T Levels: Government must inject life into technical qualifications to address UK’s skills gaps

More must be done to ensure more students enrol in T Levels if they are to be a success. In a report on the introduction of T Levels, the Public Accounts Committee (PAC) calls on government to articulate its plan to tackle the significant challenges that remain in introducing the new two-year technical qualification.

The Department for Education (DfE) is confident that it can significantly scale up T Level enrolment to 66,100 by September 2029, from 25,508 in September 2024 (significantly fewer than DfE's original ambition). However, more needs to be done to build awareness of T Levels with only half of year 9 to 11 students having heard of them in 2023.  While only a third of employers, who offer industry placements required to finish the T Level, are aware of them. The PAC's inquiry also found that women and disadvantaged students are underrepresented in some T Level course such as engineering, and that students with special educational needs are less likely to enrol on a T Level than other vocational courses.

The PAC is calling on government to set out its ‘campaign approach' to increasing student and employer awareness in T Levels for greater enrolment, and address how the curriculum can be tailored to appeal to a diverse student group while meeting employers' needs.

T Levels have a critical role in equipping young people to address vital skills gaps across the UK economy – but it can take a minimum of 18 months for a T Level to be altered to meet changing skills needs (e.g. government's February 2025 increase in defence spending to intended to create new jobs, skills and opportunities). The report recommends DfE to consider how to develop and review T Level content quickly to maximise the responsiveness of the qualification to evolving skills requirements.

The report further warns that it has been unclear to students, teachers and colleges how T Levels fit alongside other technical qualifications. The new government paused the last government's decision to defund qualifications overlapping with T Levels, before announcing in Dec '24 that funding would continue for some until 2027. Students need clarity on which qualifications best suit their chosen career, and the PAC urges DfE to set out these details publicly to help students understand their route into skilled professions.

Sir Geoffrey Clifton-Brown MP, Chair of the Committee, said: “T Levels have the potential to be a significant force for good in equipping young people with everything they need for their burgeoning careers. But without the wider awareness in industry and critical mass of student enrolments, T Levels may remain very much a minority pursuit, when they could become a natural and enriching step in many students' lives. Many T Levels students have had positive experiences, with seven in ten students feeling well prepared for the workplace. Government must enter campaign mode to inject life into T Levels to build enrolments, focusing in and capitalising on local employment needs.

“Government's ambitions for the UK's economic growth and success are dependent upon the skills of this country's workforce. But the demands of the changing skills landscape have never been more volatile. As well as providing true clarity on what T Levels can offer interested students and employers, government must allow far more flexibility for the qualification for it to be a tool that can swiftly meet needs where they arise. We hope the recommendations in our report help government unlock T Levels' full potential – as one of the primary means by which the UK can prepare its young people for the changes ahead.”

Notes to editors

As part of its industrial strategy announced on 23^rd June, the government announced £200m through the Skills Mission Fund for further education providers in England to invest in new facilities, equipment, technical qualifications and collaboration with other training providers and employers.

PAC report conclusions and recommendations 

More students need to complete T Levels for them to be sustainable and deliver expected outcomes. In September 2024, 25,508 students enrolled on T Levels, significantly fewer than the Department's original ambition and earlier forecasts. In 2022, the Department revised its ambition from 100,000 by September 2025 to 70,000 enrolments by September 2027. To increase numbers, and achieve its current 66,100 forecast for September 2029, the Department recognises it must do more to improve awareness, with only 50% of students in years 9 to 11 aware of T Levels in 2023. The Department relies on students' sharing their positive experiences. Although seven in ten student thought their T level prepared them well for their workplace,  student satisfaction has been mixed (between 39% for those studying health and science-related T Levels and 79% for those on Education and Early Years); low numbers move from the foundation year to T Levels (8% in summer 2022); and students find T Levels have a higher workload and assessment burden than similar technical qualifications.  The fact T levels have more of an ‘all or nothing' assessment approach than similar technical qualifications makes them riskier. Also, not all higher education institutions accept T Levels - in November 2024 only 166 accepted them for at least one course. Women are under-represented on some T Level courses, such as engineering, while students with special educational needs are less likely to enrol on a T Level than other vocational courses.

              Recommendation 1.  The Department should, within six months, develop a structured plan setting out its 'campaign approach' to increasing student awareness and enrolments in T Levels. It should address how the curriculum can be tailored to appeal to a diverse student group (including women) while meeting employers' needs; how the credibility of T Levels can be systematically portrayed through teachers and careers officers promoting T Levels; and how to increase the number of higher education institutions that recognise T Levels. The Department's Treasury Minute response should set out a timeline for implementing the plan. 

