ESFA Funding guidance for young people 2019 to 2020

1. ESFA Funding guidance for young people 2019 to 2020 Student Eligibility Guidance 2019 to 2020 – v1 published within Funding regulations – Section 3 ESFA Young People’s Funding Implementation Team

2. 2 Funding Regulations - Section 3 Relationship between fees and eligibility Why the ESFA issues student eligibility guidance Summary of the main paragraphs in Section 3 In the final section of this presentation are some slides with Questions and Answer examples to assist in implementing the guidance. New summary advice (including on EU students resident in UK) in paragraphs 28 to 32 Compliance advice on student eligibility at end of Section 3

3. Relationship between fees and eligibility 3 This presentation is intended to help institutions understand the student eligibility guidance (SEG) and why the sector has student eligibility rules. In particular: • to identify who is entitled to ESFA funding under the regulations • confirmation that all ESFA funded students aged under 19 and students aged 19 to 24 with an EHC plan should not be charged tuition fees • includes the references to the ESFA SEG rules that are included within document Funding Regulations including relevant student eligibility compliance evidence

4. Why do we have student eligibility rules ? 4 The rules exist, so that: some students are ineligible! Why? • Institutions can charge full cost/overseas fees to students (only those with Home Office Tier 4 immigration status) • Institutions are protected by the Fees and Awards Regulations when charging students overseas fees • Government guarantees on “free education” are honoured by institutions • Institutions ensure public funds are only being claimed for eligible students (increasing public pressure on this issue) • To ensure consistency with HE provision and institutions

5. Residency eligibility - context 5 Paragraph references (26 to 31): • New advice from 2019 to 2020 • Summary of 16-19 eligibility rules • Why we use a 3 year rule to simplify compliance for our funded institutions • Need to make 16-19 students with less than 3 years residency aware of HE student loan eligibility requirements • Need to treat all EU nationals equally to UK nationals whilst UK remains within EU (EEA) • Advice on UK exit date and transition arrangements

6. Residency eligibility - context 6 Paragraph references: • Paragraph 32-36 • Determination of student eligibility (see next slide) • Eligibility must be determined at start and is then extended for whole programme and students remain eligible for follow on programmes • Once a student enrolled the institution expected to take all reasonable steps to ensure the student can complete their programme

7. Residency eligibility - context 7 Paragraph references (28): • Determination of student eligibility • Most young people legally residing in England will be eligible for 16 to 19 study programme funding and the exceptions to this are set out in paragraphs 71 to 73. The advice in the following paragraphs 38 to 41 provides further information on the detailed eligibility requirements. • To assist our funded institutions in keeping the student eligibility administration burden to a minimum most students will simply need to confirm on their post 16 enrolment form they have legally lived in the UK for the three previous years. • Guidance on evidencing student eligibility is set out in paragraphs 74 to 83

8. Student eligibility regulations 8 Paragraph references: • Paragraph 37 Definition of Ordinarily resident • Paragraph 38 Fees and Awards Regulations (the law) ESFA eligibility concessions for following students (these paragraphs do not require 3 years residency in UK) • Paragraph 39 Discretion for students not meeting 3 year rule • Paragraph 40 Discretion for 16-18 year old students only • Paragraph 41 Individual students with exceptional circumstances

9. Supplementary student eligibility guidance 9 Paragraph references: • Paragraph 42 Definition of EEA • Paragraphs 30 - 31 Advice on EU nationals living in UK • Paragraph 43 • Explanation of immigration stamp: “No Recourse to Public Funds” and why this does not affect individual student eligibility • Paragraphs 57 -60 • Advice on institution normal recruitment areas – need to agree the recruitment area with institution normal funding body/Agency if recruiting outside expected areas

10. Supplementary student eligibility guidance 10 Paragraph references (60): (new from 2019 to 2020) • Definition of “exchange students” for funding purposes • To qualify as a self-funded exchange, if the foreign student (particularly those from inside the EEA area) are being recorded for ESFA 16 to 19 funding purposes on our funded institutions funded data return to the ESFA (either ILR or school census) then we need to see a matching deduction in the cost being claimed for a home student attendance on their study programme. We allow institutions to work together to demonstrate this but in claiming funding for a foreign student the funded institution (usually a college/school/academy) must be able to show a student at another institution that no longer needs an equivalent amount of funding.

