The Further Education Funding Council said this week it would meet sixth-form colleges' demands for extra money for Curriculum 2000 after they dismissed their original funding allocations as "totally inadequate".
FEFC director of finance Geoff Hall paid out the first revised allocation - to Solihull sixth-form college - this week.
He has promised to meet all other demands providing colleges can offer evidence of likely student numbers.
Mr Hall, who has been holding a series of meetings with sixth-form college principals this week, said: "This is a clear government imperative and an entitlement to 16 to 1-year- olds."
The Sixth-Form Colleges Employers Federation had written to Education and Employment Secretary David Blunkett, protesting at the assumption that only 50 per cent of students would opt for Curriculum 2000 and the resulting underfunding. Some colleges have been reporting a near 100 per cent take-up rate for the expanded curriculum.
However, worries over funding remain. Kelvin Hopkins, MP for Luton North and a governor of the town's sixth-form college has warned of an exodus of staff unless principals are given new money to meet pay increases
comparable to those for school teachers.