Introduction

1. This publication gives definitions and guidance to higher education institutions (HEIs) and further education institutions (FEIs) with higher education provision (known collectively as higher education (HE) providers) that are funded by Medr (the Commission for Tertiary Education and Research) for their higher education provision. The guidance also applies for providers with specifically designated course provision, but who do not receive funding directly from Medr for their higher education provision, this includes some FEIs and some alternative providers. The guidance relates to the end of year data that are extracted from the 2025/26 Higher Education Statistics Agency (HESA) student record via the HESA Information Reporting Interface Service (IRIS) to enable Medr to:

1. calculate funding allocations for part-time undergraduate credit based funding and the higher cost subjects premium for 2027/28;
2. calculate any adjustments to 2025/26 part-time undergraduate credit based funding;
3. monitor provision of medicine and dentistry courses;
4. establish final numbers of students and credit values at HE providers for 2025/26 for funding modelling and information purposes.

Main changes for 2025/26

2. The main changes made since the EYM 2024/25 survey are as follows:

1. Two additional columns have been added to the registrations raw data table at the request of providers. These include the student’s engagement start date and permanent home address prior to entry on to the course.
2. The full-time regulated feeds for home UG/PGCE students have been updated in Annex F with the new fee levels for the 2025/26 academic year.

Contents

This circular provides:

1. guidance and definitions for the various categories used to classify students;
2. information about the criteria used to extract EYM data from the 2025/26 HESA student record via IRIS;
3. details of the sign off arrangements for the tables made available through HESA IRIS outputs (see paragraph 10 for the list of tables requiring sign off). Note that the sign off process is only applicable to higher education providers that receive funding from Medr for their higher education provision. Providers that return data to HESA because they have specifically designated courses are not required to sign off the EYM tables, and the sign off sheet has been removed from their HESA IRIS outputs.

4. The contents of the annexes are as follows:

Annex		Page number
Annex A	Summary guide to the EYM 2025/26 survey	5
Annex B	Definition of a recognised HE qualification	13
Annex C	Distance learning, campuses, subsidiaries, franchises, validation arrangements and other collaborative arrangements	14
Annex D	Definition of residential and funding status	21
Annex E	Definition of ASCs	25
Annex F	Definition of mode of study	27
Annex G	Definition of level of study	30
Annex H	Rules for counting registrations	31
Annex I	Rules for counting credit values	38
Annex J	Table and column descriptions	43
Annex K	HESA/HESES/EYM mappings and end of year monitoring data extraction criteria	46
Annex L	Use of data by Medr	56
Annex M	Dormant/writing up student classification	58
Annex N	Funding status reference grid	60
Annex O	Sample copies of IRIS output tables extracted from HESA data	62

Adjustment of 2025/26 funding

5. For the purposes of calculating the funding consequences of under-recruitment for 2025/26 funding, part-time undergraduate credit based teaching funding is recalculated using EYM data. Credit values (for part-time undergraduate students) resulting from modules for which students registered up to and including, as well as after, 1 November 2025 will be used and the number of credit values associated with modules from which students withdraw will be deducted. The signed off EYM tables from the HESA IRIS extraction will be used for this purpose.

Process for signing off end of year monitoring and other data extracted from the HESA student record

6. Higher education providers that are directly funded by Medr for their higher education provision must sign off the data presented in the final 2025/26 HESA student record IRIS outputs as of the 29 October 2026 HESA final sign off date. The deadline for returning the signed IRIS outputs to Medr is 27 November 2026. If any amendments to the extraction mapping or method are made after initial implementation of the extraction, we will inform providers. Providers should also inform us if they find any issues with the extraction, either in the presentation of the outputs or the mapping used.

7. During the HESA data quality checking period from 1 August to 22 October 2026, Medr will conduct quality checks of the data submitted. We will contact providers around six weeks prior to the final sign off date for the HESA student record of 29 October, and once providers have confirmed they are ready for us to send on any queries, we will provide a set of queries. Providers can also ask us to raise questions earlier than six weeks or set a date that they want us to send them our list of queries if they prefer, and can ask at any point for us to look at particular aspects of their data if that is useful to them. This is to assist with the provider’s own internal quality checking process and to ensure the data are fit for purpose for Medr. As described in the HESA Student Record collection schedule, providers are required to either resubmit their data to amend these anomalies, or provide an explanation as to why they are genuine.

8. Prior to returning the signed off IRIS outputs to Medr, higher education providers must have undertaken sufficient checks to be satisfied that the extracted data are accurate, and/or have made amendments where necessary if data are not accurate. We are continuing to allow changes to be made to all IRIS outputs at the sign off stage for 2025/26 but are reviewing this for the 2026/27 return. Providers should provide an explanation of any changes made. Further details of the process are contained in the Data Requirements publication for 2026/27, to be published in July 2026.

9. We do not require a hard copy of the signed IRIS outputs. Signed outputs should be returned by emailing them to [email protected]. The deadline for return of the signed off outputs is 27 November 2026. Details about the process will be emailed separately to authorised signatories and data contacts in October 2026 as a reminder.

10. The IRIS outputs requiring sign off have an “S” prefix in front of their filename and are as follows:

1. End of Year Monitoring
2. Medr National Measures
3. Part-time fee waiver allocations
4. Part-time fee waiver monitoring
5. Degree apprenticeships monitoring (along with the requested additional information)
6. Per capita funding
7. Disability premium
8. Access and retention premium
9. Welsh medium premium
10. Expensive subjects premium
11. PGR training allocation
12. Race equality/Wellbeing and mental health funding
13. Targeted Employability Support funding
14. Total full-time equivalent (FTE) (for capital funding allocations)
15. Initial Teacher Education (ITE) leading to Qualified Teacher Status (QTS) placement funding
16. Postgraduate Certificate in Education (PGCE) in Further Education (FE) incentive scheme

Audit of data

11. Providers are reminded that EYM data, and other tables as described in paragraph 10 as extracted from the HESA student record via IRIS, and any amendments made to the extractions, including methods used to calculate any estimates included in the amendments, may be subject to an external audit carried out by Medr or by contractors working on Medr’s behalf. The systems and processes used to generate the HESA data extracted are in the scope of the institution’s internal audits.

