ESFA 2020 to 2021 year-end reconciliation for Adult Education Budget (AEB) and Advanced Student Loans Bursary (ALLB)


We are lowering the reconciliation threshold for adult skills AEB funded by a grant from the Education and Skills Funding Agency (ESFA), including non-formula funded community learning and internships from 19 to 24, and ALLB providers for the academic year 2020 to 2021.

The threshold will be lowered from 97% and 100% respectively to 90% in recognition of the difficulties and uncertainties many providers face due to the impact of the Coronavirus (COVID-19).

Reconciliation process

To encourage the provision of adult skills and ensure value for money, we normally claw back any funding from providers funded by ESFA grants (for AEB Adult Skills and 19-24 internships) who provide less. 97% of their allowance. For ALLB financing, 100% of sub-deliveries are normally recovered.

Changes to the threshold from 2020 to 2021

When providers provide 90% or more of their AEB and ALLB allocations, there will be no year-end reconciliation. When suppliers deliver less than 90%, we recover the difference between their actual delivery and 90%. For example, a delivery of 85% would result in a recovery of 5% of the allowance. This change is for this year only, the reconciliation threshold will return to its normal level of 97% for the next academic year.

Your regulated and unregulated delivery and learner support are combined with your non-formula funded community learning delivery to form your final service value. This is divided by the allocation value to calculate the final delivery percentage on which the reconciliation is based.

Your benefit calculation will only include the non-formula funded community learning benefit up to the value specified in your funding agreement (if applicable).

This 90% threshold is the final position for the 2020-2021 academic year and will not be subject to change. There will be no business case process.

We will update our AEB funding rules for the 2020 to 2021 academic year in April to include this change. We are announcing this change now to help vendors better plan their offering for the remainder of the 2020-2021 academic year.

Allocations for the COVID-19 skills offering, including funding for the new adult level 3 offering, are capped and the reconciliation threshold for the under-provision of this provision will remain unchanged at 97%.

Summary of revised thresholds

Funding streamRevised threshold
AEB (adult skills including learner support and community learning)Only delivery below 90% is clawed back, for example, 85% delivery results in 5% clawback of the allowance (the only other rule to consider is that community learning over delivery will not be taken into account)
19 to 24 courses (closed)Only a delivery less than 90% is recovered, for example, a delivery of 85% results in the recovery of 5% of the allocation
COVID-19 skills offer (closed)Unchanged – any delivery above 97% and there is no recovery, but delivery below 97% will result in the recovery of all sub-deliveries
ALLBOnly a delivery less than 90% is recovered, for example, a delivery of 85% results in the recovery of 5% of the allocation

Our primary goal is to help suppliers continue to provide as much quality service as possible, including above the 90% threshold, whether face-to-face where permitted, online or on-line. distance, and including through subcontracting (for AEB funding). provision only) when it complies with our subcontracting requirements. When providers successfully deliver to adults, we will identify and share best practices to help all providers.

We will look to schedule recoveries from December 2021 after the final funding request process as usual, and we will preferably recover in full in fiscal year 2021 to 2022. We will work with vendors who would be interested in requesting a plan. recovery in stages (up to 4 months). When this would cause financial difficulties, we will review cases beyond with your ESFA territorial team.

AEB funding allocations for 2021 to 2022

We will soon publish the allocations of ESFA AEB suppliers for the funding year 2021 to 2022.

Further information

We will continue to finance the delivery of up to 103% of the AEB grant allocation for providers funded by ESFA (110% for 19 to 24 internships) between 2020 and 2021.

In areas where AEB has been decentralized, the combined authorities of the mayor or the Greater London Authority are responsible for reviewing the flexibilities of providers in their areas.

If you have any questions, contact your regional ESFA team or use our online application form.

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