Element 3 funding

Element 3 (E3) funding, sometimes referred to as 'top-up' funding, is the funding required over and above the core funding (elements 1 and 2) that a school or college receives to enable a pupil or student with high needs to participate in education and learning. Element 3 (or top up) funding is intended to contribute to the costs of special educational provision for children and young people with high needs, taking into account other elements of funding that also contribute to meeting such costs, such as mainstream schools' core funding to meet the cost of additional support up to £6,000 per pupil.  

The DfE published the High Needs Funding: 2025 to 2026 Operational Guide, which outlines how the high needs funding system will operate for the 2025/26 Dedicated Schools Grant (DSG) financial year, detailing the roles of local authorities, schools, and colleges in funding arrangements. It includes information on top-up funding (i.e. Element 3) and how it supports students with special educational needs and disabilities (SEND) in mainstream settings.  The DfE also publishes DSG conditions of grant, currently available for 2025-26 DSG financial year, which places a duty upon local authorities to ensure that the DSG grant monies are spent on the purpose for which they are intended.