Further information

12. Any queries should be directed to Andrea Thomas ([email protected]).

Student satisfaction among undergraduates at Welsh universities and colleges has increased, with 84% of final year undergraduate students saying that they were satisfied with their course this year.

This is up from 82% overall satisfaction in 2025.

The National Student Survey (NSS) is open to final year undergraduate students at higher education providers across the UK. This year’s survey was open from 8 January to 30 April 2026.

The NSS is one of the primary indicators of student satisfaction for Medr and the tertiary education sector, capturing comprehensive feedback from final-year undergraduate higher education students on key aspects of their educational experience, from teaching quality and course organisation to how effectively their voices are heard within their institutions.  

Medr’s Strategic Plan highlights its commitment to ensure that learners receive the highest-quality provision in a tertiary education sector that strives for continuous improvement.

James Owen, Chief Executive of Medr said:

“We are once again pleased to see maintenance or improvements across all question outcomes for Wales in the 2026 NSS compared to the 2025 NSS.

“We continue to be encouraged that Wales continues to perform broadly in line with UK-wide scores and exceeding them in the themes of Academic Support and Student Voice. These outcomes are once again a testament to impactful work across institutions in Wales.

“It has been encouraging to see the strong collaboration between institutions and students’ unions over the past year, working together to enhance the student experience and support student success. Congratulations to all involved on these achievements.

“Earlier this year, we introduced our Learner Engagement Code as part of the Regulatory Framework, recognising the important role meaningful learner engagement plays in decision-making. Effective engagement benefits current and future learners, providers, and the wider tertiary education sector in Wales.

“Welsh institutions continue to take NSS outcomes seriously and remain committed to working in partnership with students and their representatives to drive continuous improvement and enhance quality.

“Looking ahead to the 2026/27 academic year, the student experience remains a key strength of higher education in Wales. We warmly welcome prospective and future students, who can expect high-quality programmes, supportive communities, and a rich and rewarding university experience.”

2026 National Student Survey results: Comparative data by question

	Question	UK 2025 (positivity score%)	UK 2026 (positivity score%)	Wales 2025 (positivity score%)	Wales 2026 (positivity score%)
1	How good are the staff at explaining things?	93	94	93	94
2	How often of teaching staff make the subject interesting?	83	85	83	85
3	How often is the course intellectually stimulating?	86	86	86	86
4	How often does your course challenge you to achieve your best work?	87	88	87	88
5	To what extent have you had the chance to explore ideas and concepts in depth?	85	86	85	86
6	How well does your course introduce subjects and skills in a way that builds on what you have already learned?	87	89	87	88
7	To what extent have you had the chance to bring together ideas and information from different topics?	85	86	85	86
8	To what extent does your course have the right balance of directed and independent study?	79	81	80	81
9	How well has your course developed your knowledge and skills that you think you will need for your future?	85	87	86	87
10	How clear were the marking criteria used to assess your work/	78	81	80	82
11	How fair has the marking and assessment been on your course?	84	86	85	86
12	How well have the assessments allowed you to demonstrate what you have learned?	84	86	84	86
13	How often have you received assessment feedback on time?	83	85	85	85
14	How often does feedback help you to improve your work?	75	77	75	77
15	How easy was it to contact teaching staff when you needed to?	88	89	89	90
16	How well have the teaching staff supported your learning?	88	90	89	90
17	How well organised is your course?	77	80	79	80
18	How well were any changes to teaching on your communicated?	80	82	80	82
19	How well have the IT resources and facilities supported your learning?	87	88	87	88
20	How well have the library resources (e.g., books, online services and learning spaces) supported your learning?	90	91	90	91
21	How easy is it to access subject specific resources (e.g., equipment, facilities, software) when you need them?	88	89	88	89
22	To what extent do you get the right opportunities to give feedback on your course?	85	86	85	86
23	To what extent are students’ opinions about the course valued by staff?	80	82	81	83
24	How clear is it that students’ feedback on the course is acted on?	68	72	69	72
25	How well does the Students’ union (association or guild) represent students’ academic interests?	76	79	78	79
26	How well communicated was information about your university/college’s mental wellbeing support services?	82	85	79	83
28	Overall, I am satisfied with the quality of the course	N/A	N/A	82	84

Background

1. Since 2025, Medr has been conducting a ‘deep dive’ into the construction and building services sector, in parallel with undertaking a review of the apprenticeship frameworks currently available. The objective being to determine the suitability of the Construction and Building Services Apprenticeship Frameworks i.e. whether they meet industry need and meet the relevant skills needs of the Welsh construction and building services sector.

2. There has been extensive engagement and collaboration with apprenticeship providers, employers, Qualifications Wales and CITB (Construction Industry Training Board) at all stages in this process.

The consultation

3. In line with this objective, we are now seeking comments on the proposed new pathways (Annexes A-D) that will sit within the Construction and Building Services Apprenticeship Framework.

4. There are no set questions with regard to the pathways themselves, as we would like respondents to share your thoughts freely, with no restrictions on the range of issues on which you would like to comment.

5. More broadly, respondents should also consider the following areas:

The Welsh language

6. Could proposed new pathways be changed to increase positive effects, or decrease adverse effects on:

• Opportunities for persons to use the Welsh language
• Treating the Welsh language no less favourably than the English language

Impact on the Well-being of Future Generations Act (2015)

7. Could the proposed new pathways  be changed to increase positive effects, or decrease adverse effects on the goals of the Well-being of Future Generations Act 2015?

Impact on equality, diversity and inclusion

8. Do the proposed new pathways have any positive or negative impacts, or unintended consequences, in terms of equality, diversity and inclusion? 

Responses

9. Responses should be emailed to [email protected] by 30 July 2026.

Overview

1. Teacher training incentive grants for PGCE (Further Education) initial teacher education aim to promote the recruitment of teachers into the Further Education sector. The grants support students who start either full or part time pre-service PGCE (Further Education) initial teacher education courses leading to a qualification to teach further education.

2. This guidance is issued by Medr, The Commission for Tertiary Education and Research, and provides information on PGCE (FE) incentives for the 2026/27 academic year, funding available, grant eligibility and how payments will be made. These guidance notes should be read as a whole to confirm whether individual students will be eligible for an incentive.