11. 11 Student eligibility guidance The Rules themselves As set out in Funding regulations Section 3

12. Paragraph 38 12 Summary of Fees and Awards Regulations (the law on eligibility) • Summarises “Fees and Awards Regulations” • (a) Settled Status / Ordinarily Resident in UK for 3 years (i – iv) UK and other EU nationals and children • (b) Children of Turkish workers (any age) where lawfully employed in UK

13. Paragraph 39 13 Eligibility without 3 years prior residency as required by paragraph 26 • Additional student eligibility concession from Fees and Awards Regulations – where 3 year prior residency rule is NOT required. • (a) Refugees and their spouses or children or those • with humanitarian protection (HP) • discretionary leave (DL) • exceptional leave to enter or remain (ELE/ELR)

14. Paragraph 39 (continuation from previous slide) 14 Eligibility without 3 years prior residency as required by paragraph 26 • (b) Recently settled status – any of below within the last 3 years • those with indefinite leave to enter or remain • right of abode • British citizenship

15. Paragraph 40 (continued on next slide) 15 Eligibility concession for young people aged 18 or under at start of programme • (a) Those who are accompanying/joining parents who have right of abode/leave to enter or children of diplomats • (b) Those who are dependants of teachers in UK on teacher- exchange schemes • (c) Unaccompanied British (or EEA) Citizens or those whose passports have been endorsed to show either the right of abode in UK or to show that they have no restrictions on working in the UK

16. Paragraph 40 (continuation from previous slide) 16 Eligibility concession for young people aged 18 or under at start of programme • (d)those who are dependants of adults residing legally in the UK who have been given immigration rights as workers to reside in the UK • (e) those who are dependants of foreign students where the accompanying parent or legal guardian has been given Home Office Tier 4 student immigration status (the accompanying parent or legal guardian is excluded from our funding as set out in paragraph 71)

17. Paragraph 40 (continuation from previous slide) 17 Eligibility concession for young people aged 18 or under at start of programme • (f) Asylum seekers • (g) Those having been granted leave under section 67 of the Immigration Act 2016 ( the ‘Dubs’ amendment - Immigration Act 2016: www.legislation.gov.uk/ukpga/2016/19/section/67) • (h) Those having been granted Calais leave to remain • (i) Those who are (including unaccompanied Asylum Seekers) placed in the care of social Services or those in receipt of Section 4 support

18. Paragraph 41 18 Exceptional circumstances • Must be unique to the individual student • Cannot be used to fund groups of students • Not to be simply defined as students who would be ineligible under paragraphs 38-40 • Funding body approval required for each and every student funded under this paragraph • For these very exceptional cases, Institutions may seek prior confirmation of the eligibility of any individual students from the ESFA (any individual student personal identifying information must not be submitted to the ESFA)

19. Paragraph 30 19 EU nationals living in UK(updated for 2019/20) Students who are nationals of EU (or EEA) countries who are already living in the UK before UK exit and the start of their programme must be treated equally to UK residents while the UK remains part of the EU and during any agreed transition period. Once enrolled they will be eligible for funding for the full duration of their study programme. The rules from paragraph 38 to 40 usually apply for the full funding year 1 August 2019 to 31 July 2020.

20. Ineligible students for funding 20 Paragraph references 67-73 • Paragraph 67 • Students must only be funded once at any one time • Paragraph 71 • Overseas foreign students are usually ineligible for funding as immigration status enables them to access UK education as full cost overseas students • Paragraph 73 • Channel Islands and Isle of Man residents ineligible as their own independent government responsible for their funding

21. Ineligible students for funding 21 Paragraph references 57-62 and 34-35 • Paragraph 57 • Institutions not expected to jeopardize public reputation through any active recruitment of students living outside England • Paragraph 61 • Students from other parts of UK usually not eligible as they have their own funding arrangements – Scottish, Welsh or NI students • Paragraphs 34 – 35 • Students who do not have the legal right to reside in UK for the full duration of their studies usually ineligible

22. Tuition fees and other charges 22 The conditions set out in paragraph 16 • Wording in paragraph 16 unchanged from previous year • a–b No tuition fees should be charged for under 19 students • c - No enrolment, registration or exam fees - institutions can apply reasonable conditions of attendance in order to qualify for free examination entry • d - Voluntary contributions • e - Instrumental tuition • f - 19-24 EHC plan students must not be charged tuition fees • g - Optional extras

23. 23 Questions and Answers on Student eligibility guidance The following slides give examples in a Question and Answers format of student eligibility issues for which institutions may want further clarification from their funding body (including any written evidence)

