Skip to main content

Qualification funding approval manual

Post-16 pathways reform

Information on reforms and what it means for providers and learners.

The government is reforming technical and vocational qualifications at level 3 and below. This will create a clearer and more coherent system for young people and adults.

As part of these reforms, new qualifications will replace most of the qualifications currently available through 16 to 19 study programmes. These include:

  • occupational certificates
  • foundation certificates
  • V Levels
  • T Levels

What this means for providers and learners

As the reforms continue:

  • new qualifications will be introduced and approved for funding from 1 August 2027
  • additional T Levels will be introduced in new subject areas from August 2028, starting with sport and health and social care
  • further qualifications may be approved as part of the ongoing reforms

The implementation plan is regularly updated and provides the latest information on qualification reform.

Phasing out existing qualifications

Legacy 16 to 19 qualifications will be phased out where replacement qualifications are available.

This will begin with qualifications that have been removed from funding for the 2028 to 2029 academic year.

Some qualifications that were previously identified for removal from 2026 have had their funding approval retained or extended. This is to support a managed transition to reformed qualifications.

Where replacement qualifications are planned for the 2028 to 2029 academic year or later, and existing qualifications continue to meet funding approval requirements, the Department for Education (DfE) may extend funding approval. This will help ensure that learners and providers continue to have access to suitable qualifications until replacement qualifications become available.

Funding approval of reformed qualifications 

From 1 August 2027, DfE intends to fund 3 new qualification types introduced through the post-16 pathways reforms: 

  • occupational certificates

  • foundation certificates

  • V Levels 

Approval requirements 

V Levels and foundation certificates must be accredited by Ofqual to demonstrate they are capable of complying with the relevant general, qualification and subject level requirements before they can receive public funding approval.

Once accredited, the qualifications will appear on the public Ofqual’s Register of Regulated Qualifications. The DfE will provide funding approval for V Levels and foundation certificates with no additional requirements or application process.

Occupational certificates 

Like V Levels and foundation certificates, occupational certificates must be accredited by Ofqual in line with its requirements for this qualification type.

Occupational certificates are also technical qualifications under the Apprenticeships, Skills, Children and Learning Act 2009. They must be approved DfE before they can receive public funding.

You do not need to submit any additional evidence to DfE. Approval decisions will be based on:

  • the evidence submitted as part of Ofqual accreditation
  • evidence gathered during the development of occupational certificate national content

You can find:

Reformed qualification titles 

In line with Ofqual regulations awarding organisations must ensure that the title of any qualification listed on the Ofqual’s Register of Regulated Qualifications meets the general requirements on qualification titling.

For occupational certificates, foundation certificates and V Levels we will not accept titles which include awarding organisation brands, apart from the name of the awarding body.

Funding eligibility

Qualification 16 to 19 study programmes  Adult skills fund (first full Level 2 entitlement)  Adult skills fund (local flexibility)
       
Occupational certificate yes yes yes
Foundation certificate yes yes yes
V Level yes yes no

T Levels 

T Levels are included in the 16 to 19 offer and, will be eligible for funding in the level 3 legal entitlement offer under the adult skills fund (ASF) from 1 August 2027.

Timing of funding approval 

To be funded, a qualification must appear on find a learning aim (FaLA) before delivery commences. Providers should therefore confirm that qualifications are listed on FaLA and approved for the relevant funding offer before enrolling learners. 

For the first tranche of qualifications, new V Levels, foundation certificates and occupational certificates must be successfully accredited and appear on Ofqual’s Register of Regulated Qualifications public register by 3rd May 2027 to be guaranteed funding from 1 August 2027. Qualifications which achieve accreditation after 3 May will still be eligible for funding, but may need to be funded from a later starting date.

Access to HE 

Access to HE diplomas are qualifications regulated by the Quality Assurance Agency for Higher Education (QAA) and delivered through licensed Access Validating Agencies.

From September 2026, all new access to HE diplomas will only be approved for funding through 16 to 19 study programmes for learners aged 18 and over, regardless of subject area. They will continue to be available through other funding offers.

Existing access to HE diplomas will also become available only to learners aged 18 and over as they come into scope for funding removal under the level 3 and below post-16 qualifications reforms.

Applying the 18 and over funding restriction

Some access to HE diplomas due to lose funding from 1 August 2027 may have an 18 and over funding restriction applied during the previous academic year.

