The ESFA have recently published updated guidance to colleges that enables them to claim additional funds for exceptional in year growth. Whilst this has been in place for a number of years now, the good news is that the mechanism has changed that is hoped to enable more colleges to now access these important funds in these troubling times.
This funding is only available to colleges with exceptional growth and is subject to a year end reconciliation. This means that unlike normal 16-19 funding, which is based on a lagged learner approach, a reconciliation is completed and should a college in receipt of these funds not meet the minimum threshold then all growth funds received would be subject to repayment. This clawback is not proportional but all or nothing. Therefore, any college in receipt of these funds should ensure governors are aware of this risk and it is good practice for performance in this area to be specifically monitored within your management accounts.
Over delivery is calculated as follows:
Growth calculation based on 20/21 allocated student numbers and funded based on the average funding per student
Example: An institution with an allocation of 2,000 students has a lower threshold of 100 students and upper threshold of 200. It has a growth of 250 students. The calculation applied is as follows:
More details can be found on the following link including an in year growth calculator - https://www.gov.uk/guidance/student-number-in-year-growth-for-2020-to-2021