Introduction

1. The Welsh Government’s funding settlement to Medr for 2025-26 included £3 million digital capital funding ringfenced for FE. This funding has been maintained for 2026-27 and, subject to confirmation in future budgets, this is expected to become ongoing funding.

2. This funding is intended to support FE institutions in developing longer-term and more strategic approaches to investment in digital equipment, devices and infrastructure (which are required to enable digital delivery) and to maintain robust and resilient digital services and systems. These aims are in line with the Vision and Aims of the Digital 2030 strategic framework for digital learning, which is due to be refreshed in the coming months.

3. We are asking each FE institution to develop and submit a three-year digital capital investment plan by 10 February 2027. Future allocations of digital capital funding up to and inclusive of AY2028/29 will be awarded on the basis of this plan.

Timelines for Year 1 (academic year 2026/27):

Timing	Milestone or action
c.18 December 2026	Interim capital payment (50% of allocation) will be processed during December
By 10 February 2027	Three-year digital capital investment plan required from each institution (Annex B)
c.19 March 2027	Subject to the receipt of digital capital investment plans, the remaining 50% of capital allocation will be processed during March
By 21 July 2027	End-of-year expenditure reporting required (Annex C to be added in early 2027)

This consultation provides an opportunity to input into shaping the future apprenticeship funding model.

Apprenticeships are a key lever for raising skill levels, driving productivity and helping grow a skilled and diverse workforce that is fit for purpose.

The new programme will be more agile and responsive to ensure the right qualifications and skills are delivered to meet employer, learner and economic needs from August 2027.

In September 2025 we undertook a consultation, which included engagement with tertiary education providers, industry bodies, employers and other stakeholders.

The outcomes have helped inform the design of the new apprenticeship programme and the principles of a new funding model.

We have now developed a new funding model which responds to the feedback received from the apprenticeship consultation. This includes making the model more learner centric and flexible to meet changing demands.

Engagement events are taking place in May 2026 on the new programme design.

We are now seeking views on:

• the high-level principles of the new funding model
• benefits of the new funding model
• unintended consequences of implementing the new funding model
• additional apprenticeship costs

We would welcome consultation responses from individuals who have experience of delivering apprenticeships and others with an interest in the new apprenticeship programme. Hearing from stakeholders is key to help shape the new funding model and fully consider any unintended consequences.

This consultation focuses on the funding model for apprenticeships at levels 2-5. We are undertaking further work to understand whether changes are required to the funding model for degree apprenticeships.

We will hold a consultation event online on Wednesday, 3 June 2026, 10:00 – 11:30.

To have your say, please complete the reply form at Annex A and send to [email protected] by 19 June 2026.

Medr has confirmed more than £1 billion of investment to support tertiary education, research and innovation across Wales for the 2026/27 academic year.

The funding, which will support around 330,000 learners, provides core and targeted investment for higher education, further education, apprenticeships, local authority sixth forms and adult community learning, alongside continued support for research and innovation.

Medr’s total budget for the 2026‑27 financial year, including capital, is £1.018 billion, with overall academic year investment reaching £1.03 billion. This reflects an increase on the previous year and incorporates additional funding to support areas such as apprenticeships, learner wellbeing, participation and research and innovation.

Supporting learners and providers across Wales, the allocations confirm:

• £150.5 million for apprenticeships in 2026‑27, an increase on the previous year, supporting provision from foundation to degree apprenticeships.
• Increased investment in junior apprenticeships, expanding opportunities for learners aged 14–16.
• Over £460 million in core funding for further education, both a unit rate increase and accounting for variances in learner participation within the funding methodology.
• £121.7 million to support local authority maintained school sixth forms. Again, this reflects both a unit rate increase and accounts for variances in learner participation within the funding methodology.
• Continued funding for adult community learning, supporting provision for learners aged 19 and over.
• More than £98 million for higher education research and innovation, including Quality Research (QR), postgraduate research training and the Research Wales Innovation Fund (RWIF).

Alongside core funding, Medr has confirmed targeted investment to support learner wellbeing, access and participation, employability and skills, data and digital capability, and sector‑wide strategic priorities.

James Owen, Chief Executive of Medr, said:

“Medr was created to bring greater coherence and collaboration to our tertiary education and research system. This increased investment in our tertiary sector supports this aim, helping providers deliver high-quality education, research and innovation for learners at every stage while also strengthening the sector’s ability to respond to future challenges.

