Post-16 National Insurance contributions (NICs) grant

This guidance is for: 

• maintained school and academy sixth forms 
• 16 to 19 academies 
• 16 to 19 schools   
• sixth-form colleges  
• general further education colleges  
• designated institutions (including the new designated institutions that form part of higher education provider group structures)  
• local authorities

We are making approximately £155 million available in financial year 2025 to 2026 to support institutions with the increase to employers’ National Insurance contributions arising from their post-16 education from April 2025.

Additional funding for pre-16 provision will be allocated through the National Insurance contributions (NICs) grant.

Funding for high needs settings is being allocated via the core schools budget grant (CSBG) 2025 to 2026.

Methodology 

This document sets out the methodology for the post-16 post-16 NICs grant. grant. This includes guidance on how we will allocate funding for financial year 20262025 to 20272026 for eligible institutions. There are 3 components to the post-16 NICs grant: 

• 16 to 19  
• non 16 to 19 funded students and apprentices (in eligible settings)
• local authority centrally employed teachers (CETs) and centrally employed support staff 

Settings will only receive the components that apply to their situation. The components are based on the most current data DfE holds to calculate the share of the grant.  

Conditions of grant 

We expecthave topublished publish the conditions of grant in May.

Allocations and payment

We expecthave topublished publish the allocations in May.allocations.

We will make one payment to cover the 20262025 to 20272026 financial year.

PaymentsLocal willauthorities beand received in September 2026 for:

• local authorities
• maintained school sixth forms
• and 16 to 19 schools
• schools, all colleges and designated institutions

Academy sixth forms and 16 to 19 academies will receive payment in October 2026.2025.