Understanding funding options for Higher Technical Qualifications (HTQs)

Higher Technical Qualifications (HTQs) are government-backed Level 4 and 5 qualifications designed to equip learners with the technical skills employers need. For providers, employers, and professionals, understanding the evolving funding landscape is crucial to effectively leverage these opportunities.

For providers: navigating funding opportunities

The funding landscape for HTQ providers is shifting towards the upcoming Lifelong Learning Entitlement (LLE). While past large-scale funds like the Higher Technical Education (HTE) Skills Injection Fund have closed, providers should now focus on recurrent grants and competitive bids. Make sure to monitor GOV.UK and the Office for Students (OfS) announcements for future, often competitive, funding rounds.

1. Recurrent funding via the Office for Students (OfS)

The OfS provides ongoing funding to eligible higher education providers, including those offering HTQs, to support quality and sustainability. For 2024-25, the OfS allocated £16 million to boost Level 4 and 5 qualifications. This funding helps cover high-cost courses, enhance student success, and invest in facilities. Providers must be OfS registered and monitor annual grant announcements for Level 4 and 5 provision. Registered OfS providers (especially in the Approved (fee cap) category) are eligible for grants, which contribute to:

• Supporting high-cost courses.
• Enhancing student access and success.
• Investment in learning and teaching facilities and equipment.
• Overall institutional sustainability.

Action for Providers: Ensure your institution is OfS registered and monitor their annual recurrent grant announcements and guidance for funding related to Level 4/5 provision.

2. Local Skills Improvement Fund (LSIF)

While not exclusively for HTQs, the LSIF is a significant capital and revenue fund managed by the Education and Skills Funding Agency (ESFA). It supports Further Education (FE) colleges and other providers in developing provision aligned with Local Skills Improvement Plans (LSIPs). Many LSIPs identify a need for higher technical skills, making this a relevant avenue for HTQ development. Funding can be used for:

• New facilities and equipment.
• Curriculum development.
• Staff training.

Engage with your local LSIP and relevant employer bodies to identify priority areas and apply for LSIF funding as opportunities arise. These funds are generally allocated on a regional or local bidding basis.

For employers: investing in workforce development

Employer-sponsored training

Employers can choose to fund HTQs for their employees, either fully or partially. The benefits of this include:

• Tailored skill development aligned with business needs.
• Improved employee retention and satisfaction.
• Enhanced organisational performance.

Flexible payment options are often available, including one-off payments or instalment plans.

For professionals: advancing your career

1. Accessing student finance

Employees can access government-backed student finance (Advanced Learner Loans or ALLs) to cover HTQ tuition fees. This approach reduces the financial burden on employers while facilitating employee development.

2. Employer support

Professionals can engage in discussions with their employers about potential sponsorship or support for pursuing an HTQ. Highlighting the mutual benefits, such as enhanced skills and contributions to the organisation, can strengthen the case for employer investment.