Rapid Review | 70% of Level 3 Courses Saved from Defunding

• 157 courses will no longer be defunded as planned – putting learners first and supporting key growth mission sectors like engineering and manufacturing.
• Government relaxes rules around combining qualifications, cutting red tape to ensure a broad range of study options are available to build strong foundations for a stable economy.
• Where learners wish to study a large qualification in a T Level route, the T Level should be the main option for them, and we are continuing that transition.

The government has today laid out the future of post-16 qualifications, protecting learner choice whilst cutting red tape to streamline the system.

The move follows the rapid review into vocational qualifications that were due to be defunded by the previous government.

Qualifications that will be key to the government’s growth mission in key subjects like manufacturing and engineering that were previously scheduled for defunding will remain until replacements become more established.

This will ensure learners will continue to have a broad range of options available to help them get a foot on the career ladder.

Retaining these courses will preserve a pipeline of talent into key sectors under the government’s Plan for Change – including the NHS.

Around 70% of the remaining qualifications that were slated for defunding under the previous government will no longer be defunded as planned following the review.

The government is taking a pragmatic approach to fix the foundations and deliver change. We are cutting red tape to allow learners to combine qualifications in the way that suits them, putting learners first and helping them to develop the skills this country needs in order to grow the economy.

Qualifications that overlap with T Levels will be able to coexist where we continue to develop and improve qualifications so that they provide for the needs of learners, providers and employers, supporting the transition to T Levels as the large technical qualification of choice.

Key courses that will stay include those that were scheduled for defunding in important sectors such as agriculture, environmental and animal care, engineering, manufacturing, health and social care, legal, finance and accounting, business and administration, and creative and design.

All of these sectors will be at the forefront of the government’s ambitious plans to fix the foundations of the economy and deliver growth.

Instead of blanket restrictions, the new approach is informed by more than 250 individual contributions from employers, colleges and awarding organisations.

Minister for Skills, Jacqui Smith, said:

“Vocational and technical qualifications are crucial to our Plan for Change and our number one mission to grow the economy.

“This government is committed to the long-term delivery of T Levels as the best quality technical education option for young people.

“Qualifications are not one-size-fits-all, and we recognise we must take a pragmatic approach. Our ambitious programme must meet the needs of employers and our public services if we are to see our economy flourish.

“We took decisive action as soon as we came into government to ensure the best outcomes for learners and I am thankful to all those who contributed to the pause and review.”

In an oral statement today, the Minister confirmed that over 200 qualifications that had either no or below 100 enrolments per year over the last three years will have their funding withdrawn from 1 August 2025.

The Minister also confirmed that a new T Level in Marketing will be available from 2025, as the government continues the rollout of the programme following the recent introduction of T Levels in Animal Care and Management; Craft and Design; and Media, Broadcasting and Production.

This includes the recent announcement that more flexibility will be introduced for industry placements, ensuring even more students can take advantage of the opportunities available from this high-quality qualification.

The Onsite Construction T Level is helping students progress into positive destinations, but will have no further enrolments, due to a lack of overall demand for large qualifications at level 3. Learners already enrolled can still complete their courses. We recently announced £140 million from industry to create Homebuilding Skills Hubs, which will enable thousands more apprenticeships in construction to be started every year. This will ensure these vital skills are rapidly developed in the areas that need them most, helping to meet the government’s milestone of 1.5 million homes being built in the next parliament.

Sector Reaction

David Hughes, Chief Executive, Association of Colleges, said:

‘’Today’s announcement in the House of Commons 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. 

“It shows that the government has engaged and listened to college lecturers as well as employers. We asked the government to take a route-by-route evidence-based approach to the review, and it’s clear that the decision to retain qualifications which help young people to progress in learning and into work has been informed by working in partnership with the FE sector. 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. Our members will welcome this as well as the strong commitment to T Levels as part of a wider suite of qualifications, because T Levels are working well for many students across a range of subjects.

“We will continue to support the curriculum and assessment review work and look forward to hearing more about its vision for how the whole post-16 qualification landscape when it reports next year.”

Responding to today’s announcement, Bill Watkin, Chief Executive of the Sixth Form Colleges Association, said:

“Today’s announcement brings some good news for students, the education sector and employers. We are pleased that the Protect Student Choice campaign’s recommendation not to introduce constraints on combining different types and sizes of qualification will be implemented. There was a welcome acknowledgement in today’s ministerial statement that colleges and schools are best placed to decide the combination of qualifications that should be included in a student’s study programme.

“We are also pleased that 13 of the 21 applied general qualifications (AGQs) that the campaign identified as being essential to retain will be retained. That means students will continue to benefit from BTECs and other qualifications in key subjects such as Applied Science, Health and Social Care, IT, and Engineering. Although these 13 AGQs (accounting for 58,000 16 to 18 enrolments) are only being retained for a further year, we understand that many have a long-term future alongside A levels and T levels.

