Adult education budget: funding and performance management rules 2023 to 2024

Q: UK nationals and other persons with right of abode

UK nationals or other person with a right of abode [footnote 1] have an eligible residency status if they have been ordinarily resident in the UK, Republic of Ireland, or the British Overseas Territories, or the Crown Dependencies (Channel Islands and Isle of Man) for at least the previous 3 years on the first day of learning. All family members of UK nationals must meet the required residency eligibility criteria in their own right, unless they meet the criteria in the ‘UK nationals in the EEA and Switzerland’ section , or the criteria in the ‘Family members of an eligible person of Northern Ireland’ section . The British Overseas Territories are listed in annex A .

Question 1

What’s new?

Accepted Answer

Main changes since the publication of adult education budget (AEB) funding rules 2023 to 2024 in May 2023:

we have updated the level 3 free courses for jobs over delivery threshold from 10% to 50% in both the Education and Skills Funding Agency (ESFA) funded level 3 free courses for jobs offer (grant), and ESFA funded level 3 free courses for jobs offer contract for services (procured from August 2021 and August 2023) sections
we have added additional clarification regarding individuals with visa status expiry dates of no later than December 2024
we have added the performance management rules for 2023 to 2024
we have added an extra review for AEB, for a small number of grant providers whose allocation for 2023 to 2024 was significantly reduced due to delivery in 2020 to 2021 and 2021 to 2022, and meet the criteria set out in the rules

Please also see the summary of main changes since funding rules 2022 to 2023 section.

Question 2

Introduction and purpose of the document

Accepted Answer

This document sets out the ESFA AEB funding rules for the 2023 to 2024 funding year (1 August 2023 to 31 July 2024). These rules contain conditions of funding (in accordance with section 101 of the Apprenticeships Skills Children and Learning Act 2009 and section 16 of the Education Act 2002) and apply to all providers that receive ESFA funded AEB from the Secretary of State for Education).

ESFA funded AEB aims to engage adults and provide the skills and learning they need to progress into, or within, work; or equip them for an apprenticeship or other learning. It enables more flexible tailored programmes of learning to be made available, which may or may not require a qualification, to help eligible learners engage in learning, build confidence, and/or enhance their wellbeing.

Providers must have due regard to the skills analysis and priorities of Local Enterprise Partnership(s).

Where there is an approved local skills improvement plan for the specified area, the relevant provider must have regard to that plan when making decisions about certain English-funded post-16 technical education or training as in section 1(4)(b) of the Skills and Post-16 Education Act 2022.

These rules do not apply to:

apprenticeships
advanced learner loans
skills bootcamps
multiply
education and training services funded by the European Social Fund (ESF)/HMT Guarantee
individuals resident in a devolved authority area, unless they meet the criteria for continuing learners in the who we fund section, or began their 19 to 24 traineeship programme before 31 July 2023

This document forms part of the terms and conditions of funding and you must read them in conjunction with your funding agreement. You must operate within the terms and conditions of the funding agreement, these rules, and the individualised learner record (ILR) specification. If you do not, you are in breach of your funding agreement with us.

All information, including hyperlinks, was correct when we published this document.

ESFA reserves the right to make changes to these rules.

Question 3

How this document can help you

Accepted Answer

There are 3 sections in the funding rules that contain general funding requirements, ESFA funded AEB and continuing and integrated traineeship specific rules.

Each section may include:

the context of the rule in a box, or set out in a table, and/or
the rule(s) itself

We have included a glossary to explain technical terms.

We have included a summary of main changes to explain new policy rules and amendments that differ from 2022 to 2023.

Question 4

Understanding the terminology

Accepted Answer

The term ‘we’ refers to the Secretary of State for Education, acting through ESFA, an executive agency sponsored by the Department for Education (DfE).

When we refer to ‘you’ or ‘providers’, this includes colleges, higher education institutions, training organisations, local authorities and employers that receive ESFA funded AEB from us to deliver education and training to learners set out in the who we fund section.

We will use the generic term ‘you’ or ‘provider’ unless the requirements only apply to a specific provider type. We use the term ‘funding agreement’ to include:

financial memorandum
conditions of funding (grant)
contract for services
conditions of funding (grant) – employer

We use the terms ‘individual’ and ‘learner’ to cover those whose provision is funded by us.

When we refer to ‘ESFA funded AEB’ this is funding you can claim from us for delivery of AEB provision to learners set out in the who we fund section.

Both the transfer of the functions to the specified combined authorities and the delegation of those functions in relation to the Mayor of London are referred to in this document as the devolution of adult education. Please also refer to annex B: devolution of adult education functions.

We use the term ‘provision’ or ‘learning’ or ‘learning aims’ to refer to ESFA funded AEB, whether it is a regulated qualification, or other learning that is not a regulated qualification.

If we refer to qualifications, either these will be from the Regulated Qualifications Framework (RQF) or an Access to Higher Education Diploma recognised and regulated by the Quality Assurance Agency (QAA).

If we refer to ‘learning aims’, we mean a single episode of learning which could be a regulated qualification, a component of a regulated qualification or non-regulated learning.

If we refer to ‘programmes’, we mean a coherent package of learning which may include regulated qualifications, components of regulated qualifications or non-regulated learning with clearly stated aims supporting agreed outcomes.

We may refer to this document as ‘funding rules’ or ‘the rules’.

Question 5

Contact us

Accepted Answer

If you have any questions after reading our funding rules, or if there’s anything else you need help with, you can find more support in our customer help centre. You can also contact your territorial lead.

Question 6

Principles of funding

Accepted Answer

These rules apply in relation to all learners starting new ESFA funded AEB learning aims on or after 1 August 2023 and continuing learners as referenced in the who we fund section.

You must not transfer funding between the following budgets:

ESFA funded AEB
19 to 24 continuing traineeship programmes
level 3 free courses for jobs (FCFJ)
apprenticeships
advanced learner loans bursary fund
advanced learner loan facility
skills bootcamps
multiply
AEB funding received from devolved budgets to combined authorities

We will review and monitor whether the ESFA funded AEB provision you provide represents good value for money. If we consider that funding is significantly more than the cost of providing education and training, we may reduce your funding after consulting with you.

Failure to comply with funding rules could lead to action or intervention. Our policies and guidance about the oversight of providers have been updated and were published in August 2019 (last updated July 2022). The triggers for action and the type of action we may take is set out in these documents and is in accordance with provisions in our grant agreements and contracts for services:

Question 7

Who we fund

Accepted Answer

We will fund:

individuals resident in areas of England outside of devolved authority areas undertaking ESFA funded AEB
continuing learners who are resident in devolved authority areas, who have not completed their learning by 31 July 2023, but started their learning before the authorities’ devolution date with providers who have an Education and Skills Funding agreement (grant) only
continuing learners who are resident in ESFA and devolved authority areas, who have not completed their 16 to 24 traineeship by 31 July 2023 but started their learning before this date and have an Education and Skills Funding agreement or contract

You must check the eligibility of a learner, including where in England they are resident, at the start of each learning aim and only claim funding for ESFA funded AEB for eligible learners. Please refer to the glossary definition of ‘learner residency’ and the devolution postcode checker data set.

In addition to the criteria in the who we fund section, to be ESFA funded, on the first day of learning a learner must be aged 19 or older on 31 August within the 2023 to 2024 funding year.

The age of the learner on 31 August in the funding year determines whether the learner is funded through ESFA’s AEB funding methodology (for individuals aged 19 and over), or the 16 to 19-year-olds funding methodology (for individuals aged 16 to 19 and those aged 19 to 24 with an education health and care plan).

All individuals aged 19 or over on 31 August who are continuing a programme they began aged 16 to 18 (‘19+ continuers’) will be funded through the 16 to 19-year-olds funding methodology.

Learners will be eligible for ESFA funded AEB for the whole of the learning aim or programme if they are eligible for funding at the start, even if the duration is for over one year. You must reassess the learner for any further learning they start.

If an individual starts a learning aim or programme and is not eligible for funding, we will not fund their learning while they remain ineligible.

You must not fund a learner who is unable to complete a learning aim or programme of study in the time they have available. Any learner of any age must be able to achieve the learning aim or programme of study within the time they have available.

Question 8

Residency eligibility

Accepted Answer

Individuals will be eligible for ESFA funded AEB if they meet the criteria in the who we fund section, the learning is taking place in England and they fulfil the residency requirements set out in one or more of the categories below.

Unless otherwise stated, individuals must be ordinarily resident in the UK on the first day of learning to meet the residency requirements.

Question 9

Learners who live in Wales, Scotland or Northern Ireland

Accepted Answer

Wales, Scotland and Northern Ireland have their own funding arrangements. You must develop arrangements with the relevant devolved administration if you are planning to deliver a significant quantity of learning to learners who do not live in England.

You must not actively recruit learners who live or work outside of England.

We will fund an individual who does not live in England if specialist skills training is only available in England and the individual wants to travel to, or live in, England to study or learn. We do not expect these numbers to be significant.

For learning delivered at an employee’s workplace, we will fund individuals whose main employment or normal place of work is in England.

We will fund individuals who live in Scotland, Wales and Northern Ireland who require and are eligible for ESFA funded AEB, and work for a UK-based employer. Delivery must take place in England. We do not expect these numbers to be significant.

Providers located close to the borders can deliver ESFA funded AEB to learners who are not resident in England but reside in their catchment area. Delivery must take place in England. We do not expect these numbers to be significant.

Question 10

Temporary residence in the UK for educational purposes

Accepted Answer

People who have been resident in the UK solely for the purposes of receiving full-time education would not be deemed ordinarily resident in the UK and are therefore not eligible for funding unless they meet one of the other eligibility criteria.

Question 11

Temporary absences from the UK

Accepted Answer

Learners who are temporarily outside of the UK for reasons such as education, employment or a gap year, but remain settled in the UK, should be considered ordinarily resident in the UK.

British armed forces, MoD personnel or civil crown servants on postings outside of the UK, or people who are resident in England but work outside England, can also be treated as ordinarily resident in the UK.

