Developed by IfATE and launched in 2020, T Levels were designed to provide high-quality, classroom-based technical education, with teaching and qualifications that could address skills gaps and support the government’s wider economic growth agenda. Whilst the previous government’s plan to merge T Levels with A Levels into an ‘Advanced British Standard’ has been abandoned, Labour reaffirmed its commitment to T Levels in the March 2025 Curriculum and Assessment Review, describing them as a “gold-standard” qualification. A recent report from the National Audit Office (NAO) has however raised serious doubts about the value, delivery, and long-term sustainability of T Levels.

What did the report reveal?

The NAO’s report presents a mixed picture of T Levels, highlighting persistent challenges in student uptake, delivery, staffing, finances, learner pathways, and public awareness. Enrolment has fallen far short of expectations, with just 25,508 students by 2023/24 compared to the DfE’s original target of 102,000. While forecasting has improved over time, even revised projections have proven overly optimistic, with current estimates projecting for 49,700 students by 2027.

Delivery challenges remain significant. Scaling up mandatory industry placements continues to be a major hurdle, and providers are struggling with teacher recruitment and retention – an issue echoed in our Skills 2030 report. These staffing shortages threaten the quality and consistency of T Level delivery across institutions.

Financially, low enrolment has resulted in a £688 million underspend and substantial losses for Awarding Organisations, with some early contracts underperforming by as much as 92%. Revised funding agreements risk shifting more costs onto providers. Although T Levels cost significantly more per student than other Level 3 qualifications, the DfE argues they offer around 25% greater value and may raise lifetime earnings by £23,000. A temporary 10% funding uplift was introduced to help manage these costs, but its time-limited nature raises concerns about long-term sustainability.

Progression pathways and public understanding also remain weak. Many universities still do not fully recognise T Levels, leading to limited confidence in higher education routes. The T Level foundation year has had little success in preparing students, and public awareness of the qualification remains low. While the DfE has responded with promotional efforts and reinstated higher education as a formal progression aim, these steps may take time to have impact. In a notable policy shift, the government has reversed earlier plans to defund alternative qualifications such as BTECs, with funding now extended until 2027.

DfE’s Response: Steps forward, but questions remain

During an oral evidence session on 26 April, senior officials from the Department for Education (DfE) and the Institute for Apprenticeships and Technical Education (IfATE) outlined their strategy for securing the long-term sustainability of T Levels. Whilst the DfE has maintained an optimistic outlook – pointing to improved student projections and reaffirming confidence in meeting revised targets – members of the Commons Public Accounts Committee were critical of several of the solutions proposed by officials to secure long-term success.

To address funding pressures, the DfE confirmed that the current 10% provider uplift would be reduced to 5% from April 2025 – a reflection of increasing student numbers, but also a recognition of persistent financial challenges. To support provider capacity and enhance industry placements, the department announced a new Employer Fund aimed at incentivising participation from SMEs and the health sector. Officials also highlighted a series of measures to improve placement quality and scalability, including revised placement rules and stronger engagement with stakeholders through the T Level ambassador network. On progression outcomes, data showed that 90% of T Level graduates move into work or further study, with a significant proportion entering fields aligned to their course – a stronger correlation than other Level 3 pathways.

Looking ahead, the DfE pointed to the programme’s design flexibility, noting recent adjustments such as the withdrawal of the construction T Level in response to delivery challenges. Officials argued that this responsiveness is key to ensuring that T Levels remain aligned with labour market needs and continue to provide viable, high-quality alternatives to academic routes.

How to build on this momentum:

The NAO’s report reinforces key messages from Policy Connect’s Skills 2030 report – England’s skills system – including T Levels – must be cohesive, flexible, employer-connected, and forward-facing. The current instability across the post-16 landscape, with overlapping reforms, shifting qualifications policy, and pressure on providers makes it a challenging environment for new initiatives to succeed, and, in this context, qualifications like T Levels must be given time to embed, evolve, and demonstrate their long-term value.

Despite experiencing persistent early challenges, T Levels have shown early signs of promise with many students progressing into degree apprenticeships within their placement organisations. The DfE’s willingness to refine the model – through course updates, withdrawal of unsuitable qualifications, and new subject development – also demonstrates a growing capacity for flexibility.

It is vitally important that the financial sustainability of providers is now safeguarded, with the impact of the reduced funding uplift monitored closely to ensure T Levels remain viable and effective. Employer incentive schemes should be expanded across sectors to secure a broader and more resilient placement offer. Meanwhile, new placement rules and digital delivery methods must be regularly reviewed to ensure they continue to deliver meaningful, high-quality experiences for students.

Whilst T Levels have clear potential, it will take time to fully assess their success. The DfE remains committed to the programme, but challenges around funding, student uptake, placements, and progression pathways require ongoing attention. As the programme evolves, continued refinement and stability will be crucial to unlocking T Levels' transformative potential.