Source · Select Committees · Education Committee

Recommendation 55

55 Accepted in Part

Increase per-student funding across all post-16 streams, adjusted for inflation and student numbers.

Recommendation
It is crucial that the Government increases per-student funding across all post-16 funding streams, based on a detailed assessment of need. We welcome the Chancellor’s pledge of £1.2 billion a year for the further education sector, which will see the overall budget rise by £400 million (in today’s prices) between 2025–26 and 2028–29. However, the Government must ensure this extra funding is sufficient to meet the needs of this crucial sector which has suffered long-term underfunding. Increased funding should be adjusted annually for inflation and for the rise in FE student numbers. (Recommendation, Paragraph 205)
Government Response Summary
The government commits £8.5 billion for 16-19 programme funding in 2025/26, including an additional £400 million this year and nearly £800 million extra planned for 2026/27. It does not explicitly state that funding will be adjusted annually for inflation or student numbers.
Government Response Accepted in Part
HM Government Accepted in Part
£8.5 billion has been allocated for 16–19 programme funding in 2025/26, with an additional £400 million investment this year and nearly £800 million extra planned for 2026/27. These significant investments will support colleges and other 16–19 providers to address priorities, including recruitment and retention, now and in the future.