The NI Grant Is Coming. So Is the Pay Claim. Colleges Are Caught Between Both

May 1
3 min read

College finance teams are working through a familiar kind of late-April: multiple funding announcements arriving, none of them quite settled, with decisions due in May that will shape the rest of the financial year. This week brought guidance on the post-16 National Insurance contributions grant, updated apprenticeship funding rules, and a pay claim from joint unions now queued for its first formal hearing in June. The combination doesn't make for easy planning.

The NI Grant: Confirmed in Principle, Details in May

The DfE published guidance this week on the post-16 NICs grant for 2026 to 2027, covering April 2026 through to March 2027. [GOV.UK] It explains who is eligible and how allocations will be calculated. What it doesn't do yet is confirm actual amounts. Conditions of grant and institutional allocations won't appear until May, with payments expected at the end of September.

For many colleges, that timeline is the difficult bit. The employer NI increase that landed in April 2025 added substantial cost to payroll, particularly for institutions with large numbers of support staff on lower salaries. The 2025-26 grant offered some relief, but colleges started this academic year still absorbing the net hit. Finance directors are now being asked to plan a full year against a number they don't have yet.

10% for the Third Year Running

While the NI grant guidance landed, the pay claim for 2026-27 was moving into formal negotiations. The joint unions (UCU, NEU, Unite, Unison and GMB) submitted their claim to the AoC on 31 March: 10% or £3,000, whichever is greater. [FE Week] The first National Joint Forum date is June 10, with a second session in July.

The AoC's position is already on the record. Last year, they described a 4% recommendation as unaffordable for many colleges, particularly those with significant adult provision or large apprenticeship programmes. This year's claim is more than double that. Anyone running the staffing spreadsheet for September will know what that looks like in their particular context.

The May 6 Deadline Worth Flagging

Separate to pay, providers and employers have until Wednesday, 6 May, to submit feedback on the draft apprenticeship funding rules for 2026-27. [GOV.UK] The DfE published the draft on 29 April and wants email responses before that date. Final rules are expected in May. If your MIS or quality team has a view on how the draft rules translate into delivery reality, the window is short.

Advanced Learner Loans: Rules Set for August Starters

The advanced learner loans rules for 2026-27 were also published this week. [GOV.UK] The application service for learners starting from 1 August opens on 8 June. Maximum loan amounts remain unchanged from 2025-26. A single performance management point takes effect from January 2027, replacing the previous approach.

Adult provision coordinators managing part-time or mature learner cohorts on ALL funding will want the rules to hand before September planning conversations get underway.

The May publication of the NI grant conditions and allocations will be worth tracking. For colleges still carrying last year's payroll cost increase, the gap between "guidance published" and "amount confirmed" is precisely where the planning uncertainty sits right now.