3. In this guidance we use the term “provider” to mean the further or higher education institution where a student is studying the PGCE (FE).

4. This guidance does not cover incentives offered on initial teacher education courses which lead to Qualified Teacher Status. Further information about course incentives is on the Welsh Government website.

Grant amount

5. The incentive is available to both full-time and part-time PGCE students, provided they meet the general eligibility requirements for the programme and student finance. All eligible students will receive a flat-rate incentive grant of £1,500.

6. Additional incentive payments of £1,000 are available to students who meet the eligibility criteria for the Welsh language incentives and/or Global Majority incentives. These payments are made in addition to the core £1,500 grant.

Student eligibility

7. Students can only claim an incentive grant if they:

• meet the eligibility criteria set out below; and
• have made an application by completing the relevant declaration forms.

8. To be eligible for the incentive, students must:

1. on entry to the course hold a first degree (this does not include a foundation degree) of a United Kingdom higher education institution or equivalent qualification
2. qualify for support under regulations made under section 22 of the Teaching and Higher Education Act 1998 currently in force as they apply to the course
3. not be in any of the following categories of persons who are not entitled to receive the training grant:
   • students who completed a course of initial teacher training at further education level before 1 September 2025
   • students taking a non-postgraduate Certificate in Education (FE)
   • PGCE (FE) students who study on in-service courses
   • anyone who already holds Qualified Teacher Status (QTS); or
   • anyone employed at any further education college or other education institution in any capacity

9. In addition, those applying for the Welsh language incentive must have Welsh language skills of level 3 or above (based on self-assessment).

10. If students have any queries in relation to their eligibility, applying for a grant or have any queries relating to these grants, they should contact their PGCE (FE) provider.

Global Majority PGCE (FE) Incentive

11. This PGCE (FE) incentive reflects current recruitment priorities within the FE workforce. The aim of the Global Majority PGCE (FE) incentive is to increase the number of teachers from a Global Majority background, so that learners have a more diverse learning experience. This supports our ambition for an Anti-racist Wales.

12. To be eligible, learners must self-declare that they belong to one of the following ethnicities:

Asian: * Bangladeshi or Bangladeshi * BritishChinese or Chinese British * Indian or Indian British * Pakistani or Pakistani British * Any other Asian background Black, Black British, Caribbean, or African: * African or African British * Caribbean or Caribbean British * Any other Black background Mixed or multiple ethnic groups: * White or White British and Asian or Asian British * White or White British and Black African or Black African British * White or White British and Black Caribbean or Black Caribbean British * Any other Mixed or Multiple ethnic background

White: * Gypsy or Irish Traveller * Roma * Jewish Other ethnic group: * Arab * Kurdish

Welsh language Teaching and Learning incentive

13. Students studying any subject through the medium of Welsh (with the exception of Welsh itself) can apply for an additional incentive grant of £1,000.

14. PGCE (FE) providers have committed to provide opportunities up to 40 credits of the course to support the development of Welsh language skills. To be eligible for the incentive, students must successfully complete these 40 credits.

15. A three-way witness statement must be completed by the academic tutor, placement mentor and student teacher. This statement should be aligned to clearly defined targets and provide evidence that the student has met the learning outcomes associated with the 40 credits.

16. Evidence to support achievement of these credits may include (but not limited to):

• Development of Welsh medium resources to support learning and teaching
• Teaching through the medium of Welsh/bilingually whilst on placement
• Development of Welsh language skills of their learners
• Development of the wider Welsh language community within their placement setting
• Development of relationships outside their placement setting, eg and within a community setting or Welsh for Adults

Provider responsibilities for grant administration

17. PGCE (FE) initial teacher education providers are responsible for:

• identifying students who meet the eligibility criteria.
• providing eligible students with access to the declaration forms at the start of the PGCE (FE) programme.
• ensuring students understand the terms of the grant.
• collecting all signed declaration forms and returning, in a secure manner, all declaration forms to Medr if requested.
• completing termly claim forms.
• completing Welsh Language Incentive forms at beginning and end of academic year.
• ensuring evidence for Welsh language incentive is collected.
• ensuring evidence for the Global Majority incentive is collected.
• administering grant payments to students.
• dealing with student queries in relation to the grant.

18. Full responsibilities for ITE Providers are issued annually in individual grant offer letters and contract letters.

Scheduled grant payments

19. PGCE (FE) incentive grant will be paid termly in three instalments, December, March and June of the academic year of study.

20. Those who meet the requirements for the Welsh language grant and/or the Global Majority grant will receive the additional £1,000 alongside their final subject grant payment in June of the academic year of study.

21. Providers will decide the exact dates of payments to students. They should ensure that payments are made before the last working day of the month. In June this will be the last working day of June or, if earlier, the week the programme finishes.

22. Payments should only be made to those students who are attending the programme on the date of payment. If any student has withdrawn or deferred (suspended) a programme prior to the payment date, payment should not be made.

Summary of payment timings

PGCE (FE) Incentives grant payments (full-time study)

Incentive grant amount	Autumn payment to be paid in December	Spring payment to be paid in March	Summer and final payment to be paid in June
£1,500	£300	£300	£900
£1,000 (Welsh Language)	£0	£0	£1,000
£1,000 (Global Majority)	£0	£0	£1,000

PGCE (FE) Incentives grant payment (part-time study)

Academic year	Incentive grant amount	Autumn payments to be paid in December	Spring payment to be paid in March	Summer and final payment to be paid in June
Year 1	£1,500	£150	£150	£450
Year 2		£150	£150	£450
	£1,000 (Global majority)	£0	£0	£1,000
	£1,000 (Welsh language)	£0	£0	£1,000

23. For part-time PGCE (FE) students, the grant amount of £1,500 is paid in full, ensuring parity with the full-time offer. Payments are spread across two academic years, with three payments made in each year (December, March and June) at half the standard full‑time rate. The Welsh language and Global Majority incentives are additional, one‑off payments and, where eligibility criteria are met, will be paid in June of the second academic year.

