. The data therefore does not include financing allocated to non-routine activities or financing for services not financed by the ESFA.

The 16-19 funding formula includes education funding for students up to age 19, or up to age 25 for youth who have received an education plan, Health and Care (EHC) of their local authority. We report students ages 19-25 with an EHC plan alongside other budget-funded students ages 16-19.

More information is available on the funding arrangements for students with high needs for 2022 to 2023, including definitions of a student with high needs.

Students aged 19 who complete a program they started between 16 and 18 (continuing learners 19+) are also included in the data. As noted above, part of this provision was funded by the Skills Funding Agency until 2016-2017 and therefore was not included in publications equivalent to this in those years.

We publish funding allocation data for students aged 16-18 in apprenticeships and for most students aged 19 or over (other than those listed above) separately.

The Department for Education also publishes statistics on young people’s participation in education, employment and training and those who are not in education, employment or training.

This funding allocation data shows the allocation for the full academic year as of September 2022. The institution category reflected in the published data is correct as of September 2022. Schools that converted to Academies in September are shown as an academy. Other published allocations such as Pre-16 Academies show the institution category as it was at the end of the last financial year. Further information on funding for 16-19 year olds is available in the funding guidelines.

4. The Scholarship Fund 16 to 19 years old

The Bursary Fund for 16 to 19 year olds was introduced from 2011 to 2012. This is money that the government allocates to local authorities, schools, colleges and other education and training providers (institutions) to support financially disadvantaged students. Its goal is to provide financial support to help students overcome specific barriers to participation, so they can continue their education. Institutions receive stipends for discretionary scholarships and raise funds for the Vulnerable Groups Scholarship through the Scholarship Support Service.

The methodology used to calculate scholarship funding has changed from 2020 to 2021, it has two elements:

  • Element 1: financial disadvantage
  • Element 2: Student costs to support travel and industry placements

Further information on the Scholarship Fund for 16 to 19 year olds is available in the program guide.

5. Free meals in continuing education

In the 2014-2015 school year, additional funding for free meals for 16-19 students attending tertiary-funded institutions was introduced to ensure parity with young people attending sixth-form schools. Prior to 2014 to 2015, institutions covered the cost of meals for students who needed them on a discretionary basis from the Bursary Fund for 16 to 19 year olds. We are adjusting discretionary scholarship allocations to account for this dual funding.

In 2016 to 2017, we removed the fence between the discretionary bursary allocation and the free meal allowance as part of continuing education. This flexibility in the use of funds remains in place.

Wherever possible, ESFA has based the 2022 to 2023 academic year free meals funding for higher education institutions on their data from the full 2020 to 2021 academic year and their number of funded students for the 2022 to 2023 academic year. ESFA used the number of students assessed as eligible and receiving free meals in the 2020 to 2021 academic year as a percentage of the total number of reported students aged 16 to 19 years old that year. This establishes the number of students we can reasonably expect to be eligible for free meal assistance in the 2022 to 2023 academic year.

More information on free meals can be found in the program guide.

6. Residential Scholarship Fund

The Residential Bursary Fund (RBF) provides financial assistance for the accommodation costs of students attending one of the designated institutions offering specialized services. The specialist offering is not available locally and/or requires the student to attend non-sociable hours on a regular basis and therefore the student must live away from home.

The RBF allows young people to acquire a substantial qualification in a specialist subject which they could not obtain in a non-specialist institution. The RBF should not be used to allow a student to participate in an additional activity, for example, to participate in a specific sport, while participating in a general offer of FE which is widely available.

The RBF allocations for the 2022 to 2023 academic year have been generated using the methodology below:

  • for institutions that have spent at least 90% of their 2020-2021 allocation, a 5% growth has been added to their 2021-2022 allocated amount to generate the 2022-2023 allocation
  • for institutions that have spent less than 90% of their 2020 to 2021 allocation, a 5% reduction has been applied to their 2021 to 2022 allocated amount to generate the 2022 to 2023 allocation
  • an exception has been made when the result of the calculation generates an allocation greater than both the 2020 to 2021 actual expenditure and the 2021 to 2022 allocation. In these cases, the 2022 to 2023 allocation is the same as the allocation from 2021 to 2022

The allocation methodology does not take into account any expenditure by institutions that does not comply with the guidelines of the policy (inappropriate use of the RBF for travel by non-resident students, for example).

More information is available in the plan guide.

seven. Residential Support Scheme

The Residential Support Program (RSS) is designed for exceptional situations where the same or similar substantive Level 2 or 3 qualification that the student must pursue to achieve their career or higher education objective cannot be obtained locally at his home. Most students supported by RSS tend to live in rural areas and have limited access to a wide range of further education opportunities for 16-18 year olds. RSS uses nationally set income thresholds and maximum funding amounts. Institutions should verify each student’s substantial Level 2 or 3 qualification with ESFA as part of the application process.

ESFA has generated RSS stipends in the 2022 to 2023 academic year for institutions whose students have been verified as eligible for program support in the 2021 to 2022 academic year, where those students are expected to return for a second year of studies or a later year. ESFA used the course verification form as the source of this information.

More information is available in the diet guide.

8. Dance and Theater Awards

The Dance and Drama Awards (DaDA) scheme provides income-assessed support for tuition fees and living expenses at a number of high quality private dance and theater institutions in England. DaDA funding is intended to contribute towards the participation costs of talented individuals who wish to become professional actors and dancers.

ESFA has based the DaDA stipends for the 2022 to 2023 academic year on student numbers and expenditure data for the last full year (the 2020 to 2021 academic year). Projected expenses for the 2021 to 2022 academic year have also been considered to ensure the allocation is appropriate.

More information is available in the diet guide.

9. More information

If you have a question about the data or this publication, please contact us.

James V. Hayes