Westminster Policy News & Legislative Analysis

Wales defines Section 89 eligible higher education courses

Welsh Ministers have made the Education (Specified Courses of Higher Education) (Wales) Regulations 2025, laid before Senedd Cymru on 2 December and coming into force on 25 December 2025. The instrument is numbered 2025 No. 1250 (W. 201). It specifies which courses count as “eligible” for the purposes of section 89 of the Tertiary Education and Research (Wales) Act 2022.

Regulation 2 confirms that “higher education” has the meaning used in Schedule 6 to the Education Reform Act 1988 and then designates, for section 89, the courses listed in the Schedule to the Regulations. In practical terms, this creates a defined list that the Commission for Tertiary Education and Research (Medr) can reference when allocating grants under the TER Act.

Two descriptions are central. First, courses preparing learners for professional examinations where the standard exceeds A‑level or the BTEC National Certificate/Diploma benchmark (Schedule 6 paragraph 1(g)). Second, courses providing education at a higher level whether or not tied to a specific examination (Schedule 6 paragraph 1(h)). These are long‑standing statutory thresholds in the 1988 Act.

The Schedule also names courses for the Higher National Diploma or Higher National Certificate of the Business & Technician Education Council (BTEC), but only where those HND/HNC courses are identified within a “recognised Welsh framework”. In statute, a recognised Welsh framework is one issued under section 19(1) of the Apprenticeships, Skills, Children and Learning Act 2009 and not withdrawn under section 19(2).

Under section 89(3) of the TER Act, Medr may provide financial resources to a provider for expenditure on delivering an eligible course wholly or mainly in Wales, or to deliver an eligible course to learners ordinarily resident in Wales. Payments to collaborating bodies require the Commission’s consent. The new Regulations supply the eligibility anchor required by that section.

A Written Statement from Vikki Howells MS on 2 December confirms the Regulations have been made as part of the phased implementation of the TER Act. The Minister signalled further subordinate legislation ahead of 1 April 2026 to commence the next tranche of Medr functions, including securing, funding and inspection across further education and training, alongside the section 89 funding route.

Policy Wire analysis: this is a targeted legal step to align funding powers with the long‑used higher education test in the 1988 Act while drawing HNC/HND provision into scope where tied to current Welsh apprenticeship frameworks. Providers now have a clear statutory basis to reference when discussing grant support for professional programmes and higher‑level vocational routes with Medr.

For institutions delivering professional examination preparation, the immediate task is evidencing that the examination standard or course standard exceeds A‑level/BTEC National thresholds. Programme leads should document awarding body specifications and external reference points so that eligibility under paragraph 1(g) or 1(h) can be demonstrated quickly if Medr requests assurance.

For colleges and universities running BTEC HNC/HNDs, eligibility will hinge on whether the qualification sits within a recognised Welsh framework at the time of delivery. Because recognition can be withdrawn under section 19(2) of the 2009 Act, providers should confirm current framework status with their apprenticeship leads and record version control in programme documentation.

This instrument concerns provider funding rather than student support. However, designation and tuition‑fee support rules continue to operate alongside Medr’s grant powers. Welsh Government guidance sets out when courses are automatically or specifically designated for Student Finance Wales support, including current tuition fee loan maxima. Providers should align student finance communications with any new funding lines secured via section 89.

The Explanatory Note records that a Regulatory Impact Assessment has been prepared, available from the Welsh Government’s Tertiary Education Directorate. With commencement on 25 December 2025, sector teams have a short window to map courses against the statutory descriptions, confirm apprenticeship framework recognition where relevant, and prepare evidence for Medr’s assurance processes.