Funding                       

Early childhood and school funding is the focus of reform. The Government has a priority of ensuring that funding is fairer and more consistent across the country. In schools, it is aiming to make it a more transparent, pupil-led system in which funding is based on actual pupil characteristics and need, rather than on historic spending levels. The reforms include the introduction of a new early years national funding formula in 2017/18, and of a new national funding formula for mainstream primary and secondary schools in 2018/19.

Recurrent funding for early years provision

Funding of early years provision aims to be fair and transparent and supportive of a diverse range of providers. It also seeks to support the most disadvantaged young children with a view to improving life chances and social mobility. 

Local authorities (LAs) receive the ‘early years block’ of the Dedicated Schools Grant (DSG) annually from central government to support the provision of free early years education. Under the early years national funding formula (introduced in the 2017/18 financial year) and The School and Early Year Finance (England) Regulations 2018, they are required to use a locally agreed formula to distribute this funding. The formula sets the funding rates for early years providers of all types – public, private and voluntary sector – who ensure this provision.

Operational Guidance on the local authority funding of early years providers for 2019/20 sets out that, for all 3- and 4-year-olds, LAs must:

• plan to pass on a minimum of 95% of the funding they receive from central government to providers;
• include a deprivation supplement in their local formula;
• use a universal base rate for all types of provider in their funding formula;
• pass on Disability Access Fund (DAF) funding in full to providers for all eligible children;
• establish a Special Educational Needs Inclusion Fund (SENIF) to support providers of early years education to address the needs of individual young children with special educational needs (SEN);
• pass on Early Years Pupil Premium (EYPP) funding in full to providers in respect of disadvantaged children.

The early years block of the DSG comprises six funding streams:

1. the early years entitlement for disadvantaged 2-year-olds;
2. the early years universal entitlement for 3- and 4-year-olds;
3. the early years additional entitlement for 3- and 4-year-old children of eligible working parents;
4. supplementary funding for maintained nursery schools;
5. the Early Years Pupil Premium (EYPP);
6. the Disability Access Fund (DAF).

Local authorities (LAs) fund private and voluntary sector providers, which have been inspected by Ofsted, to deliver:

• 15 hours of provision for disadvantaged 2-year-olds;
• 15 hours of provision for all 3- and 4-year-olds (the universal entitlement);
• 15 hours of additional provision for eligible working parents of 3- and 4-year-olds (the extended entitlement).

Maintained nursery schools also receive supplementary funding. They have received this since 2017, when the new early years funding formula was introduced. It helps to keep their funding at 2016-17 levels, and is a recognition that the new funding formula would not cover their running costs.

The Early Years Pupil Premium (EYPP) is available for 3- and 4-year-olds in government-funded provision whose families are in receipt of particular state benefits, or for 3- and 4-year-olds who are, or previously have been, looked after. Early years providers are expected to use this funding to improve the quality of education for these disadvantaged children, and Ofsted (the Inspectorate) reports on whether providers are spending their EYPP funding effectively. Pages 25-29 of the 2019/20 Operational Guidance on early years entitlements provide further information on the Early Years Pupil Premium, which was introduced in the 2015/16 financial year.

The Disability Access Fund (DAF) is funding to help early years providers to support children with disabilities and SEN to access early years places. Introduced in April 2017, it enables providers to (for example) make reasonable adjustments to their settings, and/or to fund additional support staff. Early years providers are responsible for identifying those children eligible for the DAF, and local authorities fund all early years settings providing a place for each eligible child in their area at a fixed annual rate of £615 per eligible child (€690.29*).

*Exchange rate used €1 = £0.89, ECB, 14 June 2019.

Recurrent funding for schools

Schools receive funding for both recurrent (revenue) expenditure and capital expenditure.

1. Recurrent expenditure mostly comprises the salaries of headteachers, teachers and other staff. It also includes books and equipment. Repairs and maintenance are also normally paid for from recurrent expenditure.
2. Capital expenditure is for the production of an asset that will last a long time, such as a building, machinery or large items of equipment. See the subheading ‘Capital funding’ below.

