Qualifications Reform Review

12:49:00

With permission, Madam Deputy Speaker, I will now make a statement on the outcomes of the review of qualifications reform at level 3. The priority for this Government is to build a skills system that will drive forward opportunity and deliver the growth that our economy needs. The post-16 skills system in England that we inherited from the previous Government fails both of those tests. In particular, the qualifications landscape is too confusing and fails to provide the clear routes to success that is needed by learners and employers. We heard strong arguments that the previous Government’s plans to remove level 3 qualifications and to limit the flexibility for schools and colleges meant that they risked leaving students with too little choice and too few opportunities. This year, we have paused the defunding of qualifications and have undertaken a review of the qualifications that are set to have their funding removed, to see where we need to retain alternative qualifications, such as applied general qualifications or BTECs, and to consider how long we need to keep them in place. We undertook extensive stakeholder engagement, delving into the detail of qualifications with employer representative bodies, colleges, practitioners, awarding organisations and industry experts. We recognise that certainty is very important to education providers, to students and to their parents and guardians. I reassure the House that our decisions make the position clear up to 2027. We are clear that students deserve high-quality qualifications that meet their needs, and that we must continue to develop and improve qualifications, so that they provide for the needs of students and employers. The curriculum and assessment review will take a view on qualifications in the long term, as part of its wider consideration of how we prepare all young people for life and work, but there are some areas where we need to act in advance of its recommendations. The first change that we will make is that we will not tell providers and students which types of qualifications they can and cannot mix together. It should be for colleges and sixth forms to work with students, employers, mayors and higher education to devise the best mix for each individual and deliver the skilled young people that their local economy needs. We will therefore not be applying the previously proposed rules of combination. There are a confusing number of qualifications in the system, and through this review, we have already identified more than 200 qualifications with low or no enrolments. We will remove funding from these in line with already published dates. This gives students and employers a simpler range of qualifications to choose from. T-levels provide an excellent qualification option, which should be available to more learners. We introduced three new T-levels this September, and a further T-level in marketing is to be introduced from September 2025. It was fantastic to see the energy generated by this year’s T-levels Week, which highlighted the huge benefits that young people are gaining from T-levels, and their enthusiasm for the qualification. The unique industry placement aspect of T-levels is a real draw for students and is all too often not offered by other qualifications. We have recently introduced new flexibilities to support industry placement delivery, to enable more young people to benefit from the opportunities that T-levels provide. It follows, therefore, that where learners wish to study a large qualification in a T-level route, the T-level should be the main option for them. We have moved away from blanket restrictions, such as automatically defunding any qualification that overlaps with a T-level. Instead, we have taken a practical, evidence–led approach, looking at the qualifications route by route. This will ensure that we can be confident that students have high-level choices. On this basis, we have concluded that we will not proceed with defunding qualifications on published lists in agriculture, environment and animal care; legal, finance and accounting; business and administration; and creative and design before 2027. Following our review, we will retain funding for 157 qualifications that were due to be defunded by 31 July 2025. In engineering and manufacturing, we will keep funding for the qualifications that were previously identified for defunding until 2027. This will allow time to update the occupational standards that are designed by employers and that underpin this large and complex route, and to establish new qualifications that meet the needs of learners, providers and employers. In the digital sector, we are working with the T-level awarding organisation to make assessments more manageable, and plan to have the necessary changes in place for the next academic year. We are also making T-level placements more flexible, expanding the option for remote learning. This will be particularly important in the digital route. We will keep funding for the six existing large digital qualifications until 2026, to allow time to embed these key improvements. Beyond that, we will also keep funding for 13 smaller digital qualifications, so that learners have a range of choices until reformed alternatives are available. On health, science and social care, the previous decision to defund social care qualifications left a gap, as there was a heavy T-level focus on health and science, rather than on social care. We will therefore keep funding for nine qualifications in health and social care until new qualifications in the care services route have been developed. We expect that to happen in 2026-27. We are also keeping funding beyond that for 11 qualifications in science-related subjects to give learners even more options. On education and early years, we have heard strong support for the T-level, and so we will remove funding from existing large and medium qualifications as planned in 2025. This will direct learners who want to study a large qualification to the T-level as the highest-quality option. We are also retaining funding for six smaller qualifications to support specific occupations, such as teaching assistants, giving learners a smaller alternative. Construction is a key part of this Government’s mission, and I am delighted to report that two of the construction T-levels continue to grow and offer high-quality options for learners. The on-site construction T-level is also providing valuable education, industry experience and a positive route into employment for those who wish take it. However, its success has been limited because of a lack of overall demand for a larger qualification at level 3. We have, as a result, concluded that the needs of learners and the economy are best met through apprenticeships and other classroom provision, and decided to cease taking new enrolments for the on-site construction T-level. Those already taking it will be able to complete it as planned and progress into positive destinations post-graduation. To meet the economic needs of this important sector and to ensure that we can support our missions around high-quality housing, we are also keeping one large qualification in site carpentry, and in 11 other medium and small qualifications. We must continue to improve opportunities and the quality of qualifications. We will keep qualifications only until they are no longer needed, so that learners can do the T-levels that they need to do. We will invite awarding organisations to submit further new level 3 qualifications in the spring, to continue the process of reform. We are currently considering whether proposed T-levels in catering and beauty therapy meet the needs of learners and the economy, and we will update the sector in due course. I can confirm that any new T-level in these areas will not be rolled out until at least 2026. 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. I commend this statement to the House.

