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 AI-generated
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.
Summary of the government's response below — read the verbatim text to verify.
Government Response
Accepted in Part
HM Government · verbatim extract
Accepted in Part
UNDER REVIEW This government inherited a challenging fiscal context, which means tough decisions are needed across the public sector. However, we are committed to ensuring that all young people have access to high-quality education and training that meets their needs and provides them with opportunities to thrive, and we will invest £8.5 billion 16–19 programme funding during academic year 2025 to 2026. The increase in the national funding rate from £4,843 to £5,105 for academic year 2025 to 2026 is a total 5.4% increase compared to academic year 2024 to 2025. This investment announced in the Spending Review demonstrates this government’s commitment to support further education, to ensure young people are developing the skills this country needs In addition, each year we review the early data returns from institutions delivering 16 to 19 education (including up to age 24 for those with high needs) and award in-year growth where necessary, subject to affordability.
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