24. Student funding eligibility (Q & A) 24 The general context in replying to questions from institutions: • The ESFA advises institutions that they have the primary responsibility in determining most individual student eligibility questions and individual written consent not normally given or required by ESFA • This advice is written into Funding regulations as contractual advice in paragraph 14 (see next slide) • All funding auditors should be aware of the paragraph in auditing any provision on behalf of the funding agency • No individual student personal identifying information must be submitted to the ESFA (other than through official data returns)

25. Consulting ESFA 25 Paragraph 14 We only expect institutions to discuss with the ESFA circumstances that affect groups of students. For circumstances that only affect an individual student the ESFA expects the institution to make funding decisions itself within the spirit of this guidance and record their decisions as audit evidence in accordance with usual student enrolment processes.

26. Student funding eligibility (Q & A - 1) 26 Q1 A college in Lancashire is approached by a student living in Gretna Green (Scotland) seeking ESFA funding to attend the college to follow an A level programme? The student states that both parents work in Lancashire and will transport him to and from college each day. A1 The ESFA guidance supports individual students being able to attend provision outside the institution normal catchment area (including the funding of individual students from Scotland and Wales). For such students the institution is expected to only approve individual students (see paragraph 14) and not groups of students. BUT it is not acceptable for the college to actively recruit in such areas and the college is not expected to be advertising in Scotland for FE students. No institution should actively recruit students living outside England (or the UK).

27. Student funding eligibility (Q - 2) 27 Q2 A college considers whether they can include on their ILR return a school sixth form pupil doing one part of their diploma programme at their college as the school have said they cannot fund the student as the programme is not taking place in the school? (2a) Can the college charge the student a tuition fee if the school will not fund the place?

28. Student funding eligibility (A - 2) 28 A2 The student MUST not be entered on the college ILR as a funded ESFA 16-18 student. The funding should be recorded on the school census return as that is the home establishment of the student and the college should contract with the school for the funding of the student. The college may put the student on their ILR recording that the student is otherwise funded by the ESFA. For such provision, although the school is sub-contracting its delivery they will not need to apply the full sub-contracting control regulations as the contractor is also a “directly funded” institution (that is an institution directly funded by either a LA or ESFA). This is seen as local collaborative provision as set out in paragraphs 146-147.

29. Student funding eligibility (A – 2a) 29 A2No ESFA funded student aged under 19 or students aged 19 to 24 with an EHC plan should be charged any tuition fees. In such cases the college has three recruitment choices (and in our priority order) when deciding whether to enrol the school student on an additional learning aim: • Refer the student back to the school to seek their agreement and financial support in attending the additional learning aim • Offer them a free unfunded place on the learning aim • Refuse admission to learning aim

30. Student funding eligibility (A – 2a) 30 A2No ESFA funded student aged under 19 or students aged 19 to 24 with an EHC plan should be charged any tuition fees. The only exception where we allow tuition fee charges to students is to those overseas students attending colleges who hold a Home Office Tier 4 licence. All tuition fee paying students must attend their course under Home Office (HO) Tier 4 visa arrangements as a full fee paying student.

31. Student funding eligibility (Q & A - 3) 31 Q3 Is a student aged 15, or under, eligible for post-16 ESFA funding? A3 It depends on the individual student circumstances. • Paragraph 51 • 14-16 funding arrangements for approved colleges • Paragraph 52 • elective home educated students – includes those using post 16 institutions for exam purposes • such students must be claimed in a part-time funding band as if they are able to attend full-time learning they should be in a school or academy for their appropriate age group • (answer continued on next slide)

32. Student funding eligibility (Q & A – 3 page 2) 32 Q3 Is a student aged 15, or under, eligible for post-16 ESFA funding? A3(answer continued from previous slide) • Paragraph 53 • level 3 “jumpers” – those who have jumped at least a year during pre 16 education years and achieved a full Level 2 • Paragraph 54 • exceptional cases for institutions not approved for funding arrangements covered in paragraph 46 • Paragraph 55 • short summer programmes for year 11 students are not fundable 50 and neither are those who have already completed full time study programmes during the funding year at other institutions • (answer continued on next slide)

