Background to the report

The Department for Education (DfE) launched T Levels following recommendations from the 2016 Sainsbury Review, which outlined the need for new technical education routes, standards set by employers, and industry placements. As such, DfE aims for T Levels to improve technical education; better meet employers’ needs; and improve students’ labour market outcomes and educational progression.

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In 2019 DfE stated that T Levels would become the main technical option for 16- to 19-year-olds. They involve students choosing an occupational specialism, undertaking an industry placement and completing more learning hours than similar technical qualifications.

DfE introduced 16 of the 21 T Levels now available to the original timeframe but delayed the rest to, for example, improve the course content and address commercial issues. It plans to introduce a further T Level from September 2025. Concerns have been raised with us about low student numbers, the value of awarding organisation contracts, challenges recruiting students, and the cost of T Levels to the government compared with other technical qualifications.

DfE is accountable for securing value for money from T Level qualifications, which it is delivering through a major programme. T Levels are complex to provide, with various bodies involved. On behalf of DfE, the Institute for Apprenticeships and Technical Education (IfATE) contracts with organisations to develop and award each T Level. Employers contribute to developing the qualifications and provide industry placements. Education providers, including sixth forms and colleges, teach students and organise their placements.

Scope of the report

This investigation provides transparency over the government’s progress introducing T Levels and sets out:

  • the background to T Levels, DfE’s overarching programme and the latest position introducing qualifications
  • estimated and actual student numbers, alongside associated costs and benefits
  • DfE’s progress providing the various aspects needed for T Levels to be available, such as qualifications, providers with enough teachers and offering industry placements, and sufficient students

The NAO does not examine whether T Levels are providing, or will provide, value for money.

Video summary

Emma Willson, the report’s director, summarises our findings.

Conclusions

DfE designed T Levels as new technical qualifications to better meet employers’ needs and expects them to help address critical skills gaps across the economy. T Levels cost more than other qualifications given, for example, the additional teaching hours and industry placement involved.

DfE allocated providers between around £5,500 to £7,000 in 2024-25 for a single study year for each student (compared with up to around £4,800 for other qualifications), in addition to core funding. However, DfE’s current best judgement is that T Levels will be 25% more valuable than other level 3 qualifications. Nevertheless, the future economic benefits are uncertain and it will take time for benefits to be realised.

Despite an ambitious timetable, DfE introduced 16 T Levels as planned by September 2022, with a further five now available after delays of up to two years. However, critical to realising the benefits of T Levels, will be increasing the numbers of students on courses. Despite progress, this will remain challenging given the need to raise awareness and secure industry placements for more students.

With 25,508 students starting in September 2024, the fifth year of T Levels being available, DfE has a central estimate for 66,100 students a year starting by September 2029. In thinking about student numbers, DfE will need to monitor the impact of wider strategic changes and ensure its revised commercial arrangements with awarding organisations are sustainable.

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Publication details

Press release

View press release (28 Mar 2025)

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