Popular BTECs and other applied general qualifications have been granted another funding extension as part of a “sustainable” transition to new V-levels, the government has announced.
Ministers have agreed to extend funding for all level 3 diplomas and extended diplomas into 2026-27, giving colleges and sixth forms a significant reprieve with just six months to go before the start of the new academic year.
Defunding will now begin from autumn 2027, instead of this year, in finance, digital, education and early years – the subject areas chosen for the first V-levels.
Further defunding will follow in 2028 in business and administration, care services, construction and the built environment, engineering and manufacturing, health and science, legal, sales, marketing and procurement, and sport.
It means popular courses like the BTEC extended diploma in health and social care will continue to be funded for another two years.
A transition document is due to be published today to clearly set out the arrangements to the new qualifications system, including the new defunding timeline for specific courses.
Until now, the Department for Education’s position has been that “funding for all qualifications [with] 720 guided learning hours (GLH) and over in T-level areas will be removed in 2026 and 2027”.
This timeline had prompted warnings from the sector that tens of thousands of students would face a qualification gap from September 2026.
‘Phased, sustainable approach’
A DfE spokesperson described today’s decision as a “phased, sustainable approach for providers to transition to the reformed system”.
Writing for Schools Week’s sister newspaper FE Week, skills minister Jacqui Smith said: “You told us that the transition arrangements we originally proposed were too aggressive, putting providers’ ability to prepare for the reforms to come at risk.
“I appreciate that and so, to give providers space and certainty, we are setting out that large qualifications the size of three A-levels or bigger in T-level areas will have funding approval removed from 2027 instead of 2026, apart from health and social care qualifications which will follow in in 2028.
“Smaller legacy qualifications will retain funding approval until the relevant T Level and V Level is available in that subject area from 2027.”
V Levels will launch in three subjects and begin teaching in colleges from September 2027, the DfE also confirmed this week.
Ministers have also decided to design V-levels to the same qualification size as one A-level – 360 guided learning hours – so that students can choose to take a “mix and match” selection of vocational and academic qualifications.
Ahead of its full response to a public consultation on reforming the post-16 qualification landscape, the DfE has revealed that V-levels will be taught in digital, education and early years, and finance and accounting from September 2027.
Further V-levels will follow in 2028 in eight subjects including business, health, care, and construction, with four more subjects coming in 2029 before completing the rollout in 2030.
The government is also due to launch a consultation on a new qualification for students with lower attainment in English and maths as a stepping stone to resitting their GCSEs.
