DfE could step in if T Level fee hikes hit college budgets

Awarding bodies can charge colleges higher fees if gen 2 T Levels under-recruit

Awarding bodies can charge colleges higher fees if gen 2 T Levels under-recruit

Exclusive

The skills minister has said Department for Education officials will consider intervening if controversial T Level fee hikes hit college budgets.

College bosses reacted angrily to plans – uncovered by FE Week in January – that would see them pay higher fees to awarding organisations if student numbers on the flagship qualifications were lower than expected.

The so-called “adaptive pricing” mechanism will be written into generation two T Level awarding body contracts, which are currently out to tender and come into force in 2025.

The move is part of attempts from the Institute for Apprenticeships and Technical Education to make T Levels more “commercially attractive” for prospective awarding organisations.

Major T Level awarding body NCFE wrote off over £2.5 million in its 2022/23 accounts due to lower-than-expected enrolments on its T Level courses.

David Hughes, chief executive of the Association of Colleges, accused the government of “undermining confidence in T Levels” following reports of the new adaptive pricing model in a letter to skills minister Robert Halfon.

Hughes wrote: “I am alarmed at the proposal we have seen in the tender documents and the potential impact on the T Level programme and on individual colleges.”

Adaptive pricing “transfers the risk away from government and awarding organisations onto the individual college pioneering the qualification”, Hughes added.

Students will be taking generation two T Levels in early years, construction and digital from September 2025, while the health and science T Levels won’t be ready for teaching until September 2026.

In his response to Hughes, seen by FE Week, Halfon said adaptive pricing was “part of continuing efforts to explore innovative mechanisms to ensure … a thriving marketplace for T Levels, which will result in greater competition and therefore ensure value for money for providers and for government”.

Halfon said Department for Education officials were “mindful” of the risk adaptive pricing poses to college budgets and would consider “whether any further action is needed to mitigate its impact” should it be triggered.

His reply stated that any intervention from the government would depend on the DfE’s T Level budget following the next spending review, which isn’t due until after the general election.

Halfon said: “I recognise that you and your members are concerned that if numbers do not materialise this could add funding pressure to college budgets – department officials are also mindful of this risk.

“Should we become concerned that adaptive pricing will be triggered, we will consider whether any further action is needed to mitigate its impact in the context of the overall funding settlement for T Levels.”

Latest education roles from

Technology Support Technician

Technology Support Technician

Capel Manor College

Head Animal Keeper

Head Animal Keeper

Capel Manor College

Grounds Person/Arboriculture Instructor

Grounds Person/Arboriculture Instructor

Capel Manor College

Learner Experience Officer – 40 weeks per year

Learner Experience Officer – 40 weeks per year

Westminster Adult Education Service

Business Development Manager

Business Development Manager

Somerset Skills & Learning

Director of Governance (Part-time)

Director of Governance (Part-time)

Halesowen College

Sponsored posts

Sponsored post

Are we running out of STEAM?

In the 21st century, the education landscape has been dominated by the prioritisation of STEM subjects. Science, Technology, Engineering...

Advertorial
Sponsored post

The college roadmap to AI maturity – and a reskilled workforce

AI is poised to drive economic growth, reshape jobs, and transform industries, demanding urgent upskilling. Education must swiftly adapt,...

Code Institute
Sponsored post

Assessing Skills for Job-Ready Learners 

Discover how hands-on practice and authentic assessments help educators build both technical expertise and essential soft skills in learners.

Advertorial
Sponsored post

Sandwell College and NHS Trust launch £18 million Learning Campus, creating hundreds of jobs and training opportunities in the West Midlands

Sandwell College and Sandwell and West Birmingham NHS Trust recently announced a landmark agreement, which is set to secure...

Advertorial

More from this theme

Colleges, T Levels

BGT’s Alesha’s singing the praises of ‘game changing’ T Levels

The philanthropist-funded campaign hopes to boost parents' confidence in the new qualification

Josh Mellor
Apprenticeships, T Levels

Just over half of T Level students satisfied with course, DfE survey reveals

Most common reasons for apprentice dropouts and levels of OTJ compliance also revealed

Josh Mellor
Skills reform, T Levels

Wave 3 T Level contracts set to more than double in value

Government continues to respond to affordability concerns from awarding bodies

Shane Chowen
Apprenticeships, Careers, T Levels

DfE hands over apprenticeships and T Level careers programme

The £3.2 million Apprenticeship Support and Knowledge scheme is now run by the Careers and Enterprise Company

FE Week Reporter

Your thoughts

Leave a Reply

Your email address will not be published. Required fields are marked *