Publicly funded schools comprise local authority maintained schools and academies (see the article on ‘Administration and Governance at Local and/or Institutional Level’). They are funded by central government on the same basis, but maintained schools receive their revenue funding via local authorities (LAs) and the Dedicated Schools Grant (DSG), while academies are funded directly by central government.

The Education and Skills Funding Agency (ESFA), an executive agency of the Department for Education, is responsible for allocating funding to:

• local authorities for maintained schools (and for early years education and care);
• academies (including free schools, studio schools and university technical colleges (UTCs));
• 16–19 providers such as further education colleges and sixth-form colleges.

The ESFA allocates funding to schools in accordance with a national funding formula introduced in the 2018/19 financial year. Local authorities then determine the local funding formula for schools within centrally defined parameters set out in regulations.

The ESFA allocates funding to academies on the same national funding formula basis as LA-maintained schools in their area.

Schools forums – local bodies representing maintained schools and academies – play both a consultative and decision-making role in school funding at local level. For example, they act in a consultative role over changes to the local schools funding formula, or if there are to be changes to contracts affecting schools, such as new providers of school meals. Schools forums also make decisions in areas including how much schools funding may be retained centrally by the LA. Further information about the role of schools forums is available from the Department for Education.

In addition to receiving public funds, schools are free to raise extra funds through voluntary contributions from parents and others (see the subheading ‘Fees within public education’ below). They may also raise funds through a variety of activities such as renting out school premises or running additional activities that generate income.

Recurrent / revenue funding for maintained schools

The Government introduced a new national funding formula in the 2018/19 financial year to calculate four ‘blocks’ of funding which make up the Dedicated Schools Grant (DSG). The DSG is allocated to local authorities (LAs), and the four blocks are:

• a ‘schools block’;
• a ‘high needs block’ (for pupils with high needs);
• a ‘Central School Services Block’ (CSSB), to fund those duties that LAs carry out for both maintained schools and academies;
• an ‘early years block’ (distributed under the early years national funding formula introduced in 2017/18; see the subheading ‘Recurrent funding for early years provision’ above).

The annual DSG allocation for each LA is published on the Department for Education website. It is calculated by taking into account pupil number data from the previous year’s school census, and is ring-fenced funding. This means that it must be used in support of the schools budget as defined in The School and Early Years Finance (England) Regulations 2018.

Each LA is responsible, in conjunction with the local schools forum, for determining the split of the DSG between central expenditure and the individual schools budget (ISB). Each LA is also responsible for allocating the ISB to schools in accordance with its local schools’ funding formula. The 2018 regulations state that these local formulae must include a basic per pupil entitlement (differentiated between primary and secondary education), and a deprivation factor, as mandatory elements. Other ‘allowable factors’ which local formulae may take into account include prior attainment, looked after children, English as an additional language, and pupil mobility. The Schools Revenue Funding 2019 to 2020 Operational Guide provides further information.

Each school's budget share is allocated as a block grant to cover all revenue costs including the salaries of headteachers, teachers and other staff; books and other equipment; and repairs and maintenance. The governing body of the school is responsible for spending this block grant for the purposes of the school as it sees fit.

LAs can add to the schools budget from local sources of income, although only a small minority do so. The financial year in maintained schools runs from April to March.

Recurrent / revenue funding for academies

Academies are publicly funded independent primary, secondary and special schools which have individual funding agreements directly with the Secretary of State (see the article on ‘Administration and Governance at Local and / or Institutional Level’).

Academies are funded on the same basis as maintained schools. They receive annual funding allocations in the form of a General Annual Grant (GAG) from the Education and Skills Funding Agency (ESFA), an executive agency of the Department for Education. The ESFA calculates funding for academies using a local authority (LA) formula.

