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Thing is, for any second year (not just T Levels) "42 days" is sort of 12 September, so given it's unlikely they were "properly" in learning during August, any second year withdrawing in the first six weeks of actual teaching needs their hours reduced to actual.
Q14 in Annex C just about answers this (but it's definitely what you need to do):
Q14 When a student continues a programme from the previous year and the first
date of attendance is after 1 August (for example, due to summer holiday
arrangements), what date is used for calculating the planned hours?
A14 Institutions must use the student’s first date of attendance for learning activity to
calculate the 6 week period for determining planned hours. The number of planned
hours a student may study should not be greater than 40 hours per week (and for
example, for those who cease studying after 5 weeks the maximum planned hours
will be 200).
Mike Daykin
2nd year returning T Level leaving programme in first 6 weeks
Edited
Do we reduce the 2nd year hours - if so how and where, or does paragraph 130 preside?
130: When a student withdraws from all their learning aims, and therefore withdraws from their whole programme, they will not meet the criteria to count as a start and will not be counted for funding. In these cases, institutions do not have to change the planned hours.