For qualifications affected by August 2027 funding removals, we expect to apply the restriction in early 2027. This will:

  • avoid disrupting learners who have already started a programme
  • give providers time to plan their curriculum
  • support recruitment planning for the 2027 to 2028 academic year

Awarding organisations should tell providers about any 18 and over funding restrictions as early as possible.

Removal of funding approval during qualification reform 

As reformed qualifications are introduced, funding approval will be removed from older qualifications in the same subject areas. This supports the transition to the new qualifications landscape.

From 1 August 2027:

  • funding approval will be removed from most level 3 vocational and technical qualifications in the digital, accounting and finance sector subject areas
  • funding approval will be removed from most level 2 and level 3 vocational and technical qualifications in the child development and wellbeing, teaching and lecturing, and direct learning support sector subject areas

Read the list of Level 2 and 3 qualifications to have 16 to 19 funding approval removed in 2027.

For the 2027 to 2028 academic year, we will maintain funding for qualifications that are 2 A Level in size (720 guided learning hours(GLH)) in V Level subject areas. This will in practice relate to existing qualifications in digital, which will now be retained until 2028. This is to support providers with the transition, until additional V Levels are available. We have published a revised version of the list of qualifications that will have funding removed in 2027 to reflect this.

Although occupational certificates in catering and hospitality will be introduced from 2027, funding approval for existing qualifications in these subject areas will continue until the planned Level 2 foundation certificate in catering and hospitality is introduced in the 2029 to 2030 academic year.

From the 2027 to 2028 academic year, funding approval will also be removed from level 3 vocational and technical qualifications with 1,080 GLH or more where a corresponding T Level is available.

An exception applies to large health and social care qualifications. Funding approval for these qualifications will be removed from the 2028 to 2029 academic year, alongside the introduction of the T Level in social care.

As additional T Levels are introduced, funding approval for qualifications with 1,080 GLH or more in the same subject areas will normally be removed in the same academic year.

Removal principles from 2028 to 2029 onwards 

From the 2028 to 2029 academic year onwards, funding approval will generally be removed by subject area as follows: 

  • level 2 qualifications – when both occupational certificates and foundation certificates are available for delivery in the relevant subject area

  • level 3 qualifications of 1,080 GLH or more – when a corresponding T Level is available

  • level 3 qualifications below 1,080 GLH – when a corresponding V Level is available

These principles are intended to provide awarding organisations and providers with greater certainty regarding the future funding position of legacy qualifications and the timing of transition to reformed provision.

Level 3 and below funding approval moratorium

To support qualifications reform, DfE operates a funding approval moratorium for certain new regulated qualifications at level 3 and below for learners aged 16 and over.

The moratorium prevents new, unreformed qualifications from being approved in subject areas that are being reformed. This helps to:

  • reduce duplication
  • avoid approving reformed and unreformed qualifications that serve the same purpose

For the purposes of the moratorium, a new qualification is one that has been assigned a new qualification number on Ofqual’s Register of Regulated Qualifications.

The moratorium does not apply to qualifications delivered only to learners aged 14 to 16.

Moratorium exemptions

DfE may consider applications for new qualifications where they meet one of the department’s exemption categories.

Replacement qualifications

Awarding organisations can apply for a moratorium exemption where a new qualification is intended to replace an existing funded qualification.

You should submit an application if the existing qualification is:

  • outdated
  • no longer fit for purpose
  • due to lose funding approval

We will normally look favourably on these applications where there is a clear case for replacement and the qualification meets the relevant funding approval requirements.

New qualifications

We will usually only approve a moratorium exemption for a new qualification that is not replacing an existing qualification if:

  • no reformed qualification has been approved in the subject area
  • there is a clear and evidenced need from learners, employers or the sector
  • the qualification serves a distinct purpose that is not met by existing qualifications
  • approval would not conflict with the objectives of qualifications reform

Ongoing funding approval

Approval through a moratorium exemption does not guarantee ongoing funding approval.

As qualifications reform progresses, we may review qualifications approved through an exemption. This could result in funding approval being removed in the future.

Future changes 

Funding approval arrangements will continue to change as qualifications reform is implemented.

DfE may update:

  • funding approval criteria
  • funding approval periods
  • transition arrangements
  • continued approval processes
  • moratorium requirements

This will happen as additional T Levels, V Levels, occupational certificates, foundation certificates and other reformed qualifications are introduced.

Awarding organisations should regularly review funding approval guidance and updates on qualifications reform. This will help ensure their qualifications continue to meet current funding policy and eligibility requirements.