I call the shadow Minister.

12:58:00

I thank the Minister for advance sight of the statement. For many years, people have worried about the huge number of different qualifications in further education. For many years, people have wanted us to be more like Germany and called for new, higher-quality, higher-funded, simpler qualifications. T-levels, introduced under the previous Government, are an attempt to do exactly that, with a higher unit of funding and much more work experience. Finally, we have a clear, prestigious qualification mirroring A-levels on the academic side. As the Minister will know from talking to Lord Sainsbury, part of the vision was to use T-levels to simplify the landscape, which everyone agrees is too complex. 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 Government must spell out some kind of vision for how they plan to simplify the landscape of qualifications, which for my whole lifetime everyone has agreed is far too complicated and fragmented. The Minister said in her statement that the qualifications landscape is too confusing, even as she announced that the Government have decided to keep more qualifications, particularly overlapping qualifications. I do not want to be too mean to her—these issues are not easy. In Government, we had the Wolf review. More recently, we removed a further 5,500 qualifications that had sustained low take-up, but what is this Government’s vision to simplify the landscape? Never mind the detail, what is the rough vision, and when will they set it out? If it is not T-levels and what the previous Government were planning to do, what is it? There is also a lot more work to be done to improve T-levels. As the Minister said, the Government will allow part of the work experience to be delivered working from home, but we need much more than that. What is the plan to reduce drop-out rates, and make T-levels more appealing and easier to deliver? One of the great things about T-levels is the need to produce so much work experience—about 50% more than previous qualifications. That makes them much harder to deliver. What are the Government doing to help colleges to deliver them? On a point of process, the Government—extraordinarily, I thought—refused to publish the terms of reference for the review that has just concluded, even in response to freedom of information requests from FE Week. Will the Minister agree to publish the terms of reference now that the review has concluded? There is no reason for them not to be in the public domain. No qualification structure will work unless the review gets the funding landscape for technical education right, so will the Minister set out the funding implications of her announcement? The Government promised that they would protect public services from the national insurance increase, but first universities and, this week, nurseries and early years providers have discovered that that was a false promise. The university fee increase has been entirely eaten up by the increase in national insurance. Now, early years providers say that the failure to compensate them for the national insurance increase is “catastrophic” and will mean that “countless nurseries, pre-schools and childminders will be left with no option but to raise costs, reduce places or simply close their doors completely.” So far, the Government have refused to come clean about the cost to the further education sector of the national insurance increase—a piece of information that this House deserves to know. The Government have it, but they will not release it. When staff in non-academised colleges complain about their different treatment on pay compared with academised colleges, the Government say that there will be £300 million for post-16 education, but they will not say how much of that will be eaten up by the increase in national insurance. I hope that today the Minister will finally give this House the information that it deserves to know. The Government have the information, and this House and people in the sector deserve to know it. It is early days, but what we are looking at is ongoing uncertainty over these qualifications, no clear vision to bring about the simplification that the Government say they want, and no proper plan yet to support T-level students and providers. The House is not allowed to see the terms of reference of the review that has just concluded, or know how much the national insurance increase will cost the sector. For students and teachers alike, we have to do better than this.

