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Further Education: Finance

Asked by Mr Lee DillonLiberal DemocratDepartment for EducationTabled Answered 15 June 2026UIN 6113

The question

To ask the Secretary of State for Education, what assessment she has made of the potential merits of re-orienting the further education funding system to rewards outcomes rather than headcounts.

Answered by Josh MacAlister

We use the 16 to 19 funding formula to calculate and allocate funding to each institution, each academic year. Basic funding for institutions is calculated using lagged student volumes and funding rates, which depend on the size of their students' study programmes or T Levels. These rates are regardless of the type of institution they attend or what they study

The 16 to 19 funding formula ensures that additional support is placed where it is most needed, ensuring all young people have a place in a study programme which can equip them with the skills they need to seize opportunities.

We announced in the Post-16 education and Skills White Paper that we will undertake a 16 to 19 funding formula review to maximise the impact of funding. As part of that review, we will consider evidence and recommendations from numerous sources, including the ‘Young people and work: interim report’ available at: https://www.gov.uk/government/publications/young-people-and-work-interim-report.

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