It's that time of year again, when the gears of education funding start to turn for the upcoming academic year. For those of us working in education provision across England, particularly with young people aged 16 to 19, and those up to 24 on study programmes, understanding the funding rules is absolutely crucial. The Department for Education (DfE) has released its guidance for the 2025 to 2026 funding year, and it's essential we get a handle on what's changing and what remains the same.
One of the biggest shifts to note is the integration of the Education and Skills Funding Agency (ESFA) activities into the DfE. So, where you might have seen 'ESFA' before, you'll now see 'DfE'. This isn't just a name change; it signifies a consolidation of functions, and it's important to keep that in mind when reviewing the documentation.
For those of you who are seasoned users of the Individualised Learner Record (ILR) funding returns, you'll find this guidance is your definitive source for the 2025-2026 period. It's designed to work hand-in-hand with the 16 to 19 funding rules and the rates and formula documents. Think of it as the complete package for understanding how your provision will be funded.
Now, let's talk about data and privacy, because that's always a big one. The General Data Protection Regulation (GDPR) is still very much at the forefront. Providers are responsible for ensuring they are fully compliant with GDPR when handling any personal or sensitive learner information. The DfE outlines its data collection and usage in its privacy notice, primarily through the ILR and school census. If they need information outside of these, they'll be clear about what they need and why, and crucially, they'll expect you to use secure, GDPR-compliant methods for sending any sensitive data. No casual emails with personal details, please!
What's new and noteworthy for this year? Well, the September 2025 update brings some clarity to calculating 'responsive growth'. This now includes new rules for affordability checks and the potential for funds to be recovered. It’s worth digging into this if your institution is looking to expand its offerings.
Looking a bit further ahead, a significant change is coming from the 2026 to 2027 academic year: the DfE will no longer be reviewing under or over-delivery based on R10 data. This means the focus will likely shift to other reporting mechanisms, so it's good to be aware of this future adjustment.
The June 2025 update brings some practical changes for those delivering 16 to 19 education. You're no longer required to submit a mid-year claim, year-end claim, or sign off a final claim through MYESF. This streamlines the process considerably. However, if your institution has DfE adult-funded provision, you'll still need to follow the specific guidance for returning ILR funding claims to the DfE.
There have also been clarifications on how underperformance and overperformance are calculated, and Annex C has been updated to reflect the latest calculation steps and timelines for any fund recoveries. The list of PDSAT reports has also been updated to show the available post-16 funding reports.
When the guidance refers to 'you' or 'institutions', it's a broad term encompassing schools, further education colleges, sixth-form colleges, work-based learning providers, and training providers receiving DfE funding. Essentially, if you're delivering funded education and training to young people, this guidance is for you.
The ILR funding returns are the backbone of this system. They provide the DfE with student numbers and the associated funding generated, which then informs future funding allocations. For in-year monitoring, the ILR data is generally what they'll be using.
After submitting your ILR R10 data, all funded institutions are required to provide a year-end estimate. Additional returns are only needed in specific circumstances: for contract institutions subject to reconciliation without an agreed funding contract for 2025-2026, or for institutions that haven't made accurate and timely ILR returns. Missing the deadlines for DfE ILR returns will flag your institution as high-risk, and further action might be taken. So, keeping those deadlines in mind is absolutely paramount.
It's a lot to take in, I know. But staying on top of these details ensures that funding flows smoothly and that we can continue to provide the best possible education and training for our learners. If you find yourself with questions after reading through everything, the customer help centre is there to offer further support.