“We recognise the financial pressures being faced both by the sector and across Government budgets and will continue to review our investment to better align to the long term ambitions in our Strategic Plan alongside the new Government’s priorities. In doing so we will continue our work with providers and partners to ensure every pound invested by Medr translates to a learner, a community or a local economy able to look to the future with increased confidence and prosperity.”

Full tertiary funding investment for the 2026/27 academic year including individual provider allocations and detailed methodological information:

Tertiary Investment Allocations for 2026/27

1. This publication sets out our overall investment for Medr-funded tertiary education and research providers for the academic year (AY) 2026/27. This document also includes individual provider allocations for all core investment and some targeted budgets, where available.

2. Our confirmed funding letter highlights that our revenue budget for financial year (FY) 2026-27 is set at £1,005.008 million. This is an increase of £29.6589 million (3.04%) compared to the final budget, including in-year allocations received in FY 2025-26 that have been baselined, of £975.349 million. Including capital, Medr’s total budget for FY 2026-27 is £1,018,508,000.

Total investment for the 2026/27 academic year

3. This summarises the overall academic year funding which are set out in more detail throughout the publication.

	AY 2025/26 £ million	AY 2026/27 £ million
Ring-fenced
Apprenticeship budget	143.277	150.535
Junior apprenticeships	0.600	1.000
Youth Entrepreneurship	0.360	0.360
REACH	0	0.400
Estyn	0	2.056
Core
Local authority sixth form	119.221	121.682
Local authority adult community learning	6.479	6.479
Further education mainstream	434.894	466.424
Increased participation budget	21.126	6.250
Higher education research and innovation	97.121	98.121
Higher education teaching funding	71.732	76.461
Degree apprenticeships	9.411	10.111
Part-time fee waiver	0.200	0.200
Targeted
Learner wellbeing	49.020	49.840
Access and wellbeing	7.764	7.025
Employability and skills	3.005	3.005
Research and innovation	2.000	2.000
Student/learner and workforce	8.075	6.795
Data and technology	3.500	3.500
Central programme budget	0	3.000
Strategic developments	3.500	0.500
Capital
Higher education	10.000	10.000
Further education digital	3.000	3.000
Total	994.285	1028.744

4. This publication includes all formula-driven core grants. Where possible, grants allocated via targeted budgets, which may be subject to the provision of a specific expenditure plan or strategy, are also included. Further publications will provide details of allocations and guidance, where required, for specific investment streams.

5. The allocations in this paper do not take account of any potential in-year funding adjustments for FY 2026-27 that may be applied by the Welsh Government. Any such funding adjustments will result in a revision to the individual allocations.

From 1 April 2026 any proposal to establish, close, or significantly alter school sixth form provision in Wales’s maintained schools must be submitted to Medr for consideration and consultation.

Medr was established in August 2024, for the first time bringing the regulation and funding of different parts of tertiary education in Wales under one body. This brings with it a number of advantages, not least in ensuring that learners have access to a consistently high quality education whatever pathway they choose. The new approach does, however, require changes in order to better align different parts of the tertiary sector with each other.

If you have been involved in the review of local education provision or in planning changes to school structures, you will be aware that the process is complex, highly regulated, and dependent on coordination between multiple partners.

With the introduction of the Tertiary Education and Research Act (TERA), and publication of the revised Code on School Organisation (“the Code”) on 1 April 2026, Medr now has formal statutory role within the process of school reorganisation of sixth form provision. This means any proposal to establish, close, or significantly alter sixth form provision in Wales’s maintained schools must be submitted to Medr for consultation. This ensures that decisions relating to post‑16 education are informed, evidence‑based, and aligned with national priorities.

Our statutory role

Schedule 4 of TERA gives Medr clear legal responsibilities when it comes to changes affecting sixth forms. These responsibilities apply across all local authority maintained schools, as well as voluntary and foundation schools that operate sixth forms.

View Medr's local authority and school sixth forms website page

Under the legislation, Medr may require:

• Local authorities to bring forward proposals to open or close stand‑alone sixth form provision, or to expand or reduce existing sixth form capacity.
• Governing bodies of voluntary or foundation schools to propose changes to their sixth form offer where needed.

While these powers exist in legislation we do not expect to be in a position where the use of such interventions is anticipated.

Local authorities also have specific duties of their own. During the formal statutory consultation period for any proposal involving:

• establishing or closing a sixth form
• changing the medium (language) of instruction
• significantly expanding or reducing capacity

…they must consult Medr. This enables us to provide a formal response grounded in evidence, learner outcomes and the long‑term sustainability of Wales’s post‑16 system.
 
Supporting early engagement of sixth form proposals

While our formal role takes effect during statutory consultation, we strongly encourage local authorities to engage with us much earlier—at the initial thinking or exploratory stage.

