The review of level 3 qualifications reform

This briefing explains the Labour government’s review of the ongoing reforms to level 3 qualifications, including BTECs. For more information on the reforms, including their rationale and the previous timetable set out by the Conservative government, see the Commons Library briefing The reform of level 3 qualifications in England.

Background: Reforms to level 3 qualifications

Following a consultation on post-16 qualifications at level 3 in 2020/21, the 2019 Conservative government published a policy statement in July 2021 saying it wanted to create “clearly defined academic and technical routes” for post-16 progression that would sit alongside apprenticeships. The then-government said it hoped the reforms would remove “low-quality qualifications” from the system, and ensure students had confidence in the outcomes of their choices.

A Levels were to be central to the academic route, which was intended to lead to higher education study at university. T Levels were to become the main qualification option for the technical route and were intended to support progression into skilled employment (requiring specialist training or expertise), further technical study or apprenticeships, and potentially higher education courses.

The then-government said other level 3 qualifications, including applied general qualifications like BTECs, could continue to exist alongside A Levels and T Levels, but they would need to demonstrate their quality and distinct purpose to continue receiving public funding. Qualifications that overlapped with A Levels or T Levels, and those that did not meet new quality criteria, would no longer receive public funding.

Reaction to the reforms

The Protect Student Choice campaign, which is a coalition of 30 organisations from across the education and employment sectors, has called on the government to rethink the removal of funding from many level 3 qualifications. It has argued:

• The current three-route model (A Levels, technical qualifications that lead to a specific occupation, and applied general qualifications that combine practical skills with academic learning) works well and should be retained.
• T Levels are different qualifications that students will pursue for different reasons and should sit alongside the existing qualification offer. There are also issues with the uptake and drop out rates of T Levels.
• Removing funding from some BTECs may leave students without a viable progression pathway at age 16 and reduce participation in higher education among disadvantaged groups.

In April 2023, following an inquiry into the future of post-16 qualifications, the House of Commons Education Committee published a report that called for a “moratorium” on the defunding of applied general qualifications, saying:

Tried and tested Applied General Qualifications should only be withdrawn as and when there is a robust evidence base proving that T Levels are demonstrably more effective in preparing students for progression, meeting industry needs and promoting social mobility.

Scope of the review

In June 2023, the then-Shadow Education Secretary, Bridget Phillipson, pledged that a future Labour government would pause and review the removal of funding from many level 3 qualifications. She said:

Labour believes the way in which the transition from BTECs to T Levels is being handled by the government is putting the broader success of T Levels as a new qualification at risk, and constraining opportunities for our young people.

Labour recognises the instability that is being caused by the government’s reckless treatment of our nation’s vital further education sector. The next Labour government will ensure all students are able to complete their courses and will review the diversity of options at level 3 before making further changes

On 25 July 2024, the new Labour government announced a “short review” of post-16 qualification reforms at level 3 and below that would conclude before the end of the year. The removal of funding from qualifications in construction and the built environment; digital; education and early years; and health and science, which was due to happen from August 2024, was paused.

As part of the review, the Department for Education (DfE) considered all level 3 qualifications that were in scope to have public funding removed from 1 August 2025. This included:

• qualifications that overlap with T Levels in waves 1, 2, 3 or 4
• level 3 qualifications that were in scope to have funding removed because they did not meet new quality criteria
• qualifications that providers identified as being replaced by a reformed qualification.

The point of the review was to determine if any qualifications in line to be defunded should be retained, and to consider how long they should be kept available. The DfE spoke with employer representative bodies, colleges, practitioners, awarding organisations, and industry experts as part of the review.

Following criticism that it was not being sufficiently transparent about the review’s terms of reference, the Minister for Skills, Jacqui Smith, wrote an article in September 2024 for FE Week, a further education news website, that set out the government's guiding principles for reviewing qualifications. This included saying the government recognised there was a need to retain other qualifications alongside T Levels and A Levels. She said:

Where the review identifies the balance of learner and employer needs within a sector requires level 3 qualifications other than T Levels and A levels, we will maintain the relevant qualifications. This may well be in areas that overlap with T Levels, which is a change from the approach taken by the last government.