33. Student funding eligibility (Q & A – 3a) 33 Q3a Are students (aged 15 to 19) eligible for post-16 ESFA funding if they start in the summer term? A3a(answer is a continuation from previous slide) A3 It depends on the individual student circumstances as set out in paragraph 55 • No if the student is in year 11 or if they are coming to the end of either year 12, 13 or 14 and have already completed either year 11 at a school/ academy or have completed full-time 16-19 study programmes at other funded institutions earlier in the funding year. Only students who have been NEET since before Easter are eligible to be funded to start study programmes in June or July. • (answer continued on next slide)

34. Student funding eligibility (Q & A –3a) 34 Q3a Are students (aged 15 to 19) eligible for post-16 ESFA funding if they start in the summer term? A3a(answer is a continuation from previous slide) • Students who finish school in the early summer each year are funded and counted for government purposes as part of the year 11 group (including any enrolled after the school leaving date of the last Friday in June) in academies and secondary schools. Short programmes for year 11 students in June and July will therefore not be funded in 2019 to 2020 and will not be counted when calculating lagged student numbers for future funding allocations. Institutions are free to offer any taster or induction programmes to any students but they should not be included in ILR data returns for the same funding year that students complete their year 11 (or any earlier year) studies. Similarly for students starting study programmes in the summer term we will not recognise for all funding purposes students who have already completed full-time 16-19 study programmes at other funded institutions earlier in the funding year.

35. Student funding eligibility (Q & A – 4,5) 35 Two eligibility questions on whether 3 years prior residency needed. Q4 Do refugees need 3 years residency to be eligible? A4 No, anyone granted refugee status by UK Government is eligible since being so recognised regardless of length of residency in UK (Paragraph 39(a). Q5 Do those granted British citizenship or given permanent settled status need 3 years residency before being eligible? A5 No - paragraph 39 (b) or paragraph (40) confers student eligibility without the need for 3 years residency. The concessions in these paragraphs are intended to confer eligibility on those who fail to meet the normal 3 year under paragraph 38 BUT for whom UK Government has granted extended immigration rights to remain in UK.

36. Ineligible – foreign students (Q & A - 6) 36 Q6 Are those with immigration permission (Home Office Tier 4 students) to reside in the UK as foreign students eligible for public funding? A6 No. In particular for 16-19 students the following groups of 16-19 students are normally ineligible for ESFA funding: • Foreign students (HO Tier 4 students) - see paragraphs 71 and 72 - who are normally given immigration leave to study in UK as they are expected to pay the full economic cost of attending any publicly funded UK education or training institution. The fees for such students for full time courses will be very substantial and are available to education institutions as additional non-state funding • (continued on next slide)

37. Ineligible – foreign students (Q & A – 6 page 2) 37 Q6 Are those with immigration permission (Home Office Tier 4 students) to reside in the UK as foreign students eligible for public funding? A6 (answer continued from previous slide) But dependents of Tier 4 students are treated differently for funding purposes: • Young people resident in UK in education and/or training whilst their parents are legally and temporarily resident in UK (this includes children of Tier 4 Foreign Students) are not usually defined as a foreign student but as a dependant and are usually eligible for funding under paragraph 40 (e)

38. Ineligible students (Q & A - 7) 38 Q7 Are those with no legal immigration permission to reside in the UK eligible for public funding? (answer continued on next slide) A7 No but some caveats apply to this statement: • The ESFA recognises that young people living in England who were also living here during their childhood may have certain legal rights to access education and training whilst the Home Office (HO) resolve their immigration status • In offering any final decisions on eligibility the ESFA takes into account court decisions on when individuals are liable for deportation and the timescales for any final Home Office immigration decisions • The differences between students already attending programmes and those identified prior to enrolment are explained on next slide

39. Ineligible students (Q & A – 7 page 2) 39 Q7 Are those with no legal immigration permission to reside in the UK eligible for public funding? (continued from previous slide) A7 No but some caveats apply to this statement: • Institutions who have recruited students whom they subsequently find have no legal right to remain in UK should consult their ESFA Territorial team before making any final decision on the students eligibility. Institutions should seek to clarify the immigration permission before enrolling students where immigration permission is uncertain at enrolment time • Such students should be encouraged to resolve their immigration status with the Home Office at their earliest opportunity

40. Funding eligibility by age (Q & A - 8) 40 Q8 Are any students aged 19 on the 31 August 2019 funded under ESFA young people study programmes at ILR funded institutions in 2019/20? A8 No – the general answer - but following two exceptions: • those students aged 19-24 with a Education Health and Care (EHC) plan and for whom the ESFA has agreed funding • Students completing learning programmes in funded institutions started whilst they were aged under 19 at the start of their first year of study (these appear on Row D of the Funding Claim Report) • All questions on the funding rate for students attending adult funded provision should be addressed to the ESFA adult funding team

