Conclusion 5

The Department has not yet provided complete clarity over what good progress looks like in T Levels becoming established and when benefits will be realised. The Department has identified four potential benefits associated with T Levels, including progression to further study or skilled employment, and higher earnings than those studying other level 3 qualifications. However, there is a time lag before some of this information will become available and the Department only has targets for two of the four benefits. It is yet to identify how to measure employers’ confidence or students’ earnings. For these benefits to be realised, the Department needs to ensure students enrol, complete and pass T Levels. It expects pass rates to increase over time, as T Levels mature, but the proportion of students passing has fallen from 97% in summer 2022 to 89% in summer 2024. It does not have a target. The Department also wants to bring student retention rates in line with other large vocational qualifications. In summer 2024, 73% of 16-year-old entrants completed their T Level compared to 78% for other qualifications. The Department’s best judgement is that T Levels are 25% more valuable than other level 3 qualifications, with an estimated economic benefit of £23,000 for each T level student over their lifetime although this is very uncertain. 5 recommendation The Department should refine its benefit tracking, update the estimated economic benefit for T level students, and define clear milestones to better understand whether progress, for example on pass rates, aligns with expectations.