Post-16 skills reform
The government has set out clearer plans for a reformed post‑16 system, introducing a third vocational route at Level 3 alongside A levels and T Levels. This recognises the need for meaningful choice as learners progress into work, further study or higher education.
The announcement includes the consultation response, impact assessment, transition plan, and a list of qualifications losing funding from August 2027. A full implementation plan will follow in June 2026.
Skills & sector priorities
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.
Approach to NEET
The reforms introduce a Youth Guarantee, automatic allocation of college places, and improved data sharing to support learners at risk of becoming NEET (Not in Education, Employment or Training).
There is a commitment to ensure no young person is left without a place in education or training, with increased capacity and support for transitions.
Funding streams
Funding will be streamlined, with public funding removed from qualifications that overlap with T Levels and V Levels.
Providers will have flexibility to offer existing or new qualifications until the relevant V Level is available.
Tuition fees and maintenance loans will rise in line with inflation, with additional support for disadvantaged learners.
New qualification landscape
- 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.
Support for providers
To support providers, we have created Level 2 and Level 3 BSE and Engineering and Manufacturing funding guides for England, outlining funding arrangements and timelines for each qualification.
Roll-out timeline
New qualifications will be rolled out route-by-route.
EAL will continue to provide guidance, support, and high-quality qualifications throughout this period of change.
For more information, please contact our team.
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