Individuals resident in areas of England outside of devolved authority areas and who work outside of England as part of their job, are eligible for ESFA funded AEB as long as some of the learning takes place in England. You cannot claim for the additional expense of delivering learning outside of England.

Question 12

Learners who have applied for an extension or variation of their immigration permission

Accepted Answer

Any person who has applied for an extension or variation of their current immigration permission in the UK is still treated as if they have that leave. This only applies if the application was made before their current permission expired. Their leave continues until the Home Office decide on their immigration application. Their leave will continue where they have appealed or sought an administrative review of their case within the time allowed to them for doing so.

Therefore, a person is considered to still have the immigration permission that they held when they made their application for an extension, administrative review or appeal, and their eligibility would be based upon this status.

The learner’s immigration permission in the UK may have a ‘no recourse to public funds’ condition. Public funds do not include education or education funding. Therefore, this does not affect a learner’s eligibility, which must be decided under the normal eligibility conditions.

Learners will have an eligible residency status if they meet the conditions laid out in one of the following sections:

Question 13

UK nationals and other persons with right of abode

Accepted Answer

UK nationals or other person with a right of abode^{[footnote 1]} have an eligible residency status if they have been ordinarily resident in the UK, Republic of Ireland, or the British Overseas Territories, or the Crown Dependencies (Channel Islands and Isle of Man) for at least the previous 3 years on the first day of learning.

All family members of UK nationals must meet the required residency eligibility criteria in their own right, unless they meet the criteria in the ‘UK nationals in the EEA and Switzerland’ section, or the criteria in the ‘Family members of an eligible person of Northern Ireland’ section.

The British Overseas Territories are listed in annex A.

Question 14

UK nationals in the EEA and Switzerland

Accepted Answer

UK nationals who have resided in the EEA, Switzerland or EU overseas territories have an eligible residency status if they:

resided in the EEA or Switzerland, EU overseas territories or Gibraltar by 31 December 2020 (or resident in the UK, having moved to the UK from the EEA, Switzerland, EU overseas territories or Gibraltar after 31 December 2017), and
resided in the EEA, Switzerland, EU overseas territories, Gibraltar or the UK for at least the previous 3 years on the first day of learning, and
remained ordinarily resident in the UK, Gibraltar, the EEA, Switzerland or EU overseas territories between 31 December 2020 and the start of the course and
the course starts before 1 January 2028^{[footnote 2]}

Family members of UK nationals, where both the UK national and the family member have resided in the EEA, Switzerland or EU overseas territories, have an eligible residency status if :

both the UK national and the family member resided in the EEA, Switzerland or EU Overseas Territories by 31 December 2020 (or resided in the UK, having moved there from the EEA, Switzerland or EU Overseas Territories after 31 December 2017), and
both the UK national and the family member remained ordinarily resident in the UK, the EEA, Switzerland or EU Overseas Territories between 31 December 2020 and the start of the course
the UK national to whom they are a family member has been ordinarily resident in the UK, EEA, Switzerland or EU Overseas Territories for at least 3 years on the first day of the first academic year of the course
the course starts before January 2028

A ‘family member’ for these purposes is either:

the husband, wife, civil partner of the UK national (principal) or
the child, grandchild, spouse/civil partner’s child or spouse/civil partner’s grandchild of the UK national (principal) who is either
- under 21, or
- dependant on the principal and/or his/her spouse/civil partner

The EEA includes all the countries and territories listed in annex A.

Question 15

EEA and Switzerland nationals in the UK with EU Settlement Scheme (EUSS)

Accepted Answer

EEA and Switzerland nationals have an eligible residency status if they have obtained either pre-settled or settled status under EUSS and have lived continuously in the EEA, Switzerland, Gibraltar, or the UK for at least the previous 3 years on the first day of learning.

The EEA includes all the countries and territories listed in annex A.

Although the deadline for most people to apply to EUSS was 30 June 2021, there may be individuals who have reasonable grounds for making a late application to EUSS and there may also be some individuals who have made an EUSS application on time but are still waiting on a final decision on their status from the Home Office, including those that have lodged an appeal. Once a valid application has been made to EUSS (evidenced by receipt of a certificate of application), the applicant will have temporary protection, pending the outcome of that application.

Question 16

EEA and Switzerland frontier workers

Accepted Answer

An EEA or Switzerland frontier worker is someone who is employed or self-employed in the UK who resides in the EEA or Switzerland and returns to that residence in the EEA or Switzerland at least once a week.

Frontier workers, and their family members, have an eligible residency status if they have been ordinarily resident in the UK, EEA and/or Switzerland for at least the previous 3 years on the first day of learning.

A ‘family member’ of an EEA frontier worker for these purposes is either:

the husband, wife, civil partner of the EEA frontier worker (‘principal’) or
the child, grandchild, spouse/civil partner’s child or spouse/civil partner’s grandchild of the principal who is either
- under 21, or
- dependant on the principal and/or the principal’s spouse/civil partner, or
dependent parents or grandparents of the principal and/or the principal’s spouse/civil partner

A ‘family member’ of a Swiss frontier worker for these purposes is either:

the husband, wife, civil partner of the Swiss frontier worker (‘principal’) or
the child or spouse/civil partner’s child of the principal

Unlike other categories, a frontier worker or their eligible family member does not have to be resident in the UK on the first day of learning in order to have an eligible residency status.

Question 17

Family members of EU nationals

Accepted Answer

A family member of an EU national is eligible for funding if:

where required to do so, they have obtained pre-settled or settled status under EUSS and
the EU national (principal) has obtained pre-settled or settled status under EUSS and has been ordinarily resident in the UK, EEA and/or Switzerland for at least the previous 3 years on the first day of learning

Family members of an EEA or Swiss national can apply to EUSS after 30 June 2021 if they are joining them in the UK on or after 1 April 2021. They have 3 months to apply to EUSS from the date they arrive in the UK. They will have temporary protection and therefore be eligible for funding during those 3 months and pending the outcome of any EUSS application made during that period (and of any appeal). More information on applying to join a family member in the UK can be found on GOV.UK.

A ‘family member’ for these purposes is either:

the husband, wife, civil partner of the EU national (principal) or
the child, grandchild, spouse/civil partner’s child or spouse/civil partner’s grandchild of the EU principal who is either:
- under 21, or
- dependant on the principal and/or his/her spouse/civil partner, or
the dependant parent or grandparent of the principal or of the principal’s spouse/civil partner

Question 18

Irish citizens in UK or Republic of Ireland

Accepted Answer

Irish citizens in the UK or Republic of Ireland have an eligible residency status if they have been ordinarily resident in the UK and Islands, and/or Republic of Ireland for at least the previous 3 years on the first day of learning.

Question 19

Irish citizens in EEA and Switzerland

Accepted Answer

Irish citizens have an eligible residency status if they:

resided in the EEA or Switzerland by 31 December 2020 (or resident in the UK, having moved to the UK from EEA or Switzerland after 31 December 2017), and
resided in the EEA, Switzerland, Gibraltar or the UK for at least the previous 3 years on the first day of learning and
remained ordinarily resident in the UK, Gibraltar, the EEA or Switzerland between 31 December 2020 and the start of the course and
the course starts before January 2028

The EEA includes all the countries and territories listed in annex A.

Question 20

Other non-UK nationals

Accepted Answer

Non-UK nationals have an eligible residency status if they have been ordinarily resident in the UK and Islands for at least the previous 3 years on the first day of learning and:

have permission granted by the UK government to live in the UK and such permission is not for educational purposes only, or
have obtained pre-settled or settled status under EUSS

Question 21

Family members of an eligible person of Northern Ireland

Accepted Answer

Family members of an eligible person of Northern Ireland^{[footnote 3]} have an eligible residency status if:

they have been living in the UK by 31 December 2020, and
they have obtained pre-settled or settled status under EUSS, and
the eligible person of Northern Ireland (principal) has been ordinarily resident in the UK by 31 December 2020, for at least the previous 3 years on the first day of learning

A ‘family member’ for these purposes is either:

the husband, wife, civil partner of a person of Northern Ireland (principal) or
the child, grandchild, spouse/civil partner’s child or spouse/civil partner’s grandchild of principal who is either
- under 21, or
- dependant on the principal and/or his/her spouse/civil partner, or
the dependant parent or grandparent of the principal or of the principal’s spouse/civil partner

Question 22

Long residence

Accepted Answer

A person who, on the first day of learning, has lived in the UK half their life or a period of 20 years or more, has an eligible residency status.

Learners may be able to prove this status via a confirmed entry date from Immigration Control, verified by the Home Office. Alternatively, they may provide evidence that they have been living in the UK for the period in question. This should ideally be from an official and independent source. Examples could include a signed letter on headed paper from someone in a leadership position at the school they attended, a letter from their GP, wage slips or a P45/P60. Providers funding learners under this category should obtain enough evidence to assure themselves beyond reasonable doubt that the learner was living in the UK for the necessary period.

Question 23

Individuals with certain types of immigration status and their family members

Accepted Answer

Individuals with any of the statuses listed below, or leave under the listed schemes, has an eligible residency status and is exempt from the 3-year residency requirement rule. In relation to these categories, you must have seen the learner’s immigration permission. This would include the biometric residence permit (BRP) and in some cases an accompanying letter from the Home Office.

As the Home Office moves to a fully online system from January 2025, individuals may have an expiry date of no later than December 2024, which may not accurately reflect the actual expiry of their leave to remain. In order to evidence their immigration status, individuals registered on view and prove your immigration status will have a share code which the provider can use to confirm the residency status.

discretionary leave to enter or remain
exceptional leave to enter or remain
indefinite leave to enter or remain
humanitarian protection
refugee status
leave outside the rules
persons granted leave under one of the Ukraine schemes:
- individuals with leave to enter or remain in the UK under the Ukraine Family Scheme
- individuals with leave to enter or remain in the UK under the Ukraine Sponsorship Scheme (Homes for Ukraine)
- individuals with leave to enter or remain in the UK under the Ukraine Extension Scheme
the husband, wife, civil partner or child of anyone in the first 7 bullet points of this list
section 67 of the Immigration Act 2016 leave^{[footnote 4]}
Calais leave to remain^{[footnote 5]}
persons granted leave under one of the Afghan schemes:
- individuals with leave to enter or remain in the UK under the Afghan Citizens Resettlement Scheme (ACRS)
- individuals with leave to enter or remain in the UK under the Afghan Relocations and Assistance Policy (ARAP)
- British Nationals evacuated from Afghanistan under Operation Pitting
- British Nationals evacuated from Afghanistan by the UK government before 6 January 2022

Question 24

Persons granted stateless leave and their family members

Accepted Answer

A person granted stateless leave is a person who has extant leave to remain as a stateless person under the immigration rules (within the meaning given in section 33(1) of the Immigration Act 1971).

