16 to 19 Bursary Fund: a summary

The 16 to 19 Bursary Fund provides financial support to help students overcome the specific financial barriers to participation they face so they can remain in education.

There are 2 types of 16 to 19 bursaries:

• bursaries for defined vulnerable groups of up to £1,200 a year
• discretionary bursaries which institutions award using policies they set, in line with these funding rules

Key points for the 2020 to 2021 academic year

The Department for Education (DfE) has revised the methodology used to calculate discretionary bursary allocations to better match financial disadvantage and student needs across the country. The Government response to the consultation about the change can be read on GOV.UK. The revised methodology is being used from the 2020 to 2021 academic year onwards.

The funding and allocations: discretionary bursaries section of these funding rules contains a summary of the methodology, but institutions should refer to the explanatory notes that accompany funding allocations (issued in February/March 2020) for full detail.

Institutions must ensure they assess the needs of individual students when awarding bursary funding. ESFA audit and assurance work and ongoing monitoring/feedback activity by DfE continues to find a considerable number of institutions are making flat rate payments to students without any consideration of individual student needs.

Both types of bursary funding are designed to help students overcome the individual financial barriers to participation that they face and institutions must ensure the funds go to those who genuinely need them. No student should automatically be awarded a set amount of funding without an assessment of the level of need they have.

Institutions must ensure they have a clear and accessible policy or statement setting out how they will use their bursary fund, the eligibility criteria they use and any terms and conditions they set.

This guide now includes a checklist institutions can use when assessing bursary applications from students and a summary that lists the most important things that institutions should and shouldn’t do when administering the 16 to 19 Bursary Fund. Both have been developed to reflect common errors and issues identified during audits.

Eligibility criteria: all bursaries

Students must meet the age and residency criteria which follow to be eligible for help from the bursary fund.

Age

A student must be aged 16 or over but under 19 at 31 August 2020 to be eligible for help from the bursary fund in the 2020 to 2021 academic year.

Students aged 19 or over are only eligible to receive a discretionary bursary if they are continuing on a study programme they began aged 16 to 18 (‘19+ continuers’) or have an Education, Health and Care Plan (EHCP).

These 2 groups of aged 19+ students can receive a discretionary bursary while they continue to attend education (in the case of a 19+ continuer, this must be the same programme they started before they turned 19), as long as their eligibility continues and their institution considers they need the support to continue their participation.

Students aged 19 or over are not eligible for bursaries for vulnerable groups.

Institutions should generally only pay bursaries to students aged 16 or over. However, in exceptional circumstances institutions may use their discretion to pay bursaries to younger students, for example, where a student is following an accelerated study programme. Exceptional circumstances do not include students aged 14 to 16 who are attending college as part of their key stage 4 programme.

Students aged under 19 enrolled on higher education qualifications are not eligible for support.

Eligible education provision

Students must be participating in provision that is subject to inspection by a public body that assures quality (for example Ofsted). The provision must also be either:

• funded directly by ESFA or by ESFA via a local authority
• funded or co-financed by the European Social Fund
• otherwise publicly funded and lead to a qualification (up to and including level 3) accredited by Ofqual or on the ESFA list of qualifications approved for funding 14 to 19
• a 16 to 19 traineeship programme

Students on apprenticeship programmes, or any waged training, are employed, rather than in education. They are not eligible for the 16 to 19 Bursary Fund.

Non-employed students aged 16 to 19 who are participating in a Prince’s Trust Team Programme are eligible to receive the bursary in the same way as any other student participating in an eligible, publicly funded course.

ESFA does not expect students on distance learning provision to need help from the bursary fund because they do not have the kinds of costs the bursary is intended to cover (travel, equipment and uniforms, for example). In the rare instances where an institution identifies such a student does require financial help, they should provide support in-kind. An example could be providing a temporary travel pass for the student to attend exams.

Residency

Students must meet the residency criteria in ESFA funding regulations for post-16 provision. This document also specifies the evidence institutions must see and retain for audit to confirm eligibility for post-16 funding (and therefore meet the residency criteria for bursary fund eligibility).

Accompanied asylum seeking children (under 18 with an adult relative or partner)

Generally, asylum seekers are not entitled to public funds. Accompanied asylum seeking children (those under 18 with an adult relative or partner) and those aged 18 and above are entitled to education, but not to public funds. If they are destitute they can apply to the Home Office for suitable housing and cash for essentials, but they are not eligible for other income.