24. If a student eligible for the PGCE (FE) incentive, but has also received;

1. some or all of a PGCE (FE) incentive under this or any previous scheme in Wales prior to 1 September 2025
2. or received at any time any amount of any grant payable in respect of equivalent schemes in England
   the payment of PGCE (FE) incentive to which they are entitled will be reduced by the amount of previous grant payments received.

25. Eligible students are only entitled to the maximum of the incentive grant value which applied in the academic year the student’s studies initially started, unless Medr agree otherwise in writing.

How funding will be paid to PGCE (FE) Initial Teacher Education Providers

26. Providers must collect declaration forms for each eligible student at the start of each academic year (Annex A to this guidance). The declaration contains information that Medr have indicated is required to administer the scheme and providers must be able to share all declarations with Medr, in a secure manner, if requested.

27. The declaration form asks students to confirm that they have read and understood the information contained in this guidance. If this confirmation is not received by providers grant payments cannot be made.

28. Prior to each termly instalment, providers must complete and submit a claim form to Medr to ensure appropriate funds are released. Providers will be informed of the submission dates via the grant agreement letter.

29. Declaration and claim forms will be issued to providers directly by Medr.

Deferment (suspension), withdrawal and resumptions

30. If a student defers (suspends) their studies during a term, they will not be eligible to receive that termly payment. However, if a student resumes their studies within the same academic year, they will be entitled to receive the missed term’s payment, up to the maximum amount of the incentive. Under these circumstances payment will be made on completion of and in addition to the following term’s payment.

31. Where a student resumes a PGCE (FE) in a different academic year to when they initially started or deferred, payments will be continue to be made at the same rate (if any) which applied in the academic year the student’s studies initially started, unless Medr agrees otherwise in writing.

32. Individuals who withdraw from a programme before its completion and are eligible for an incentive grant, will only be entitled to the termly payment(s), where they have completed the term in full.

Recovery of incentive grants

33. Medr has powers to recover incentive grants paid, in whole or in part. They have discretion about whether to exercise those powers and will consider all cases on their merits.

34. These powers may be exercised by Medr where:

1. after receiving any instalment of an incentive grant, the recipient fails to meet any eligibility criteria adopted by Medr and set out in the schedule or information guide in relation to a subsequent instalment; or
2. the recipient has provided in, or in connection with, his or her application for an incentive grant, information which is false or materially misleading; or there is firm evidence that the recipient had never intended to complete the programme or, having completed it, to enter teaching.

Data Protection and Freedom of Information

35. Information which student submits as part of their claim under the Teacher training incentives in Wales for PGCE (FE) scheme, is subject to the requirements of the Freedom of Information Act 2000, the General Data Protection Regulation, and the Data Protection Act 2018.

36. Medr will process all personal data in accordance with its published privacy policy.

Guidance for providers: applications and claims

37. The student application and declaration forms must be signed and collected to claim for that student. Medr can request sight of these forms at any time and can request return of funds if no form can be produced.

38. Alongside this document is the provider claim form (Annex B). Providers should submit a copy of this form by 30 October 2026 as an indication of what amount their claim will be. This will be done by completing column B-F and column I and L on the master list tab. Grant Offer Letters will then be issued based on this amount.

39. An additional 12% of providers’ initial application amount will be added to the total. This is made up of 10% contingency for additions and/or changes of amounts, and a 2% administration amount.

40. Following return of your signed Grant Offer Letter, providers’ December payment will be authorised on the amounts in the grant claim form submitted by 30 October 2026.

41. Provider claim forms should then be submitted on

• 25 January 2027 for the March payment, and
• 26 April 2027 for the June payment

42. Medr’s Workforce Team will contact providers in advance of each claim deadline to ensure that all required documentation and arrangements are in place.

43. When submitting the claim for June providers must have confirmation that students eligible for the Welsh language incentive have completed the necessary requirements to receive the funding. Column I on the provider claim form should be updated accordingly.

44. Please note once a claim is submitted, if any errors or additions have occurred, the amounts must be updated on the claim form for the next payment. Also, a note of this change should be made on the respective tabs. (Change of allocation/added or removed from claim).

45. For any further information, please contact [email protected].

Introduction

1. This accounts direction advises colleges of Medr’s requirements for the format of their audited financial statements for the year 2025/26.

2. We use the term “college” to refer to further education and sixth-form college corporations, established under the provisions of the Further and Higher Education Act 1992.

3. Medr publish the accounts direction on behalf of the Welsh Government, who are the principal regulator of Welsh further education colleges as exempt charities. Compliance with this accounts direction is a requirement of colleges terms of funding with Medr and other public funders.

4. Colleges in Wales remain subject to the Welsh Government’s Financial Memorandum until Medr’s own regulatory framework comes into effect from 1 August 2026.

5. References to Medr are assumed to refer to the collective responsibility to Welsh Government via Medr.

6. This accounts direction is primarily for use by:

1. principals, chief executives / accounting officers, and finance directors
2. governors
3. external auditors / reporting accountants

Background

7. Paragraph 36 of the Financial Memorandum between the Welsh Government and institutions, issued in March 2015 (guidance document no: 160/2015), requires institutions to comply with the Accounts Direction issued periodically by Medr. The direction will cover information to be contained in the financial statements, the manner in which they are to be presented, the methods and principles according to which they are prepared, and that they will be in accordance with UK Generally Accepted Accounting Practice and the Statement of Recommended Practice: Accounting for Further and Higher Education 2019 (‘FE and HE SORP’).

8. In issuing this direction Medr wishes to ensure the form, content and disclosures within institution’s financial statements follow good practice, are consistent across the sector and meet any specific requirements of the Welsh Government.

Updated since the previous version

9. The following amendments have been made to this document since the final version for 2024/25:

1. Minor narrative / typographical changes and updated internet links
2. Annex D (v) – higher paid banding – clarification on treatment of staff not working a full year

Application

10. This guidance is reviewed annually and is applicable for all accounting periods commencing on or after 1 August 2025. It will remain in force until such time as it is replaced.

Statement of recommended practice

11. In preparing their financial statements, Medr requires all institutions to comply with FRS 102: the Financial Reporting Standard applicable in the UK and Republic of Ireland (‘FRS 102’) and the FE and HE SORP.