A person granted stateless leave is eligible for funding if they have been ordinarily resident in the UK and Islands throughout the period since they were granted such leave.

The spouse or civil partner of a person granted stateless leave is eligible if they were the spouse or civil partner of the person on the leave application date and have been ordinarily resident in the UK and Islands throughout the period since they were given leave to enter or remain in the UK. ‘Leave application date’ means the date on which a person is granted stateless leave made an application to remain in the UK as a stateless person under the immigration rules.

The child of a stateless person, or of the stateless person’s spouse or civil partner, is eligible if they were the child of the stateless person or the child of the stateless person’s spouse or civil partner on the leave application date, were under 18 on the leave application date and have been ordinarily resident in the UK and Islands since they were given leave to enter or remain.

‘Leave application date’ means the date on which a person is granted stateless leave made an application to remain in the UK as a stateless person under the immigration rules (within the meaning given in section 33(1) of the Immigration Act 1971).

Question 25

Children of Turkish workers

Accepted Answer

A child of a Turkish worker is eligible if both the following apply:

the Turkish worker is ordinarily resident in the UK on or before 31 December 2020 and has Turkish European Community Association Agreement (ECAA) rights or extended ECAA leave and
the child has been ordinarily resident in the UK, EEA and/or Turkey for at least the previous 3 years on the first day of learning and is resident in the UK on or before 31 December 2020

Question 26

Asylum seekers

Accepted Answer

Asylum seekers are eligible to receive funding if they:

have lived in the UK for 6 months or longer while their claim is being considered by the Home Office, and no decision on their claim has been made, or
are receiving local authority support under section 23C or section 23CA of the Children Act 1989 or the Care Act 2014

An individual who has been refused asylum will be eligible if:

they have appealed against a decision made by the UK government against granting refugee status and no decision has been made within 6 months of lodging the appeal, or
they are granted support for themselves under section 4 of the Immigration and Asylum Act 1999, or
are receiving local authority support for themselves under section 23C or section 23CA of the Children Act 1989

Question 27

Individuals who are not eligible for funding

Accepted Answer

You must not claim funding for individuals who do not meet the eligibility criteria set out in the residency eligibility section. Examples of individuals who do not meet the eligibility criteria include the following. Please note this list is not exhaustive:

those who are here without authority or lawful status
those who are resident in the UK on a student visa unless they are eligible through meeting any other of the categories described above
those who are in the UK on holiday, with or without a visa
any family member of a person granted a student visa, who have been given immigration permission to stay in the UK and have not been ordinarily resident in the UK for the previous 3 years on the first day of learning
those whose biometric residence permit or residence permit imposes a study prohibition or restriction on the individual

Question 28

Learners in the armed forces

Accepted Answer

British armed forces personnel, Ministry of Defence personnel or civil and crown servants resident in England, who meet the criteria in the who we fund section, are eligible for ESFA funded AEB where learning takes place in England.

Members of other nations’ armed forces stationed in England, and their family members, aged 19 and over, are eligible for ESFA funded AEB, set out in the who we fund section, if the armed forces individual has been ordinarily resident in England for the previous 3 years on the first day of learning. We will not fund family members that remain outside of England.

Question 29

Fees and charging

Accepted Answer

You must not make compulsory charges relating to the direct costs of delivering a learning aim to learners we fully fund, including those with a legal entitlement to full funding for their learning. Direct costs include any essential activities or materials without which the learner could not complete and achieve their learning.

If a fully funded learner needs a disclosure and barring service (DBS) check to participate in learning, you cannot charge them for this. If the learning is associated with the learner’s employment, their employer is responsible for carrying out and paying for this check.

Question 30

Qualifying days for funding

Accepted Answer

A learner must be in learning for a minimum number of days between their learning start date and learning planned end date before you can earn funding, including learning support. You can access this information in the AEB funding rates and formula 2023 to 2024.

This does not apply where the learner achieves the learning aim.

Question 31

Recognition of prior learning (RPL)

Accepted Answer

A learner could have prior learning or attainment that has been previously accredited by an awarding organisation or could be formally recognised and count towards achievement of a qualification. If this is the case, you must:

reduce the funding amount claimed for the qualification aim by the percentage of learning the learner does not need
follow the policies and procedures set by the awarding organisation regarding recognition of prior learning, including any restrictions concerning where RPL or prior attainment may not be applied
ensure you have a robust internal RPL policy and appropriate resources to deliver RPL

We would not expect RPL or prior attainment to be used against the whole qualification, this is exemption rather than RPL.

You must not use prior learning to reduce funding for:

English and maths qualifications up to and including level 2 or
essential digital skills qualifications up to and including level 1

If a learner enrols on an advanced subsidiary (AS) level qualification followed by an A level, you must reduce the funding claimed for the A level to take account of the prior study of the AS level and record this in the ‘funding adjustment for prior learning’ field in the ILR. More information is available in our ILR guidance.

Question 32

Breaks in learning

Accepted Answer

You and the learner can agree to suspend learning while the learner takes a break from learning. This allows the learner to continue later with the same eligibility that applied when they first started their learning.

We will not fund a learner during a break in learning.

You must record the date a learner starts a break in learning and the date they restart their learning in the ILR. Further guidance on recording breaks can be found in the ILR provider support manual.

You must have evidence that the learner agrees to return and continue with the same learning aim; otherwise, you must report the learner as withdrawn. When the learner returns to learning, you must re-plan and extend the remaining delivery as required.

You must not use a break in learning for short-term absences, such as holidays or short-term illness.

Question 33

What we will not fund

Accepted Answer

We will not fund:

qualifications, units or learning aims that are not listed on find a learning aim or on the DfE list of qualifications approved for funding – please see sections level 3 adult offer and the level 3 legal entitlement, local flexibility and local flexibility and legal entitlements below
provision to learners in custody – the Ministry of Justice funds prison education in England. Please note you can use your ESFA funded AEB to fund individuals released on temporary licence as set out in the unemployed section
end-point assessment outside of apprenticeship standards, which is subject to Ofqual external quality assurance and regulated as a qualification
any part of any learner’s learning aim or programme that duplicates provision they have received from any other source
training through ESFA funded AEB, where a learner is undertaking an apprenticeship and where that training will:
- replicate vocational and other learning aims covered by the apprenticeship standard or framework, including English and maths
- offer career-related training that conflicts with the apprenticeship aims
- be taking place during the apprentices working hours. Where an apprentice has more than one job, working hours refers to the hours of the job the apprenticeship is linked to
a learner to repeat the same regulated qualification where they have previously achieved it, unless it is for any GCSE where the learner has not achieved grade 4 (C) or higher
a learner to sit or resit a learning aim assessment or examination where no extra learning takes place

Question 34

Subcontracting

Accepted Answer

As part of subcontracting reforms, we simplified and unified subcontracting funding rules that apply to all providers of education and training who receive AEB, ESF and 16 to 19 funding.

By subcontracting we mean any delivery to a learner’s programme of learning by a third party. The subcontracting rules are published separately at: subcontracting funding rules for ESFA funded post-16 funding (excluding apprenticeships).

Question 35

Match funding requirements relevant to AEB

Accepted Answer

Match funding requirements will not apply for new starts in academic year 2023 to 2024. We procured and managed contracts for ESF-funded provision on behalf of local enterprise partnerships that met local needs. This included matching the ESF contract value to other similar funding and learners, which we report to the ESF Managing Authority in England.

This means any learning funded by us becomes part of the ESF programme, and the ESF programme rules apply and will be subject to our ESF compliance checks and external audit. Regarding the learners we have used for match funding, we will be contacting the providers shortly to provide details on the learners used for document retention purposes.

You must not use the payments that we make as match funding for any ESF projects with any co-financing organisation or Managing Authority direct bids.

For learners who started before academic year 2023 to 2024, you and your subcontractors must follow the retention of documents, ‘publicity’ and horizontal themes rules and provide evidence as detailed in the ESF: funding and performance management rules 2014 to 2020.

You and your subcontractors must follow the evaluation, surveys and annual implementation reporting rules in the ESF 2014 to 2020 funding rules.

You must keep to the rules of the ESF programme, or you will break the conditions of your contract, and this could result in us recovering funds. This includes keeping to the eligibility evidencing rules in the ‘evidence pack’ section.

Question 36

Evidence

Accepted Answer

You must hold evidence to assure us that you are using ESFA funded AEB appropriately. Most evidence will occur naturally from your normal business process.

You must make sure enrolments for ESFA funded AEB support your decision to claim funding and support the individual’s case for consideration as ordinarily resident in England, or any exceptions set out in the residency eligibility section.

In line with General Data Protection Regulations (GDPR), you must record in the evidence pack what appropriate documentation you have seen, rather than take photocopies to prove eligibility.

Question 37

Evidence pack

Accepted Answer

The evidence pack must contain evidence to support the funding claimed and must be available to us if we need it.

Evidence in the evidence pack must assure us that the learner exists.

The learner must confirm information they provide is correct when it is collected.

If the time spent in learning is short, the level of evidence in the evidence pack would reflect this.

Where you hold information centrally, you only need to refer to the source.