41. Student funding eligibility (Q & A - 9) 41 Q9 Can a year 11 student be recruited in the same funding year by a post 16 institution? A9The guidance on year 11 student recruitment for summer programmes as they complete year 11 is in Funding Regulations Section 3 paragraphs 55 to 56. This confirms that the ESFA will not recognise for all 16-19 funding purposes year 11 students where the study is in the same teaching year as their year 11 school attendance. (answer continued on next slide)

42. Student funding eligibility (Q & A – 9 page 2) 42 Q9 Can a year 11 student be recruited in the same funding year by a post 16 institution? A9 (answer continued from previous slide) Paragraph 48 confirms young people can legally leave school from the last Friday in June as a completion date for year 11. Paragraph 49 confirms that such students are counted for Government statistical purposes for the year as part of the year 11 group and should NOT usually be part of the post 16 cohort of students for the same year. Paragraph 54 allows for the small scale recruitment of students by colleges who enter the UK for the first time during the normal year 11 school education group and who have not been attending an ESFA funded school place during the funding year.

43. Student enrolment forms (Q & A - 10) 43 Q10 A 20 year old UK citizen seeking ESFA funding has lived part of the last three years outside the EEA. Is the student eligible for ESFA funding? A10 The Institution is expected first to check the student has a current EHC plan as the ESFA only funds 19-24 students under young people funding arrangements with an EHC plan with all other adults being funded under ESFA adult funding arrangements. Because the student is aged over 19 on the 31 August 2018 the student eligibility concession in Regulations paragraph 40 does not apply and the student will need to be assessed against paragraph 38 which requires three years prior ordinary residency in the UK. Ordinary residency is set out in Regulations paragraph 37. To determine whether the overseas residency was permanent or temporary the institution will need to ask the student some additional questions (shown overleaf) and use the answers to determine if they can be treated as eligible for ESFA funding.

44. Student enrolment forms (A–10 page 2) 44 A10 Questions to assist in determining ordinary residency for the three year period before the course commences: • When did the family move overseas (and where)? • When did the family move back to the UK? • Have they maintained a family home in UK whilst overseas? • Where have they spent any holiday/long vacation periods (UK or overseas)? • How regularly have they returned to UK during period overseas? • Why did they move overseas and why have they returned?

45. Student enrolment forms (A–10 page 3) 45 A10 Using the answers to the questions to assist in determining ordinary residency for the three year period before the course commences: The answers will help determine whether the residency overseas was permanent or temporary. The shorter the period overseas the more likely the residency was temporary although the determination of the reason for the move and return to the UK is important to any final decision. If the family emigrated then they have moved their ordinary residency to the overseas country and will need to live in UK for 3 years to meet the funding eligibility requirements of paragraph 38. This could include families who choose to emigrate and then return to the UK after a short period overseas such as a month.

46. Student enrolment forms (A–10 page 4) 46 A10 Using the answers to the questions to assist in determining ordinary residency for the three year period before the course commences: If the family have temporarily moved overseas because of any work requirements (usually parents) such as working for UK Government or UK firms they should be able to evidence this. In most cases this work will be for relatively short periods and their contract of employment will evidence this. However, some of these contracts may be of many years duration and to satisfy the ordinary residency test the ESFA would expect to see a long term connection to the UK so as to avoid funding individuals who have chosen to emigrate.

47. Student enrolment forms (Q & A - 11) 47 Q11 Do the ESFA accept electronically signed learning agreements (unsigned learning agreements/enrolment forms are an issue when found in any funding audit) as providing appropriate funding audit evidence? A11 Institutions usually expect students to sign a learning agreement/ enrolment form when first attending their programme (legal, health and safety and data protection reasons). The ESFA accept electronic signatures only where this has been obtained on institution premises – see paragraph 81. Students attending institution premises for their actual programmes usually provide all necessary funding audit evidence of existence through registers – which may be electronic or written. The ESFA have issued combined detailed requirements on learning agreements and/or enrolment forms in paragraphs 80 to 82.

48. ESFA Funding guidance for young people 2019 to 2020 Student Eligibility Guidance 2019 to 2020 – v1 published within Funding regulations – Section 3 ESFA Young People’s Funding Implementation Team