“More broadly, there is now a clear recognition from ministers that A levels and T levels cannot be the only Level 3 options available to young people. More work is needed to ensure the applied route is not only retained, but also treated with the same respect as A levels and T levels, and we must move away from referring to these qualifications as “alternatives”. Today has brought a degree of certainty to the Level 3 reform process, and we look forward to working with the government on the implementation of the plans set out today.”

Rob Nitsch, Chief Executive of the Federation of Awarding Bodies (FAB) said:

“FAB welcomes the elements of certainty that today’s announcement brings and the pragmatic, refined and measured approach that is being implemented.  It’s important that we have a suite of high quality offers at Level 3 that encourage learners to take vocational and technical options that help them to move forward and meet the needs of employers.  These decisions will help.”

UCU welcomes DfE decision to retain over 150 Level 3 qualifications

Responding to the outcome of the Department for Education’s review of Level 3 courses, University and College Union (UCU) general secretary Jo Grady said:

“Labour has listened to UCU and reversed the previous Tory government’s defunding of many crucial Level 3 qualifications. We welcome this decision, which will keep many BTECs in place and retain a key entry route into higher education for working-class students.

“The government must now ensure that course closures do not lead to current and future students losing out, as there is a risk they will be denied choice. England needs a joined-up investment and skills strategy. Our members will be central to that, and the Department for Education and college bosses must support them as they deliver the Level 3 courses that will underpin the government’s mission for growth.”

 Michael Lemin, Head of Policy of NCFE said:

“We’re pleased that the review’s outcome means that there will be no immediate disruption for our centres or learners. Our focus remains on the qualifications that make the biggest positive difference to learners and the pathways supporting some of the UK’s key sectors. It’s important that we continue to think about the diverse range of learners in schools and FE and ensure education is accessible at all levels, provides meaningful opportunities to progress and empowers learners with choice.”

Freya Thomas Monk, Managing Director of Vocational Qualifications and Training at Pearson, said:

“We welcome the ambition the government has shown with this decision today, which ensures that many of these highly valued qualifications can remain on offer for all in England. This will give reassurance and clarity to colleges, schools, students and parents as they make plans for upcoming academic years.  It is particularly welcome news that the decision around the number of AAQs and A levels a student can take as a combination is now in their hands – not restricted to a rigid choice of one AAQ with two A levels.

“For employers, this is an important step to protect talent pipelines into vital sectors, such as engineering and the NHS, at a time when the country is facing pressing skill shortages.

“There is a lot of detail for the sector to digest and act upon following this announcement – we remain committed to supporting colleges and schools offering our BTEC Level 3 Nationals, as well as T Levels, as they navigate the changes ahead”.

Simon Ashworth, AELP Deputy CEO and Director of Policy:

“We are pleased to see further information announced today on Level 3 reform. Providers need time to plan their curriculum properly and there is already ongoing uncertainty across the sector through the introduction of the Growth and Skills Levy and Level 7 apprenticeship funding proposals.

“We are encouraged to see the new government recognise the scope for other Level 3 qualifications, including those that overlap with T Levels – this aligns with our previous calls for a broader approach. AELP also welcomes the announcement that DfE will not be applying the previously proposed rules of combination.

“We are now keen to see what emerges for Level 2 and below as part of the Curriculum and Assessment Review which we expect to report early next year.”

Sarah Hannafin, head of policy at school leaders’ union NAHT, said:

“The decisions announced today are positive news for students and provide some much-needed clarity for schools and colleges.

“The ambition of the previous government for A levels and T levels to be the only two qualification pathways post-16 would have failed to meet the needs and ambitions of many students.  

“Applied general qualifications, including BTECs, are rigorous qualifications that allow 16-19-year-old students to develop transferable knowledge and skills and allow entry to a range of higher education courses as well as to the world of work.

“These qualifications have a vital role to play in retention, achievement and progression for students and it is right that this is maintained.”

Kevin Gilmartin, Post 16 Specialist at the Association of Schools and College Leaders, said:

“We are pleased that the DfE has stuck to its promised timescale to release the results of the review into level 3 reform and has listened to some of the calls from our school and college members. The decision not to impose rules on the combinations of qualifications that students can take, including new AAQs, is very sensible and will allow the required flexibility for schools and colleges to offer programmes that meet their students’ needs. In addition, the decision to pause the defunding of a significant number of AGQs is welcome, albeit this is only for a further year for most qualifications on the defunding list. This means that year 11 students can finally make their course choices for September and have a goal to aim for in terms of their next steps.

“However, it must be noted that this is only a short-term fix for September 2025 and the review has missed the opportunity to provide clarity for a two-year period as we requested. No government would ever allow such uncertainty to exist for students wishing to take academic subjects such as A-levels, so long-term certainty for all 16-19 students on both vocational and academic pathways must be an immediate priority. Schools and colleges have been put through a frustrating and turbulent time because of the chaos surrounding the level 3 reform programme. Hard-working staff and students deserve more respect and while this long period of uncertainty, inherited from the previous government, is finally over, planning for the curriculum offer for September 2026 must commence as soon as possible.”