If applicable, the evidence pack must confirm the following:

all information reported to us in the ILR, the earnings adjustment statement (EAS), funding claims if applicable, and all supporting evidence to substantiate the data that you report
your assessment and verified evidence of eligibility for funding and a counter signed record of the evidence the learner has provided to support their eligibility for funding
copies of all assessments and diagnostics undertaken to determine a learner’s requirements
evidence and information on prior learning that affects the learning or the funding of any of the learning aims or programme
for ‘personalised learning programmes’, for example, non-regulated learning aims, full details of all the aspects of the learning to be carried out, including supporting evidence of the number of planned hours reported in the ILR
a description of how you will deliver the learning and skills and how the learner will achieve
the supporting evidence about why you have claimed funding and the level of funding for a learner
details and evidence of any learner or employer contribution
support needs to be identified, including how you will meet these needs and the evidence of that
that learning is taking or has taken place (including a work placement) and records are available
if applicable, a learner’s self-declaration as to what state benefit they claim
a learner’s self-declaration on their status relating to gaining a job; and
all records and evidence of achievement of qualifications, learning aims or continuing traineeship learners. This must be available within 3 months of you reporting it in the ILR

Where the learner is unemployed, this must include a record of what you have agreed with them, including the relevance of the learning to their employment prospects and the labour market needs.

If a subcontractor delivers any provision to the learner, it must clearly identify who it is. This must match the information reported to us in the ILR.

Question 38

Confirmation and signatures

Accepted Answer

The learner must confirm the information is correct when it is collected. You must have evidence of this, which can include electronic formats.

We accept electronic evidence, including electronic/digital signatures. Where evidence is electronic, you must have wider systems and processes in place to assure you that learners exist and are eligible for funding.

Both electronic and digital signatures are acceptable, we do not specify which should be used, only that a secure process to obtain and store signatures is followed:

an electronic signature is defined as any electronic symbol or process that is associated with any record or document, where there is an intention to sign the document by any party involved
an electronic signature can be anything from a check box to a signature and/or
a digital signature is where a document with an electronic signature is secured by a process making it non-refutable
it is a digital fingerprint which captures the act of signing by applying security to a document. Usually documents which have a digital signature embedded are extremely secure and cannot be accessed or amended easily

Where an electronic or digital signature is being held, from any party for any reason, you must ensure it is non-refutable. This includes the definitions of both wet and dry signatures. Systems and processes must be in place to assure to us the original signature has not been altered. Where any document needs to be renewed, and a new signature taken, it must be clear from when the new document takes effect, and both must be held.

You must keep effective and reliable evidence. You are responsible for making the evidence you hold easily available to us when we need it.

Question 39

Starting, participating and achieving

Accepted Answer

You can only claim ESFA funded AEB when directly related learning starts. This would not include enrolment, induction, prior assessment, diagnostic testing, or similar activities.

For your direct delivery, and any subcontracted delivery, you and where relevant, your subcontractor(s) must have direct centre approval and where appropriate, direct qualification approval from the respective awarding organisation for the regulated qualifications you are offering.

Delivery of the qualification (including learner registration with the awarding organisation) for direct delivery and any subcontracted delivery must be in line with the qualification specification and guidance set out by the relevant awarding organisation.

You must have evidence that the learning took place, and the learner was not certificated for prior knowledge.

Where the learning is certificated, you must follow the relevant awarding organisation’s procedure for claiming the relevant certificate(s) and ensure the learner receives them. You must evidence this has happened in the evidence pack.

Question 40

Leaving learning

Accepted Answer

You must report the learning actual end date in the ILR for a learner who leaves learning as the last day that you can evidence they took part in a learning activity.

Question 41

Individualised learner record (ILR)

Accepted Answer

You must accurately complete all ILR fields as required in the 2023 to 2024 ILR specification even if they are not required for funding purposes.

The ILR must accurately reflect the learning and support (where applicable) you have identified, planned and delivered to eligible learners. You must not report inaccurate information that would result in an overstatement of the funding claimed.

Where your data does not support the funding claimed, we will take action to correct this, and we could recover funds you overstated.

Question 42

Self-declarations by learners

Accepted Answer

All self-declarations must confirm the learner’s details and describe what the learner is confirming for requirements set out in this document.

If a learner self-declares prior attainment, you must check this in the personal learning record (PLR) and query any contradictory information with the learner. The PLR will not necessarily override the learner’s self-declaration.

Question 43

Funding for developing innovative provision

Accepted Answer

As part of the commitment to reforming further education funding and accountability, outlined in The Skills for Jobs White Paper, a new flexibility is available which enables eligible providers to earn up to 3% of their ESFA AEB allocation on the development of innovative provision. The purpose of this flexibility is to encourage local innovation and to support eligible providers to be able to develop new provision, in partnership with local employers and others.

To be eligible to utilise up to 3% of your ESFA AEB grant allocation for the development of new innovative provision you must:

have delivered ESFA funded AEB learning aims in 2021 to 2022, excluding FCFJ, 19 to 24 traineeships and community learning
have a 2023 to 2024 AEB allocation (excluding FCFJ) over £500,000
have 2021 to 2022 non-qualification provision of less than 20% of your adult skills funding

If you are eligible, the maximum amount of funding you can draw down for this purpose is set out in your allocation statement.

We expect that provision developed using this flexibility reflects the priorities outlined in the local skills improvement plans.

You have the flexibility to use all, or some, of the 3% of your AEB allocation and you must use this flexibility to fund the development costs of establishing new provision. This includes:

research and developments costs – to support work with large employers and/or local SME/micro businesses to scope and develop non-accredited provision bespoke to that employer
project management costs – to support the costs of overseeing the project development and setting up of new non-accredited provision. It could also cover the staff costs of developing and preparing new qualifications for submission to DfE/awarding bodies approval processes
training for the trainer – developing training for teaching staff to be able to deliver provision in new and emerging fields such as green skills and artificial intelligence

You must be able to demonstrate that the above activity has been delivered and ensure you clearly document and retain records as evidence of the complete breakdown of costs that have been incurred and paid.

This evidence may well form part of the documentation comprised of your normal financial systems and processes which demonstrate clearly the different costs specifically spent from this funding such as direct costs (such as invoices, expenses), personnel costs (such as payroll, time records) and any indirect costs (how these have been calculated).

Your spend may also have been subject to an audit from your own statutory or internal auditors, in which case assurance of spend may be accepted where this can be evidenced from audit reports/audit committee minutes. We will recover funding that is not duly spent, recorded and evidenced as above, or duly assured by your auditors and evidenced from relevant audit reports, or evidenced from formal audit committee minutes, as stated above.

You must complete the funding claim. Although the relevant guidance won’t be published until later in the year, it will be in line with the current funding claims guidance, how to submit a funding claim for 2022 to 2023.

You must not use this flexibility to claim:

funding for learners, including those where new provision is being piloted
for any capital costs, building/estates refurbishments, maintenance and restoration

Question 44

Legal entitlements

Accepted Answer

ESFA funded AEB includes support for 4 legal entitlements to full funding for eligible adult learners.

Note: The legal entitlements for level 2 and level 3 follow the definition of fullness in the full level 2 and full level 3 sections respectively. A learner can only be fully funded for one vocational qualification from the entitlement qualifications list when exercising their legal entitlement. Appropriate information, advice and guidance should be given to a learner and the learner should be made aware of their entitlement rights and progression routes on completing an entitlement qualification.

These entitlements are set out in the Apprenticeships, Skills and Children Learning Act 2009, and enable eligible learners to be fully funded for the following qualifications:

English and maths, up to and including level 2, for individuals aged 19 and over, who have not previously attained a GCSE grade 4 (C), or higher, and/or
first full qualification at level 2 for individuals aged 19 to 23, and/or
first full qualification at level 3 for individuals aged 19 to 23
essential digital skills qualifications, up to and including level 1, for individuals aged 19 and over, who have digital skills assessed at below level 1

If an individual meets the legal entitlement eligibility criteria, you must not charge them any course fees.

Eligible learners exercising their legal entitlement must be enrolled on qualifications that DfE has approved for funding through the relevant entitlement. For the funding year 2023 to 2024, providers can find the qualifications we have approved in the DfE list of qualifications approved for funding, for the following entitlement offers:

level 2 and level 3 and/or
English and maths and/or
essential digital skills qualifications

Question 45

Level 3 adult offer and the level 3 legal entitlement

Accepted Answer

Eligible 19 to 23-year-old learners can access all qualifications from the level 3 adult offer. If a learner aged 19 to 23 completes a qualification that is included on both the legal entitlement list and the level 3 adult offer list, they will have exercised their level 3 legal entitlement.

To receive the funding uplift for eligible 19 to 23-year-old learners, you must use LDM code 378, as set out in the FCFJ section. The uplift applies to all learners accessing qualifications on the FCFJ list, including those that are also included in the AEB legal entitlement.

For more information on the eligibility criteria refer to the FCFJ section.

Question 46

Local flexibility

Accepted Answer

ESFA funded AEB also supports delivery of flexible tailored provision for adults, including qualifications and components of these and/or non-regulated learning, up to level 2 – we call this ‘local flexibility’.

Local flexibility provision either is fully or co-funded, depending on the learner’s age, prior attainment and circumstances. Please refer to the ‘level of government contribution’ chart 1 and chart 2 and the sections below up to and including learners with an education, health and care (EHC) plan for learner eligibility. Where appropriate for the learner, you can deliver local flexibility provision alongside a legal entitlement qualification.

Learners aged 19 to 23 progressing towards their first full level 2, must undertake learning at entry and/or level 1 only from local flexibility.

Question 47

Local flexibility and legal entitlements

Accepted Answer

Learners aged 19 to 23 who progress to their first full level 2, must only enrol on a qualification DfE has approved for funding from the DfE list of qualifications approved for funding.

Learners aged 19 to 23 and aged 24 and over, who have already achieved at level 2, or above can undertake learning up to and including level 2 qualifications from the local flexibility offer or qualifications for the level 2 legal entitlement available on the DfE list of qualifications or find a learning aim.

Learners aged 24 and over who have not achieved a level 2 qualification can undertake learning up to and including level 2 qualifications from the local flexibility offer, or qualifications in the level 2 legal entitlement list available on the DfE list of qualifications or find a learning aim.

Question 48

Government contribution charts

Accepted Answer

Charts 1 and 2 are show the level of government contribution for ESFA funded AEB. You can find the text version of these charts in annex C.

The text in bold relates to either contents of this document or external links as shown below.

