Element 3 is top-up funding the local authority pays from its high needs block for a high-needs pupil’s costs above the first £6,000 of extra support, which mainstream schools fund themselves (2026-27). It is the third layer of a three-part model the Department for Education uses to describe how a high-needs pupil’s place is paid for: core place funding, the school’s own contribution to extra support, and then the council’s top-up.
The three funding elements
For a mainstream school place, the funding stacks up like this:
| Element | What it is | Who pays |
|---|---|---|
| Element 1 | Core per-pupil funding (the basic amount for every pupil, often around £4,000) | From the school’s main budget |
| Element 2 | The first £6,000 of additional support for a pupil with SEN, met from the notional SEN budget | From the school’s own budget |
| Element 3 | Top-up for costs above £6,000, set per pupil by the council’s funding matrix | From the local authority high needs block |
The £6,000 is a contribution, not a trigger
The most common misreading is to treat the £6,000 as a threshold a pupil has to “reach” to unlock funding. It is the other way round. The £6,000 is the amount the school is expected to spend first, per pupil per year, out of its own delegated budget before the council pays anything on top. Element 3 is whatever the support costs above that line. It is not a fixed sum, and it is not automatic just because a pupil has an EHCP — you can read more on the £6,000 SEN funding threshold. The council decides the amount against its local funding matrix or banding descriptors, so two pupils with similar needs in different areas can attract different top-ups.
Where it comes from and how it is reviewed
Element 3 is drawn from the local authority’s high needs block, part of the dedicated schools grant. Top-up usually attaches to pupils with an EHC plan, and where it does, the amount is reviewed alongside the EHCP annual review. But it is not strictly limited to EHCP pupils: a council can agree top-up outside the statutory assessment process where a pupil’s needs justify it. The structure sits in the Department for Education’s operational guidance rather than in primary law, which is why the figure can move from one funding year to the next.
One thing to watch: the £6,000 figure applies for 2026-27, but it is reset each funding year, so check the current operating guide before you build it into a budget. The 2026 Schools White Paper and the Education for All Bill both signal change to how high needs is funded, though no structural change is expected to land before September 2030.
If you also need to work out what the school’s own contribution looks like in practice, see what the school’s notional SEN budget is and how much a school has to spend before applying for an EHCP.
To claim element 3 for a pupil, evidence the costs that take support above £6,000 and put the request through your local authority’s high needs or banding process — the route and form are on your council’s schools-funding pages. The Department for Education’s high needs funding operational guide sets out the national framework your council works within.
Where the law comes from
Related
This page is general information, not clinical or legal advice.