Thousands of healthcare students will receive upfront cash support to cover travel and accommodation costs for clinical placements under new government plans.

The Department of Health and Social Care (DHSC) says eligible students with full access to the NHS Learning Support Fund will be able to claim advance funding for placement-related travel and accommodation costs from the start of the 2026/27 academic year.

The change will mean students no longer have to cover expenses themselves before claiming the money back.

Under current arrangements, students are required to book and pay for travel and accommodation upfront, then submit claims before being reimbursed.

While a digital claims system introduced in January 2025 has already reduced processing times, the DHSC said students could still be left out of pocket while waiting for their claim to be processed, and that advance payments will help ease those pressures by ensuring support is available.

Health Minister Alison McGovern said no student should “be held back because they cannot afford the upfront cost of getting to a placement”.

“These advance payments will put money in students’ pockets before costs hit, easing pressure on budgets and helping NHS staff get the experience they need, whether that is in a city hospital or a remote coastal community.

“This is another step in delivering our 10-Year Health Plan, backing students, breaking down barriers to training, and building the NHS workforce patients need for the future.”

Duncan Burton, chief nursing officer for England, said: “This is an important step in supporting the next generation of nurses, midwives and allied health professionals, and will be welcome news for the thousands of students working hard to develop the knowledge, skills and experience needed to care for patients.

“We know travel and accommodation costs can put real pressure on students. By providing advance payments, we are removing a significant barrier to learning, helping students focus on their education and making it easier for them to access valuable placement opportunities.”

The new advance payment facility, delivered with the NHS Business Services Authority, will give students an upfront “float” to help cover costs before they arise.

Students will continue to submit claims as normal, with approved claims automatically deducted from their advance payment balance.

If the balance falls below £50, they will be able to request a top-up. Any outstanding float balance will be deducted from a student’s final training grant instalment.

Gill Walton, the Royal College of Midwives’ chief executive, said: “Student midwives work incredibly hard to qualify for one of the most rewarding yet demanding jobs in the NHS. They shouldn’t be left out of pocket for it too.

“We’re delighted that the Government has listened to the RCM and our hard-working student midwives and acted on this.”

She added: “Our research found student midwives have concerns over graduate debt and financial hardship during training. This is a genuinely welcome step, but it must go hand in hand with guaranteeing these newly qualified midwives a job at the end of their course.”

Susan Price, chairwoman of the British Dietetic Association, said: “The changes will be especially beneficial for students from less advantaged backgrounds, and those travelling longer distances to more rural and remote placements.

“By making placements more accessible, this development strengthens the pipeline of future dietitians and supports continued growth of the profession.”

Executive director for RCN England, Patricia Marquis, said: “For so long nursing students have been forced to use their limited funds to pay for travel to mandatory clinical placements, only to wait weeks and often months to get anything back at all.

“Today’s announcement of an upfront payment system is recognition of just how inflexible and unfair that process is, and the RCN’s demands for change.

“These changes to expenses claims will provide some welcome financial relief to those studying to join our brilliant profession, but ministers shouldn’t stop there.

“Even after today, poverty will remain a daily reality thanks to inadequate financial support, while a toxic tuition fee system leaves graduates in eye-watering debt and with some unable to secure a job at all.

“A comprehensive new package of financial support is needed for student nurses, as is bold reform to a broken tuition fee model and measures to ensure all nursing graduates can secure employment.”