Condition of funding

Students who have not achieved a qualifying grade in English or maths must continue studying the subject as part of their programme. Where an institution's non-compliance exceeds the 2.5% tolerance, DfE removes funding from a future allocation for the students who did not meet the condition.

The qualifying grades, the acceptable qualifications and the exemptions are set out in the funding rules for the year and change from time to time.

For 2026 to 2027: full-time students with a GCSE grade 3 must study GCSE, and part-time students with grade 3 can study any approved qualification; students with grade 2 or below can study GCSE or Functional Skills level 2, or start at level 1 or entry level if they are not yet ready. DfE now calls these "level 1 and entry level qualifications" rather than "stepping stone qualifications". The minimum teaching hours a year per subject depend on the funding band (100 hours in Band 5, 84 in Bands 4a and 4b, 66 in Band 3, 52 in Bands 2 and 1), and DfE allows a tolerance of 2.5%.