College leaders have blasted new proposals that could see them pay higher awarding body fees for T Level students if they under-recruit students.
FE Week revealed earlier this week the Institute for Apprenticeships and Technical Education (IfATE) is planning to introduce a new “demand-sensitive” pricing model in its new contracts for re-licensed wave one and two T Levels.
The move has been designed to make T Levels more “commercially attractive” for awarding organisations, enabling them to achieve the profit margin agreed with IfATE when they bid for the contracts.
FE Week understands that lower-than-expected student numbers on T Levels so far, as well as high development and operating costs, have left several awarding organisations barely breaking even, or even making losses, on their current T Level contracts.
