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Vocational Education: Finance

Asked by Adam JogeeLabourDepartment for EducationTabled Answered 20 May 2025UIN 51031

The question

To ask the Secretary of State for Education, what steps she is taking to ensure the effective distribution of funding for technical education to meet the needs of (a) students and (b) employers in (i) all and (ii) high-demand sectors.

Answered by Janet Daby

16 to 19 funding enables students to take part in study programmes, which includes technical qualifications, or T levels. The department uses the 16 to 19 funding formula to calculate an allocation of funding to each institution, in each academic year, based on volumes and characteristics of students and their programmes. Additional funding is also available via the high value courses premium to encourage and support delivery of selected level 3 study programmes and T Levels.

Additionally, in the 2025/26 academic year, the adult skills fund will be 68% devolved to mayoral strategic authorities. These authorities have autonomy in deciding how to use their funding to make decisions that are best for their areas. In non-devolved areas, the department uses five funding bands that reflect, amongst other considerations, the cost of the provision involved and skill needs of the economy.

My right hon. Friend, the Chancellor of the Exchequer, also committed over £600 million over the Parliament to deliver up to 60,000 skilled construction workers, supporting the government’s infrastructure and housebuilding priorities. This includes additional funding to deliver more construction courses, skills bootcamps, foundation apprenticeships, industry placements, and the establishment of ten new Technical Excellence Colleges.

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