College accounts direction handbook

12. Further guidance can be found in the College Accounts Direction handbook published by the Association of Colleges. Please note that this includes specific references to English funding bodies and guidance which should be replaced with the Welsh equivalent. An example set of financial statements – Casterbridge College – has been produced as part of the handbook.

13. In addition to the requirements of the FE and HE SORP, Medr requires that institutions’ audited financial statements be prepared in accordance with UK Generally Accepted Accounting Principles.

14. In the case of an institution that is also a company limited by guarantee, this direction is subject to the additional requirements of the Companies Act 2006.

15. Where an institution has subsidiaries that are limited companies, they will also be subject to the requirements of the Companies Act 2006.

16. Institutions are also required to include in their financial statements the following:

1. a strategic report (can also be called the treasurer’s report, members’ report, directors’ report, report of the governing body or trustees’ annual report);
2. a statement covering the responsibilities of their governing body in relation to corporate governance. This statement, that includes a statement on internal control, is required to indicate how the institution has complied with current best practice in this area, an example can be found in Annex A. The Code of Good Governance for Colleges in Wales was published by Colegau Cymru in January 2016;
3. a statement of the responsibilities of the governing body, an example can be found in Annex C;
4. an independent auditor’s report.

Charities Act 2011

17. Welsh institutions are subject to the requirements of the Charities Act 2011. They should also have regard to the additional requirements of the Charities Statement of Recommended Practice (Charities SORP). However, as the FE sector has special financial and reporting issues that are different from other organisations that have charitable status, the FE and HE SORP takes precedence over the Charities SORP.

18. The following information must be included in the college’s audited financial statements and related reports:

1. the legal status of the college;
2. the trustees who served at any time during the year and until the date the financial statements were formally approved;
3. a statement that the college has had due regard to the Charity Commission’s guidance on public benefit (if the college is a charity);
4. a report on how the college has delivered its charitable purposes for public benefit;
5. information about payments to or on behalf of trustees, including: expenses, payments to trustees for serving as trustees (and waivers of such payments), and any related party transactions involving trustees. This should be, as a minimum, the total of such payments made in the year (or if none, a statement to that effect) and the number of trustees who received the payments. Comparative figures should also be included.

Further specific guidance

19. Additional guidance is included in Annex D.

External audit

20. Institutions are required to ensure that their contracts for external audit make provision for an opinion on whether the institution has applied income, where appropriate, in accordance with the Financial Memorandum , and whether Medr grants and other public funding have been used for the purposes for which they were received.

21. Institutions should be aware that their external auditors will be reviewing the corporate governance and internal controls statement as part of their audit work and will be including a reference to this work in their audit opinion.

22. The form of the audit report is governed by International Standards on Auditing (UK) (ISAs). The particular standard is ‘ISA 700: Forming an Opinion and Reporting on Financial Statements’.

23. This Accounts Direction and the Financial Memorandum should be copied to the external auditors.

24. External auditors are reminded that where they are unable to express an unqualified opinion on the institution’s financial statements, they should immediately communicate this to the Principal, the Chair of the College and the Chair of the Audit Committee. They should also inform Medr.

25. Audit firms cannot be appointed as internal and external auditors at the same time or for the same financial year under any circumstances.

26. In accordance with the Financial Memorandum and Charity Commission guidance, all colleges must make their annual reports and statutory accounts promptly available on their websites. This may require an extra statement from external auditors. The auditors may also require an additional statement in the governing body’s responsibilities in regard to the website if the audit opinion is to be published.

Accounts timetable

27. Paragraph 35 of the Financial Memorandum requires institutions to provide Medr with a signed copy of its financial statements no later than 31 December each year. Medr also requires the external auditor’s management letter, including the institution’s response, to be submitted at the same time. Colleges should also submit their Finance Record return by the same date.

28. Please note that these documents can be submitted electronically.

29. In accordance with the Financial Memorandum, institutions must make their annual reports and accounts publicly available, and should publish them on their websites by 31 January following the period end.

Financial difficulties

30. Colleges are reminded that if they are experiencing financial difficulties or bank covenant breaches which may impact on the college’s ability to continue as a going concern and thus the external auditor’s ability to conclude their work based in this area, the college should notify Medr as soon as any such situation arises. This is irrespective of whether there is a risk that the submission deadline may be missed.

Further information

31. Any queries regarding this publication should be directed to [email protected].

Introduction

1. This publication provides information on degree apprenticeships investment for the academic year 2026/27, including the allocation of £10.111m total funding to higher education institutions (HEIs) and sets out the criteria HEIs and apprentices will need to meet in order to be eligible for funding. Funding letters will shortly be issued separately to institutions in receipt of funding.

2. Medr’s degree apprenticeship funding is provided for the cost of delivery for higher education institutions. Any individual student support funding for which degree apprentices may be eligible is administered by the Welsh Government through the Student Loans Company.

3. The majority of institutions have received extra funding for new starters which is possible due to the increased degree apprenticeship budget for AY 2026/27. It should however be noted that there are some institutions that appear to have a lower overall funding allocation compared to the previous year, however this is due to them having fewer continuing learners in AY 2026/27.

4. Providers are encouraged to advertise the opportunities available to employers, learners and other stakeholders to maximise the number of apprentices who are able to benefit and subsequently enrol on an eligible degree apprenticeship programme.

Funding approach

5. Medr has identified strategic priorities for investment in AY 2026/27 that take account of sector data showing where outcomes could be enhanced, and make best use of available budget.

6. Degree apprenticeship funding priorities for AY 2026/27 are:

• continuing apprenticeships;
• new starters and particularly those aged between 18 – 24 (in line with the Young Person’s Guarantee);
• upskilling of existing employees;
• apprentices with protected characteristics;
• Welsh language provision;
• new construction degree pathway – Architectural Technologist.

7. The funding arrangements are as follows:

• Funding will be allocated on the basis of the number of expected continuing and new apprenticeships starting in 2026/27;
• Funding will cover degree apprenticeship frameworks in the areas of construction, digital, engineering and advanced manufacturing;
• The amount of credit value has been calculated using a total of £27,000 for a typical 360 credit value course i.e. £75 per credit value. Therefore an apprentice expected to be studying 120 credits each year on a 3-year course will attract £9,000 funding per year.