External links

ESFA’s young people’s residency requirements

Advanced learner loans

Question 49

Chart 1: 19 to 23-year-olds

Accepted Answer

Question 50

Chart 2: 24+

Accepted Answer

A learner is classed as being 24+ for funding purposes if they have turned 24 by the first day of learning.

Question 51

Unemployed

Accepted Answer

We will update the Universal Credit thresholds to align to any revisions made by the Department for Work and Pensions (DWP).

For funding purposes, we define a learner as unemployed if one or more of the following apply, they:

receive Jobseeker’s Allowance (JSA), including those receiving National Insurance credits only
receive Employment and Support Allowance (ESA)
receive Universal Credit (UC), and their take-home pay as recorded on their UC statement (disregarding UC payments and other benefits) is less than £892 a month (learner is sole adult in their benefit claim) or £1,437 a month (learner has a joint benefit claim with their partner)
are released on temporary licence, studying outside a prison environment, and not funded by the Ministry of Justice

Providers may also use their discretion to fully fund other learners if both of the following apply. The learner:

receives other state benefits (not included in the list above) and their take-home pay (disregarding UC payments and other benefits) is less than £892 a month (learner is sole adult in their benefit claim) or £1,437 a month (learner has a joint benefit claim with their partner), and
wants to be employed, or progress into more sustainable employment, and their take-home pay (disregarding UC payments and other benefits) is less than £892 a month (learner is sole adult in their benefit claim) or £1,437 a month (learner has a joint benefit claim with their partner), and you are satisfied identified learning is directly relevant to their employment prospects and the local labour market needs

Question 52

Learners in receipt of low wage

Accepted Answer

You may fully fund learners who are employed, or self-employed, and would normally be co-funded for provision, up to and including level 2. You must be satisfied the learner is both:

eligible for co-funding, and
earns less than £22,308 annual gross salary (please refer to the glossary). You may also fully fund learners who meet the low wage criteria for qualifications included in the FCFJ offer

You must have seen evidence of the learner’s gross annual wages in these circumstances. This could be a wage slip or a UC statement within 3 months of the learner’s learning start date, or a current employment contract which states gross monthly/annual wages. Please note this is not an exhaustive list, but you must evidence your decision to award full funding to an individual who would normally be eligible for co-funding.

To claim full funding for learners who meet the low wage criteria, excluding those on qualifications included in the FCFJ offer, you must use LDM code 363 and FFI code 1.

Question 53

Heavy goods vehicle (HGV) driver training

Accepted Answer

This offer, originally introduced in 2021 to 2022, has been extended for the 2023 to 2024 academic year.

HGV driver training flexibilities have been developed to support an increase in HGV driver training.

The 2022 to 2023 offer:

includes level 2 qualifications which will prepare learners for HGV licence acquisition of all vehicles up to category C and E (articulated)
includes additional qualifications that are approved for training in this sector throughout the 2022 to 2023 academic year
allows all eligible learners, fully funded and co-funded, to be reimbursed for the cost of HGV licences and medical

Learners must be eligible under the criteria for ESFA funded AEB eligibility and enrolled on one of the targeted approved for funding level 2 qualifications listed in find a learning aim.

For learners, we will fund the first attempt only for:

the HGV licence as part of a programme of training and
the medical, at a cost of £61 per learner and/or
a licence to upgrade from category C to category C+E

Providers must:

use learning aims that are marked with:
- category code 50: HGV Emergency Response, to identify an approved qualification, and
- category code 51: HGV Medical for the additional learning aim to represent the HGV medical and
- category code 52: HGV Licence, for the additional learning aim(s) to represent parts of the Driver Certificate of Professional Competence (CPC) tests required to attain the licence, when learners undertake these elements
record an outcome of ‘Achieved’ in the ILR where you have a recorded learning aims for the HGV licence and medical aim, to generate reimbursement funding for these activities
have criteria for how you will administer and distribute your funds
retain evidence in the learner file confirming that you have verified the medical test and licence documentation, and evidence from your accounts of the payment made to the learner and learner’s receipt of the funds

Question 54

Sector-based work academy programme (SWAP)

Accepted Answer

The sector-based work academy programme (SWAP) is designed to help Job Centre Plus claimants build confidence to improve their job prospects and enhance their CV, whilst helping employers in sectors with current local vacancies to fill them. SWAP can last up to 6 weeks and has 3 main components:

pre-employment training
work experience placement
a guaranteed job interview

The scheme runs in England (and Scotland). Participants remain on benefits throughout their placement.

Only the pre-employment training element in England can be funded through AEB local flexibility, and normally lasts 2 to 3 weeks. Jobcentre Plus fund the other components and will pay any travel and childcare costs whilst claimants are on the work experience placement.

Further education providers are part of the SWAP local design process and are informed when to expect referrals and how many.

You must keep a copy of the claimant’s SWAP referral notification issued by Jobcentre Plus in the evidence pack setting out start date and times for their ESFA AEB funded pre-employment training.

To claim full funding for claimants referred to SWAP pre-employment training you must use LDM code 375 and complete the Benefit Status Indicator (BSI) to identify the claimant is in receipt of Jobseeker’s Allowance (BSI 1), Universal Credit (BSI 4), or Employment and Support Allowance (all categories) (BSI 5).

Question 55

Free courses for jobs

Accepted Answer

Free courses for jobs (FCFJ) is a targeted level 3 offer to support adults without an existing full level 3 qualification and adults who meet the definition of ‘low wage’ or ‘unemployed’.

The offer includes:

level 3 qualifications which will support the development of new skills for adult learners and improve the prospects of eligible adults in the labour market. Eligible adults aged 24+ can now access fully-funded level 3 provision from the list of level 3 FCFJ qualifications available via the DfE list of qualifications approved for funding
additional level 3 qualifications for 19 to 23-year-olds that are not included in the legal entitlements
support funding
the ability for eligible learners to take one short qualification (identified by category code 49) without exhausting their eligibility. We expect this flexibility to be used where a learner could benefit from a more substantial qualification once they have completed a short qualification

An uplift is payable at 2 different rates and follows the earnings methodology set out in the funding rates and formula document. This uplift should be used to support delivery of the level 3 FCFJ offer.

Only level 3 qualifications included in this offer will attract an uplift. There may be additions to the list to ensure it meets the needs of the economy; we encourage providers to check funding validity regularly. Valid qualifications will have category code 45, 46, 48 or 49 on find a learning aim. Please ensure you refer to the category codes rather than the funding stream on find a learning aim.

When qualifications are added to the list of qualifications included in this offer, they will become eligible for funding from that publication date and will not be backdated.

Please note this policy is subject to potential further amendments and clarifications.

We have published a level 3 qualifications flow charts document which sets out the options available to a learner who wishes to enrol on a level 3 qualification funded by ESFA. This is supplementary to these AEB funding rules and to the advanced learner loans rules.

We will fully fund individuals as part of this offer where they:

are aged 19 or above on 31 August within the 2023 to 2024 funding year; and
have not achieved a full level 3 qualification, or above, which meets the requirements set out in the full level 3 section; and
enrol on the level 3 FCFJ qualifications approved for funding

We will also fund individuals as part of the offer where they meet the definition of being unemployed or the low wage criteria and enrol on the level 3 FCFJ qualifications approved for funding, including individual who already have a level 3 qualification or higher.

We will fund eligible learners to take one ‘short’ qualification without exhausting their eligibility, followed by one further qualification in the level 3 FCFJ offer. ‘Short’ qualifications are identified by category code 49 which can be found in level 3 FCFJ offer – short qualification within find a learning aim.

You must not claim for ESFA AEB funding where learners are already being funded through an advanced learner loan (ALL), or a skills bootcamp (where applicable), for qualifications that are in the FCFJ offer. The criteria for ALL can be found in the ALL funding rules.

Once a learner has been funded by FCFJ in line with the paragraphs above, they will have exhausted their eligibility for the offer and can no longer access FCFJ funding. Learners accessing the low wage and unemployment flexibilities cannot be funded if they have previously been funded via FCFJ.

You must:

use LDM code 378 and FFI code 1 to claim for funding for learners who meet the requirements above
use LDM code 378, FFI code 1, and LDM code 382 when recording learners who meet the low wage eligibility criteria
record the employment status of learners accessing the offer in the ILR

To determine qualifications that are eligible for FCFJ funding you must use learning aims that are marked with:

category code 45: National Skills Fund Level 3 Free Courses for Jobs rate 1
category code 46: National Skills Fund Level 3 Free Courses for Jobs rate 2
category code 48: National Skills Fund Level 3 Free Courses for Jobs only
for short courses, you must also use category code 49: National Skills Fund Level 3 Free Courses for Jobs – short qualification

Question 56

Full level 2

Accepted Answer

Full level 2 is the level of attainment which, is demonstrated by:

a General Certificate of Secondary Education (GCSE) in 5 subjects, each at grade 4 (C) or above, or
a Technical Certificate at level 2 which meets the requirements for the 16 to 19 performance tables

If a learner, aged 19 to 23, has achieved a level 2 qualification that was, at the time they started, or still is, classed as a full level 2, any subsequent level 2 qualifications will be fully funded if they meet the definition of unemployed or meet the eligibility criteria for learners in receipt of low wage.

Please refer to Qualification Downloads – List of Qualifications approved for funding or email qualifications.approval@education.gov.uk if you need advice on a previous qualification’s designation.

Question 57

Full level 3

Accepted Answer

Full level 3 is the level of attainment which is demonstrated by a:

General Certificate of Education at the advanced level in 2 subjects
General Certificate of Education at the AS level in 4 subjects
QAA Access to Higher Education (HE) Diploma at level 3
Technical, or applied general qualification at level 3, which meets the requirements for the 16 to 19 performance tables
Core maths at level 3

If a learner has achieved a level 3 qualification that was not classed as a full level 3 at the time they started it but has since been classed as a full level 3 and wants to enrol on any subsequent level 3 qualification, of any size, they may apply for an advanced learner loan (provided the qualification is designated for funding, and subject to learner eligibility conditions), or pay for their own learning. From the 1 April 2022 there is an exception to this rule; a learner will be fully funded under the level 3 adult offer if they meet the definition of unemployed or meet the eligibility criteria for learners in receipt of low wage.

