Post-16 Education and Skills White Paper

The Government’s plan is to deliver change in the three following ways:

To work with employers as part of a joined-up skills system that drives growth and leaves no place or person behind;

1. To work with employers as part of a joined-up skills system that drives growth and leaves no place or person behind;
2. To develop a specialist and prestigious further education sector so that everyone can access opportunities through high-quality training; and
3. To strengthen the higher education sector to align with the needs of the economy, become more specialised and sustainable, and deliver good value for the students who study there.

In this briefing we look at each of these in turn.

Working with employers to drive growth and opportunity through education and training

The Government’s objectives are for a skills and employment system that is joined up, has clear expectations of who is responsible for funding different types of training, is data-driven, is employer focussed (with the needs of businesses and public sector employers driving the approach to skills) and supports young people to thrive - with a clear focus on re-engaging those who are not in education, employment or training (NEET) and identifying those who are at risk of becoming NEET earlier and supporting them to remain in education and training.

The way that these objectives are to be achieved which are most relevant for education institutions are as follows:

• the adult essential skills offer in English, English for speakers of other languages, maths, and digital skills will be reviewed

• there will be greater flexibility and an expansion of Skills Bootcamps

• employers should be able to use the Growth and Skills Levy on short, flexible training courses “apprenticeship units” from April 2026 with the first wave of courses in critical skills areas

• the Youth Guarantee will guarantee young people access to education, training and/or help to get into work, with the introduction of foundation apprenticeships an important first step

• the introduction of the Lifelong Learning Entitlement from January 2027, giving each individual access to 4 years’ worth of loan funding for higher level education or training over their working lives will mean that further education colleges will be more easily able to offer higher education at level 4 and 5

Specifically in relation to supporting young people who are NEET, or at risk of becoming so the Government will:

• enable local authorities, Strategic Authorities, schools and further education providers to identify, track and share data about young people more effectively so that it is easier to identify young people with NEET risk characteristics in each local authority area

• strengthen the role that schools play in the transition to post-16 education and training, so that each pupil has a planned destination before they leave - guidance will be revised so that schools routinely provide targeted support for those at risk of becoming NEET, helping them choose their next step and successfully transition into post-16 education and training

• update the Raising Participation Age Guidance and the September Guarantee to provide clarity regarding the role of schools in preparing students for transitions into post-16 study - this will include detail on their role in providing high-quality information, advice and guidance on careers and information on available options and provision and that schools work collaboratively with Local Authorities to help ensure that young people at particular risk of becoming NEET are identified for support to find a post-16 place

• ensure that those without a post-16 study plan are automatically allocated a place at a local college or further education provider

• work with all 16-19 education providers to track attendance by students and intervene early when attendance starts to decline

Finally, to improve the support and outcomes for individuals with mental health needs and special educational needs and disabilities (SEND) in post-16 education and training the Government will take a number of steps including:

• funding expert advice across post-16 education, as well as in employment, via free one-to-one consultation for all learners with SEND, alongside up-to-date guidance

• increase awareness and take-up of the Adjustment Planner - a self-assessment tool that allows all individuals to go through the support that they think would be right for them and discuss this with the people they are working or studying with

• support more students to thrive in further education by expanding access to Mental Health Support Teams - estimating that by April 2026 60% of students in colleges and schools in England will be covered by a Mental Health Support Team, up from 52% in April 2025

A specialist and prestigious further education system that delivers high-quality education and training for all

Qualifications

The main announcement concerns the introduction of V levels. These will replace the range of vocational technical qualifications at level 3 and will sit alongside A levels and T levels, and will become the only pathway of vocational qualifications at level 3 for 16 to 19-year-olds. They will be offered in a range of vocational subjects covering key employment sectors, with the content linked to occupational standards set by Skills England, working with employers, with the intention being that they will offer a vocational alternative to the academic (A level) and technical (T level) routes.

V Levels will be similar in size to an A level so as to be easily combined with other V Levels or A levels, to allow learners the flexibility to explore different areas. An example is given in the White Paper of a student studying a V Level in Finance and Accounting, alongside A levels in Environmental Science and Geography.