8. Funding cannot be claimed for credit awarded through the recognition of prior learning and/or associated costs of this process.

Funding in AY 2026/27

9. Medr receives its budget from Welsh Government on a financial year basis. This is then translated into academic year allocations which assume budget will continue to be available in the following financial year. Allocations to providers are made on an academic year basis.

10. The degree apprenticeship budget for FY 2026-27 is £10.111m, the amount available for allocation to institutions in AY 2026/27 is £10.111m, however there is a deduction of £180,183 from this allocation for an adjusted payment to HEIs based on their verified HESA data returns for AY 2024/25. The total allocation to deliver degree apprenticeships in AY 2026/27 is therefore £9,930,967.

11. Institutional allocations take into account an increase in funding for continuing learners in AY 2026/27. The method for allocating funding for new starts for 2026/27 has previously been agreed with degree apprenticeship providers and is based on activity in AY 2025/26 and the HESES data return that HEIs provided in February 2026.

Allocation methodology

12. The methodology used to cap the budgets in line with available funding is based on a number of steps:

1. AY 2026/27 continuing students on existing frameworks are based on numbers provided by each institution with funding based on the funding rate according to the expected length of course. This total sector funding required for continuing students is taken from the total budget available for FY 2026-27.
2. AY 2026/27 funding for new starters on degree apprenticeship frameworks is distributed based on the method that received most support in our informal consultation with institutions in 2024/25.

13. The funding allocation is based on the following principles:

• Funding continuing learners as submitted by each institution;
• All institutions have been allocated a minimum of 5 new starts based on £9,000 per apprentice;
• Additional new starts allocated proportional to new starts delivered in 2025/26 and the HEI’s overall spend data in January 2026 against their original budget based on the HESES return.

14. The maximum sum that can be allocated for the delivery of the requirements for each apprenticeship is £27,000. In previous years, we have allocated a budget of £9,000 per year per apprenticeship, based on the assumption that programme duration is 3 years. The maximum allocated budget for new and continuing degree apprenticeships is based on the shortest course duration, however where the course duration is longer, payment will be made based on actual credits completed.

15. A combined maximum budget for both new and continuing apprenticeships in AY 2026/27 has been allocated, so that the degree apprenticeship programme can be managed flexibly within institutions and between frameworks and qualifications to meet employer demand.

Funding allocations 2026/27

16. Total funding available for allocation is £10.111m minus £180,183 (adjustments of funding from AY 2024/2025 to be paid to HEIs in FY 2026-27 based on verified data).

Provider	Total funding (£)
Bangor University	911,939
Cardiff Metropolitan University	1,037,938
Cardiff University	243,460
Open University	182,750
Swansea University	1,194,842
University of South Wales	2,114,570
University of Wales Trinity Saint David	2,599,512
Wrexham University	1,645,956
Total	9,930,967

Payment of grant

17. HEIs should expect two payments for degree apprenticeships in AY 2026/27. 60% of an institution’s overall funding allocation will be paid in October 2026 and the remaining up to 40% will be paid in March 2027. Adjustments to the second payment will be calculated as outlined in paragraphs 22-25.

18. Should there be budget changes or cash management constraints (e.g. Medr’s carry forward limit from one FY to the next), we may require a profile to be adjusted in-year. Prior written notification will be given should this occur.

Degree Apprenticeship requirements

19. To be eligible for funding, an apprentice must be enrolled on an approved apprenticeship framework and provision must comply with the following requirements:

• Apprentices will spend 51% or more of their time working in Wales;
• An apprenticeship agreement must be in place and signed by the learner, employer and provider;
• An initial assessment is undertaken with the apprentice, to ensure that previous experience and learning will be recognised where appropriate and additional learning support requirements will be identified and supported; apprentices may have equivalent level qualifications to enable them to access the framework which could be outside of the chosen sector;
• Apprentices are supported in the workplace with at least 20% off-the-job learning or six hours of off-the-job training per week for a full-time equivalent (an individual working 30 hours or more) and/or meet notional guided hours regarding the credit undertaken;
• Apprentices receive on and off the job work-based learning;
• Apprentices have their progress frequently reviewed involving the Medr-funded institution and/or delivery provider, the apprentice and the employer;
• Apprentices have access to the full range of student services offered by the provider, and its student union;
• Data is submitted as required by Medr;
• An apprentice can exit the qualification with accreditation or certification of learning achieved. This will not constitute successful achievement of a full apprenticeship.

20. Meeting the degree apprenticeship requirements and funding priorities will provide assurances to Medr that there is close alignment to the broader apprenticeship programme in Wales and that the relevant legislative requirements are met. Medr expects funded institutions to document evidence that they are meeting the requirements and reserves the right to audit that information.

Change of circumstances

21. A change in circumstances may result in an apprentice ceasing to be eligible for the apprenticeship or for Medr funding during a period of study. Where such a case arises, the provider must inform Medr to consider continuation of apprenticeship funding.

Monitoring and reclaim of funds

22. Funding awarded for 2026/27 will be monitored using the HESES 2026/27 recruitment data collected for new starters up to 1 March 2027 and continuing learners from previous years. HESES 2026/27 data will be collected and verified in February 2027.

23. Funding will be based on the number of completed credit values submitted. Funding could be adjusted downwards based on modules not completed, withdrawals or if the number of credits for the whole course is less than 360 credits due to recognition of prior learning (RPL).

24. The Medr Apprenticeship Team will contact institutions in October and December 2026 to confirm their spend to date and identify any forecast underspend for return and redistribution.

25. Adjustments of funding will be calculated towards the end of the financial year using HESES data, which will be verified by institutions as part of the degree apprenticeship data collection process. Further information is available from Hannah Falvey, [email protected].

Conditions of grant

26. The funding allocated by Medr is made available subject to the general conditions for payment of funds by Medr to the Governing Body of an institution. These are set out in the Medr Terms and Conditions of Funding 2026/27.

Promoting degree apprenticeships

27. We expect providers to promote degree apprenticeship opportunities to a range of learners, particularly those from under-represented groups in tertiary education and in the workforce in Wales in the relevant sectors.