Before changes were introduced under the national funding formula in 2018/19, academies also received funding in the form of the Education Services Grant (ESG). The ESG funded central services including education and welfare services and asset management. Since 2018/19, academies have received central service funding from LAs under the Central Schools Services Block (CSSB). The Government has provided protection against budget reductions following the end of the ESG to some academies, with a small number still eligible for this protection in 2019/20.

The financial year in academies runs from September to August, in line with the school year.

For further information on the funding of academies, see this GOV.UK webpage and the General Annual Grant allocation guides for academies.

Reform of formula funding for schools

School funding arrangements are in transition as a result of reform which began in 2012 and the introduction of a national funding formula for schools. The new national funding formula is being introduced on a ‘soft’ basis in 2018/19 and 2019/20, and is supported by a Minimum Funding Guarantee (protection for schools against significant year-on-year changes in pupil-led funding) and transitional funding arrangements.

The reforms are driven by the desire to:

• simplify highly complex school funding arrangements, with significant variation in local funding formulae;
• base school funding more comprehensively on the actual characteristics of pupils and schools – ‘pupil-led’ factors;
• use the same methodology to calculate funds for maintained schools and academies (including free schools, studio schools, and university technical colleges (UTCs)).

They are intended to create funding arrangements which: 

• maintain some local discretion over funding;
• ensure as much funding reaches schools as possible; 
• maintain and improve the arrangements for equivalent and consistent funding between maintained schools and academies; 
• enable school leaders to understand the basis on which their institutions are funded; 
• support the needs of pupils; 
• are more responsive to pupil numbers and demand from parents. 

This November 2017 House of Commons Library research briefing provides further information on the introduction of the national funding formula.

Pupil Premium and other targeted funding

The Pupil Premium is an additional funding allocation which is designed to tackle educational inequality. It provides schools with extra funds to raise the attainment of pupils from disadvantaged backgrounds and close the gap between them and their peers. 

Under the Pupil Premium arrangements, in 2019/20, primary schools are eligible to receive £1320 (€1481.60*), and secondary schools £935 (€1049.46*), for each child registered as eligible for free school meals at any point in the last six years.

Schools also receive £2300 (€2581.57*) of Pupil Premium for each:

• ‘looked after’ pupil, that is, a pupil who has been in public care for one day or longer;
• pupil who has left care and been adopted;
• pupil who has left care under a special guardianship order or a residence order;
• child who has been looked after and eligible for free school meals in the last six years.

A smaller Premium payment of £300 (€336.73*) per child is paid to schools educating the children of those serving in the armed forces. Further information about the Service Pupil Premium is available.

The Pupil Premium is not ring-fenced, that is it is not specifically allocated for spending on the pupils for whom it is provided. The intention is to enable schools to have the freedom to use the funding to support them in employing the strategies that they know will help their pupils to increase their attainment. Schools are, however, accountable for the Pupil Premium they receive, and Ofsted’s school inspections report on the attainment and progress of disadvantaged pupils who attract the Pupil Premium. Maintained schools must also publish their strategy for using the Pupil Premium on their website, and the achievement of children eligible for the Pupil Premium is captured in school performance tables. The Education Endowment Foundation (EEF) provides a teaching and learning toolkit to help schools to use the Pupil Premium to support disadvantaged pupils. The toolkit provides research evidence about the effectiveness of a range of interventions.

Further information on the Pupil Premium is available, and this April 2018 House of Commons Library briefing paper, The Pupil Premium, provides an overview of the policy since its introduction in 2011.

Other specific funding allocations include the following.

1. The Year 7 Literacy and Numeracy Catch-up Premium, which provides additional funding to secondary schools for each Year 7 pupil (in the first year of secondary education) who did not achieve the expected standard in reading and/or maths at the end of Key Stage 2 (the end of primary education). Maintained schools receive their Catch-up Premium via their local authority; academies receive it directly from the Education and Skills Funding Agency (ESFA).
2. The PE and Sport Premium for primary schools, which schools must use to make additional and sustainable improvements to the quality of physical education (PE) and sport they offer. Schools receive PE and Sport Premium funding based on the number of pupils in Years 1-6 (ages 5-11).  
3. Universal infant free schools meals (UIFSM) funding, which enables schools to offer free school meals to all pupils in reception class, Year 1 and Year 2 (ages 4 to 7). This became a statutory requirement from September 2014.