There is a risk that colleges cannot secure enough industry placements for more students to complete their T Levels. Industry placements are a mandatory part of a T Level. While 98% of students finishing their T Level in summer 2024 completed a placement, colleges will need to find significantly more placements should student numbers increase in line with forecasts. However, only one third of employers are aware of T Levels and colleges face challenges sourcing placements in certain locations and for certain courses, such as engineering, digital and health. The Department has previously estimated that a shortage of teachers and industry placements would limit T Levels to 48,000 enrolments but is now confident this risk has been mitigated. For example, from January 2025, it allowed 20% of a placement to be remote (50% for placements in Digital T Levels) and recently reintroduced funding, available from 23 April 2025 to 31 March 2026, for small to medium employers offering placements or those offering health-related placements. The Department has trialled placement co-ordinators for some integrated care boards. It is having conversations with mayoral strategic authorities and recognises that Local Skills Improvement Plans are useful in raising awareness of T Levels.

Recommendation 2. The Department should set out its plan to improve employer awareness of T Levels, capitalising on local arrangements, including Local Skills Improvement Plans and expanding good practice in finding health placements through integrated care boards.

The Department has not provided clarity on how T Levels align with other technical qualifications and career pathways. After pausing the previous government's decision to defund qualifications overlapping with T Levels, in December 2024 the new government announced funding would continue for certain technical qualifications until 2027. The Department believes too many overlapping qualifications creates confusion for students and confirmed further funding decisions will be made following the Curriculum and Assessment Review expected in Autumn 2025. In February 2024, there were 4,337 level 3 qualifications, with 39% being vocational.  In 2023, 2% of 16- to 17-year-olds were taking T Levels. The Department has since announced that students will no longer be able to enrol on either the Onsite Construction and Healthcare Science T Levels, risking confidence amongst students, teachers, colleges and employers. Students need clarity on which qualification, or combination of qualifications, best suits their chosen career route. This is particularly true for those interested in hair and beauty and catering where T Levels will no-longer be developed.

Recommendation 3. The Department should set out publicly, for students, colleges and teachers, how T Levels fit with other funded qualifications, so students understand their route into skilled professions.

T Levels are intended to address skills gaps and meet employers' needs, but they cannot quickly be adapted to meet this objective.  T Levels have been developed and approved by employers to, for example, better meet their needs and improve students' employment prospects.  It will take time to develop course content - the Department and the Institute for Apprenticeships and Technical Education (IfATE) update qualification content each year, but it can take a minimum 18 months for an occupational standard, which provides the basis of a T Level, to be changed. T Levels will need to meet evolving skills gaps. For example, in February 2025, the government announced an increase in defence spending to create new jobs, skills and opportunities across the country, and in April 2025, £600 million to train up to 60,000 more construction workers.

Recommendation 4. The Department should work with awarding organisations to consider options for developing and reviewing T Level content quickly to maximise the responsiveness of T Level qualifications to changing skills needs in the most efficient way.

The Department has not yet provided complete clarity over what good progress looks like in T Levels becoming established and when benefits will be realised. The Department has identified four potential benefits associated with T Levels, including progression to further study or skilled employment, and higher earnings than those studying other level 3 qualifications.  However, there is a time lag before some of this information will become available and the Department only has targets for two of the four benefits. It is yet to identify how to measure employers' confidence or students' earnings. For these benefits to be realised, the Department needs to ensure students enrol, complete and pass T Levels. It expects pass rates to increase over time, as T Levels mature, but the proportion of students passing has fallen from 97% in summer 2022 to 89% in summer 2024. It does not have a target. The Department also wants to bring student retention rates in line with other large vocational qualifications. In summer 2024, 73% of 16-year-old entrants completed their T Level compared to 78% for other qualifications. The Department's best judgement is that T Levels are 25% more valuable than other level 3 qualifications, with an estimated economic benefit of £23,000 for each T level student over their lifetime although this is very uncertain.

Recommendation 5.   The Department should refine its benefit tracking, update the estimated economic benefit for T level students, and define clear milestones to better understand whether progress, for example on pass rates, aligns with expectations.

Various factors, such as teacher recruitment and awarding organisation fees, will influence colleges' uptake of T Levels particularly given their wider financial challenges. The Department recognises the additional burden faced by colleges to recruit T Level teachers, especially given that T Levels themselves are addressing areas of skills shortages. It is working with industry to facilitate a teacher exchange programme and offering certain teachers' financial incentives. However, colleges face wider pressures in recruiting and retaining teachers, particularly in specialist subjects, and other financial challenges. T Levels will be an additional burden for colleges. For the 2025/26 academic year, The Department has confirmed a 5% funding uplift for the additional costs to colleges moving from offering other level 3 programmes to T Levels, but this compares to 10% in the two years before. Colleges must also pay a set fee for each student to organisations that award T Levels. These fees increased by amounts ranging from 26% to 149% on six of its latest contracts and may increase further should student numbers remain low.

Recommendation 6.   The Department should: a) develop a better understanding of the T Level-related funding pressures on colleges, particularly the extent of changes in the costs (or fees) of awarding organisation contracts and recruiting and retaining teachers, and the potential impact of changes in these costs and b) set out a workforce strategy for supporting colleges to recruit and retain teachers.