Post-16 skills reform

The Government’s proposed reforms focus on aligning education with labour market needs, prioritising technical excellence and employer engagement. 

New qualifications (V Levels) will be developed to meet sector-specific skills gaps, with a strong emphasis on STEM and priority industries.

Employer-led approach

• Employers shape qualifications and training to meet real industry needs.
• Local Skills Improvement Plans target regional priorities.

Focus on key sectors

Targeting public funding to drive up skills provision in priority sectors to meet employer and economic need:

• advanced manufacturing and engineering
• clean energy industries
• defence
• construction
• creative industries
• digital & technologies
• financial services
• life sciences
• professional and business services
• health and care.

• V Levels: A new technical route at Level 3, equivalent to a single A Level, syllabus-based and aligned with occupational standards. V Levels will replace most current Level 3 vocational qualifications for 16–19-year-olds. 
• T Levels: Continue as the primary large technical qualification at Level 3, with ongoing improvements and expansion into new subject areas.
• Level 2 Pathways: Reorganised into two routes:
  • one for further study (progression to V Levels, T Levels, or A Levels), and 
  • one for direct entry to work.

• English and Maths: New Level 1 qualifications to support learners before retaking GCSEs. The English and Maths funding rate will increase by over 11% in this academic year (2025 to 2026), and the disadvantage payments will increase by nearly 7%.
• Adult participation: while V Levels are primarily designed for 16–19-year-olds, adult access is under review. The Department for Work and Pensions (DWP) is expected to play a role in determining adult eligibility and funding. Adults will continue to access existing qualifications until V Levels are fully rolled out.