Power to the Regions: Why This Week’s Funding and Reform News Matters for FE

Date | 19th December 2025

Devolution, Reform, and Results: A Pivotal Week for 16-18 Education

As the autumn term draws to a close, the UK’s Further Education (FE) sector has seen a flurry of activity that signals a significant shift in how colleges will operate and be funded in the coming years. From the devolution of multi-million-pound capital budgets to the first concrete steps in apprenticeship reform, this week has provided a clear roadmap for the sector’s 2026 trajectory.

Local Leaders Take the Reins

In a move that reinforces the government’s commitment to regional growth, it was announced this week that metro mayors and local leaders will now hold the "purse strings" for a substantial £283 million college capacity fund. This funding is specifically designed to address the surging demand for 16-18 places, with an expected 67,000 additional students entering the system by 2028.

Crucially, £100 million of this pot is ring-fenced for construction courses—a sector currently hamstrung by acute space and staffing shortages. By empowering local authorities to decide where the remaining £183 million is spent, the Department for Education (DfE) is betting on "anchor institutions" to align local skills with regional economic needs.

The Apprenticeship Evolution Begins

Skills England has made its first major move by identifying 93 apprenticeship standards that will undergo immediate assessment reform. This marks the beginning of a move away from the traditional End-Point Assessment (EPA) model introduced in 2017. The new approach will prioritise "sampling" of knowledge and a stronger emphasis on mandatory qualifications. Engineering, manufacturing, and science are at the forefront of this transition, with the government aiming to have all apprenticeships starting the reform process by August 2026.

Strengthening the Core: Maths and English

The DfE also released updated guidance on the "condition of funding" for maths and English for the 2026/27 academic year. While the core requirements—such as minimum teaching hours—remain steady, there is a notable shift in terminology. The term "stepping stone qualifications" is being phased out in favour of "Level 1 and entry level" qualifications. This change is designed to avoid confusion with the new "progression-to-GCSE" pathways currently in development. It’s a subtle but important move toward a more streamlined, understandable qualification landscape for 16-18 learners.

Conclusion

This week’s updates reflect a sector in transition. As funding becomes more localised and assessments more streamlined, colleges are being asked to play an even more central role in the nation’s industrial strategy. For college leaders, the message is clear: the focus is on capacity, construction, and core skills.