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
Each student is placed in a national funding band 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 funded full-time. The current national funding rates per band are shown below — resolved live from the official DfE/ESFA rates document, so they are always current. Band 1 (part-time) is funded per full-time equivalent (rate × planned hours ÷ the FTE basis).
| Band | Planned hours | Applies to | Rate (2026–27) |
|---|---|---|---|
| 5 | 580+ hours | 16 and 17 year olds, and students aged 18+ with high needs | £5,256 |
| 4a | 485+ hours | Students aged 18 and over who are not high needs | £4,348 |
| 4b | 485 to 579 hours | 16 and 17 year olds, and students aged 18+ with high needs | £4,348 |
| 3 | 385 to 484 hours | All students | £3,536 |
| 2 | 300 to 384 hours | All students | £2,796 |
| 1 | Up to 299 hours | All students | £5,256 per FTE · planned hours ÷ 640 × £5,256 |
What counts in planned hours (and what doesn't)
Planned hours are the timetabled, planned and organised education hours that lead to a student's qualifications and approved study programme — including qualification hours, exam time and Education, Employment and Progression (EEP) activity that is planned, supervised and delivers a specific educational or developmental benefit.
Some activity is specifically NOT eligible and must be excluded from planned hours. Including it risks an over-claim and clawback on audit.
- NOT fundable: induction sessions and morning registration (routine administrative tasks)
- NOT fundable: homework or independent study/research that is not timetabled
- NOT fundable: voluntary extra-curricular activities or clubs outside the institution's normal working day
- NOT fundable: travel time to and from work experience placements or other off-site activities
- NOT fundable: externally certificated qualifications that are not approved for funding
- Fundable: timetabled qualification hours, exam time, and planned/supervised EEP activity with a clear educational benefit
- T Levels: planned hours exclude the industry placement (funded separately) but include EEP and English/maths
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
- Advice: funding rules for 16 to 19 provision — ESFA / DfE
- 16 to 19 funding: rates and formula — ESFA / DfE
- Funding regulations for post-16 provision — ESFA