Please email qualifications.approval@education.gov.uk if you need advice on a previous qualification’s designation.

For new linear AS and A levels, where a learner enrols on an AS qualification and continues with further study to take the A level qualification in the same subject, you must record both the AS and A level in the ILR. The AS learning aim will be funded separately to the A level learning aim.

Question 58

Approved qualifications

Accepted Answer

Where you deliver regulated qualifications and/or their components, you must ensure they are approved for ESFA funded AEB and available on find a learning aim. Qualifications and public funding provides information on qualifications that are no longer approved for funding.

Where you deliver approved qualifications and/or their components you must ensure that learners are registered for the qualifications and/or component in line with the awarding policies and procedures. You must not ‘pre-register’ students a significant period in advance of the learner starting the qualification.

We will fund qualifications that are linked to occupational regulation/licence to practise. You can find more information about these qualifications at the qualifications website.

Before delivering a component, you must check with the awarding organisation they provide a learner registration facility, and the learner can achieve it alone or as part of accumulating achievement towards a qualification.

If the UK ENIC has confirmed the authenticity of a qualification gained overseas and confirmed it is comparable/compatible with a regulated qualification in England, currently part of the level 2 and level 3 legal entitlement, the individual will be deemed to have achieved their first level 2 and/or level 3 qualification.

You must provide accurate unique learner number (ULN) information to awarding organisations and ensure all information you use to register learners for qualifications is correct. You can find more information in the Learner Records Service guidance.

Question 59

Non-regulated learning

Accepted Answer

Where you deliver non-regulated learning, you must ensure it is eligible for funding. Such learning could include:

independent living skills or engagement learning supporting adults to operate confidently and effectively in life and work
locally commissioned and/or locally developed basic knowledge and skills needed to access technical qualifications
employability and labour market re-entry
locally commissioned and/or locally devised technical education short courses (also known as taster sessions)
community learning courses
basic digital skills courses, including where learners are unable to undertake digital skills qualification specified in the digital entitlement for those aged 19 or older section

The eligibility principles we apply to non-regulated learning are as follows:

it must not be provision linked to UK visa requirements
it must not be provision linked to occupational regulation unless there is an agreed concession in place
it must not be restricted to being delivered to employees of only one employer
it must not be learning, for example, ‘induction to college’, that should be part of a learner’s experience
it must not be a non-regulated version of a regulated qualification or of a component of a regulated qualification
it must not be above notional level 2 (that is, at notional levels 3 or 4)
at notional level 2 it must focus on technical provision

Where you are delivering non-regulated learning, you must ensure you have appropriate and robust quality assurance processes in place. For instance, ‘The Recognising and Recording Progress and Achievement (RARPA) Cycle’. Further information on RARPA is available from the Learning and Work Institute.

Question 60

Learning in the workplace

Accepted Answer

We will fund any regulated qualifications and/or learning aims at an employee’s workplace. You must ensure they are approved for ESFA funded AEB and available on find a learning aim.

Rules within the ‘what we will not fund’ section still apply.

Question 61

English and maths for those aged 19 or older

Accepted Answer

We will fully fund individuals, including individuals who are employed, aged 19 or older, who have not previously attained a GCSE grade 4 (C), or higher, in English and maths, as part of their legal entitlement on the day they start the following qualifications:

GCSE English language or maths
Functional Skills English or maths from Entry to level 2
Stepping-stone qualifications (including components, where applicable) in English or maths approved by DfE

If a learner wants to ‘retake’ their GCSE English and maths qualification because they did not achieve a grade 4 (C), or higher, we will not fund the learner to only resit the exam.

You must not enrol individuals on qualifications which are not necessary for progressing towards a GCSE or Functional Skill level 2.

You must not fund an apprentice for English or maths from ESFA funded AEB.

We will fully fund non-regulated English and maths learning for learners, including those assessed at pre-entry level with significant learning difficulties and/or disabilities as part of a personalised learning programme, where assessment has identified the learner cannot undertake provision identified in the first paragraph of this section.

You must:

carry out a thorough initial assessment to determine an individual’s current level using current assessment tools based on the national literacy and numeracy standards and core curriculums or DfE published English and Maths Functional Skills subject content
carry out an appropriate diagnostic assessment to inform and structure a learner’s evidence pack to use as a basis for a programme of study
enrol the learner on a level above that at which they were assessed and have prior attainment for, and be able to provide evidence of this
deliver ongoing assessment to support learning
record the evidence of all assessment outcomes in the evidence pack

The assessments must place a learner’s current skills levels within the level descriptors used for the RQF.

Question 62

Digital entitlement for those aged 19 or older

Accepted Answer

We will fully fund individuals aged 19 or older and assessed at below level 1, including individuals who are employed, as part of their legal entitlement on the day they start the following qualifications:

Essential digital skills qualification (EDSQ) up to and including level 1
Digital functional skills qualifications (DFSQ) up to and including level 1

We will fully fund non-regulated learning for learners, including those assessed at pre-entry level with significant learning difficulties and/or disabilities as part of a personalised learning programme, where assessment has identified the learner cannot undertake provision identified in the paragraph above. This provision must be aligned with the national standards for essential digital skills and must not be a non-regulated version of a regulated qualification (see rules for non-regulated learning).

You must:

carry out an initial assessment using current assessment tools based on the national standards for essential digital skills
carry out an appropriate diagnostic assessment to inform and structure a learner’s learner file to use as a basis for a programme of study
enrol the learner on a level above that at which they were assessed and be able to provide evidence of this
deliver ongoing assessment to support learning
record the evidence of all assessment outcomes in the evidence pack

The assessments must place a learner’s current skills levels within the level descriptors used for the RQF.

Question 63

Individuals aged 19 to 23 (excluding English, maths, digital and ESOL)

Accepted Answer

We will fully fund 19 to 23-year-olds (refer to the who we fund section), including individuals who are employed, on the day they start the following learning:

qualifications defined within the legal entitlement that are a learner’s:
- first full level 2, and/or
- first full level 3 as part of the legal entitlement and/or access to additional qualifications from the level 3 adult offer
local flexibility provision:
- up to and including level 1 to support progression
- to a first full level 2, and/or
- level 2 for those who already have a full level 2, or above, if they are unemployed

We will co-fund provision up to, and including, a level 2 for learners who have already achieved a full level 2, or above, who are employed. The low wage flexibility may apply.

Question 64

Individuals aged 24 or older (excluding English, maths, digital and ESOL)

Accepted Answer

We will fully fund individuals aged 24 or older on the day they start the following learning:

provision up to and including a level 2, if they are unemployed
qualifications from the level 3 adult offer, or above, if learners do not have a full level 3 qualification and they meet the eligibility criteria set out in the FCFJ offer section

We will co-fund all other learners aged 24 years and older for provision up to, and including, a level 2. Where learners are employed, the low wage flexibility may apply.

2023 to 2024 contract value	Maximum growth
Up to £90,000	£45,000
More than £90,000	50% of your contract value

2023 to 2024 contract value	Maximum growth
Up to £90,000	£45,000
More than £90,000	50% of your contract value

Denmark	The following is part of Denmark: Greenland Faroe Islands
Finland	The following is part of Finland and the EU: Aland islands
France	The following is part of France and the EU: the French Overseas Department (DOMS) (Guadeloupe, Martinique, French Guiana (Guyana), Reunion and Saint-Pierre et Miquelon) The following is part of France: New Caledonia and its dependencies, French Polynesia Saint Barthélemy
Germany	The following is part of Germany and the EU: Tax-free port of Heligoland
Netherlands	The following is part of the Netherlands: Antilles (Bonaire, Curacao, Saba, St Eustatius and St Maarten) Aruba
Portugal	The following is part of Portugal and the EU: Madeira The Azores
Spain	The following is part of Spain and the EU: the Balearic Islands the Canary Islands Ceuta Melilla

	December review point (increases, reductions and new requests)
Funding in scope for growth (increases calculated by ESFA)	Level 3 FCFJ offer – Grant and contract for services (procured from August 2023)
Funding in scope for new requests or top ups	Level 3 FCFJ – Grant and contract for services (procured from August 2023)
Funding in scope for reductions	AEB (contract for services) Level 3 FCFJ offer - contract for services (procured from August 2023)
Tolerance for under-delivery	Where your delivery is 80% or below the cumulative profile to November
Tolerance for over-delivery	Where your delivery is 90% or above the cumulative profile to November
Lower threshold for contract value adjustments	£25,000
Exception case and first-time request form published	22 November 2023
Exception case, first-time request form to be sent to ESFA by	6 December 2023
Delivery information using the latest validated ILR data you provide	6 December 2023 (R04 data return)
Providers told the outcome by	19 January 2024

Education and Skills Funding agreement	8.36%	8.33%	8.33%	8.33%	8.33%	8.33%	8.33%	8.33%	8.34%	8.33%	8.33%	8.33%
Cumulative profile	8.36%	16.69%	25.02%	33.35%	41.68%	50.01%	58.34%	66.67%	75.01%	83.34%	91.67%	100.00%

ESFA Funded AEB contract for services	8.36%	8.33%	8.33%	8.33%	8.33%	8.33%	8.33%	8.33%	8.34%	8.33%	8.33%	8.33%
Cumulative profile	8.36%	16.69%	25.02%	33.35%	41.68%	50.01%	58.34%	66.67%	75.01%	83.34%	91.67%	100.00%

19 to 24 traineeships	8.36%	8.33%	8.33%	8.33%	8.33%	8.33%	8.33%	8.33%	8.34%	8.33%	8.33%	8.33%
Cumulative profile	8.36%	16.69%	25.02%	33.35%	41.68%	50.01%	58.34%	66.67%	75.01%	83.34%	91.67%	100.00%

16 to 18 traineeships	8.30%	8.30%	8.30%	8.30%	8.30%	8.30%	8.30%	8.35%	8.40%	8.40%	8.40%	8.35%
Cumulative profile	8.30%	16.60%	24.90%	33.20%	41.50%	49.80%	58.10%	66.45%	74.85%	83.25%	91.65%	100.00%

