Changes to T Level Funding Methodology

In the Department for Education (DfE) update of 17 September 2025, it was announced that a change in the funding methodology for T Levels will be introduced.

Timeline

From the 2027/28 academic year, the move to a lagged methodology means:

• Student Numbers will be based on those recruited and recorded in the October 2026 census.
• Student Funding Factors will be based on the most recent full academic year data available at the time of allocation. For 2027/28, this will be data from the 2025/26 academic year.

This means that if you are not currently delivering T Levels in 2025/26, you will need to rely on the reconciliation process to secure additional funding for your first two cohorts.

If you begin delivering T Levels in 2026/27, this will affect your funding allocations for 2028/29 and 2029/30.

How Reconciliation Works

• Lagged student numbers are taken from the previous October census.
• If you are new to T Level delivery, you will initially be funded as though your learners are on 16–19 study programmes.
• Once the census is submitted and COLLECT closes (end of November), details of your T Level recruitment are extracted.
• Each T Level learner is placed into the appropriate T Level band, and a funding adjustment is calculated based on the difference between the annual T Level rate and the Band 5 rate.
• You will usually be notified of the outcome in late February or early March, with revised payments (including any backdated adjustments) made from April.