Select committee: Public Accounts Committee

Conclusion 6

35th Report - Introducing T Levels Published 27 Jun 2025 Addressed to HM Treasury
Conclusion (the committee's words)
Various factors, such as teacher recruitment and awarding organisation fees, will influence colleges’ uptake of T Levels particularly given their wider financial challenges. The Department recognises the additional burden faced by colleges to recruit T Level teachers, especially given that T Levels themselves are addressing areas of skills shortages. It is working with industry to facilitate a teacher exchange programme and offering certain teachers’ financial incentives. However, colleges face wider pressures in recruiting and retaining teachers, particularly in specialist subjects, and other financial challenges. T Levels will be an additional burden for colleges. For the 2025/26 academic year, The Department has confirmed a 5% funding uplift for the additional costs to colleges moving from offering other level 3 programmes to T Levels, but this compares to 10% in the two years before. Colleges must also pay a set fee for each student to organisations that award T Levels. These fees increased by amounts ranging from 26% to 149% on six of its latest contracts and may increase further should student numbers remain low. recommendation The Department should: a. develop a better understanding of the T Level-related funding pressures on colleges, particularly the extent of changes in the costs (or fees) of awarding organisation contracts and recruiting and retaining teachers, and the potential impact of changes in these costs; and b. set out a workforce strategy for supporting colleges to recruit and retain teachers. 6 1 Raising awareness of T Levels Introduction

From: Public Accounts Committee, 35th Report - Introducing T Levels (HC 822), 27 June 2025

Government response

Latest Treasury Minutes progress report to the Committee of Public Accounts on the Thirty-fifth Report of Session 2024-26

The government responded to the whole report on 4 June 2026 (deadline 27 August 2025).

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Treasury minutes: Government response to the Committee of Public Accounts on the Thirty-fifth report from Session 2024-26

Published 15 October 2025.

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Treasury minutes: Government response to the Committee of Public Accounts on the Thirty-sixth report from Session 2024-26

Published 15 October 2025.

Summary written by Accountability Index from the government's response. It is not the government's own words.

The government states that it agrees with each of the Committee's recommendations on T Levels and gives target implementation dates ranging from autumn 2025 to March 2026.

  • On raising student awareness and enrolments, it agrees and says it will build on this through the continuing 'Skills for Life' campaign and by improving careers guidance. Its plan will be "fully implemented by September 2029".
  • On industry placements, it agrees that it "can do more" to grow high-quality placements, and "will set out further plans by December 2025".
  • On how T Levels fit with other qualifications, it says a post-16 education and skills strategy, to be published in autumn 2025, will set out "clearly where T Levels will sit alongside other funded qualifications and their purpose".
  • On college funding pressures, it agrees and has introduced "an additional temporary 5% uplift" to the T Level funding rate for academic year 2025-26. It also says it will continue to work with providers to assess ongoing costs.

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