Lifelong learning entitlement (LLE)

From 1 January 2027, the LLE will fund a range of courses, including:

  • full courses that were previously funded through Higher Education Student Finance (HESF) and regulated by the Office for Students (OfS)
  • some level 4 and above qualifications that were previously funded through advanced learner loans and regulated by Ofqual

Ofqual regulated qualifications are currently eligible for LLE funding only if they:

  • are higher technical qualifications (HTQs) approved through DfE’s HTQ approval process
  • are level 4 to level 6 qualifications approved through the Loans to LLE transfer process and delivered by an OfS registered provider

HTQs at level 4 and above will continue to be automatically approved for LLE funding if they:

  • are worth 30 credits or more
  • meet all other eligibility requirements

LLE Qualification Gateway 

We expect to launch a new approval process for Ofqual regulated non-technical level 4 and 5 and technical and non-technical level 6 qualifications to enter LLE funding in January 2027 and will publish further details in this manual and applications will be received via QFAST

Parallel advanced learner loans and LLE funding approval 

From 1 January 2027, advanced learner loans funding approval and LLE funding approval will run alongside each other for:

  • Ofqual regulated HTQs
  • qualifications approved through the loans to LLE transfer process

This is because LLE funding is only available for qualifications delivered by providers registered with the Office for Students (OfS).

As a result, advanced learner loans and the LLE will fund many of the same qualifications at level 4 and above. There are some differences, including:

  • modular funding, which is available through the LLE
  • minimum size requirements of 150 guided learning hours (GLH) for advanced learner loans and 30 credits for the LLE

Provider eligibility

Level 4 to 6 qualifications approved for LLE funding and delivered by providers that are not registered with the OfS will continue to be eligible for new advanced learner loan starts until 31 July 2030.

For these qualifications:

  • providers registered with the OfS must use LLE funding
  • providers that are not registered with the OfS must use advanced learner loans funding

Student eligibility

Students funded through advanced learner loans cannot access LLE funding for the same learning. This includes:

  • maintenance support
  • modular funding

Students eligible for LLE funding may be able to access:

  • tuition fee loans
  • maintenance support
  • modular funding

Eligibility for LLE funding is subject to meeting the relevant requirements.

Loans moratorium and exemption 

From 1 April 2024 there has been a moratorium on any level 4 to 6 non-HTQ qualifications entering the advanced learner loans offer.  

This moratorium will continue to operate until we open a new approval process for these qualifications in January 2027. 

We have introduced an exemption to the loans moratorium to enable you to keep approved level 4 to 6 non-HTQ qualifications relevant, up to date and compliant with Ofqual’s regulations. 

Higher technical qualifications 

A HTQ is a level 4 or 5 qualification that has been approved by DfE as meeting the knowledge and skills needs of employers. Approved HTQs carry the HTQ quality mark.

HTQs can help learners:

  • enter a skilled profession
  • progress to higher education

You can find HTQs available through advanced learner loans in the list of qualifications approved for funding

Funding routes for HTQs

Approved HTQs may be eligible for HESF if they meet the relevant eligibility requirements.

Some Ofqual regulated HTQs that do not meet the requirements for HESF may still be available through advanced learner loans.

During the transition to the LLE, some HTQs may be eligible for both HESF and advanced learner loans funding.

The provider must choose which funding route to use for the course where an HTQ is eligible for both funding routes, and the provider:

  • is registered with the Office for Students (OfS)
  • has a contract with DfE to deliver advanced learner loans

Providers can only use one funding route for an individual HTQ course. HESF and advanced learner loans funding cannot be combined for the same course within a provider.

Ofqual regulated HTQs 

Ofqual regulated awarding organisations that are not currently eligible for student finance can only access funding through advanced learner loans or HESF for level 4 and 5 technical qualifications if:

  • the qualification has been approved by DfE as a HTQ
  • all other eligibility requirements are met

From January 2027, these qualifications may also be eligible for funding through the LLE if they:

  • are delivered by a provider registered with the Office for Students (OfS)
  • meet all other eligibility requirements

Following approval as an HTQ, we will contact awarding organisations to confirm the outcome.

Where an approved HTQ meets the eligibility requirements for Advanced Learner Loans or the LLE, it will normally become eligible for funding automatically through the relevant funding approval process.

This helps ensure that the correct funding route is applied to each qualification.

We only approve qualifications through our standard funding approval processes. There may be a short delay between HTQ approval and funding approval being applied.

For more information, see the guidance on dual eligibility .