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How alternative provision is funded: 2025-26

Find out how pupil referral units (PRUs), alternative provision (AP) academies and AP free schools are funded from the 'high needs block'.

Updated
on 23 May 2025See updates
School types: All•School phases: All•Ref: 31557
Contents
  1. AP is funded from the 'high needs block' 
  2. Core funding ('place funding')
  3. Top-up funding 
  4. Commissioned AP services 
  5. Core schools budget grant
  6. Other streams of funding
  7. Transport funding 

AP is funded from the 'high needs block' 

The government provides local authorities (LAs) with high needs funding through the 'high needs block' of the dedicated schools grant (DSG). LAs will pass this on to individual institutions according to the conditions of the grant. Some institutions receive the funding directly from the DfE.

This funding supports:

  • Alternative provision (AP) for pupils who can't receive their education in mainstream or special schools – AP institutions get their core funding (called 'place funding') and top-up funding from this block (read more about this below)
  • Provision for pupils with special educational needs and disabilities (SEND) 

See section 1.3 of the DfE's high needs funding: 2025 to 2026 operational guide. 

Core funding ('place funding')

You won't receive AP place funding for post-16 pupils unless