The Protect Student Choice campaign said it welcomed the “more conciliatory tone” from the Minister for Skills, Jacqui Smith, and her indication that the new government saw a bigger role for applied general and other qualifications as part of the post-16 choice available to students.

Outcome of the review

On 12 December 2024, the government announced the outcomes of its review and said the new position was fixed until 2027. The outcomes included:

• 157 qualifications due to lose their funding will instead have it extended to allow reformed qualifications to be established and embedded in the system. The retained qualifications include:
  • 57 qualifications in digital, construction, and health and science (now due to be funded until July 2026)
  • 100 qualifications in engineering, agriculture, business, and creative (now due to be funded until July 2027).
• Funding will continue to be withdrawn for the other qualifications in scope of the review, including more than 200 qualifications with low or no enrolments.
• Previously proposed funding rules limiting providers and students on which types of qualifications can be combined have been dropped.
• The government’s curriculum and assessment review will take a view on qualifications in the long term, but the DfE will invite awarding organisations to submit further new level 3 qualifications in the spring in health and science, construction, digital, and education and early years, as well as in the care services route.

Informing the House of Commons of the review outcomes, the Education Minister, Janet Daby, said:

These changes are a fair reflection of what we have heard, and offer a balanced approach that supports our missions of spreading opportunity and supporting economic growth. We want high-quality options, strong choices and a simpler system that is easier for learners to navigate. The approach and timescales that I have set out today represent a pragmatic and achievable journey to where we want to be. We are putting the needs of learners and our economy at the heart of how we move forward.

She also said the government believed T Levels were “an excellent qualification that should be available to more young people”, and that the decision to retain funding for some qualifications would allow for the needs of learners and employers to be met while the transition to T Levels being “the large technical qualification of choice” continued.

Decisions on each qualification in the scope of the review are available in DfE guidance. An equality impact assessment has also been published that said any negative impacts the defunding of qualifications may have should be mitigated by the fact learners will have alternative qualifications available. This was because “these qualifications are of improved quality and will support better progression outcomes for learners leading to enhanced employability and potentially higher earnings” (page 5).

Reaction to the review conclusion Conservative party

Responding to the announcement of the review outcomes in the Commons, the Conservative Shadow Education Minister, Neil O’Brien, argued there remained unanswered questions and the further education sector still faced uncertainty with funding only extended until 2027. He said:

I think the sector will heave a sigh of relief that today’s announcement is finally out—we were getting to the point where literally any decision would have been better than continued indecision—but it leaves some huge unanswered questions.

The Minister says that things will be clear up until 2027. In other words, we will be back here again in two years. We had a pause and a review. We will now have a longer pause and another review. At some point, the Government will have to decide. The sector wants certainty, but we know from the statement that it will not get that yet.

The shadow minister also criticised the government for having “no clear vision” to simplify the qualification landscape and “no proper plan” to support T Level students and providers.

Further education sector

Bill Watkin, the chief executive of the Sixth Form Colleges Association (SFCA), which leads the Protect Student Choice campaign, said it was pleased the constraints on combining different qualifications had been removed, and that 13 of the 21 applied general qualifications (AGQs) the campaign had identified as being essential to retain will continue to be funded.

Writing in FE Week, the deputy chief executive of the SFCA, James Kewin, said the sector now had a greater degree of certainty, but it was clear the case for a “genuine three-route model, in which applied qualifications play a role that is equally important to that of A and T Levels” still needed to be made.

The chief executive of the Association of Colleges, David Hughes, said the review outcome offered the sector some stability. He said:

Today’s announcement on the outcome of the rapid review of level 3 qualification defunding offers some stability for colleges and students and allows colleges to plan their curriculum offer with confidence for the next couple of years. The decision to trust college staff to design learning programmes which combine qualifications, rather than setting rules centrally, signals a welcome shift towards trusting colleges to do the best for their students.