As long as an asylum seeker has not had their application for asylum refused, institutions can provide in-kind student support such as books, equipment or a travel pass. Under no circumstances should an institution give cash to any asylum seeker unless they are an unaccompanied asylum-seeking child (UASC).

Unaccompanied asylum seeking children

Unaccompanied asylum seeking children do not receive cash support from the Home Office and are the responsibility of the local authority. They are treated as looked after children and are eligible for a bursary for vulnerable groups (‘in care’ group), where they have a financial need.

When these young people reach legal adulthood at age 18, institutions must consider their immigration status. If the asylum claim is decided in their favour, the local authority must provide them with the same support and services as they do care leavers. As such, they continue to be eligible for a bursary as a student from a vulnerable group until they reach the upper age limit.

Where an asylum claim is not supported, the individual may not be able to stay legally in the UK. When asylum claims have been fully heard/the appeals process exhausted, an individual has no entitlement to public funds (with a few exceptions where the withdrawal of support would be seen as a breach of human rights).

Eligibility criteria: bursaries for young people in defined vulnerable groups

Students who meet the criteria, and who have a financial need, can apply for a bursary for vulnerable groups. The defined groups reflect that these students are unlikely to be receiving financial assistance from parents or carers, so may need a greater level of support to enable them to continue to participate.

Students should be awarded the amount of support they need to participate based on an assessment of the types of costs they have. Institutions must ensure students are eligible for the bursary for defined vulnerable groups in each year they require support.

The defined vulnerable groups are students who are:

• in care
• care leavers
• receiving Income Support, or Universal Credit because they are financially supporting themselves or financially supporting themselves and someone who is dependent on them and living with them such as a child or partner
• receiving Disability Living Allowance or Personal Independence Payments in their own right as well as Employment and Support Allowance or Universal Credit in their own right

We are continuing to review the descriptions of the defined vulnerable groups to reflect the ongoing rollout of Universal Credit and ensure they accurately reflect the purpose of the scheme.

The bursary for vulnerable groups can pay up to £1,200 per year to a student participating on study programme that lasts for 30 weeks or more if they need that amount of support. Students on study programmes of less than 30 weeks should be paid a pro-rata amount.

Institutions should also consider the number of hours involved in student’s study programme when deciding if a pro-rata payment is more appropriate. A student studying for around 16 hours a week is likely to have greater costs than a student studying for 4 hours a week, for example.

Institutions may decide that although a young person may be eligible for a bursary because they are in one or more of the defined vulnerable groups, they do not have any actual financial need. This might be because their financial needs are already met and/or because they have no relevant costs. Institutions can refuse a student’s application on this basis. Similarly, students should only receive the amount they actually need to participate and institutions should not automatically award students £1,200 if they do not need the full amount.

Equally, institutions can pay a bursary to a vulnerable group student of more than £1,200 if they assess they need extra help to remain in education. Any payments over £1,200 must be paid from their discretionary bursary allocation or from their own funds.

Defining in care and care leavers

The 16 to 19 Bursary Fund defines ‘in care’ as ‘Children looked after by a local authority on a voluntary basis (section 20 of the Children Act 1989) or under a care order (section 31 of the Children Act 1989) - Section 22 of the Children Act 1989 defines the term ‘looked after child’.’

A ‘care leaver’ is defined as:

• a young person aged 16 and 17 who was previously looked after for a period of 13 weeks consecutively (or periods amounting to 13 weeks), which began after the age of 14 and ended after the age of 16; or
• a young person aged 18 or above who was looked after prior to becoming 18 for a period of 13 weeks consecutively (or periods amounting to 13 weeks), which began after the age of 14 and ended after the age of 16

Foster care, including privately arranged foster care

A young person placed with a foster carer by the local authority, including where the foster carer is on the books of an independent fostering agency, is classed as looked after. They meet the criteria for the ‘in care’ vulnerable group where they need financial support to participate.

A child who is privately fostered (in other words, a private arrangement is made between the parent and the person who will care for the child) is not classed as a looked after child and is not eligible for the bursary for vulnerable groups.

