High needs funding in further education
How high needs funding works for FE colleges in 2026 to 2027, including the £6,000 element 2 place funding, top-up funding, lagged places and who counts.
Glossary
What is top-up funding? Post-16 high needs top-up in FE
Top-up funding is the extra money a local authority pays a post-16 institution for a learner with high needs, above core funding. How it works in FE.
Top-up funding
Glossary term · 1 sources
Definition
Top-up funding, sometimes called element 3, is the funding paid over and above an institution's core high needs funding to meet the cost of a learner's agreed support. For post-16 learners it is generally paid by the local authority where the learner lives.
Top-up funding is the third part of the high needs funding framework. It pays for the extra cost of support that core funding does not cover.
What does top-up funding cover?
The DfE operational guide describes top-up funding as the funding required over and above the core funding. For a college learner, core funding comprises the programme funding plus the provider’s own contribution to additional support. Top-up covers the remainder of the cost of the support the learner needs, which might include one-to-one support, therapies, specialist equipment, personal care or a specialist curriculum.
The sum is agreed between the local authority and the institution. Local authorities often use banding systems or individual costings, and these differ across England.
How does post-16 top-up funding apply in FE and apprenticeships?
In FE the starting point is the learner’s EHCP. The plan sets out the provision, and the local authority is responsible for securing it. If the plan names a college, the college and local authority agree what the support will cost and how it will be paid. Top-up payments are usually reviewed when the plan is reviewed at the annual review, so accurate records of delivered support help show whether the agreed level is right.
Good records matter here. If you can show planned support, what was delivered, what was missed and what difference it made, you have solid evidence for a conversation with a commissioner. See our guide to high needs funding in FE.
Apprentices are not covered by top-up funding. Their support is paid through apprenticeship learning support, which has its own fixed monthly amount and conditions.
What is a common misconception about top-up funding?
A frequent mistake is to assume that top-up funding is a personal budget the learner controls. It is a payment between public bodies. A learner or family can, in some cases, request a personal budget through the EHC process, but top-up funding itself is not that.
Another misconception is that top-up depends only on the number of support hours. Funding should relate to the provision needed to meet the outcomes in the plan, which may include equipment, training, therapy and staff time, not just hours of a support worker.
Where can you find the official source?
Read the DfE publication High needs funding: operational guide for the current funding year, which defines top-up funding and sets out the responsibilities of the resident local authority. The ESFA, which previously published much of this guidance, closed in March 2025 and its functions moved to the Department for Education, so use the current DfE pages. For disputes about what a plan should say, see SEND tribunal.
Frequently asked questions
Who pays top-up funding for a college learner?
The DfE operational guide says top-up funding is paid by the resident local authority, meaning the authority where the student lives. The college invoices or agrees payment with that authority.
How is the top-up amount decided?
It is agreed between the local authority and the institution based on the learner's needs and the cost of the provision, often set out in the EHCP and a local funding agreement.
Does a learner without an EHCP get top-up funding?
Practice varies by local authority. Top-up is most commonly tied to an EHCP that names the institution, so check your local authority's policy and the DfE operational guide.
Sources and further reading
Official guidance changes. Check the source before relying on any detail, and take professional advice for individual cases.
Help shape the pilot
We are working with a small number of England FE colleges and apprenticeship providers first. Tell us about your learner support and we will be in touch.