The latest LLE guidance: What do we need for it to succeed?

• This HEPI guest blog was kindly authored by Stephan Fortier, Regional VP UK and Europe, Instructure.
• HEPI’s Weekend Reading was a review by Nick Hillman (HEPI’s Director) of the new book by Nick Gibb on school reform since 2010.

On 9 July 2025, the Department for Education released updated guidance on the Lifelong Learning Entitlement (LLE), launching a flexible, unified student finance system for post-18 learners in England.

This means that from September 2026, learners can apply for funding to begin modules and courses from January 2027, with access to up to £38,140 of tuition loan finance and maintenance support for in-person studies. Crucially, the LLE supports modular study for specific courses, allowing learners to access 30-credit modules that form part of, or can stack towards, full qualifications.

This announcement comes just months after HEPI and Instructure jointly published a Policy Note calling for a coherent lifelong learning strategy that unites the LLE with the upcoming Growth and Skills Levy, avoiding fragmentation between further and higher education. HEPI and Instructure’s analysis highlights the importance of:

• A user‑friendly, low‑burden loan application process for modular study
• A regulatory approach that supports modular learning without excessive bureaucracy
• Enabling employer-funded pathways alongside individual loans 
• Increased awarding of qualifications at Levels 4/5 as solid progression markers 

So does the latest iteration of the LLE deliver on its potential to close skills gaps, improve employment opportunities and social mobility and welcome a broader range of learners into education? 

What works, what doesn’t, and who is responsible? 

Let’s start by acknowledging where the LLE has got it right. Unlike with previous higher education loans, learners can fund individual 30‑credit modules throughout their lives, rather than for a one-off qualification. This allows for flexibility to pursue new learning opportunities which align with career aspirations, upskilling requirements on both the learner and employer’s behalf, as well the learner’s personal circumstances. However, the LLE in its current form is still quite restrictive, and Instructure would like to make these recommendations to the following stakeholders.

The DfE should widen loan eligibility 

In reality, the range of modules eligible for LLE funding is still quite limited.  Funded modules must comply with a select list of priority skills areas outlined by the Government, offer at least 30 credits (roughly 300 hours of study) and form part of an established parent course. What’s more, modules from institutions that are rated ‘good’ or ‘outstanding’ by Ofsted or have a Gold or Silver TEF award, will have an easier time getting approved for LLE funding – those outside of this criteria will have to submit more evidence.

However, the skills most in demand by employers, such as Generative AI development, Environmental Social and Governance (ESG) and green skills, are by nature, newer skill areas. In their infancy, these skills may not have have many, if any, available 30-credit modules which form part of an established parent course, and are offered by an institution that’s been highly-rated by TEF or Ofsted.

Therefore we recommend the DfE considers funding modules which are smaller units of study, such as 15-20 credit microcredentials. These credentials could be offered by learning providers which may not have achieved industry accolades just yet but do have credibility upskilling learners in emerging skills areas.

Lastly, while online modules are tuition-eligible, maintenance loans are not. We recommend that the Government extend maintenance support to fully online learners to improve access and social mobility.

EdTech companies and learning providers need to be ‘credit-aware’

In order to help become eligible for the LLE, we urge learning providers to design modular content intentionally, ensuring it is credit-bearing and responsive to labour market needs.

Furthermore, EdTech should support flexible and credential-rich delivery. Virtual Learning Environment (VLE) platforms specifically should facilitate diverse delivery models, including asynchronous and hybrid formats, and support digital credentials and e-portfolio pathways.

In short, the latest LLE guidance sets the foundation for modular pathways and stackable credentials in selected subject areas – a more viable option for many learners who are at varying stages of their learning journey. However, the LLE must be aligned with effective funding and regulation, coupled with coordinated action from providers, employers, and edtech partners – if this crucial policy is to meet its full potential.

Instructure is a partner of HEPI and works with UK universities to pioneer flexible, modular and digital-first lifelong learning pathways.