* Exchange rate used €1 = £0.84, ECB, 14 June 2019.

Recurrent funding for 16-19 provision

The Education and Skills Funding Agency (ESFA), an executive agency of the Department for Education, is responsible for the funding of provision for 16- to 19-year-olds in maintained schools and academies with sixth forms; in sixth-form colleges; and in further education institutions. It is also responsible for funding apprenticeships and traineeships (see the article on ‘Adult Education and Training Funding’ for further information on the funding of apprenticeships and traineeships, and on the funding of education for adults over the age of 19 not in higher education).

In providing funding for 16-19 provision in schools and colleges, the ESFA uses a national funding formula to calculate an allocation for each institution for each academic year. The formula funds institutions to deliver study programmes to their students. These study programmes must be tailored to the prior attainment of each student; have clear study and / or employment goals; show progression in learning; include substantial qualifications or work experience; and include the study of maths and English for students who have not achieved a good GCSE pass in these subjects by age 16. The elements used in the formula include:

• student numbers, split into bands by size of study programme;
• a national funding rate per student (this is determined by the size of the individual student’s study programme based on their planned hours);
• a retention factor;
• a programme cost weighting;
• disadvantage funding;
• an area cost allowance.

The data used to calculate each element is mainly collected via the Individualised Learner Record (ILR) for further education institutions, and the autumn School Census for maintained schools and academies.

Funding is delivered so that providers receive their calculated allocation from a single source: funding for maintained schools with a sixth form and funding for academies, further education colleges, sixth-form colleges and independent providers passes directly from the ESFA to the provider.

For further information, the ESFA provides an overview of how 16-19 funding works.

Capital funding

Capital funding is funding provided to:

• support the capital requirement for providing early years and school places, including places for 16- to 19-year-olds, in the form of the Basic Need capital allocations;
• create places for pupils with special educational needs (SEN) and disabilities through the Special Provision Capital Fund;
• protect the school estate (building and grounds) through what is known as ‘school condition funding’.

The subheadings which follow provide further information.  

Basic Need capital allocations

Local authorities (LAs) have a duty to ensure that there are sufficient school places for children in their local area and that there are enough education and training places for 16- to 19-year-olds. To support the capital requirement for providing these places, by (for example) expanding existing maintained schools or academies or by establishing new schools, they receive capital funding in the form of Basic Need capital allocations. These allocations are mostly calculated from the School Capacity Survey, which collects information on the capacity of schools in each LA and LAs’ forecasts of pupil numbers for several years ahead.

Special Provision Capital Fund

The Children and Families Act 2014 places important statutory responsibilities on LAs to support children and young people with special educational needs and disabilities (SEND). LAs receive funding through the Special Provision Capital Fund to create education and training places for children and young people with an education, health and care (EHC) plan, and to improve provision for them. The funding is not ring-fenced; LAs can use it as they see fit to improve special provision for children and young people. However, to access the funding, they must publish a concise plan describing how they intend to use their allocation. The funding can be invested in mainstream schools and academies, special units, special schools and academies, early years settings, and further education colleges, or to make other provision for children and young people with an EHC plan aged from 0 to 25.

School condition funding

Local authorities and academies also receive ‘school condition funding’ from central government each year for the upkeep and maintenance of the school estate (buildings and grounds). (The governing bodies of voluntary aided schools, however, are generally expected to contribute a small proportion of capital costs.)

School condition funding is received through three separate allocations:

• Devolved Formula Capital (DFC)
• School Condition Allocations (SCA)
• Condition Improvement Fund (CIF).