Term	Description
20+ childcare	A category of learner support to assist learners aged over the age of 20 who are at risk of not starting learning or leaving learning due to issues in obtaining childcare.
AEB funding methodology	The funding methodology for individuals aged 19 and over, participating in AEB learning. You can access AEB funding methodology on GOV.UK.
Advanced learner loan	Advanced learner loans are available for individuals aged 19 or above to undertake approved qualifications at level 3 to level 6, at an approved provider in England. Advanced learner loans give individuals access to financial support for tuition costs similar to that available in higher education and is administered by Student Loans Company.
Annual gross salary	Gross salary is the total income before any deductions are removed from that amount. This total income is usually described as an annual salary, and it is the total amount an employee will receive for work completed before tax of national contributions are deducted.
Break in learning	When a learner is not continuing with their learning but has told you beforehand that they intend to resume their learning in the future.
Brokerage	By brokers we mean where a third-party matches, for a fee, a provider with an unused allocation with a provider that can secure enrolments of learners to utilise it.
Care to learn	A DfE scheme to assist young parents under the age of 20 with the childcare costs that may form a barrier to them continuing in education.
Community Learning	Helps people of different ages and backgrounds gain a new skill, reconnect with learning, pursue an interest, and learn how to support their children better, or prepare for progression to more formal courses/employment.
Components of regulated qualification	A subset of a qualification, which could be a unit.
Continuing learners	Learners who commenced learning in a previous funding year and remain in learning as of 1 August 2023.
Devolution of adult education functions	The devolution of adult education functions refers to the transfer of certain Secretary of State functions in the Apprenticeships, Skills, Children and Learning Act 2009 to specified Mayoral Combined Authorities by way of orders made under section 105A of the Local Democracy, Economic Development and Construction Act 2009, and the delegation of those functions to the Mayor of London under section 39A of the Greater London Authority Act 1999, in relation to their areas.
Digital Entitlement	The study of EDS qualifications for learners who have digital skills assessed at below level 1. Qualifications that are designated up to and including level 1 are essential digital skills qualifications and digital functional skills qualifications.
Direct costs of learning	Any costs for items without which it would be impossible for the learner to complete their learning aim. This can include the costs of registration, examination or any other activities or materials without which the learner cannot achieve their programme of study.
Earnings adjustment statement (EAS)	The form providers need to fill in to claim funding that cannot be claimed through the Individualised Learner Record (ILR).
Education health and care (EHC) plan	An EHC plan replaces statements of special educational needs and learning difficulty assessments for children and young people with special educational needs. The local authority has the legal duty to ‘secure’ the educational provision specified in the EHC plan, that is, to ensure that the provision is delivered.
European Economic Area (EEA)	The European Economic Area, abbreviated as EEA, consists of the Member States of the European Union (EU) and 3 countries of the European Free Trade Association (EFTA) (Iceland, Liechtenstein and Norway; excluding Switzerland). The Agreement on the EEA entered into force on 1 January 1994. Please refer to Appendix A for more information.
European Union	A list of member states is available on the EU website
Employment status (formerly employed)	The main types of employment status are: worker employee self-employed and contractor director office holder More information on employment status is available.
English for speakers of other languages (ESOL)	The study of English by speakers of other languages.
ESFA funded AEB	Funding you can claim from ESFA for delivery of AEB eligible provision, and/or or traineeship programme provision to individuals set out in the who we fund section.
European social fund (ESF)	The ESF is a structural fund from the European Union (EU). It improves the skills of the workforce and helps people who have difficulties finding work. We are a co-financing organisation for the ESF.
Evidence pack	A collection of documents and information brought together to form a single point of reference relating to learning that is taking place. This must provide evidence to prove the learner exists, is eligible for funding, the planned learning to be provided, and that learning has been delivered.
Exceptional learning support	Learning support funding to meet the costs of putting in place a reasonable adjustment for a learner who requires more than £19,000 in a funding year.
Find a learning aim	Find a learning aim provides online services to find the latest information on available qualifications, apprenticeship standards, T Levels and units. Standards will show you information on funding, dates and common components. Qualifications and units show you funding streams for courses and the last date learners can start.
Flexible element	Within a traineeship, the elements that sat alongside the core elements to form the qualification.
Full level 2	The following qualifications are designated full at level 2: General Certificate of Secondary Education in 5 subjects, each at grade C or above or grade 4 or above a Technical Certificate at level 2 which meets or has previously met the requirements for 16 to 19 performance tables
Full level 3	The following qualifications are designated full at level 3: General Certificate of Education at the advanced level in 2 subjects General Certificate of Education at the AS level in 4 subjects QAA Access to Higher Education (HE) Diploma at level 3 Technical or applied general qualification, at level 3 which meets or has previously met the requirements for 16 to 19 performance tables Core maths qualification at level 3
Full or co-funding Indicator (FFI)	Indicates whether a learning aim is fully funded or co-funded in Adult Skills or Other Adult Funding.
Functional skills	Applied practical skills in English, maths and Digital that provide the learner with the essential knowledge, skills and understanding to enable them to operate effectively and independently in life and work.
Funding agreement	The agreement between the Secretary of State for Education acting through the Education and Skills Funding Agency (ESFA) and providers who receive funding for education and skills training.
Funding model (10 and 35)	Identifies the funding methodology we apply to submission of finalised ILR data. For AEB funding, Funding Model 10 (Community Learning) and 35 (Adult Skills) are used, noting model 10 is non-formula funded (meaning ILR data does not generate a funding rate and is paid on monthly profile) and model 35 is formula funded. More information is available in the 2023 to 2024 ILR Specification.

Funding year	The ESFA’s adult funding system operates on a funding year basis, which starts on 1 August and finishes on 31 July.
General Data Protection Regulation	The General Data Protection Regulation (GDPR) is a Europe-wide law that replaced the Data Protection Act 1998 in the UK. It is part of the wider package of reform to the data protection landscape that includes the Data Protection Act 2018. The GDPR sets out requirements for how organisations have to handle personal data.
Guided learning	As defined by Ofqual: ‘The activity of the learner in being taught or instructed by – otherwise participating in education or training under the immediate guidance or supervision of – a lecturer, supervisor, tutor or other appropriate provider of education or training. For these purposes the activity of ‘participating in education and training’ shall be treated as including the activity of being assessed if the assessment takes place under the immediate guidance or supervision of a lecturer, supervisor, tutor or other appropriate provider of education or training’. You can find more information in the Ofqual Handbook
Hardship	Within learner support, a category of support to assist vulnerable and disadvantaged learners to remove barriers to education and training.
Individualised learner record (ILR)	The primary data collection requested from learning providers for further education and work-based learning in England. The government uses this data to monitor policy implementation and the performance of the sector. It is also used by organisations that allocate funding for further education.
ILR specification	The ILR Specification is the technical documents, guidance and requirements to help providers collect, return and check ILR and other learner data.
Job outcome payments	Payments made for learners who are unemployed at the start of learning who cease learning to take up a job.
Learner residency	We use the term ‘resident’ or ‘residence’ in this document for different purposes. Residence in the UK, EU and EEA has specific definitions in education law, and this is set out in the ‘residency eligibility’ section. Following the devolution of adult education functions, there is a new emphasis on residence in England, in determining and evidencing eligibility for ESFA funded AEB - see ‘who we fund’ and ‘evidence’ sections. This means the permanent residency of an individual in England (meaning, not a temporary address for duration of learning taking place), immediately prior to enrolment determines eligibility for ESFA funded AEB.
Learner support	Funding to enable providers to support learners with a specific financial hardship that might prevent them from being able to start or complete their learning.
Learning aim	Statements that describe the overarching intentions of a course.
Learning aim reference number	The unique eight-character code used to identify a specific learning aim.
Learning delivery monitoring (LDM)	A code used as part of the ILR to indicate participation in programmes or initiatives.
Learning planned end date	The date entered onto the individualised learner record (ILR) when the learner is expected to complete their learning.
Learning support	Funding to enable providers to put in place a reasonable adjustment, set out in the Equality Act 2010, for learners with an identified learning difficulty and/or disability to achieve their learning goal.
Legal entitlement	The legal entitlement to education and training allows learners to be fully funded who are aged: 19 and over, who have not achieved a grade 4 (legacy grade C), or higher, and study for a qualification in English or maths up to and including level 2, and/or 19 to 23, if they study for a first qualification at level 2, and/or level 3 19 and over, who have digital skills assessed at below level 1.
Local flexibility	Regulated qualifications, and/or their components, and non-regulated learning that ESFA funds, which is not part of the English and maths, or level 2 or level 3 legal entitlement offer. All regulated and non-regulated learning that is available for funding through the flexible local offer is listed on find a learning aim.
Low wage threshold	The threshold of £22,308 as an annual gross salary, is based on the National Living Wage (23 and over hourly rate) of £11.44, on the assumption of a 37.5 hour contract with paid statutory holiday entitlement (therefore, £11.44 multiplied by 37.5 hours per week, multiplied by 52 weeks per year). The 25 and over hourly rate of £11.44 will come into force in April 2024 and is updated each year. Providers will need to check they are applying the correct rate following the annual change in April.
Multiply	Multiply is the new adult numeracy programme being delivered across MCAs/the GLA and upper tier/unitary authorities outside of those areas, in 2022 to 2023 and 2024 to 2025.
Non-formula community learning funding	Where applicable, providers receive a non-formula funded community learning allocation’ as part of their AEB which is paid on a monthly profile. Submission of ILR data does not generate a funding value for the learning aim/s a learner participates on. Instead, providers attribute costs up to the value of their non-formula community learning allocation. Providers submit community learning data through funding model 10. More information is available in the 2023 to 2024 ILR Specification.
Non-regulated learning	Learning which is not subject to awarding organisation external accreditation in the form of a regulated qualification. It may be designed, delivered and certificated by a provider or another organisation. This could include: independent living skills and engagement learning employability and work skills labour market re-entry technical education tasters basic digital skills community learning
Not in employment, education and training (NEET)	A young person aged 16 to 24 who is no longer in the education system and who is not working or being trained for work.
Occupational Standard	The requirements for competence in the duties of an occupation which are approved and published by the IATE. They include knowledge, skills and behaviours.
Ofqual	The Office of Qualifications and Examinations Regulation, which regulates qualifications, examinations and assessments in England.
Performance management requests form (AEB)	This form must be used at the performance management reviews for exceptions to reductions or increases and first-time requests.
Personal learning record (PLR)	A database that allows individual learners access to their past and current achievement records. These can be shared with schools, colleges, further education training providers, universities or employers.
Recognising and Recording Progress and Achievement (RARPA)	The Learning and Work Institute have published updated RARPA guidance. This comprises a clear framework designed to support learners through the learning process, identifying key outcomes. It provides a robust approach to quality control and improvement of non-regulated provision with a focus on self-assessment that supports standards acceptable to the Office of Standards in Education (Ofsted). You can access further information from The Learning and Work Institute.
Recognition of prior learning (RPL)	An assessment method that considers whether a learner demonstrates that they can: meet the outcomes for a qualification or a component of a qualification through knowledge, understanding, or skills they already have and so do not need to undertake a course of learning for that component or qualification
Regulated Qualifications Framework (RQF)	The RQF provides a way of understanding and describing the relative level and size of qualifications. The RQF, operated by Ofqual, is a single regulatory framework containing a range of general, technical and professional qualifications.
Residential Support	Support provided under learner support to learners receiving specialist provision, which involves a residential element, or to support learners who cannot receive provision locally.
Sector-based work academy programme (SWAP)	SWAP is a DWP scheme that offers pre-employment training, work experience placements and a guaranteed job interview for recipients of Jobseeker’s Allowance (JSA), Universal Credit (all work-related requirements group) or Employment and Support Allowance.
Self-declaration	A process where the learner can confirm something through his or her own signature.
Senior responsible person	For example, chief executive, managing director, principal or their equivalent.
Skills Bootcamp	A skills bootcamp is a bespoke employer-led level 3 to 5 programme, designed to meet skills needs within the economy. Following a procurement process, the skills bootcamp programme began in August 2022.
Start of learning	The date on which learning begins. We do not consider enrolment, induction, diagnostic assessment, or prior assessment to be part of learning.
State benefits	State benefits are contributions, both financial and non- financial, made by central and local government to individuals in certain circumstances to meet their day-to-day living needs.
Study programme	Study programmes are for learners aged 16 to 19 and cover all levels up to level 3. Funding is for each learner, rather than for each qualification and can only have one core aim at a time.
Subcontractor	A separate legal entity that has an agreement with you to deliver any element of the education and training we fund. A separate legal entity includes companies in your group, other associated companies and sole traders. It also includes individuals who are self-employed or supplied by an employment agency, unless those individuals are working under your direction and control, in the same way as your own employees.
Take home pay	An unemployed learner may also receive an income alongside their benefit claim. In order to be fully funded under the unemployed definition their ‘take home pay’ (stated on the Universal Credit statement) is less than £892 a month (sole adult in their benefit claim) or less than £1,437 a month (joint benefit claim with partner).
Traineeship programme	Traineeships were a national programme which provided 16 to 24-year-olds resident in England with the skills and work experience needed to progress into apprenticeships, employment and further learning.
UK provider reference number	A unique identifying number given to all providers by the UK register of learning providers.
Unique learner number	A 10-digit number used to match a learner’s achievement to their personal learning record (PLR).
Work placement	A placement with an employer in a workplace setting as part of a continuing learner’s offer.
Young people’s funding methodology	The funding methodology for individuals aged 16 to 19 (and those aged 19 to 24 with an EHC plan). You can access the 16 to 19 funding methodology on GOV.UK.
Virement	The process of moving money from one financial account or part of a budget to a different one.

