Guidance

Post-16 budget grant: conditions of grant for financial year 2025 to 2026 (April 2025 to August 2025)

Updated 19 May 2025

Applies to England

1. Introduction

1.1 Legislation

皇冠体育app post-16 budget grant will be paid by the Secretary of State for Education as a grant under section 14 of the Education Act 2002. In accordance with section 16 of that Act, the Secretary of State attaches the following terms to the grant payable.听

1.2 Purpose

皇冠体育app post-16 budget grant is for the purpose of enabling eligible settings to respond to current priorities and challenges, including workforce recruitment and retention.

We have published the funding methodology and grant allocations聽at institutional level. Read these in conjunction with the conditions of grant.

1.3 Period

皇冠体育appse conditions of grant cover the period April 2025 to July 2025 for local authority maintained and further education (FE) settings, and April 2025 to August 2025 for academy settings.

2. Eligibility

2.1 皇冠体育app following settings are eligible to receive funding provided they meet the criteria as set out at 2.2:聽

  • mainstream schools聽and academy sixth forms
  • 16 to 19 academies
  • 16 to 19 schools
  • further education (FE) colleges
  • sixth-form colleges
  • designated institutions (including the new designated institutions that form part of higher education provider group structures)
  • local authorities

2.2 Criteria

Eligible settings providing education for young people aged 16 to 19 and those aged 19 to 24 with an education, health and care (EHC) plan and in receipt of a 16 to 19 funding allocation in the 2024 to 2025 academic year.听

3. Payments

3.1 Calculation

We have calculated allocations for this grant by using the funding methodology set out in the published guidance.听We have also published grant allocations at institutional level.

3.2 Payment timetable

We will align payments to planned post-16 payments:

Local authority maintained and FE settings Academy settings
Payment June 2025 July 2025

3.3 Setting closures, openings, and mergers, including academy conversions

If a setting closes during the financial year, the local authority (for maintained settings) or聽DfE聽(for academy and FE settings) should take all endeavours to recover any unused grant for the proportion of the financial year that remains after the setting closes.听Local authorities (for maintained settings) must return any recovered unused grant back to the DfE.

New settings opening after 1 April 2025 will not receive an allocation of the post-16 budget grant for the period as set out in 1.3.

This grant is allocated on a setting basis.听DfE聽will not seek to recover any grant funding from a local authority if a school converts to academy status after the we have made the payment. 皇冠体育app grant allocation is intended for the school, and we will assume the local authority passed on the entire grant funding to the school immediately upon receipt from聽DfE. In addition, any unspent grant funding should remain with the school after it converts.

DfE聽will not seek to recover any grant funding, nor make any additional payments or adjustments following the merger of any FE setting during the period as set out in 1.3.

3.4 Additional local authority duty

Local authorities will be required to certify that they have passed on the correct amount of funding to schools or, where funding has been spent centrally, that it has been spent in line with these conditions of grant.听DfE聽will issue a certification form in spring 2026. Local authorities must pass funding on to their maintained schools in a timely manner in line with their scheme for financing schools.听

4. Permitted use of funding

Funding must be spent on enabling settings to respond to current priorities and challenges, including workforce recruitment and retention issues.

5. Assurance

Local authorities and settings are required to maintain and keep clear records of income and expenditure in relation to this grant including evidence of the use of funds.

5.1 Carry forward

Funds may be carried forward past 31 July 2025 for local authority maintained and FE settings and 31 August 2025 for academy settings, for the purposes outlined in these conditions.

6. Further information

Books, other documents and records relating to the recipient鈥檚 accounts shall be open to inspection by the Secretary of State and by the Comptroller and Auditor General.

皇冠体育app Comptroller and Auditor General may, under section 6 of the National Audit Act 1983, carry out examinations into the economy, efficiency and effectiveness with which the recipient has used its resources.

Local authorities and settings shall provide information as may be required by the Secretary of State to determine whether they have complied with these conditions.

7. Variation

皇冠体育app basis for allocation of grant may be varied by the Secretary of State from that set out above.

8. Recovery of funding

If a local authority or setting fails to comply with the terms and conditions set out in this document, the Secretary of State may recover some or all of the post-16 budget grant that has been allocated. We will notify the local authority or setting of this in writing.

We will make recoveries by invoice or by offsetting the amount against subsequent payments due from DfE.听

皇冠体育app recipient must notify聽DfE聽immediately through the聽 if it becomes aware of any instance of error, suspected fraud or financial irregularity in the use of the funds.

9. Overpayments

If a setting or local authority identifies that we have overpaid them, they must contact聽DfE聽to arrange repayment of the excess. Where聽DfE聽identifies an overpayment, we may seek to recover the excess. We will notify the local authority or setting of this in writing.

10. Enquiries

For queries relating to these terms and conditions please use the .