Element 3 Funding 2025-26

What does this mean for settings? 

Education settings will continue to receive funding on the same basis as autumn '24 and spring '25 for use to support their whole high needs cohort, alongside school's core funding (element 1 and 2).  This will be calculated on the basis of 5/12ths of a year, with autumn term representing 4/12ths and spring term representing 3/12s.   

Whilst the original cohort funding was based upon individual children funded during the summer term '24, the funding may no longer be specifically identifiable to those children given both that schools will have seen starters and leavers, and the LA have confirmed that all allocated E3 funds should be used creatively to meet the needs of the whole high needs' cohort rather than individual children.  For this reason, funding notifications will not be provided on a child level basis.   

Schools who wish to confirm the basis of the calculation will be able to use the information provided in the autumn '24 term adjusted for the different length of the term.   

Year 11s 

In line with the previous communications from the LA that have requested settings use allocated funding in creative ways across cohorts rather than individuals, there will be no adjustments for year 11 leavers as funding is not being provided for use to support an individual child but, rather, to support the overall cohort within a school.   

Bridging Fund (Yr R and 7) 

Reception Bridging Funding was provided for the children entering reception identified as having the highest needs.  Originally, this was confirmed for two terms (autumn '24 and spring '25) but will now be extended to the summer '25 term, based upon the summer term being 5/12ths of the year.   

CYP who received Bridging Funding in Yr 7 will also have that funding extended into the summer term on the same basis of 5/12ths of the year. 

Unexpected Situations Support Fund (USSF) 

Any children or cohorts that have been allocated funding through the USSF panel will continue to do so at 5/12ths of the year's full allocation which will be communicated in the New Year.  

Enhanced SEND Provisions (ESPs) 

ESPs are funded on an academic year basis so will continue as arranged into summer '25. 

Budget Share tracker 

As soon as spring 2025 allocations are made during January, the budget share tracker will be updated on a school level basis. On February 28 2025, 25/26 trackers will be uploaded for the summer term.   

However, provisional amounts for summer term will be shown as a separate line on the 24/25 budget share tracker prior to February 28, so schools can plan accordingly. In due course, it is our intention to update how information is communicated via the budget share tracker to align with the revised model.  

This guidance applies to the Summer Term 2025 only, which is part of the 2025/26 financial year for locally maintained schools and the Dedicated Schools Grant, but still in the 2024/25 financial year for academy trusts.