The Implications of the Post-16 Qualifications & BTECs Defunding Review

The Labour government is in the midst of a massive post-16 qualifications review, putting the future of hundreds of courses in limbo. With an impending decision set to impact thousands of students and over 450 schools and colleges across the UK, there’s plenty of cause for concern.

Today we’re catching up on why the government is conducting this review and what it means for the future of FE institutions.


Why Conduct a Review of Post-16 Qualifications?

Our current predicament starts back in 2020 with the introduction of T levels. These are two year vocational qualifications aimed at 16-19 year olds, which focus more on practical subjects than academic ones. They exist somewhere between apprenticeships and A-levels, with roughly 20% of course time spent outside the classroom.

T levels are a solid alternative for students, but over the years, have been believed to overlap with other vocational offerings, such as BTECs (available across the UK), NVQs (available in England, Wales and Northern Ireland), and Scottish Vocational Qualifications (SVQs). All of these programmes are currently funded by the government, placing increased scrutiny on their combined success rates.

Prior to the previous election cycle, the Tory government had planned to dramatically reshape education in the UK. Their goal had been to merge T levels and A levels into a new programme called the Advanced British standard.  The first steps included a defunding of 134 qualifications on August 1st, 2024. This would impact programmes believed to overlap with the first 10 T-levels originally introduced in 2020-2021. This was to be followed another 156 qualifications cuts in two waves throughout 2025.

With a notable election loss the plans changed. On Wednesday, July 24th the new Labour government announced an immediate pause of reforms to post-16 qualifications at level 3 and below, halting the planned defunding of some BTECs and other alternatives to T-levels.


The Current State

As part of her announcement, Education Secretary Bridget Phillipson pledged a swift review with aims to conclude by the end of the year. Which is helpful… but not particularly fast.

While many colleges, students, and organisations originally praised the pause, it offers little answers. The defunding freeze only impacts study in the 2024 year, with 2025 and 2026 still to be decided. This means that colleges and schools won’t know until December which qualifications they can offer in September 2025. It’s a glaring problem for many.

Some change has already occurred. For instance, of the 134 qualifications originally set to be defunded, 39 are no longer available for delivery. The rest await the larger decision.


The Implications of the Decision

There are more than a few implications tied to this decision.

First and foremost, for the students. Many students currently researching for next year will not yet know the full spectrum of options available to them. Analysis by the Sixth Form Colleges Association had warned that should original defunding plans move forward, at least 155,000 young people would be left without a suitable post-16 course from 2026.

Then there’s the staff at schools. If you don’t know how many qualifications you offer, how do you know how many teaching staff are required to offer them? Marketing teams have also been impacted. There’s an immense amount of material that needs to be updated well ahead of application deadlines. Many schools update their prospectus up to two years in advance of large changes, not nine months.

The biggest impact for schools however is financial. Since these qualifications don’t require tuition fees, the majority of funds required to operate schools come from the government. Any cuts to qualifications could have disastrous impacts on many colleges operating costs, forcing tough decisions ahead. This is yet another setback for a sector already struggling with financial viability.


What’s Next

As we know, the decision about next year’s funding is expected by the end of the year, if not sooner. While groups have lobbied to maintain the current system, it’s ultimately up to the department of education to make the decision.

Until then, savvy institutions will need to prepare themselves for both realities. The one thing you can count on is the resiliency of the sector, but everyone has their limits.