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<p>On 10 April, the department set out its plans to fund further education providers
in England to compensate them for the increase in employer pension contributions under
the Teachers’ Pension Scheme from September 2019 to July 2020. The details can be
found here: <a href="https://www.gov.uk/government/publications/teachers-pension-scheme-employer-contribution-grant-further-education-providers"
target="_blank">https://www.gov.uk/government/publications/teachers-pension-scheme-employer-contribution-grant-further-education-providers</a>.</p><p>
</p><p>This grant is being made in 2 payments: one in September 2019 and one in April
2020. Following the Spending Round announcement on 31 August, we have been able to
confirm that we will continue to provide this funding for the rest of financial year
2020-21. The details of the allocation for 2020-21 and the amounts for the remainder
of that financial year are still to be determined, based on the most recent data from
the Teachers’ Pension Scheme, and these will be announced in due course.</p><p> </p><p>The
department has no plans to provide additional funding specifically for contributions
for the Local Government Pensions Scheme. However, the government has announced £400
million additional funding for 16-19 education in 2020-21, which is a 7% increase
in funding for education providers for this age group, in addition to the funding
for teachers’ pensions.</p><p> </p><p>The Barnett Formula determines changes to the
block grant funding allocated to the devolved administrations by the UK government.
Under the Barnett Formula, the Welsh government receives a population-based proportion
of changes in planned UK government spending on comparable services in England. The
Barnett Formula therefore determines changes to each devolved administration’s funding
with reference to changes in Departmental Expenditure Limit funding for the department.</p><p>
</p><p>The additional funding for the department in the August 2019 Spending Round
will, therefore, be reflected in the normal way in the block grant for the Welsh government.
The funding for further education pensions in 2020-21 will come partly from an addition
to the department’s allocation and partly from re-prioritisation of resources within
the baseline allocation for the department.</p>
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