Using Data to Unlock New Funding and Partnerships

Further education is entering a new funding era – one that will reward providers and employers who can evidence need, target opportunity, and prove outcomes.

With nearly £800 million in additional investment for 16–19-year-olds expected in 2026–27, the return of targeted, means-tested maintenance grants, and major changes to apprenticeships (including assessment reforms and new age-focused funding at higher levels), there’s genuine momentum building across the sector. But that momentum also brings increased competition for resources – and in this environment, data becomes the key differentiator, unlocking opportunity for higher education institutions and business partnerships alike.

Aligning policy with local demand

With funding follows policy, and policy follows evidence, and we already know the direction the government is going in. Expansion in high-need sectors (construction, health and social care, engineering, digital), creating more progression routes at levels 2-6, and increased value for money.

The apprenticeship budget now exceeds £3 billion, with a clearer focus on younger starters and early-career routes. From January 2026, public funding will be withdrawn for most Level 7 apprenticeships for learners aged over 22, marking a shift in where government support is directed.

Providers should be using local labour market data to identify and quantify skills gaps, then overlaying that insight with policy priorities to shape bids, curriculum design, and employer engagement.

At a regional level, this means analysing vacancy volumes and wage growth across priority standards to understand where demand is strongest. At an institutional level, it means modelling realistic cohorts – assessing how many learners you can attract, enrol, and retain within each pathway.

When an FE college can clearly demonstrate addressable demand in sectors such as adult care or construction, and align that evidence with planned capacity, it strengthens the business case for funding and significantly improves the likelihood of approval.

Use data to simplify and de-risk levy partnerships

The levy transfer market is expanding as large employers look to recycle unused apprenticeship funds to support SMEs. In practice, this means unspent levy contributions are transferred to other businesses that can use them to create apprenticeship opportunities.

Recent examples, such as Royal Mail doubling its transfer commitment after demand exceeded supply, show how strong this trend has become. However, transfers only succeed when they are easy to manage, fully compliant, and focused on measurable outcomes.

Colleges and training providers can add real value by building a data-led “levy prospectus” for their area. This should include a live list of SME demand by standard and level, predicted start windows, provider capacity, and historic completion and achievement rates.

Crucially, present the return on investment clearly for participating businesses: how many apprentices have started, how many remain on programme, and how many completions are forecast – all mapped against ESG goals and local prosperity metrics. The easier it is for levy payers to see tangible impact, the faster these partnerships will take shape.

Connect learners to support, as maintenance grants meet intent data

The reintroduction of targeted maintenance grants is significant because financial pressure remains one of the biggest barriers to participation and progression. However, eligibility and uptake won’t happen automatically.

Providers should be proactive – combining “intent signals” such as open-day registrations, likelihood of completing Level 3 qualifications, transport accessibility, and part-time work patterns with grant-eligibility models. This approach helps identify who is most likely to benefit and when intervention will have the greatest impact.

Well-timed prompts – before application, at enrolment, and during pre-assessment – can meaningfully increase participation and retention in priority courses at Levels 4–6. It’s a clear example of practical data ethics: using the minimum information necessary to deliver the maximum learner benefit.

Evidence outcomes and not activity

Funders and partners increasingly want proof of progression and productivity. Build an outcomes dashboard that goes beyond qualification achievement to track – featuring sustained employment at 6/12 months, wages versus local baseline, progression to the next level, and employer satisfaction.

Mind the risks and use data governance as a trust signal

First, policy detail continues to evolve; sector voices have warned that ambiguity can undermine confidence. Treat your external communications like release notes: date-stamped, source-linked, and quickly updated. Second, be disciplined with data ethics. Use privacy-by-design (collect the least you need), robust consent, and transparent comms about how intent data supports learners and SMEs. This will offer a competitive advantage when seeking levy donors and public funders.

A new compact between FE and employers that’s powered by better data

The story of the next two years is one of collaboration – bringing FE providers, employers, and local partners together to operate as a single, connected system. The government is investing more in 16–19 provision, tightening apprenticeship rules, and refocusing higher-level public funding. At the same time, it is reintroducing targeted maintenance support to widen access and participation.

Those who succeed will be the ones who can clearly show their working – evidencing why a programme deserves to grow, which learners need which support, and how every pound invested translates into skills, jobs, and productivity. That is what clean, ethical, and insight-rich data makes possible.

By Adam Herbert, CEO and Co-Founder of Go Live Data