In some instances, a young person may have been in the care of the local authority and the care transferred to another party via a permanent form of fostering such as a Special Guardianship Order. In these circumstances, the young person is defined as having left care so is now a care leaver. They must meet the definition of a ‘care leaver’ in full (so, the period of weeks and age range set out above). If they do, they are eligible for help from the bursary for vulnerable groups, where they need financial support to participate.

Universal Credit

Universal Credit (UC) is being rolled out across the country and will gradually replace Income Support and Employment and Support Allowance as well as other benefits. Institutions will increasingly see students claiming bursaries for defined vulnerable groups based on receiving UC.

UC award notifications do not include any information on the benefits they replace. For this reason, the description of the bursaries for vulnerable group category that relates to receipt of UC or Income Support is that a student must be receiving UC in their own right because they are financially supporting themselves and anyone who is dependent on them and living with them such as a child or partner.

We are continuing to review the descriptions of the defined vulnerable groups to reflect the ongoing rollout of Universal Credit and ensure they accurately reflect the purpose of the scheme.

Bursary funds awarded to a student should not form part of the UC assessment undertaken by the Department for Work and Pensions (DWP). How DWP treat any funding for education depends on whether the student is undertaking advanced full time education. It is unlikely that 16 to 18 year olds will be in advanced full time education as they are generally on study programmes at level 3 or below.

We do encourage institutions to provide support from the bursary fund by making payments in kind where possible. Institutions must not make bursary fund payments as regular payments for living costs. This is out of scope of the bursary fund and any such payments would be subject to the Social Security Amendment (Students and Income-related Benefits) Regulations 2000.

Evidence of eligibility

Institutions must obtain proof that students meet the criteria for the bursary for vulnerable groups in full. In other words, that they are in receipt of the specified benefits in their own name or that they fully meet the definitions for in care/care leavers. Institutions should ask for evidence from each student and retain copies for audit purposes. For example:

• for students who are in care or a care leaver, written confirmation of their current or previous looked-after status from the relevant local authority - this is the local authority that looks after them or provides their leaving care services. The evidence could be a letter or an email but must be clearly from the local authority
• for students in receipt of Income Support or Universal Credit (UC), a copy of their Income Support or UC award notice. This must clearly state that the claim is in the student’s name/confirm they are entitled to the benefits in their own right. The evidence must not state any conditions that prevent them from participating in further education or training. For students in receipt of UC, institutions must also see a tenancy agreement in the student’s name, a child benefit receipt, children’s birth certificates, utility bills and so on
• for students receiving UC/ESA and Disability Living Allowance and Personal Independence Payments, a copy of their UC claim from DWP. Evidence of receipt of Disability Living Allowance or Personal Independence Payment must also be provided

UC claimants should be able to print off details of their award from their online account.

Institutions must only submit a funding claim to the Student Bursary Support Service (SBSS) online portal when they have seen and verified appropriate evidence to confirm that the student is eligible for the bursary for vulnerable groups, and ensured they have assessed the amount of financial help the student needs to participate.

Pro-rata bursaries for vulnerable groups

Students who have a financial need who meet the criteria for a bursary for vulnerable groups may be eligible for a bursary of up to £1,200 (with the actual amount dependent on the specific financial needs they have) if they are on a study programme which lasts for 30 weeks or more in the academic year. Students who meet the criteria and who are on study programmes lasting for less than 30 weeks should be given a bursary on a pro-rata basis (with the actual amount dependent on the specific financial needs they have).

For example:

• a student is on a 30 week programme. If the institution assesses they have financial needs that require a full £1,200 - if paid weekly, the bursary would be £1,200 ÷ 30 = £40 per week
• if the same student was on a 10 week programme, the pro-rata bursary would be £40 x 10 weeks = £400

Institutions should also consider the number of hours involved in student’s study programme when deciding if a pro-rata payment is more appropriate. A student studying for around 16 hours a week is likely to have greater costs than a student studying for 4 hours a week, for example.

Young people eligible for a bursary for vulnerable groups who don’t require bursary funding

In some cases, a young person might meet the eligibility criteria for a bursary for vulnerable groups but their financial needs are already met, they have no relevant costs or do not need the maximum award.

