A list of those likely to lose funding is due to be published by the Learning and Skills Council (LSC) later this month, according to the strategy published on Tuesday.

The Association of Colleges is asking the LSC for early sight of the list amid fears changes will hit courses and students.

The qualifications likely to lose funding include a swathe of certificates and other awards used to meet specific student and industry needs.

It is part of a government rationalisation of the myriad FE courses. The aim is to channel all learning and training through the National Qualifications Framework or the Qualifications and Credit Framework.

Qualifications external to the frameworks are at risk of losing funding. However, the strategy says that in exceptional circumstances awarding bodies can appeal for continued funding until August 2011.

Nick Linford, an adviser on FE funding and author of The Hands-on Guide to Post-16 Funding, said: “The danger is that this sort of tidying-up exercise could lead to a loss of flexibility in the system.”

According to the strategy, the Government is investing nearly pound;8.5 billion in 201011 to fund learning for more than 1.6 million young people, which it says is the highest level ever. The base rates of funding for 201011 will be frozen at 200910 levels, the strategy confirmed.

It said that there will be real-terms increases of 0.9 per cent in both 201112 and 201213. But it added that the additional investment brought with it the need for greater efficiency from 2011 to 2013.