The Government is also proposing to develop two clear post-16 pathways at level 2, simplifying the current offer. These would be:

• A further study pathway - which will include qualifications called Foundation Certificates – and will be for students who want to pursue further level 3 study via related T Levels, V Levels, A levels or apprenticeships but need more time to develop their knowledge and skills before moving up to the next level.

• An occupational pathway – which will include qualifications called Occupational Certificates – and will be for students who are certain of their occupation but need to develop their skills in a classroom-based setting, with the aim of progressing into employment in relevant level 2 roles, including an apprenticeship.

A separate consultation has been published on how V levels will operate and the proposal to introduce these two new pathways at level 2. For V levels 23 subject areas are suggested, with the proposal that they are delivered in 360 guided learning hours (the same as A levels), with the first being rolled out in 2027 and all being available for the 2030/31 academic year.

At level 2 the proposal is that the further study pathway will be 240 guided learning hours and take one year – 15 subject areas have been identified in the consultation. The occupational pathway will be a two year programme with 59 occupations listed as suitable. As with V levels the intention is that the first Foundation Certificates and Occupational Certificates will be available from 2027 with all available from 2030/31.

The consultation, which closes on 12 January 2026, also proposes introducing a number of new T levels.

To address concerns about attainment levels in English and Maths, the White Paper says the Government will introduce new 16-19 English and maths preparation for GCSE level 1 qualifications, continue to provide additional investment to support more students to progress towards and achieve a level 2 in English and maths by the age of 19 and revise the 16 to 18 English and maths Progress Measure and Qualification Achievement Rates.

Teaching

To ensure the further education sector is delivering high quality teaching the Government says it will:

• provide £1.2 billion of additional investment per year in skills by 2028-2029 – it says this will enable the recruitment and retention of expert teachers in high value subject areas, and interventions to retain top teaching talent

• establish a coherent, career-long professional development pathway for teachers in further education – the intention is to support further education teachers at every stage of their career, from initial training through to leadership

• reform Initial Teacher Education to raise quality standards by introducing statutory guidance to ensure consistency and quality in Initial Teacher Education content and delivery and requiring all Initial Teacher Education providers to register with the DfE – on 17 October 2025 the DfE issued a call for evidence on FE teacher initial teacher training and development, which closes on 12 December 2025

• introduce new, in-service professional development courses and embed industry exchange into this development

• introduce legislation allowing the Secretary of State to bar unsuitable people from management positions in further education providers

• extend the Teaching Vacancy Service to include further education roles, making it easier for providers and candidates to connect with opportunities in the sector

• support colleges to take the opportunities of artificial intelligence and technological developments and confidently lead change in the best interests of all learners – the DfE says that whilst technology, including artificial intelligence, will not replace or automate teaching, it can transform and improve it and that it will work with the sector and internationally towards a shared approach on the safe and effective use of generative artificial intelligence in further education

• expand the programme of Technical Excellence Colleges to include the sectors of advanced manufacturing, clean energy, defence and digital and technologies - employers will play a key role in shaping course offers and underpinning curriculum design and these colleges will draw on the experience and expertise of Institutes of Technology, which have shown the benefits of collaborative working between employers, further education providers, and universities

Funding

Finally, the Government says it will invest in further education and make changes to the funding regime to ensure providers are incentivised and have the capacity to deliver the education and training that best meet individual needs, as well as the needs of local and national employers. In addition, it will simplify the regulatory framework to reduce bureaucracy for providers and facilitate closer integration between colleges and universities to boost participation in higher level study.