I thank the shadow Minister for his many points. The reason the review was so pertinent and needed to take place was because of the confusion around T-levels and how much work needed to take place—work that the Conservative Government had a lot of time to do. This Government believe that T-levels are an excellent qualification that should be available to more young people. Qualifications that overlap with T-levels will be able to co-exist while we continue to develop and improve qualifications, so that they provide for the needs of learners and employers, and support the transition to T-levels as the large technical qualification of choice. The Conservative Government’s rushed plans would have left young people looking to move into crucial sectors such as engineering or social care without options. Instead of blanket restrictions, the review will deliver on the Government’s ambition to fix the foundations of the economy and deliver growth. As the shadow Minister mentioned, T-levels are still in the early stage of implementation, and the retention rate is improving. We expect that trend to be maintained as they continue to bed in. Career guidance for potential students is key, and we are raising careers advisers’ awareness of the benefits of T-levels. The shadow Minister will be aware of the announcement in the October Budget of £300 million of additional revenue funding for further education and £300 million of new capital investment. That settlement reaffirms and expands the Government’s commitment to skills by providing an additional £3 million for further education to ensure that young people are developing the skills that the country needs. In addition, the Government have provided £300 million of new funding to support colleges to maintain, improve and ensure the suitability of the FE estate, and address conditions and capacity issues. We will set out in due course how that will be distributed. There are many areas in which the Government are making advancements, and we are very aware that students need to be supported. Combinations of learning are absolutely the right thing for them. We remain ambitious for students. I will endeavour to get back to the shadow Minister on the terms of reference.

I call the Chair of the Education Committee.

I pay tribute to everyone who works in further education—a vital sector that makes a transformative difference, and whose importance is often not properly recognised. Vocational and technical courses and qualifications are a critical part of our education system, yet schools, colleges and students have faced great uncertainty as a consequence of the previous Government’s decision to defund a number of applied general qualifications. I welcome the additional certainty that the Minister has provided by committing to maintain some AGQs and pause any further changes until 2027. The landscape of vocational qualifications is indeed too complex and confusing, but the cliff-edge approach adopted by the previous Government had significant adverse consequences. My Committee has heard evidence that the previous Government’s plans have already had material impacts, because some colleges have modelled the proposed reduction in courses and now face potential insolvency as a result. What support will the Government provide to colleges that have already planned and committed to their qualification offering for September 2025, based on the previous Government’s decision to defund, and now face further changes? The Committee has also heard evidence of the success of T-levels for those who complete them, particularly in areas such as healthcare. However, T-levels account for just 10% of all vocational courses, and continue to have a worryingly high drop-out rate. What further work are the Government planning between now and 2027 to reform T-levels and make them accessible to a wider range of students, including students with special educational needs and disabilities, before any further changes to AGQs are made? My Committee understands the value and potential of T-levels, but it is vital that in pursuing this route as the predominant option for technical and vocational training, the Government are not locking some young people out of the opportunity to learn, succeed and thrive.

I join the Chair of the Education Committee in praising many colleges, the sector, and teachers themselves. She is right to mention the track record of the previous Government. We very much want to support students in their learning, and especially colleges. Where colleges find that they have to change course, or where there are issues with courses, I invite them to make that known to the Department, to see what support can be provided. The £300 million that has been invested in this area should go some way to providing it. T-levels need much focus through positive communication, and we need to ensure that young people enrol in the right courses. There is a series of events and webinars to inform schools, colleges and other professionals working in educational settings about the outcomes of the review. The Department will publish further information, advice and guidance in relation to 16-to-19 study programmes in the new year.

I call the Liberal Democrat spokesperson.