28. There is an expectation that degree apprenticeship providers will participate in:

• Medr and Welsh Government marketing activities and national campaigns;
• Skills competitions such as World Skills. These competitions provide apprentices with additional experiences and challenges that will serve them well in their careers. Additionally they provide opportunities to demonstrate the strength of Wales’s tertiary education sector through national and international competitions. Further information is available from WorldSkills UK (Frequently asked questions).

Assessing the impact of our policies

29. We carry out an impact assessment screening to help safeguard against discrimination and promote equality. We also considered the impact of policies on the Welsh language and Welsh language provision within the HE sector in Wales and potential impacts towards the goals set out in the Well-Being of Future Generations (Wales) Act 2015 including our Well-Being Objectives. Contact [email protected] for more information about impact assessments. Providers are responsible for reviewing their own impact assessments in relation to degree apprenticeships.

Further information

30. For all enquiries please contact Simon Phelps and/or Kelly Hillard ([email protected]).

1. Top‑up funding (Element 3) is additional funding provided by Medr to support high‑needs Welsh domiciled learners studying in an English FE institution.

2. It applies where the cost of required educational support exceeds that which can reasonably be met through core provision (Element 1) and the provider’s £6,000 notional additional learning support contribution (Element 2). Elements 1, 2 and 3 refer to the English Department for Education (DfE) high needs funding framework, which structures funding for learners with additional learning support needs.

3. Element 3 funding is intended to meet the evidenced and assessed cost of sustained, individualised educational support, is awarded on a named learner basis, and must not be used as a determinant of admission. Funding is agreed through a formal annual application process, requires clear evidence of need and cost to be retained for audit, and is subject to monitoring and regular review to ensure it remains appropriate, proportionate, educational, and outcomes focused.

Funding amounts 2025/26

Further education institution	Top up funding amount	Number of learners supported via Top up funding
Gloucestershire College	£6,417.64	1
Hereford College of Arts	£7,147.50	2
Reaseheath College	£15,433.78	5
Cheshire College – South and West	£5,541.42	1
Herefordshire, Ludlow and North Shropshire College (HLSNC)	£107,824.35	11
Shrewsbury College	£7,894.16	4
Total	£150,258.85	24

Main points

What were graduates doing?

Of graduates from Welsh higher education (HE) providers who responded to the 2023/24 Graduate Outcomes survey:

• 67% were in full-time, part-time or an unknown pattern of employment. 11% were undertaking a combination of work and further study.
• 6% were doing either full-time, part-time or an unknown pattern of further study only.
• 1% were doing voluntary or unpaid work, 6% were unemployed and 7% were doing another activity such as travelling, caring for someone, or retired.

Of graduates from Wales studying anywhere in the UK who responded to the 2023/24 Graduate Outcomes survey:

• 69% were in full-time, part-time or an unknown pattern of employment. 12% were undertaking a combination of work and further study.
• 5% were doing either full-time, part-time or an unknown pattern of further study only.
• 1% were doing voluntary or unpaid work, 5% were unemployed and 7% were doing another activity such as travelling, caring for someone, or retired.
• Full-time undergraduate respondents from the most deprived Welsh Index of Multiple Deprivation (WIMD) quintile were less likely to be in employment and more likely to be undertaking another activity such as travel, caring for someone or retired, than those from the least deprived WIMD quintile.
• There was a 2 percentage point difference between the proportions of full-time undergraduate respondents who were unemployed from the most and least deprived quintiles. 8% of graduates from the most deprived quintile were unemployed, versus 6% from the least deprived quintile.

Where were graduates working?

Of graduates who responded to the 2023/24 Graduate Outcomes survey and said work was their most important activity:

• 45% of those from Wales but studied at a HE provider in the rest of the UK returned to Wales to work.
• 88% of those from Wales who studied at a Welsh HE provider stayed in Wales to work.
• 18% of those who studied at a Welsh HE provider but were from the rest of the UK stayed in Wales to work.

How did graduates reflect on their current activity?

Of graduates from Welsh higher education providers who responded to the 2023/24 Graduate Outcomes survey:

• 84% agreed or strongly agreed that their current activity was meaningful.
• 68% agreed or strongly agreed that their current activity utilised the skills that they learnt during their studies.
• 73% agreed or strongly agreed that their current activity fits with their future plans.

Introduction

1. Medr is preparing for a mid-term refresh of the Digital 2030 strategic framework for digital learning and developing our evidence base on digital learning needs and priorities to inform our future approach to digital learning in the tertiary education sector. We are working closely with Jisc to better understand the current position, needs and priorities relating to digital learning in the further and higher education sectors and in apprenticeship provision.

Further education

2. Jisc has already engaged with further education institutions, Colegau Cymru and other key stakeholders to produce findings for Medr on current needs and priorities in further education. We have started to incorporate findings from this piece of work, particularly around the theme of digital infrastructure, into our approach to digital capital funding for further education institutions (Medr/2026/18).

3. The criteria for revenue expenditure set out in this publication also reflects the following themes raised by further education institutions:

• Artificial Intelligence
• Improving data maturity
• Encouraging collaborative approaches

Higher education

4. Further engagement with higher education institutions, Universities Wales and other key stakeholders on current digital learning needs and priorities in higher education is scheduled for AY2026/27.

5. In the meantime, we have continued to incorporate key themes from the higher education sector which were reflected in previous revenue funding criteria (Medr/2025/15):

• Artificial Intelligence
• Digital Transformation and developing strategic approaches to digital learning
• Effective use and management of data

Looking forward

6. For future years, findings and themes from our evidence-gathering will be considered by Medr, along with feedback from the sector, to inform our decisions on future digital funding allocations. We are conscious that some projects funded under Medr’s Post-16 Strategic Development Fund in 2025/26 (Medr/2026/03) may also produce relevant findings and outputs.