This early dialogue helps us:

• Share evidence and constructive advice before proposals take shape
• Support the development of coherent and well‑designed options
• Build shared understanding between local priorities and our wider Strategic Plan
• Ensure that any future statutory response is informed, substantive and genuinely helpful

Although this early engagement is not part of the statutory process, it plays a vital part in strengthening collaboration and ensuring proposals are robust and learner‑focused from the outset.

Aligning proposals with Medr’s Strategic Plan

All proposals relating to sixth form reorganisation should show how they align with the priorities set out in our Strategic Plan.

By engaging early, local authorities can better understand how their plans fit within national ambitions for a coherent, high‑quality and sustainable post‑16 system across Wales. This alignment helps ensure that changes to provision support both local needs and system-wide improvement.

New framework guidance in development

To further support local authorities, we are currently developing new framework guidance—co‑created with stakeholders from across Wales. This framework will help shape thinking before proposals enter statutory consultation, ensuring they are:

• Aligned with Medr’s statutory duties and strategic objectives
• Grounded in strong, transparent evidence
• Designed to meet the long‑term needs of learners and communities
• Supportive of a coherent national post‑16 landscape

More details on this new guidance will be shared later this year.

If you’d like to discuss potential proposals or explore ideas at an early stage, the Medr team is always happy to help. Early conversations can make a meaningful difference in developing strong, future‑proofed sixth form provision for learners across Wales.

Introduction

1. This publication sets out the arrangements and timing for additional mainstream funding of £1,333,223.67 to be provided by Medr to further education (FE) institutions and £361,058.86 to Local Authorities (LA) to enable FE institutions and for Sixth Form schools via LAs to maintain pay parity for teaching staff. This will be done by increasing the unit rate of funding.

2. This has been allocated in the FY 2026-27 and relates to the remainder of AY 2025/26, 1 April 2026 to 31 July 2026. This additional funding will be paid in one full instalment in April 2026.

Additional funding amounts and timings

3. An FE mainstream allocation of £1,333,223.67 will be allocated to FE institutions via an increase in the unit rate in the FY 2026-27 and relates to AY 2025/26.

Further education institution	FE allocation
Adult Learning Wales	£25,307.33
Bridgend College	£68,036.33
Coleg Cambria	£163,334.00
Cardiff and Vale College	£166,054.00
Coleg Sir Gâr	£87,517.67
Coleg Gwent	£190,374.67
Coleg y Cymoedd	£142,011.00
Gower College Swansea	£115,963.33
Grŵp Llandrillo Menai	£146,918.67
The College Merthyr Tydfil	£43,185.00
NPTC Group of Colleges	£100,926.67
Pembrokeshire College	£52,691.33
St David’s Catholic Sixth Form College	£30,903.67
Total	£1,333,223.67

4. An LA mainstream allocation of £361,058.86 will be allocated to Local institutions via an increase in the unit rate in FY 2026-27 and relates to AY 2025/26 as shown in the table below.

Local Authority	LA allocation
Isle of Anglesey County Council	£8,912.00
Gwynedd Council	£13,356.57
Conwy County Borough Council	£18,398.29
Denbighshire County Council	£13,161.71
Flintshire County Council	£15,984.57
Wrexham County Borough Council	£3,957.71
Powys County Council	£15,254.29
Ceredigion County Council	£12,194.29
Pembrokeshire County Council	£10,161.71
Carmarthenshire County Council	£22,453.14
Swansea Council	£22,842.86
Neath Port Talbot Council	£7,714.86
Bridgend County Borough Council	£25,362.86
Vale of Glamorgan Council	£26,820.57
Rhondda Cynon Taf County Borough Council	£31,554.29
Cardiff Council	£57,464.56
Caerphilly County Borough Council	£13,115.43
Torfaen County Borough Council	£1,407.43
Monmouthshire County Council	£13,378.86
Newport City Council	£27,562.86
Total	£361,058.86

Introduction

1. This publication sets out the arrangements and timing for additional mainstream funding of £2,689,333.33 to be provided from Medr to further education (FE) institutions and £458,333.33 to local authorities (LA) for National Insurance contributions in financial year (FY) 2026-27.

2. The Welsh Government has allocated this additional funding to Medr in the FY 2026-27 for National Insurance contributions. Additional funding for National Insurance contributions will be paid in full in one instalment in April 2026, in the FY 2026-27, and relates to AY 2025/26.

Additional funding amounts and timings

3. An FE mainstream allocation of £2,689,333.33 will be allocated to FE institutions for National Insurance contributions for the AY 2025/26 in the FY 2026-27, as shown in the table below.