For example:

• a student attending specialist residential provision that covers their educational costs in full
• a student taking a distance learning programme who has no financial barriers to participation (for example, they don’t have any travel costs or meal costs)
• a student in the care of the local authority whose educational costs are covered in full by the local authority
• a student who is financially supported by their partner

In these circumstances, institutions can refuse the student’s application. The institution should explain to the student and/or the student’s parents the aim of bursary funding and why they are not awarding any bursary.

If a student, or the student’s parents, still wants to claim a bursary for vulnerable groups, institutions should consider the particular circumstances in each case. They should assess whether no bursary should be awarded (because the student has no financial needs) or to award a reduced amount (because the financial help needed is limited).

ESFA recommends that institutions should be clear in their bursary fund application form that there is a possibility of no award or a limited award. This ensures all parties understand that meeting the criteria for a bursary for vulnerable groups does not automatically mean funding will be given. Institutions should ensure their forms avoid any terminology such as ‘guaranteed bursary’ or wording such as ‘you will automatically get a bursary of £1,200 if you are in one of the defined groups’.

Eligibility criteria: discretionary bursaries

Institutions make discretionary bursary awards to help students with the cost of travel, to buy essential books, equipment or specialist clothing (such as protective overalls, for example). These are items the student would otherwise need to pay for in order to participate.

The bursary fund is not intended to provide learning support - services that institutions give to students - for example, counselling or mentoring, or to support extra-curricular activities where these are not essential to the students’ study programme.

Institutions set their own eligibility criteria for the discretionary bursary but must comply with the eligibility conditions and funding rules set out in this guide. Institutions must ensure that students are eligible for the discretionary bursary in each year they require support.

Institutions must base all decisions about which students receive a discretionary bursary and how much bursary they receive on each student’s individual circumstances and their actual financial need. These will vary from student to student, depending on, for example, their household income, the distance they need to travel to the institution and the requirements of their study programme.

Institutions must not make blanket or flat rate payments to all students, to students in particular income bands or to students whose families are in receipt of particular benefits without considering the actual needs of each student. For example, although many students who had previously benefitted from a free school meal may have financial needs, these will vary depending on personal circumstances so an individual assessment of need should be made.

Institutions must manage the number and size of discretionary bursary awards to keep within their budget.

Institutions may decide to retain a small emergency fund from their allocation to support students who face exceptional circumstances during the year that impact on their ability to participate. They may also choose to top up the bursary with their own funds to support students who are in need.

There is no set limit for the amount of discretionary bursary that can be awarded to students. Institutions can award discretionary bursaries equal to or higher than the bursary for vulnerable groups maximum as long as they have clearly identified an individual student requires this level of funding to participate.

Using household income and establishing individual student need

Institutions must ensure their bursary policy ensures funding reaches those students who are most in need of financial support. This means institutions should use household income in some way to help establish the amount of support they award to a student. This can be used in conjunction with other factors, such as distance to travel from the institution and the number of dependent children in the household, as well as the actual participation needs the student has.

It is for institutions to decide the process they use to assess household income, and the specific evidence they request from students/their families. However, DfE is aware that some institutions are unsure about how to use UC award notices when these are provided as evidence of household income. DfE suggests institutions may wish to ask for the 3 most recent monthly award statements. The take-home pay figure in addition to the amount of UC after all deductions will give a total monthly income. Using 3 months statements will act as a guide to the household income for a quarter of a year. Institutions could then estimate assumed income for a full year.

An example of a UC award notice is below. The notice shows the two highlighted figures – one for take-home pay; one for the amount of UC after deductions – that should be added together to give a monthly total.

Example of a Universal Credit monthly award notice

PDF, 390KB, 1 page

Institutions are encouraged to keep their bursary policies under review to ensure they continue to provide support to students who need it. For example, students from households being supported via lower income jobs could be in more financial need than a student in receipt of free school meals or where the family receives other benefits. An assessment of individual need should help to identify whether they are struggling to afford the books and equipment they need or to cover their essential travel costs.

Supporting industry placements

Institutions engaged in industry placement delivery are also encouraged to ensure their bursary policies are able to respond to the needs of students undertaking industry placements. A few students may find themselves facing financial difficulties due to incurring extra participation costs, for example, because they need to pay for additional travel to their placement. These students may only need support for a short period of time, and they may not already be known to you.