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This guidance is for:聽

• local authorities聽
• school leaders聽
• governing bodies and their representatives

It relates to local authority maintained schools, academies (including free schools), and local authorities employing centrally employed teachers (CETs) and support staff in England.聽

The Department for Education (DfE) will provide over 拢930 million to support mainstream schools (in respect of their 5 to 16 provision) and high needs settings with the increase to employers鈥� National Insurance contributions (NICs) from April 2025.聽聽NICs聽funding for high needs settings will be provided through the聽core schools budget grant (CSBG)聽in 2025 to 2026, rather than through the聽NICs听驳谤补苍迟.

We have published the funding rates for mainstream schools and academies, alongside information for local authorities employing聽CETs and support staff in the聽methodology document.聽

We are also providing 拢25 million in respect of schools with early years provision and 拢155 million for post-16 schools and academies and further education colleges. Taken together, this is an increase of over 拢1 billion. Additional funding for early years will be distributed through the early years National Insurance contributions and teachers pay grant (EY聽NTP) grant. Funding for post-16 provision will be allocated through the聽辫辞蝉迟-16听NICs听驳谤补苍迟.

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This document sets out the methodology for the聽NICs听驳谤补苍迟. This includes guidance on how we will allocate funding for financial year 2025 to 2026: for mainstream schools (for the 5 to 16 year-old age range) and for local authorities with CETs and support staff

For the first time, we are providing additional grant funding for mainstream schools and academies with special units and resourced provision (SURPs). This funding will support the higher staffing costs that schools with SURPs typically face. Details of how we will allocate this funding can be found in the聽methodology document.

The funding for mainstream primary, secondary and all-through schools will be incorporated into core budget allocations for 2026 to 2027, by being rolled into the schools national funding formula (NFF) for 2026 to 2027. We will ensure that the usual appropriate arrangements are in place for academies, to ensure that they continue to receive support in the period April to August 2026, given their funding cycle follows the academic year.

Conditions of grant聽

We have published the NICs conditions of grant for April 2025 to March 2025 which sets out the terms and conditions that local authorities and academies must follow.

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We have published allocations in May 2025, for payment in September 2025, and will publish updated allocations for new and growing schools in February 2026.