Further education institution	FE | Contribution towards increased NI costs
Adult Learning Wales	£37,849.23
Bridgend College	£148,258.02
Coleg Cambria	£367,888.29
Cardiff and Vale College	£315,000.70
Coleg Sir Gâr	£190,124.63
Coleg Gwent	£296,850.74
Coleg y Cymoedd	£213,624.47
Gower College Swansea	£261,722.03
Grŵp Llandrillo Menai	£375,083.97
The College Merthyr Tydfil	£59,551.88
NPTC Group of Colleges	£244,113.54
Pembrokeshire College	£123,341.98
St David’s Catholic Sixth Form College	£55,923.85
Total	£2,689,333.33

4. An LA mainstream allocation of £458,333.33 will be allocated to LA institutions for National Insurance contributions for the AY 2025/26 in the FY 2026-27, as shown in the table below.

Local Authority	FE | Contribution towards increased NI costs
Isle of Anglesey County Council	£11,338.33
Gwynedd Council	£17,221.00
Conwy County Borough Council	£23,599.67
Denbighshire County Council	£16,886.33
Flintshire County Council	£20,673.00
Wrexham County Borough Council	£4,986.00
Powys County Council	£19,868.33
Ceredigion County Council	£15,922.00
Pembrokeshire County Council	£13,125.00
Carmarthenshire County Council	£29,099.67
Swansea Council	£28,945.33
Neath Port Talbot Council	£9,643.33
Bridgend County Borough Council	£32,027.33
Vale of Glamorgan Council	£34,534.67
Rhondda Cynon Taf County Borough Council	£38,725.67
Cardiff Council	£72,651.67
Caerphilly County Borough Council	£16,113.33
Torfaen County Borough Council	£1,751.34
Monmouthshire County Council	£17,435.00
Newport City Council	£33,786.33
Total	£458,333.33

5. This funding relates to the period 1 April 2026 to 31 July 2026.This additional funding for National Insurance contributions for AY 2025/26 will be paid in FY 2026-27 in one full instalment in April 2026.

We are running a series of events for apprenticeship providers, employers, training professionals, and sector partners to feed into the design of the new Welsh Apprenticeship Programme.

The new Welsh Apprenticeship Programme will start on 1 August 2027.

Join us to find out more about the new apprenticeship design, join discussions, test key elements, and share feedback:

• Llandudno – 13 May
• Llandrindod Wells – 14 May
• Cardiff – 20 May

Register through Eventbrite (now closed)

In September 2025, we held a 6-week consultation exercise that sought views from stakeholders, including training and tertiary education providers, industry representatives, employers, learners and local authorities, to help shape the new programme.

In February 2026 we reported on the outcome of the consultation, and on the key next steps in developing and implementing the new apprenticeship programme 2027.

The events

We are inviting apprenticeship providers, employers, training professionals, and sector partners to take part in a series of engagement events across Wales.

These sessions will test and refine the design of the new apprenticeship programme, ensuring it is responsive, resilient, and aligned with the needs of learners, employers, and the wider Welsh economy.

By taking part, you will help shape a programme that supports high‑quality learning, meaningful progression, and sustainable skills development for the future workforce.

See the slides from the events

Enquiries: [email protected]

Register through Eventbrite (now closed)

Medr has today formally launched and published a new, cross-tertiary education regulatory system, the first of its kind in the UK.

This milestone is the product of extensive engagement across the tertiary education sector, including two formal consultation periods, and lays the foundations for a joined-up regulatory approach that strengthens learner engagement, drives best practice, and helps ensure value for public money across the sector.

The published regulatory system includes:

• Medr’s regulatory approach
• Statement of intervention powers
• The full regulatory framework, including conditions of registration or funding
• The Quality Framework for tertiary education
• The Learner Engagement Code
• A frequently asked questions document setting out responses to common queries raised during engagement
• A glossary of key terms

Associated materials outline how the system applies across different parts of the tertiary sector and sets clear expectations for both registered and funded providers in respect of a range of conditions.

Bethan Evans, Executive Director Regulation and Analysis at Medr said:

“Regulation can often feel procedural, but this cross-tertiary framework – the first of its kind in UK – will make a lasting, positive difference to learners across our tertiary education sectors.

“We’re very grateful for the insight and feedback offered by learners, providers and interested parties throughout the process to date and, while this marks an important milestone, it is by no means the end of the journey. The sector continues to evolve, and our regulatory approach will be under continuous review so that it can evolve with it.

