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Glossary

Reconciliation

The process of comparing what was delivered and earned against what was allocated, and settling the difference.

In full

Reconciliation compares earnings from the ILR against the allocation and settles the difference according to the rules for the stream, which may include tolerance arrangements.

It is not only a year-end activity. Reconciling monthly is how an under-delivery position is spotted while there is still time to act on it.

The rules behind this

Official requirement

Adult Skills Fund delivery is earned through the ILR against an allocation, and is reconciled: earning less than the allocation can reduce the funding retained, and earning more does not automatically increase it.

Where this comes up

Sources

These are the official documents this page rests on. Where a figure, a deadline or an exact rule matters, the document is the authority and this page is the explanation.

Adult Skills Fund funding and performance management rules 2026 to 2027 (opens in a new tab)

GOV.UKOfficial funding document2026–27Awaiting first verification

Adult Skills Fund funding rates and formula 2026 to 2027 (opens in a new tab)

GOV.UKOfficial funding document2026–27Awaiting first verification

Content reused from GOV.UK is Crown copyright, used under the Open Government Licence. FEFunding is not endorsed by the Department for Education.