6th Report - Further Education and Skills

The government rejects the recommendation to devolve 16-19 education and training, stating it is important to maintain a consistent national offer to promote social mobility, but commits to working with Mayoral Strategic Authorities on aligning priorities.

The government outlines the existing Youth Guarantee for 18-21 year olds and highlights various current support mechanisms for 16-24 year olds, thereby not committing to expanding the Youth Guarantee itself to include all 16-24 year olds.

The government states it will introduce V Levels, a new vocational pathway, alongside A Levels and T Levels, which will allow students to explore sectors and combine applied learning with practical assessment. This differs from the recommended modular T Level qualifications.

The government proposes introducing V Levels as a new vocational pathway alongside A levels and T Levels, as outlined in its Post-16 Education and Skills White Paper. A consultation on post-16 Level 3 and below pathways is currently underway, with a response expected later in 2026, indicating that the future of existing qualifications is still under review.

The government rejects the introduction of a new 16-19 student premium, stating it already funds existing financial support programmes for 16-19 year olds, including the Bursary Fund and other support mechanisms.

The government rejects the recommendation for VAT exemption for FE colleges, explaining that while education services are exempt, many public bodies cannot recover VAT on their expenditure, and any changes would need to be considered within broader public finances.

The government explicitly rejects establishing a statutory pay review body and committing to close the pay gap, asserting that FE colleges are responsible for setting pay, though it outlines other support for recruitment and retention.

The government rejects the implicit suggestion to devolve 16-19 education funding, stating it is important to maintain a national, consistently high-quality offer to promote social mobility. It confirms Mayors will continue to feed priorities into DfE's strategic conversations and LSIPs for 16-19 year olds.

The government's Post-16 Education and Skills White Paper proposes a new V Level pathway alongside A Levels and T Levels. It also notes an ongoing consultation on post-16 Level 3 and below pathways, with a government response expected in 2026, indicating a different strategy for post-16 qualification flexibility.

The government states existing annual funding mechanisms apply to special post-16 institutions but explicitly rejects creating a ring-fenced national High Needs Fund for specialist SEND colleges, stating local authorities determine priorities for un-ringfenced capital funding.

The government states the recommendation is 'NOT TAKEN FORWARD,' explaining that while education services are exempt, colleges cannot recover VAT on expenditure like many public bodies, and any tax system changes require broader public finance considerations.

The government explicitly states it has "no plans to establish a dedicated pay review body" for further education, asserting colleges are responsible for setting pay. It highlights recent and planned investment to support colleges in addressing staffing challenges.