T Level funding to be lagged from 2027

Switch will end the use of estimated student numbers but keep in-year reconciliation

Switch will end the use of estimated student numbers but keep in-year reconciliation

Funding allocations for T Levels will be lagged from 2027, the Department for Education has confirmed. 

Guidance published this week says allocations for colleges and schools will be based “solely on student numbers from the start of the previous year”. It means the use of estimated student numbers will end, but in-year reconciliation will continue. The current registration process for new T Level providers will also be scrapped.

The change will bring T Levels in line with other 16 to 19 study programmes, which are already funded through a lagged model. It means a college’s T Level funding allocation for academic year 2027-28 will be based on the number of students the college says it has in its individualised learner record (ILR) data return (R04) in November 2026.

T Level allocations are currently worked out using “carry-over” students from ILR and provider estimates of new starters submitted each autumn. Those estimates are then checked against actual enrolments later in the year. Funding is then adjusted through a reconciliation process. 

T Level recruitment has repeatedly fallen short of expectations. A National Audit Office report earlier this year found starts on the flagship qualifications were as much as 75 per cent below government targets. 

Funding colleges based on last year’s students rather than estimates gives colleges some certainty over how much funding they’ll get, but can also leave them exposed to financial risks if student numbers rise suddenly.

Lagged flaws

Colleges are currently grappling with surging numbers of 16 to 19 year olds, with DfE placing limits on how much growth can be funded in-year.

 Julian Gravatt, deputy chief executive of the Association of Colleges, said there was an  “administrative logic” to the T Level funding change, but “only if we’re at a point where enrolment levels are fairly predictable and manageable.” 

He told FE Week: “The main 16-18 funding system works well in some respects in that it gives colleges a year to adjust their staffing and costs to take account of changing enrolment numbers but it’s working badly in other respects because there is a rising population of young people, an increasing demand for technical subjects, DfE’s budgets are fixed on an April to March cycle and student choices aren’t confirmed until the second half of August.

“Meanwhile fixed budgets and rising demand leave thousands of young people without places each autumn.”

Latest education roles from

Director of Governance – HRUC

Director of Governance – HRUC

FEA

Principal and CEO

Principal and CEO

Hills Road Sixth Form College

Senior Quality Officer

Senior Quality Officer

University of Lancashire

Chief Financial Officer

Chief Financial Officer

Minerva Learning Trust

Sponsored posts

Sponsored post

Funding Is Flowing, Demand Is Rising — It’s Time for FE to Deliver on Green Skills

As the UK races toward net zero, the government says it wants to back 2 million green jobs by...

Advertorial
Sponsored post

Helping every learner use AI responsibly

AI didn’t wait to be invited into the classroom. It burst in mid-lesson. Across UK colleges, learners are already...

Advertorial
Sponsored post

Supporting the UK’s Transport Decarbonisation Plan Through Skills

The UK Government’s Decarbonising Transport: A Better, Greener Britain strategy sets a legally binding path towards a net-zero transport...

Advertorial
Sponsored post

Project power: ASDAN expands its qualifications portfolio

From 2026, ASDAN’s planned Foundation and Higher Project Qualifications will sit alongside its Extended Project Qualification[CM1] , creating a complete...

Advertorial

More from this theme

Colleges

Governors Havant a clue about college’s finances going South

FE Commissioner reveals financial crisis at Hampshire college came 'out of the blue' for board members

Billy Camden
Colleges

Principals scratch their heads over new improvement teams

FE leaders warn Labour’s regional improvement teams risk duplicating oversight already performed by the FE Commissioner

Josh Mellor
Colleges

Weston freed of ‘traumatic’ NTI – but finance probe continues

College out of intervention after strengthening governance procedures

Anviksha Patel
Colleges, Skills reform

Skills England urged to confront government on FE funding

Joint AoC and UUK report also calls for 'excessive' competition to be challenged

Josh Mellor

Your thoughts

Leave a Reply

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

One comment

  1. David Hilton

    So, if I’m correct an impact of this could be that colleges are enrolling unrealistic numbers if students on T-level courses putting the burden on teachers and lecturers. Another impact will be that we are chunneling learners on wrong courses with the aim of getting student numbers up.