Correspondence

DfE Update local authorities: 28 May 2025

Published 28 May 2025

Applies to England

1. Information: Schools funding alongside the 2025 teacher pay award

On 22 May, we announced the 2025 teacher pay award and 拢615 million in new funding for schools to support them with their costs including staff pay. This comprises:

We have published mainstream and high needs rates, and a SBSG calculator tool at the links above, for schools to estimate their funding.

2. Information: National Insurance (NI) contributions grant allocations

We have published allocations and conditions of grant relating to previously announced funding to support schools and post-16 providers with the increased NI contributions:

3. Information: Free Courses for Jobs construction expansion

We have announced that we are expanding the free courses for jobs (FCFJ) offer to support providers to deliver more construction training.

We will allocate an additional 拢20 million nationally for FCFJ for academic year 2025 to 2026. In areas where there are strategic authorities managing the Adult Skills Fund on 1 August 2025, the funding will be devolved.

In non-devolved areas, all Department for Education funded providers with a FCFJ allocation can expect a percentage factor uplift to their allocation for academic year 2025 to 2026 to fund/expand construction courses.聽

We will:

  • publish further detail on the uplift in the next month and revised allocations by the end of June
  • expand the national list of qualifications eligible for this funding to include聽13 new reformed construction qualifications at level 2聽that providers can offer from 1 August 2025
  • add 11 level 2 engineering and manufacturing qualifications to the list
  • review further construction qualifications for the national list and will provide an update on approved qualifications in September 2025

These courses will be eligible for the 拢600 and 拢150 uplifts that apply to FCFJ provision.

There will be further detail on 16 to 19 funding to follow in due course with additional funding available for construction provision from academic year 2026 to 2027.

4. Information: Post-16 budget grant

We have updated section 4 of 迟丑别听post-16 budget grant: conditions of grant for financial year 2025 to 2026.

We have removed the timeframe by which settings need to spend the money and have added a new section (5.1) to allow providers to carry over funding after the end of academic year 2024 to 2025.

5. Information: Changes to level 7 apprenticeship funding

From 1 January 2026, the government is changing how level 7 apprenticeships are funded.

The government is refocusing investment towards young people at the start of their working lives, rather than those already in work with higher levels of prior learning and qualifications.聽

What鈥檚 changing from 1 January

  • Level 7 apprenticeships will continue to be government-funded for young people aged 16 to 21, and for care leavers or those with an Education, Health and Care Plan (EHCP) who are under 25 at the start of their apprenticeship in England
  • any apprentice who started a level 7 apprenticeship before 1 January 2026 will continue to be funded through to completion

More information can be found at聽聽on 188体育.