I thank the Minister for advance sight of the statement. In the years since the Conservatives’ first botched moves towards prematurely scrapping a range of vocational qualifications, the Liberal Democrats have repeatedly warned of the consequences of that ill thought-through, counterproductive policy, so it is to be welcomed that the Government have heard our and the sector’s concerns. The announcement is a welcome step forward to protect student choice and local decision making, and it is a more pragmatic, rather than ideological, approach. It was clear that the decision to defund was premature. T-levels, while a welcome innovation, had not had enough time to bed in to allow an informed decision, and that risked too many young people being left without appropriate options. Now the Government are providing clarity up to 2027, will the Minister lay out the processes for monitoring and reviewing the impact of those changes until then? Will she lay out the timeline for the longer-term curriculum and assessment review in greater detail? I have one particular area of concern in the statement, and that is around early years education. Research last year showed that rather than embracing the T-level in education and early years, students overwhelmingly opted for the overlapping qualifications earmarked for defunding. Now we hear the Government will go ahead and proceed with that defunding. Given that reality, how does the announcement square with the Government’s focus and rhetoric around prioritising early years? How will the Government improve recruitment and training in that sector if it is not meeting students’ needs where they are? The point is reflective of a broader question on the announcement, which is: what are the Government’s overarching guiding principles as to which courses will be funded and which will not? The rationale laid out by the Minister suggests they are working on a case-by-case basis, but in the interests of long-term stability and clarity, should the Government not be laying out their principles for how they will approach those decisions more strategically? Finally, as students face a welcome range of post-16 options—as we have heard, it is a confusing landscape—it is essential that they have excellent support in making those important decisions. How will the Government ensure that all students have access to high-quality careers guidance?

I thank the hon. Member for the many points she made and for acknowledging the Government’s pragmatic response. It was recognised that the previous Government were not focused on social care and childcare, so we needed to relook at those areas and ensure that level 3 and level 2 placements were available. She will be aware that we are conducting the curriculum and assessment review, and the qualifications reform will be connected to the wider review, which will be published next year. There are various other ways that qualifications reform is being monitored in terms of the national audit. We are reviewing the process on an ongoing basis. As well as seeing where the uptake is from students—this is where Skills England will come into play—we are looking at ensuring that organisations and employers are involved in the types of training and courses available for young people, so the connection is very much there. We will follow through with more detail in due course.

The certainty that the statement provides will be an early Christmas present for the further education sector. Last month, I visited Bracknell and Wokingham college, a fantastic FE provider in my constituency where students learn everything from green construction to nursing, electric car maintenance to career guidance, which shows the breadth of opportunities available through the FE sector. Incidentally, those are all skills that will underpin the Government’s missions. The FE sector is vital not only in breaking down barriers to opportunity but as a vehicle for growth, providing the green skills that are necessary to our economy and to support those missions. What more support can the Government put in place for the FE sector, in particular around the difficult issue of pay settlements for FE teachers?

I thank my hon. Friend for highlighting the many important contributions of the FE sector. Pay is not currently set by the pay review bodies, including for FE, and the Government do not set recommended pay in further education. With that said, my noble Friend the Minister has full knowledge of the needs and crucial role of the FE college sector.

When the Minister’s other noble Friend—the distinguished Labour peer Lord Sainsbury—conducted his landmark review of technical and vocational qualifications, he found that they were not only multitudinous and heavily overlapping but had become divorced to a large extent from the very sectors of industry that they were supposed to serve. The overhanging qualifications reform is a massive power grab that the new Government are carrying out, creating a body called Skills England and abolishing the independent institute that oversees technical education standards. Skills England is not even a separate body; it is part of the Department for Education management structure. Under the legislation going through Parliament, the Secretary of State will take to herself the power to oversee standards in technical education. That would not be acceptable for A-levels so, as I asked in Westminster Hall the other day, how can it be possibly acceptable for T-levels? What does that say about this Government’s commitment to parity of esteem?

I will ask my noble Friend the Minister to get back to the right hon. Gentleman on that point. May I make a correction to what I said in my statement? Qualifications in agriculture, environment and animal care, legal, finance and accounting, business and administration and creative design will not be defunded before 2027, not 2024.

I am minded of that old adage—I suppose I am old enough to remember all these things—that when you ask a fish to climb a tree, it does not make the fish stupid; it just cannot do it. My concern with the qualification review is that we will not have the breadth of scale that allows for student choice and accessibility, and it will try to pinpoint people into roles that they cannot be successful in. How can the Minister ensure that those gifted in academia will have that clear path, and those gifted with job skills will find their place as well, alongside those still searching for their calling who are looking for wide subjects to keep many doors open for their future?

We are keeping 157 of the courses that were outlined to be defunded. That will be reviewed on an ongoing basis depending on uptake. Our focus is very much on economic growth, and our mission is for growth and ensuring that young people have opportunities in T-levels and other qualifications to ensure that they are able to get the jobs that are desperately needed in our country. We are not removing the rules of combination. More variation should support 16 to 19-year-olds to have access to the jobs they wish to do in the future. [Official Report, 19 December 2024; Vol. 759, c. 1WC.] (Correction)