High needs funding

High needs funding combines core programme funding (element 1), £6,000 per high needs place (element 2), and a top-up from the student's home local authority (element 3) for the costs of their support above £6,000.

A student counts as high needs only when their additional learning support costs more than £6,000 and the local authority provides top-up funding. Support costing less than £6,000 is funded through the disadvantage funding in the 16 to 19 allocation, and those students do not count as high needs, even if they have an EHC plan.

The top-up is agreed with the local authority rather than calculated by formula, which makes the relationship with the authority, and the evidence behind the agreement, central.

In the ILR, the HNS flag is separate from the EHC flag. The ILR specification says HNS is used only where the local authority has actually paid element 3 top-up. The high needs operational guide says a student is recorded as high needs only once the local authority has determined that top-up funding is payable.