Support for funding post‑16 specialist additional learning needs placements

Note: These interim funding arrangements have been extended to 31 March 2028. Until then this guidance remains in force.

Arrangements for planning and securing placements at Independent Special Post-16 Institutions (ISPIs) have changed as part of the Additional Learning Needs (ALN) reform. This guidance provides information for local authorities on funding mechanisms for placements at ISPIs from September 2023.

Audience

• Local authorities.
• ISPIs.

The Additional Learning Needs and Education Tribunal (Wales) Act 2018 (the ALN Act) and wider Additional learning Needs (ALN) reform creates a unified system for supporting children and young people from 0 to 25 with ALN. This transforms the separate systems for special educational needs (SEN) (in schools or pupil referral units, and for children who are not registered at a school or PRU) and learning difficulties and (or) disabilities (LDD) in further education. Further information can be found in The Additional Learning Needs Code for Wales 2021 (ALN Code). The Additional Learning Needs; parents and carers toolkit helps parents and carers understand the ALN system in Wales.

The Welsh Government has been responsible for making decisions regarding funding placements for young people aged 16 to 25 with learning difficulties who require access to specialist provision. This has changed as part of the ALN system. Local authorities now make decisions regarding placements at ISPIs for young people under the ALN system. This change aims to enable local authorities – who are best placed to make these decisions – to work in collaboration with a range of partners to develop and strengthen post-16 specialist ALN provision.

This guidance sets out interim funding arrangements to enable local authorities to undertake their duties for a young person who has moved to the ALN system and where local authorities have made a decision to secure a placement for that young person at an ISPI. 

The arrangements set out in the guidance apply for placements at ISPIs from September 2023 for young people who have moved to the ALN system. These arrangements will continue to apply for placements secured under these arrangements until those placements have been completed. We anticipate that funding will be fully transferred to local authorities by March 2028. 

These interim arrangements will enable Welsh Government to work closely with local authorities and other stakeholders throughout this period to ensure these new arrangements are implemented effectively and are fully aligned with the principles underpinning the ALN Code.

Full details of local authorities’ duties in relation to post-compulsory education is provided in the ALN Code.

Local authorities are encouraged to consider the full range of provision available when planning to meet the needs of young people with ALN. Local options, where appropriate, can support inclusion and maintain continuity for learners. Local authorities are encouraged to work with local partners, such as further education institutions and training providers to develop local provision that meets young people’s needs. ISPIs remain an important part of the education landscape, but they should be considered alongside a broad range of suitable pathways, that may meet learners’ needs effectively

As part of the ALN Act, all children and young people with ALN, regardless of the severity or complexity of their LDD, will generally be entitled to a statutory support plan called an Individual Development Plan (IDP). An IDP is a document that contains a description of a child or young person’s ALN and the Additional Learning Provision (ALP) that is called for by the child or young person’s LDD.

Full details on the content of an IDP and responsibilities for its preparation, maintenance, review and revision is provided in the ALN Code.

The ALN Act began to be implemented in September 2021, and children and young people were gradually moved from the SEN system to the ALN system. Rather than a large-scale change, a ‘flow through’ approach was adopted, and young people gradually moved across to the ALN system. From September 2025 all young people moved to the ALN system.

Local authorities are required to make decisions on placements at ISPIs and to secure such placements for young people who have moved across to the ALN system. Full details regarding the local authority’s role regarding these placements can be found in the ALN Code.

This guidance does not impact on placements for young people who have placements currently secured by the Welsh Government. The Welsh Government will continue to directly fund placements for young people secured by the Welsh Government until they have completed their programmes of study. 

The ALN Code includes details of the responsibilities placed upon local authorities with regards to placements at ISPIs. Local authorities should refer to the ALN Code for further details on the process of making decisions and securing placements at ISPIs.

The starting point is that a young person is entitled to up to two years of further education or training. Beyond that, a local authority may determine that a young person has reasonable needs for education or training in particular circumstances. As set out in the ALN Code, any placements funded by these arrangements must be at establishments included in the Welsh Government’s ISPI list. This list will be updated regularly to reflect the latest position.

Funding for placements at ISPIs is made available to local authorities via the Local Authority Education Grant. These are interim arrangements until funding has been fully transferred to local authorities, which we anticipate will be March 2028.

As part of their role in making decisions and securing placements at ISPIs, local authorities are responsible for agreeing costs, terms and conditions for each placement with the relevant ISPI, as well as the young person’s programme of study and securing joint funding. The Welsh Government in turn will reimburse local authorities for the costs of the education element of the placement via the Local Authority Education Grant.

Collaboration and integration are some of the key principles that underpin the ALN system. As set out in the ALN Code, local authorities and NHS bodies might consider appropriate joint funding arrangements. Local authorities should ensure that they apply a co-ordinated approach internally to the funding of the education and social care elements of placements at ISPIs. Details of joint funding arrangements should be incorporated into information provided to Welsh Government.

Grant allocations reflect the demand-led nature of ISPI placements and are based on information provided to the Welsh Government by local authorities. Arrangements also allow for local authorities to inform Welsh Government of changes to costs after a placement has commenced, for example if any in-year changes are agreed relating to support.

Local authorities are required to provide quarterly updates to the Welsh Government summarising their latest understanding of ISPI placements as their work in making decisions and securing placements progresses. The Welsh Government will provide a form for the purpose of providing these updates. These updates will include:

• details of all anticipated or confirmed ISPI placements 
• the status of each placement, such as, anticipated, secured, commenced or completed
• costs for each placement (forecasted, confirmed or actual incurred costs), including details of any joint funding arrangements
• a brief summary of the programme of study (including any changes to the agreed programme of study if applicable)
• details of absences (short or long term) or withdrawals from placements

The Welsh Government may request further information to support local authorities claims for funding.

This information is used to calculate grant allocations, for planning and monitoring purposes as well as acting as evidence to support claims for funding to the Welsh Government by local authorities. This is not an application process. Local authorities are responsible for undertaking their duties as set out in the ALN Code, which includes making decisions and securing placements for young people where relevant.

Local authorities are responsible for establishing processes to enable them to undertake their duties as set out in the ALN Code when considering if a young person should be placed at an ISPI. These processes should reflect the five principles underpinning the ALN Act as set out in Chapter 3 of the ALN Code, and ensure the appropriate stakeholders are involved in informing this decision-making process.

All queries about this guidance should be directed to: Post16ALN@gov.wales.