Section	Change
ESFA funded level 3 free courses for jobs offer (grant)	Over delivery threshold updated.
ESFA funded level 3 free courses for jobs offer contract for services (procured from August 2023)	Over delivery threshold updated.
ESFA funded level 3 free courses for jobs offer contract for services (procured from August 2021)	Over delivery threshold updated.
Individuals with certain types of immigration status and their family members	Additional information added regarding individuals with status expiry showing no later than December 2024.
Performance Management	Addition of the performance management rules.
Annex E – Review Points	Addition of Annex E.
Annex F – Standard national profiles	Addition of Annex F.
Annex G – Performance management overview	Addition of Annex G.
Devolution of adult education functions	We have moved the information about devolved areas to annex B.
Traineeships – continuing learners	As the last date for new starts on the national traineeship programme is 31 July 2023, we have amended references to traineeships in the main body of the rules to show that they are rules for continuing learners only.
Principles of funding	We have confirmed that you must not transfer funding between ESFA funded AEB and AEB funding devolved to combined authorities.
Residency eligibility	We have amended the areas listed below: Temporary residence in the UK for educational purposes Temporary absences from the UK Learners who have applied for an extension or variation of their immigration permission
Residency eligibility	We have made the following changes: Persons with stateless leave will now be eligible without meeting the 3-year ordinary residence requirements The rules on Afghanistan schemes have been clarified to confirm that all those granted leave under ARAP or ACRS are eligible EEA/Swiss ‘frontier workers’ (those who work in the UK but formally reside in another EU country) will now be eligible Non-UK/Non-EU family members of UK nationals who exercised their right of free movement prior to EU exit will now be eligible without meeting the 3 year ordinary residence requirements in their own right, under the same terms as family members of EU nationals who did the same Persons with ‘long residence’ in the UK (defined as more than half their life, or at least 20 years) will be eligible References to ‘joining family members’ of EU nationals have been removed and these family members are assumed to be included within the rules for family members of EU nationals
Contracting: Staying on the Register of Training Organisations	As the Register of Training Organisations was decommissioned on 31 July 2021, we have removed the information box.
Contracting: Match funding requirements relevant to AEB	We have amended this section to reflect that these requirements will not apply for new starts in academic year 2023 to 2024.
Funding for developing innovative provision	We have added an information box to introduce the new funding for developing innovative provision. Further details will be in version 2 of these funding rules.
Funding for developing innovative provision	We have added full details regarding funding for developing innovative provision.
Unemployed	We have amended the Universal Credit thresholds to reflect the new rates set by DWP that will be valid from 13 May 2024.
Learners in receipt of low wage	The low wage threshold has been increased, in line with DWP changes from 1 April 2024.
Heavy goods vehicle (HGV) driver training	We have added a note to explain that the HGV offer is under review. Further details will be in version 2 of these funding rules.
HGV	We have confirmed that the HGV driver flexibility will be extended to 2023 to 2024.
FCFJ	We have added clarification regarding checking the category code of an aim on find a learning aim to confirm whether it is eligible for funding.
Learning in the workplace	We have changed the rules around learning in the workplace to confirm that we will now fund any regulated qualifications and/or learning aims at an employee’s workplace.
Community Learning	We have updated the delivery strands which link to the community learning objectives, now in annex C.
Section 3 – traineeships	We have updated this section to reflect that traineeship provision will be integrated into adult education provision from 1 August 2023. We are currently reviewing the rules for new starts for learners from 1 August 2023 and will include these in version 2. These will include work placement and work preparation.
Section 3 New integrated starts from 1 August 2023: formerly traineeships	We have clarified the rules that apply to new integrated starts for elements that were formerly part of the traineeship programme: Work preparation Work placement for 19 to 24 learners English and maths and digital skills ESFA funded AEB flexible element
Core offer for continuing traineeships learners	We have clarified in the information box regarding the elements that remain available for continuing traineeship learners.
Annex B	This annex contains information relating to the devolution of adult education functions.
Glossary	We have amended the following definitions: Full level 2 Full level 3 Low wage threshold Traineeship programme Work placement We have removed the definition for high value courses skills offer

Cookies on GOV.UK

Applies to England

What’s new?

Introduction and purpose of the document

How this document can help you

Understanding the terminology

Contact us

Section 1 – General funding requirements

Principles of funding

Who we fund

Residency eligibility

Learners who live in Wales, Scotland or Northern Ireland

Temporary residence in the UK for educational purposes

Temporary absences from the UK

Learners who have applied for an extension or variation of their immigration permission

UK nationals and other persons with right of abode

UK nationals in the EEA and Switzerland

EEA and Switzerland nationals in the UK with EU Settlement Scheme (EUSS)

EEA and Switzerland frontier workers

Family members of EU nationals

Irish citizens in UK or Republic of Ireland

Irish citizens in EEA and Switzerland

Other non-UK nationals

Family members of an eligible person of Northern Ireland

Long residence

Individuals with certain types of immigration status and their family members

Persons granted stateless leave and their family members

Children of Turkish workers

Asylum seekers

Individuals who are not eligible for funding

Learners in the armed forces

Fees and charging

Qualifying days for funding

Recognition of prior learning (RPL)

Breaks in learning

What we will not fund

Contracting

Subcontracting

Match funding requirements relevant to AEB

Evidence

Evidence pack

Confirmation and signatures

Starting, participating and achieving

Leaving learning

Individualised learner record (ILR)

Self-declarations by learners

Section 2 – ESFA funded AEB

Funding for developing innovative provision

Provision and individuals we fund

Legal entitlements

Level 3 adult offer and the level 3 legal entitlement

Local flexibility

Local flexibility and legal entitlements

Government contribution charts

Chart 1: 19 to 23-year-olds

Chart 2: 24+

Definitions used in AEB

Unemployed

Learners in receipt of low wage

Heavy goods vehicle (HGV) driver training

Sector-based work academy programme (SWAP)

Free courses for jobs

Full level 2

Full level 3

Approved qualifications

Non-regulated learning

Learning in the workplace

English and maths for those aged 19 or older

Digital entitlement for those aged 19 or older

Individuals aged 19 to 23 (excluding English, maths, digital and ESOL)

Individuals aged 24 or older (excluding English, maths, digital and ESOL)

English for speakers of other languages (ESOL)

Learners with learning difficulties and/or disabilities

Learners with an EHC plan

Community learning

Non-formula community learning funding

Pound Plus and local fee remission policy

Partnership working

Prince’s Trust Team Programme

Support funding