The national funding formula
Each student is funded through a formula with five elements: student numbers, a national funding rate per band, a retention factor, programme cost weighting, and a set of formula-protected uplifts (disadvantage, area cost and high needs).
The band a student falls into is driven by their planned hours for the year — the total of qualification hours plus other timetabled, education-related activity.
- Funding = (student numbers × rate × retention) × programme cost weighting + uplifts
- Planned hours determine the band, not the number of qualifications
- Condition of funding: students without a GCSE grade 4 in maths and/or English must continue to study them
Funding bands by planned hours (2025–26)
Each student is placed in one of six national funding bands according to their planned hours for the year (qualification hours plus other timetabled, education-related activity). The band sets the national funding rate per student, and the DfE reviews the rate for each band every academic year.
A student with 580 or more planned hours is in Band 5 and treated as full-time. The hour thresholds below apply to the 2025–26 academic year; check the rates and bands published for the relevant year if you are funding a different academic year.
- Band 5: 580 or more planned hours (full-time)
- Band 4a: 540 to 579 planned hours
- Band 4b: 450 to 539 planned hours
- Band 3: 360 to 449 planned hours
- Band 2: 280 to 359 planned hours
- Band 1: 1 to 279 planned hours
Disadvantage and area cost uplifts
Disadvantage funding (Block 1) is allocated for students from the most deprived areas based on the Income Deprivation Affecting Children Index (IDACI), and Block 2 supports students without a GCSE grade 4 in maths or English.
An area cost uplift adjusts funding for providers in higher-cost regions, principally London and the South East.
High needs and EHC plans
Students aged 19–24 with an EHC plan remain in the 16–19 funding model (funding model 25) rather than moving to adult funding. Element 1 provides the core programme funding; Element 2 provides £6,000 of additional support; Element 3 is top-up funding paid by the local authority.
Indicative summary only. Always confirm against the official source documents before making funding or compliance decisions.
Official sources
- 16 to 19 education: funding guidance — ESFA / DfE
- Advice: funding rules for 16 to 19 provision — ESFA