Skills Minister Luke Hall announces De-funding of 318 Level 3 qualifications. Sector Reaction

Government Approves New Qualifications for Public Funding Amidst Concerns Over Impact on Students

Skills Minister Luke Hall has announced the approval of 74 new Alternative Academic Qualifications (AAQs) and Technical Qualifications (TQs) for public funding at level 3 starting from 1 August 2025. This move is part of the post-16 qualifications reform aimed at streamlining the qualifications landscape and ensuring that publicly funded qualifications are high-quality and lead to good progression outcomes.

Minister of State for Skills, Apprenticeships and Higher Education, Luke Hall, stated that the reforms place A levels and T Levels at the heart of level 3 study programmes for 16- to 19-year-olds. T Levels are designed to equip students with a thorough understanding of their chosen sector and the skills needed to work in specific occupations. Over 90% of T Level students passed their exams in summer 2023, with many progressing into employment, apprenticeships, or higher education.

However, the Association of Colleges (AoC) has expressed concerns about the potential negative impact of these reforms on the life chances of tens of thousands of young people and adults. Catherine Sezen, Director of Education Policy at AoC said

“Today’s announcement heightens our concerns that elements of these qualification reforms could have a serious and negative impact on the life chances of tens of thousands of young people and even more adults. We once again call for the Department for Education to pause and review their plans to defund Level 3 qualifications until the full impact is clear. Until the new T Levels are fully established, it is reckless to defund qualifications that have been working well for thousands of young people and adults in the hope that the change will be positive. Without understanding the full impact and without a comprehensive impact assessment, ministers are simply risking too much. 

“The reforms affect 20% (250,000) of 16 and 17-year-olds on Level 3, and 20% (200,000) of 16 and 17-year-olds studying at Level 2 who’ll find it harder to progress to Level 3 at the age of 18. The reforms also affect the 300,000 adults taking full Level 3 courses who cannot currently take T Levels.     

“Colleges are extremely concerned about the high number of students who may not be able to find a course because T Levels are not suitable or accessible for them and the existing qualification is being defunded. Now that more information has been released, it is time for a pause whilst a proper impact assessment of this major multi-year reform of the education currently taken by more than half a million people.   

“It’s true that thousands of students are taking T Levels, managing to do the placement required, and going on to succeed. For many of them the T Level is a good programme of study. However, these qualifications are not suited to every student who wants to take a vocational qualification at Level 3 and the 45-day placement is stretching employer capacity. The modest total of 23,500 student enrolments on T Levels needs to be put into the context of 250,000 young people on current vocational technical qualifications. Even with rapid growth, we expect the total number of T Level enrolments to be less than 100,000.  

“We know that colleges will knit together brilliant study programmes using the menu of qualifications on the approved DfE lists, but we’re particularly worried about new obstacles in the route for young people to get jobs in health, construction and electrical. We also need more clarity on qualifications in subjects like sport, performing arts, business and agriculture, which are due to be defunded in 2026 but for which there are no details.” 

Whilst the government remains confident in the growth and success of T Levels, the AoC emphasises that these qualifications are not suited to every student who wants to take a vocational qualification at Level 3. They urge for a proper impact assessment of this major multi-year reform to ensure that the life chances of students are not negatively affected.

As the reforms continue to roll out, it is crucial for the government to address these concerns and work closely with education providers to ensure that students have access to a range of high-quality qualifications that meet their needs and support their progression into further education and employment.

Sector reaction to the defunding of 318 Level 3 qualifications

Simon Ashworth, AELP Policy Director said:

“We’re disappointed at today’s announcement on which Alternative Academic Qualifications (AAQs) and Technical Qualifications (TQs) will receive public funding at level 3 starting from 1 August 2025. AELP remain concerned that this will restrict learner choice; and about the negative impact this will have on the life chances of tens of thousands of young people and even more adults. We once again call for the Department for Education to pause and review their plans to defund Level 3 qualifications until the full impact is clear.”

John McNamara, Interim CEO on behalf of FAB (Federation of Awarding Bodies) said:

“Following today’s announcement, the Federation restate our support for the government’s ambition to create a future qualifications landscape built on strong efficacy and high-quality provision.

“However, we fundamentally disagree with aspects of their current approach to reform, which will be detrimental to learners and the wider sector in both their scale and timeframes. A longer-term perspective which considers labour market requirements and future skills gaps is required.

“The Federation continue to recommend that qualifications reform be slowed down as part of maintaining the stability of the post-secondary education ecosystem in England, specifically in relation to a moratorium on the defunding of existing qualifications.

“Getting the level 3 vocational and technical qualifications offer right is essential for learners from all kinds of backgrounds, to enable their achievement in life, work or further study. Provision must meet the needs of all learners and industry, with T levels forming one part of a rich and diverse qualifications landscape. This announcement of the defunding of 318 qualifications, will have a direct adverse impact on thousands of young people and adult learners, who will find their options for progression and development severely curtailed.”

James Kewin, Deputy Chief Executive of the Sixth Form Colleges Association, said:

“Ministers made a commitment in Parliament that only a “small proportion” of applied general qualifications like BTECs would be defunded through the Level 3 reform process. However, our analysis of the list published today indicates that just 17 of 55 AGQs in scope have been reapproved. 

“Not content with scrapping popular BTECs, the government has also introduced a new suite of bureaucratic regulations that will remove the freedom of colleges and schools to combine different qualifications in students’ study programmes. But as we head towards a general election, many of these developments appear increasingly irrelevant.  The Labour party’s commitment to adopt the Protect Student Choice campaign’s recommendation to ‘pause and review’ the scrapping of BTECs means that the government’s plan is increasingly unlikely to be implemented. Ministers should listen to colleges and schools, put students first and reverse their disastrous plan to scrap BTECs.”