This capital funding is based on the condition of school buildings, as well as on pupil numbers and school characteristics. The Education and Skills Funding Agency (ESFA), as an executive agency of the Department for Education, provides the funding to local authorities to pass on to their maintained schools, and passes it directly to other providers (e.g. academies and sixth-form colleges).

Since 2015, the school condition capital funding allocations have been set for a three-year period rather than annually, although the funding is provided annually to schools and colleges.

Through Devolved Formula Capital (DFC), all schools receive a fixed lump sum, along with a variable amount based on pupil numbers.

Schools also receive a ‘core’ amount of School Condition Allocations (SCA) funding based on their pupil numbers, and those with disproportionately high need receive an additional amount of SCA funding (the ‘high condition need funding’ component). Need is determined via the Property Data Survey programme on the condition of schools.

Sixth-form colleges and some academies are not eligible for School Condition Allocations and may instead apply for funds under the Condition Improvement Fund (CIF).

In addition to the capital funding allocations above, the Priority School Building Programme has enabled schools in the worst condition to bid for funding for refurbishment or rebuilding. Funding is provided either through capital grant or private finance, and for whole school sites or individual school buildings. The ESFA plans for all new or refurbished schools being funded under the Priority School Building Programme to be completed by the end of 2021.

This February 2017 House of Commons Library research briefing provides an overview of capital funding in schools in England.

Financial autonomy and control

Schools

All maintained schools and academies have a high level of autonomy. Most school financial administration and management functions are delegated to school governing bodies and headteachers. This has been the case since the introduction of local management of schools (LMS) under the Education Reform Act 1988.

Each school's budget share is allocated as a block grant to cover all recurrent/revenue costs including the salaries of headteachers, teachers and other staff; books and other equipment; and repairs and maintenance. The governing body is responsible for spending this block grant for the purposes of the school as it sees fit.

There are different arrangements for the acquisition and management of resources (e.g. staff, operational resources and infrastructure) for different legal categories of school. These are summarised below.

1. In community schools, which are maintained schools run by local authorities (LAs), the school premises (land and buildings) are owned by the LA and the schools are fully funded by LAs for both revenue and capital expenditure. The LA employs the staff and is the admission authority.  
2. Foundation schools are owned either by the school governing body or by trustees of the school, but are funded by LAs in a similar way to community schools. The governing body is the admission authority and employs the staff.
3. Voluntary controlled schools and voluntary aided schools are owned either by school trustees or by the founding body of the school (such as the Church of England or the Catholic Church). Both types of school receive full funding for revenue expenditure, but voluntary aided schools are generally expected to contribute a small proportion of capital costs (usually around 10%). In voluntary controlled schools, the LA employs the staff and is the admission authority, while in voluntary aided schools it is the governing body which performs these functions.
4. Academies are also publicly funded schools but are designated as independent (private) schools and enjoy complete financial autonomy. For further information, see the subheading ‘Administration and governance of academies’ in the article on ‘Administration and Governance at Local and/or Institutional Level’.

All schools are expected to use their resources in the best way possible to provide a high quality teaching and learning environment for all pupils. The governing body and headteacher are also expected to use their autonomy over the use of their budgets to determine, at school level, how to secure best value for money.

The ‘Schools financial benchmarking tool' enables maintained schools and academies to benchmark their income and expenditure profile against that of other, similar schools and so make informed financial decisions on the use of resources. The Governance Handbook also includes guidance for the governing bodies of maintained schools and academies on their financial responsibilities and accountability.

Other provision for 16- to 19-year-olds

Further education colleges and sixth-form colleges are autonomous institutions and, as such, are responsible for financial administration and management functions. In managing a college’s financial affairs in relation to the provision of education and training for 16- to 19-year-olds, college governing bodies and principals must, however, adhere to the conditions of their funding agreement with the Education and Skills Funding Agency (ESFA). From 2019/20, FE funding is being contracted under a new contract framework, which reflects commercial best practice and harmonises funding contracts across the sector.