Timing	Milestone or action
11 November 2026	Each institution to briefly outline its intended use of funding (Annex A)
c. 20 January 2027	Following receipt of Annex A, interim payment will be processed in January
15 July 2027	End-of-year expenditure reporting required (Annex B to be added in early 2027)
c. 20 August 2027	Following receipt of Annex B, final payment will be processed in August

Background

1. Section 87 of the Tertiary Education and Research (Wales) Act 2022 requires the Commission for Tertiary Education and Research (Medr) to publish a statement of policy setting out how we intend to exercise our funding powers. The Act also requires us to consult on the Investment Policy Statement.

Section 87: Policy on funding powers

2. The Act states:

• The Commission must publish a statement of its policy on how it intends to exercise its funding powers.
• In preparing the statement, the Commission must have regard to the principle that decisions about the provision or securing of financial resources should be made in a way that is transparent.
• The Commission must keep the statement under review and may revise it.
• Before publishing the statement or a revised statement, the Commission must consult such persons as it considers appropriate.
• The Commission’s funding powers are its powers to provide or secure financial resources under sections 88, 89, 97, 101, 103, 104 and 105.
  • section 88 (specified providers for higher education);
  • section 89 (higher education courses specified in regulations); 
  • section 97 (further education or training); 
  • section 101 (school sixth forms maintained by local authorities); 
  • section 103 (other activities connected to tertiary education); 
  • section 104 (apprenticeships) and;
  • section 105 (research and innovation). 

3. Sections 88,104 and 105 will come into force at a future date. It is intended that this statement will nevertheless inform our investment decisions relating to higher education, apprenticeships and research and innovation.

Consultation

4. This consultation seeks views from a wide range of providers and stakeholders, and we welcome feedback on whether the Investment Policy Statement found at Annex A provides an appropriate and transparent basis for Medr’s investment decisions across the tertiary education and research sector.

5. The consultation will be delivered in two phases.

• Phase 1 is aimed at gathering views from a broad range of providers and stakeholders across the sector. Phase 1 consultation runs from Monday 22 June to Monday 3 August 2026.
• Phase 2 will focus specifically on learner engagement and will run from 14 September to 12 October, aligning with the start of the academic year to support timely and meaningful engagement.

How to respond

6. Please respond via the online form by 3 August 2026.

7. You can find a copy of the consultation questions at Annex B.

8. We welcome responses in Welsh or English

What happens next

9. We will consider all consultation responses carefully before finalising the Investment Policy Statement. A summary of responses and our response to the consultation will be published on our website.

10. The final statement will guide our future approach to investment and will support transparency and accountability in how public funding is used across the tertiary education and research sector in Wales.

Further information

11. Any queries regarding this circular should be directed to the Investment and Monitoring team ([email protected]).

Introduction: about the Toolkit

1. This tool is designed to support universities in Wales identify need, plan and deliver interventions that aim to prevent and respond to Violence against Women, Domestic Abuse and Sexual Violence (VAWDASV) affecting both staff and students. It has been developed by the Violence Prevention Team, based in Public Health Wales, in collaboration with universities in Wales, Welsh Government and the VAWDASV Blueprint Team. Further, the Tool has been developed with reference to Medr’s regulatory and funding conditions, set out by the Tertiary Education and Research (Wales) Act 2021 (more details on the Act are provided in the Background section of this document).

2. The planning considerations tool is intended to be used by universities to embed a public health and whole-university approach in designing and delivering activity aiming to address VAWDASV. A public health approach prioritises primary prevention and early intervention, and focuses on developing solutions based on evidence, and evaluating activity to ensure anticipated impacts are achieved and adverse effects are mitigated. A whole-university approach aligns with a public health approach in that it recommends that all aspects of a university setting work together to promote and support everyone within the university population, ensuring there is equitable access to services and consistent responses to issues regardless of where or how someone seeks or receives guidance. A whole university approach also emphasises the need to recognise the diversity of the student population, including but not limited to international students, students on placement and mature students and the staff population, including administrative staff, faculty and senior leadership, to ensure the aforementioned equitable access to services.

3. With these approaches in mind, the tool guides users through the key considerations of what needs to exist within a university setting for planning and delivering activity. These considerations include taking account of existing policies and strategies, understanding available data that could be used to identify the problem/s and establishing how to reach key stakeholders within existing or new forums or channels.

4. The tool includes a set of principles to help ensure a consistent approach to delivering activity aimed at responding to or preventing VAWDASV across Wales, whilst recognising the unique and often nuanced landscape each university operates in. These principles have been developed with Welsh universities and are grounded in the principles of the VAWDASV Wales Blueprint, the Trauma-Informed Wales Framework and the Wales Without Violence Framework.

A new resource providing advice and ideas for further education colleges to improve their support for learners with caring responsibilities has been launched today.

The toolkit, created by Learning and Work Institute, provides an in-depth insight into the support that helps young adult carers to enter and thrive in further education.

The good practice guide includes practical hints and tips, checklists and case studies featuring young adult carers, and will enable colleges to continually review and build upon their support for young adult carers.

Kieron Rees, Medr’s Director of Learner Experience, said:

“This Carers Week we are delighted to see the launch of this important and potentially life-changing toolkit.

“Putting the learner at the heart of their experience is key to us in Medr, and the fact that Learning and Work Institute worked with dozens of young adult carers across Wales to really understand what effective support looks like in FE is a vital part of this piece of work.

“Not only will colleges be able to use the toolkit to put arrangements in place to support young adult carers, but it will also help staff to understand the varied needs of young carers in the education system.”

The young adult carers who participated in the research reported that:

• staff who understand their situation
• flexible support that adapts to their caring role
• clear communication
• discreet ways to identify themselves, and
• a culture that sees them as individuals, not problems to be solved

make the biggest difference to their time in college.

Notes

The toolkit aligns with Medr’s Equality of Opportunity Condition and offers practical, evidence-based approaches to identify young adult carers, remove barriers and implement targeted flexible support, centred around the learner, that improves access, participation and progression for young adult carers across the further education sector.

The Welsh Government’s National Strategy for Unpaid Carers and associated delivery plans along with the draft National Strategy for Unpaid Carers 2026 consultation focus on improving consistency of support for young and young adult carers in education. Medr commissioned Learning and Work Institute to develop a practical toolkit for further education building on earlier sector work completed alongside Carers Trust.

Young adult carers in further education: Toolkit for FE colleges in Wales Learning and Work Institute Blog