“With the publication of this thorough and wide-ranging regulatory framework, the iterative journey towards a fairer, more consistent and outcome-focused tertiary education regulatory approach in Wales can now begin in earnest.”

Medr is developing an online application portal which will allow providers to submit the information needed in order to apply to become registered. The application process will open for providers shortly, and further information will be provided. A register, applicable to all providers of higher education, will then be operational from August.

Full details on what the new regulations mean for you or your education provider can be found on our website:

Medr's Regulatory Framework

Medr’s regulatory framework for tertiary education

1. This publication introduces the full and final suite of documents to support our new regulatory system, which begins to come into effect from 01 August 2026.

2. The Tertiary Education and Research (Wales) Act 2022 (‘The Act’) sets out the framework by which we will regulate tertiary education and training providers in Wales. This Regulatory Framework and the associated statutory documents are published to satisfy the following duties in the Act:

• 27 (5) Initial Registration Conditions
• 28 (7) General Ongoing Registration Conditions
• 40 (2) Supplementary provision about directions under section 39
• 50 (4) Quality Assurance Framework
• 81 (3) Statement on Intervention Functions
• 126 (6) Learner Protection Plans
• 129 (5) Learner Engagement Code

3. Other non-statutory documents, including a frequently asked questions (FAQs) document, explaining how the new system works in plain language, and a glossary, offering clear definitions of all regulatory and operational terms, are now available on the Medr website. Tertiary providers will be alerted to any changes to the documentation in the future, in addition to our statutory duties to consult under the Act.

Register of providers

4. Medr will engage with those providers of higher education that have expressed an interest in becoming registered. Those providers will be provided with access to an online application form, with eligible providers to be registered with effect from 1 August 2026.  

5. The Register for higher education providers will be viewable to the public in August 2026.

Further information

6. Any queries regarding this circular should be directed to [email protected].

Medr has a statutory duty to monitor the financial sustainability of tertiary education providers in Wales. This includes ensuring providers have credible plans in place to ensure their short-term financial viability and longer-term financial sustainability.

Today, we are publishing our most recent review of the financial sustainability of the higher education sector.

Based on published financial statements for the academic year to 2024-25 and latest forecasts up to 2027-28, the report provides detailed information at sector level on the operating position, cash balances, sources of income, expenditure, liquidity, cash flow, borrowing and capital expenditure.

The finances of higher education institutions Financial sustainability of the higher education sector in Wales, March 2026

This analysis builds on that previously published as part of the Welsh Government statistical article Outcomes for learners in post-16 education affected by the coronavirus (Covid-19) pandemic: August 2020 to July 2021. It aims to provide an up to date picture of progression from Year 11 to tertiary education.

The Year 11 cohorts in this analysis are based on all learners enrolled in Year 11 in maintained secondary, middle and special schools in Wales. Figures for 2025/26 are provisional as they are based on in-year data.

Tertiary education is defined in this analysis as provision that is now funded and regulated by Medr. This encompasses publicly funded provision delivered by maintained school sixth forms, further education colleges and apprenticeship providers in Wales.

This is a change from the previous release where a slightly wider definition of tertiary education was used that included post-16 learning in maintained special schools and the Welsh Government’s Jobs Growth Wales+ / Traineeships employability programmes.

The analysis does not include tertiary destinations in independent schools, other independent or specialist learning providers, adult community learning (including that delivered by colleges), tertiary education outside of Wales or any other post-16 EOTAS (Educated Other Than at School) provision.

Main points

• The provisional proportion of learners progressing from Year 11 to tertiary education was 85% in 2025/26, unchanged from the previous 2 years.
• The number of learners progressing increased steadily between 2018/19 and 2024/25 before falling in 2025/26, in line with changes to Year 11 cohort sizes.
• Of the learners that progressed from Year 11 to tertiary education:
  • An increasing proportion are progressing to further education colleges, with a corresponding decrease in those progressing to sixth forms.
  • The proportion of learners studying at level 3 (including AS levels) continues to decrease.
• There are differences in progression between different groups of learners. The proportion progressing was higher for learners who are:
  • Female
  • Living in the least deprived neighbourhoods
  • Not eligible for Free School Meals
  • Not accessing special educational needs or additional learning needs provision
  • With Asian, Asian British or Asian Welsh, or Black, Black Welsh, Black British, Caribbean or African backgrounds
  • Competent or fluent in their acquisition of English as an additional language
  • Attending Welsh medium schools in Year 11 or are fluent in Welsh.
• There was substantial variation in the type and level of tertiary education provision between different groups of learners and geographically.