Finland has reformed its legislation and the funding mechanism for Vocational Education and Training (VET). The new system came into effect at the beginning of 2018. The background philosophy of the reform, was that the skills needed in order to achieve a qualification, could be gained in various learning environments – whether formal, informal, or non-formal, throughout the course of a lifetime. The financing system supports the Validation of Prior Learning (VPL) by allocating 35 % of the finances to it – depending on how many qualifications/modules of qualifications have been achieved annually. So, the greater the volume of qualifications an individual training organisation can award, the greater the amount of resources that will be allocated to it. Half of the overall funding is based on (a) the amount of students involved, (b) 15% of the funding, on the student movements either into employment, or a higher education institution, and (c) a student survey. This presentation focuses on the legislation and funding mechanism for VPL in Finland, and the main successes and challenges.