The Department for Education, via the Education Funding Agency, has published comprehensive information on the funding treatment of work experience within a study programme on its Gov.uk webite.
This activity is encouraged by government as an excellent way of helping sixth formers to place their academic studies in an employment context, as well as gaining many of the workplace skills that it is so difficult to teach properly in the classroom.
Work experience is frequently used by schools to help post 16 pupils who are aiming for an Apprenticeship and many top universities' admissions tutors also use work experience to help differentiate between students when considering candidates for over-
The good news is that is fully funded when included as a planned element of any young person's study programme. The key points are all covered via the link above.
If you or your colleagues want to learn more about post 16 funding including work experience, I can thoroughly recommend the Funding & Funding Data Masterclasses run by Sean McMahon of Oxford Analytics. Use this link if you want to make a booking: http://www.oxfordanalytics.org