Guidance for sixth-form and further education (FE) college governors on financial accountability (strategy and audit) is provided in Section 6 of the Code of Good Governance for English Colleges, produced by the Association of Colleges (AoC). Further guidance is available in the governance guide for FE and sixth-form corporation/colleges.

Fees within public education 

Early years

The Government provides funding for 15 hours of early childhood education and care (ECEC) for all 3- and 4-year-olds; 30 hours of ECEC for 3- and 4-year-olds whose parents are in work; and 15 hours of ECEC for disadvantaged 2-year-olds.

These places are provided in private, voluntary and independent (PVI) settings and in nursery schools and nursery classes in maintained schools and academies.

Parents may extend this provision by paying for additional hours of care for their child.

Schools and colleges

Education is free of charge for all pupils in schools (maintained schools and academies) from age 4 to age 16. Admission authorities must provide for the admission to the reception class of primary school of all children in the September following their fourth birthday.

Education is also free of charge for all full-time students aged 16 to 19 in schools (maintained schools and academies) and further education institutions (excluding those on higher education programmes).

No charge may be made for education provided wholly or mainly within school hours (excluding midday breaks) for pupils in publicly funded schools and academies. Education which takes place wholly or mainly inside school hours; is part of the syllabus for a prescribed examination; is part of the national curriculum; or is part of statutory religious education, must be provided free of charge. Charges may not be made for the cost of materials, books, instruments or any other equipment in support of this education. All text and exercise books belong to the school.

No charges may be made for entering pupils for public examinations (e.g. GCSEs at age 16). The school must enter a pupil for each examination in a public examination syllabus for which the school has prepared the pupil. 

Charges may be made for activities which fall outside the above categories. For example, The Charges for Music Tuition (England) Regulations 2007 allow schools to charge for individual or small group instrumental and vocal tuition provided during the school day, if a parent requests this tuition. It must not, however, be part of the national curriculum or part of a syllabus for a prescribed public examination. Schools are also able to charge for some activities that are known as ‘optional extras’, which include, for example, extended day services such as before-school or after-school clubs. Participation in ‘optional extra’ activities is on the basis of parental choice and a willingness to meet the charges.

Schools are also permitted to ask parents for a voluntary contribution towards the cost of any activity that takes place during school hours; towards school equipment; or towards school funds generally. The contribution must be genuinely voluntary, and the pupils of parents who are unable or unwilling to contribute may not be discriminated against. This means, for example, that if there are not enough voluntary contributions to make an activity possible, and there is no way to make up the shortfall, then it must be cancelled. Government guidance on charging for school activities is available.

Financial support for learners’ families

Child Benefit is a tax-free payment from central government which can be claimed for a child. It is available for children aged 0 to 16 (or 19 if the child is still in qualifying full-time education and training). It is not otherwise linked to attendance at school. There is a higher rate for the first child than for subsequent children.

In January 2013, Child Benefit, which had historically been a universal payment, was reformed. Since that date, when one person in the household has an income of more than £50,000 (€56,121.13*), the Benefit falls by 1% for every £100 (€112.24*) earned over £50,000. In households where one parent earns more than £60,000 (€67,345.36*) no Child Benefit payment is received.

Parents or carers who are responsible for children under the age of 16 (or under the age of 20 and in eligible education and training) may also receive Child Tax Credits or other benefits, depending on their circumstances. 

Further information is available in the Child Benefit section of the Government’s Benefits website. 

*Exchange rate used €1 = £0.89, ECB, 14 June 2019.

Financial support for families of pupils with special educational needs

Government support is available for families with a disabled child. This includes the Disability Living Allowance (DLA) for children under the age of 16. This weekly payment, which varies depending on the level of help a child needs, is payable to children who have difficulty walking and/or who need more looking after than a child of the same age who doesn’t have a disability. Further information on the DLA is available. 

For young people over the age of 16 who have long-term ill-health or disability, Personal Independence Payments (PIPs) may be available.

