T Level Funding to Support Industry Placements
Introduction
T Levels attract an increased funding rate in comparison to 16-19 study programmes, meaning that a student on a mid-size T Level in 2024/25 attracts over 35% percent more funding than a student on a study programme. This additional funding takes account of increased teaching hours, industry placements costs, additional 16-19 bursary funding, additional disadvantage funding, an equalisation of funding rates for 18-year-old T Level students, and a 10% uplift in funding in 2024/25.
This guide explores the funding elements which are specific to industry placements to support employer engagement colleagues understanding.
T Level industry placement funding
Number of T Level Students x £550
Within the total programme funding formula for each T Level student, there is specific funding to support industry placements. This funding is at a flat rate of £550, with half paid in the first year and half in the second. This funding is intended to be used to support the infrastructure and resource required to plan, source, deliver and monitor industry placements and is set out in the funding rules as follows:
Extract from T Levels Funding Guide 2024 to 2025:
"Industry placements
Industry placements are a compulsory part of a T Level and must be delivered in line with the industry placements delivery guidance. We fund institutions a total of £550 per student for the industry placement element of the T Level programme; £275 per student in each of the 2 years of the T Level. We pay for the T Level student numbers agreed with institutions.
This funding is to support the infrastructure and resource required to plan, source, deliver and monitor industry placements. It is not to support employer costs for hosting placements."
Each institution will make decisions on how this funding is utilised, for example it may be used to fund employer engagement staffing costs, training, systems or marketing etc.
If you are finding challenges with sourcing and delivering industry placements due to resource or budgetary constraints, it may be helpful to have a discussion with your senior / financial leaders about how this funding is being utilised and whether there are any opportunities to redirect this.
Student Expenses
There is no single approach to the funding of student expenses in relation to the industry placement element of the T Level, this includes costs such as:
- Travel and subsistence
- Clothing / uniform
- DBS checks
- Vaccinations
Each institution will set its own bursary and funding policies however, these are commonly funded via an employer contribution, from within the industry placement element of T Level funding (£550), and/or from the institution’s16-19 discretionary bursary fund for eligible students.
It is essential that you plan and understand your institution’s approach to funding these costs prior to engaging with students and employers regarding industry placements. Students must not be financially disadvantaged by undertaking their placements.
If student costs are proving to be prohibitive you should discuss this with your senior / financial leaders to explore alternative solutions which may include for example, accessing local transport schemes or grants.
Students with special educational needs, low attainment and/or disabilities
Disadvantage funding is paid within the T Level funding allocation to provide additional support for students with special educational needs, low attainment and/or disabilities. This funding is applicable to the full T Level and therefore includes any additional support costs required for an industry placement.
Paying students
Students on an industry placement are not entitled to a salary because the industry placement forms part of a 16-19 education and training programme1. As such, there is no legal requirement or expectation that T Level students will be paid, and this should be made clear to students as well as employers.
For some employers, any type of unpaid placement would discourage them from hosting placements, therefore employers are able to pay students should they wish to. This must be agreed up front. You may wish to refer employers to the guidance on making payments to students.
Support for Employer Costs
Between 1 April 2023 and 31 March 2024 there was a trial of the Employer Support Fund (ESF) which provided financial assistance to employers for the operational costs associated with hosting industry placements. This funding was in addition to T Level and industry placement funding. The Department for Education are reviewing the findings of the pilot and will continue to explore options for supporting the T Level programme.
If you are working with employers in the construction industry, you could highlight CITBs ‘Into Work’ Grant to help employers recruit and retain talent within the construction industry. This grant supports employers who offer an initial work experience placement (including T Level industry placements) which starts on or after 1 September 2023.
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