It aims to achieve this by:

• investing the necessary funding to ensure all 16 to 19-year-olds have a place in education or training – having increased investment in 16-19 education by £400 million in the 2025-26 financial year, it will invest nearly £800m extra in 2026-27, including and fully consolidating the £190m boost provided in May

• undertaking a 16-19 funding formula review to ensure sufficient funding is reaching the most critical subject areas - it aims to have a revised formula in place for academic year 2027/28

• investing in the estate and facilities needed to deliver priority training

• exploring measures to allow further education colleges to secure loans from local or strategic authorities

• supporting colleges to make further efficiencies and optimise value for money – this will include developing options for cost-savings through areas of bulk or aggregated purchasing

• bringing higher and further education providers closer together by simplifying the regulatory framework for higher level study - all providers who wish to offer Lifelong Learning Entitlement-funded provision, including for courses leading to Ofqual-regulated level 4 or higher qualifications, will be required to register with the Office for Students (OfS)– alongside this the OfS will consult about whether to disapply certain registration conditions for providers in the further education sector without degree awarding powers that are delivering, or planning to deliver, higher education

• publishing updated guidance setting out stronger support for college improvement, including the introduction of Regional Improvement Teams

To strengthen the higher education sector to align with the needs of the economy, become more specialised and sustainable, and deliver good value for the students who study there

The Government’s ambition is to have a more sustainable, more specialised and more efficient sector, better aligned with the needs of the economy. It addresses how to achieve this in a number of ways.

Specialisation and collaboration in teaching and research

The Government wants all higher education providers to consider how they could specialise in areas of strength and collaborate with others for the benefit of students and the economy. A provider may decide to specialise across multiple disciplines or to focus on one or two where they are strongest, or choose to specialise in a specific type of research.

It will do this by actively encouraging each provider to be clear about the role they are playing, their unique strengths, and where they can build stronger collaborations with other providers. The expectation is that over time there will be fewer broad generalist providers and more specialists - including specialists in teaching only, specialists in research, and some institutions who specialise in teaching with applied research in specific disciplines - research funding reform will incentivise this specialisation and collaboration.

There is also an expectation that providers will more routinely work in partnership together, with the result that institutions will be stronger and more financially sustainable, and provision expanded in areas currently under-served. The Government will clarify how collaboration between providers can happen within the existing legal framework and set out the types of collaboration it sees as beneficial and wants the sector to embrace.

Providers should also consider how incentives for staff should be aligned with long-term strategies and ensure that staff pay and performance assessments for academics rewards teaching excellence in the same way as research excellence.

Putting the sector on a sustainable footing and driving efficiency

The position on tuition fees has generated the main headlines of what the White Paper had to say about higher education, and the Government will increase tuition fee caps in line with inflation in academic years 2026/27 and 2027/28 (although those for foundation years in classroom-based subjects will be frozen for academic years). For future academic years legislation will be introduced to increase tuition fee caps automatically in line with inflation.

However, future fee uplifts will be conditional on providers achieving a higher quality threshold through the OfS’ quality regime. This ties into the recent OfS consultation on the future approach to quality regulation (which closes on 11 December 2025) to make the Teaching Excellence Framework more closely aligned with the OfS’ requirements for quality and standards and to link the outcome to funding.

In addition, on research the Government will improve research grant cost recovery, maintain the dual support funding approach and quality-related research funding to ensure universities can make strategic choices,  reform the research assessment system to better incentivise excellence and UK Research and Innovation will work with the sector to provide guidance on good costing practice, streamline bureaucracy in the funding system, and enable more accurate valuation of research projects prior to funding.

On governance, the Government will support the OfS in developing a reformed regulatory framework, and in strengthening its management and governance conditions of registration and financial monitoring and data collection processes, to better support the sector in identifying and mitigating risks. It will also support the governance review led by the Committee of University Chairs to strengthen its higher education code of governance.

Improving access and participation

In order to provide lifetime access to funding for higher skills education and training, the Government will increase maintenance loans for students from the most disadvantaged backgrounds in line with forecast inflation every academic year and will introduce the Lifelong Learning Entitlement in academic year 2026 to 2027.

To help students from the lowest income households it will also, by the end of this Parliament, introduce new targeted means-tested maintenance grants for certain courses – this will be funded by the new International Student Levy. Further details on maintenance grants and the International Student Levy will be set out in the Autumn Budget.