Young people and parents of children with special educational needs and disabilities (SEND) who have an Education, Health and Care (EHC) plan have the right to request a personal budget to use in support of their needs as specified in the plan. This may contain elements of education, social care and health funding. Further information on personal budgets for young people with SEND under the age of 25 is available. For further information on EHC plans, see the subheading ‘Specific support measures’ in the article on ‘Special Education Needs Provision within Mainstream Education’.

Children and young people with an EHC plan which includes transport requirements are provided with school transport by their local authority.

Financial support for learners

Schools cannot charge for learning materials. These are free for all pupils (see the subheading ‘Fees within public education’ above).

Since September 2014, all school pupils in the reception class, Year 1 and Year 2 (ages 4 to 7) have been entitled to a free school meal. The Government provides additional funding to schools to support the universal infant free school meals (UIFSM) policy.

Children and young people whose parents, carers or guardians receive certain state benefits are also entitled to free school meals during school education and in post-16 education in schools, sixth-form colleges and further education institutions. Government guidance is available for institutions on providing free school meals to students in post-16 education.

In January 2019, 15.4% of pupils in primary and secondary schools were eligible for and claiming free school meals (source: Schools, pupils and their characteristics 2019).

Local authorities also have the power (under Section 510 of the Education Act 1996) to provide school clothing for children who would otherwise be unable to take advantage of the education provided. They may also make grants available for the purpose of enabling pupils to take advantage, without hardship to themselves or their parents, of any education facilities available to them. 

Details of school transport arrangements are provided under the subheading ‘Geographical accessibility’ in the articles on the ‘Organisation of Primary Education’ and the ‘Organisation of General Lower Secondary Education’.

The 16 to 19 Bursary Fund is also available to support 16-to 19-year-olds who are the most disadvantaged to stay in education. There are two types of bursary: 

1. a ‘vulnerable bursary’ of up to £1200 (€1346.91*) a year for young people who are in care, who are care leavers, or who are receiving certain state benefits;
2. a discretionary bursary for individual students who would be unable to stay in education and training without financial help for such things as transport, food, books or equipment.  

The Government does not publish data on take-up of these bursaries. Further information on the 16-19 bursary scheme is available in this April 2017 House of Commons Library research briefing.  

Financial support is also available for young people who:

• are parents - the Care to Learn scheme provides support with the costs of childcare to help ensure that young people who are parents are not prevented from taking part in education because of childcare costs;
• need to live away from home to access specialist provision or courses not available locally to their home address - support is offered through the Residential Bursary Fund and the Residential Support Scheme;
• are aged 16+ and wish to pursue a career in the performing arts - Dance and Drama Awards are available to help with tuition fees and living and learning costs at some of the leading private dance and drama training providers.

For further information on the range of financial support available for 16- to 19-year olds, see this government advice for institutions.

*Exchange rate used €1 = £0.89, ECB, 14 June 2019.

Private education

Independent schools, sometimes known as private schools, public schools, fee-paying or fee-charging schools, do not normally receive national or local government financing for their operation. They are funded by tuition charges (parental fees), gifts and, sometimes, the investment yield of an endowment.

Independent schools are autonomous institutions and, in managing their financial affairs, they are accountable, in particular, to the parents who pay their fees. They are largely unregulated by central government. However, under the terms of the Independent Educational Provision in England (Prohibition of Participation in Management) Regulations 2014, the Secretary of State may prohibit a person from taking part in the management of an independent school. This legislation also applies to academies which are publicly-funded independent schools.

Some independent schools have charitable status and, as such, must abide by charities legislation. Further information is provided in this House of Commons Library briefing, published in 2017.

Most private providers of early childhood education and care (ECEC) receive some government funding for the part-time provision that they offer free of charge to parents of children aged 3 and over, and to some disadvantaged 2-year-olds. To receive this funding, they must meet the statutory requirements of the common regulatory framework for the Early Years Foundation Stage. Parents can choose to pay for additional provision on top of the free, part-time early years services they receive.

Article last reviewed December 2020.