Listen to this story Members can listen to an AI-generated audio version of this article. 1.0x Audio narration uses an AI-generated voice. 0:00 0:00 Become a member to listen to this article Subscribe Education funding for 16 to 19-year-olds will increase by 3 per cent in 2026-27 following a last-minute cash injection. Ministers have been criticised since March when they announced the national per-student funding rate for 16 and 17-year-olds would only rise by 0.5 per cent, breaking an earlier promise to increase funding at least in real terms. New funding rates published today reveal the maximum base rate will now increase from £5,105 to £5,256, up from the initial £5,133 first proposed in March. Other study programme rates have also been increased. Bands 4a and 4b will rise to £4,348, band 3 to £3,536 and band 2 to £2,796. The updated rates follow last week’s announcement of a £485 million funding increase from the Department for Education, which was tied to part-funded pay rises for school teachers. Last week’s funding top-up amounts to £120 million for financial year 2026-27 and £365 million in 2027-28. Unlike in schools, DfE doesn’t set staff pay, but it has told colleges to spend the extra cash on “strategic priorities”, including staff recruitment and retention. DfE confirmed the added investment will be routed to colleges and other 16 to 19 providers through increases to the national funding rate, T Level rates, low prior attainment disadvantaged funding and the rate for students in care and care leavers. It will also be used to increase parts of the post-16 national insurance grant, which means providers with non-16 to 19 delivery can benefit. The grant will be renamed the post-16 budget support grant from April 2027. Revised 16 to 19 allocations and funding statements will be issued in September, with updated payments beginning from October. The Association of Colleges, which negotiates with unions for an annual pay rise recommendation for further education colleges, now aims to make a pay recommendation in the autumn. AoC CEO David Hughes said: “It’s good to have the funding rates confirmed by the DfE today, as well as the approach to the new post-16 support grant. Colleges won’t receive revised allocations until September and therefore won’t be able to update their budgets until then. “We have plans to meet with the national joint forum in the autumn and hope to make a pay recommendation then.” James Kewin, deputy chief executive of the Sixth Form Colleges Association, said: “We are pleased with this funding boost and the fact it will mainly be applied by raising the 16 to 19 funding rate. “The boost to disadvantage funding is also very welcome. Taken together, this additional investment will help colleges to fund a more appropriate pay award for staff. “If schools receive additional funding to increase staff pay, this is now routinely extended to colleges, which is a welcome trend and will help sixth form colleges to maintain pay parity with schools.” The amount paid for students in care or care leavers will rise from £609 to £624 per student. Low prior attainment funding will rise to £624 for bands 4 and 5 study programme students, £380 for bands 2 and 3, and £846 for T Levels. T Level rates have also been boosted compared with the March guidance, although some courses will still receive less than they did last year following the removal of a 5 per cent uplift for older qualifications. Band 9 T Levels will now be funded at £15,126 over the two-year programme, compared with £15,430 in 2025-26. Non-uplifted band 8 T Levels will receive £13,870, band 7 £12,612 and band 6 £10,936. However, T Levels with technical qualifications introduced from 2022 to 2023 will retain an uplifted rate. These will be funded at £14,564 for band 8, £13,242 for band 7 and £11,484 for band 6.