Access and participation plans will be reformed with a move away from a uniform approach to one where the OfS can be more risk-based. There will be greater accountability for providers who are lagging behind in addressing inequalities in access and participation, while for those doing well, there will be reduced bureaucracy and more of a focus on continuous improvement.

Strengthening incentives on higher education providers to promote growth

Skills England have highlighted that the economy will need more highly-skilled workers over the next decade and the Government is concerned that there are higher level skill shortages in science, technology, engineering, mathematics, creative industries, health and technician roles and that the incentives for providers to deliver education which matches the skills gaps at higher technical levels (level 4 and 5) are limited, leading to insufficient supply.

To address this it will reform the Strategic Priorities Grant; make it easier for providers and awarding organisations to offer standalone high-quality, occupationally focused level 4 and 5 courses; and strengthen the statutory guidance on Local Skills Improvement Plans, setting out clearer expectations on higher education providers to engage with the development, review and implementation of these plans, and a stronger expectation that they cover technical skill needs at all levels. It expects providers to offer more flexible, modular provision and strengthen progression routes from further education into higher education, supported by transferable credits. It will also consult on making student support for level 6 degrees conditional on the inclusion of break points in degree programmes.

To build the knowledge infrastructure to support commercialisation, company formation and scale up, UK Research and Innovation’s funding will be pivoted to align to areas of strategic importance as set out in the Industrial Strategy sector plans, higher education innovation funding will be reviewed so that the outcomes universities deliver help drive economic growth at both a local and national level and up to £500 million will be invested through the Local Innovation Partnerships Fund to grow high-potential innovation clusters across the UK.

In relation to international students and UK exports, the Government will set out its approach to growing the UK education sector’s international partnerships and impact in the forthcoming refresh of the International Education Strategy and it will work with the sector to maintain a welcoming environment for high-quality international students – although it will also take steps to safeguard the integrity of the system by cracking down on “abuse of our immigration system” by tightening the requirements around visa approvals and course enrolment and completion.

Finally, it will encourage higher education providers to develop civic plans that align with their  strengths and priorities and to work with industry and other local leaders to help inform local economic strategies and work together through programmes such as the Local Innovation Partnerships.

Improving the quality of higher education, training, and research, and driving out poor quality

Whilst the White Paper is positive about the quality of education delivered by most providers it says that even an already excellent higher education provider needs to remain dynamic and responsive to new pedagogical approaches, new technology, and new ways of delivering education to ensure the highest-quality provision and that there are pockets of poor provision which undermine the reputation of the sector and must be tackled.

Amongst the measures which will be taken to drive up quality are to:

• ensure the OfS has the capacity and power to swiftly identify low-quality teaching provision, and will intervene to tackle it

• take firm action to address serious concerns about poor-quality provision, financial exploitation, and fraudulent practices among some franchise providers

• strengthen OfS powers to act quickly to investigate all regulatory risk, and close down provision where fraud or misuse of public money is identified

• tackle abuse of the system by recruitment agents

In order to harness the benefits of artificial intelligence it will:

• publish a plan on Artificial Intelligence for Science in the autumn

• continue to invest in compute capacity to ensure the UK is positioned to be an artificial intelligence maker rather than an artificial intelligence taker

• strengthen the UK’s artificial intelligence talent pipeline, to ensure the UK is the home of the next generation of artificial intelligence leaders - this includes investing £96.8 million to support 1,000 exceptional domestic students a year with undergraduate scholarships in areas like artificial intelligence, cyber security, and computer science, 100 research MSc places, and at least 100 artificial intelligence Spärck scholarships a year

• support the OfS to assess the impact of artificial intelligence, including how students are using it in assessments, to ensure the integrity of higher education assessments and that qualifications are not compromised

Finally, on freedom of speech the Government has confirmed that it will introduce the amendments to the Higher Education (Freedom of Speech) Act 2023 that it had already flagged and will also give the OfS stronger regulatory powers to take robust action against higher education providers who do not meet their duties under the Act. See our previous briefing for more details on the provisions of the Act which were brought into force on 1 August 2025 and those to be implemented in due course.