Post-16 Education and Skills: Funding

Lord Mohammed of Tinsley Excerpts

Thursday 2nd July 2026 Lords Chamber

[Baroness Blake of Leeds (Lab)]

I pay tribute to the noble Baroness’s dedication and persistence in supporting the FE sector, which I too believe is fundamental for the future success of our young people but also for the economy of this country. I cannot give her the detail that she wants, as she is probably aware, but we will announce the revised rates for the coming academic year later this month. There will be an increase in the 16-19 base funding rate—but also in the disadvantaged block funding rate for low prior attaining students, children in care and care leavers. Institutions will receive their increased allocations in the autumn.

[Lord Mohammed of Tinsley (LD)]

My Lords, although the funding increase in the post-16 FE sector is welcome, I press the Minister on that increase: will it reflect some of the increasing costs in that sector, particularly of energy, staffing, et cetera?

[Baroness Blake of Leeds (Lab)]

I thank the noble Lord. I anticipated his question. Yes, of course, we are very mindful of increasing pressures and costs—particularly energy, as he mentioned. There is a package of support going into the whole education sector, including better purchasing policy, collaboration with other institutions and looking at reducing the need to heat our schools. Of course, the cost of the heatwave is another factor at the moment. We are very mindful of those costs and in deep discussions with the sector, as we speak.