Tackling skills shortages

Adults balancing responsibilities such as work and childcare will now have a new route into university and college thanks to reforms to create a new, more flexible student finance system.

From September 2026, for the first time ever people will be able to access student finance for shorter, flexible, bite-sized courses, known as “modules”, as well as traditional university degrees. 

The change is part of the Lifelong Learning Entitlement, as set out in the government’s Post-16 Education and Skills White Paper last year.

Traditionally, higher and further education has been built around full-time degrees and qualifications taken straight after school or college. But that doesn’t work for the many people who need to fit study around life commitments or want to return to learning later down the line to upskill.

The funding of these new smaller courses mean people can gain qualifications over time, rather than needing to complete a rigid three-year full-time degree in one go, which previously locked thousands of people out of learning. 

The modules on offer will focus on subjects that will tackle skills shortages, including economics and computing, engineering and architecture, as well as health and social care.

These plans are central to the Prime Minister’s ambition to ensure two‑thirds of young people are in a gold‑standard apprenticeship, higher training or university by the age of 25, helping to close skills gaps, cut the number of young people not in education, employment or training, and drive economic growth as part of our national renewal. 

Upskilling and reskilling

Professor René Koglbauer, Newcastle University, Dean of Lifelong Learning and Professional Practice said:

“We are committed to supporting both new and existing talent through flexible, modular provision that enables upskilling and reskilling across the lifespan.

“By working in close regional partnership with Universities for North East England, further education providers, employers and key stakeholders, we are building a coherent, place-based skills ecosystem that responds to evolving economic and societal needs.

“Through this collaborative approach, the ambition of the Lifelong Learning Entitlement will help unlock inclusive growth, widen access to opportunity, and power a more resilient and future-ready workforce across the North East.”

Skills Minister Jacqui Smith said:

“Financial support should be available whether you want to do a degree, take a short course, or retrain later in life. Our changes will make that happen, with the option to access student finance in any stage of life.

“Whether it’s fitting study around a job, retraining for a completely new career, juggling childcare, or getting qualifications later in life, the new Lifelong Learning Entitlement will open up new opportunities for thousands more people to build the careers they want and get on in life.”

Applications for student finance will open in September 2026, for anyone starting courses or the new modules from January 2027.

Under the new system, people will be able to access funding equivalent to four years of post-18 study, currently worth up to £39,160. 

This money can be used flexibly across the new modules, shorter courses or full degrees over the course of their working lives. 

Eligible students will also be able to apply for maintenance support to help with living costs and funding will be provided in smaller amounts linked to the size of the course being studied, rather than only through full academic years.

People who already have a degree may still be able to access the new funding, either if they have remaining student finance available in their pot or want to retrain in certain priority subject areas. 

 Press release adapted with thanks to the Department for Education