Finance T Level faces write-off after no AOs bid to run it

The Department for Education is considering the future of the T Level in finance, which launched in 2022, after no awarding organisations bid to run it in the latest procurement round. 

Pearson won exclusive licenses to develop and award five of the six wave 3 T Level qualifications under new ‘generation 2’ contracts, cementing its position as the dominant T Level awarding organisation.

The awarding giant won all three engineering T Levels, and the management and administration T Level from the current contract-holder, City & Guilds. It also retained the accounting T Level.

The course under the current awarding contract remains available. The government said it will now consider whether to proceed with the finance T Level, which is due to start teaching under the gen 2 wave 3 contracts from September 2027.

Pearson has delivered the finance T Level since it was introduced in 2022. It declined to disclose why it did not bid for the gen 2 contract.

“No bids were submitted for the finance T Level following the tender notice”, the contract notice said.

Contracts to run wave 3 T Levels were first awarded in 2020 and totalled £16.5 million.

The now-closed Institute for Apprenticeships and Technical Education (IfATE) put out a notice in 2024 estimating the six contracts to take over that formed wave 3 of the T Level roll-out were worth over £40 million,150 per cent more than gen 1.

Pearson rides the wave

Up for grabs in wave 3 were the T Levels in maintenance, installation and repair for engineering and manufacturing; engineering, manufacturing and process control; design and development for engineering and manufacturing; management and administration; accounting and finance.

Pearson retained accounting and won the three engineering subjects and management and administration from City & Guilds. The licences, worth £28.6 million, run until 2034.

It means that by September 2027, Pearson will award 16 out of the 20 available T Levels.

Freya Thomas Monk, managing director of Pearson qualifications, said:  “Developing talent in key business, engineering and manufacturing sectors is vital for the UK’s future workforce and to ensure employers have access to highly skilled individuals. 

“We are delighted to bring our expertise in delivering rigorous, high-quality qualifications to these important T Levels. 

“As the largest T Level provider, we are committed to offering qualifications that enable students to progress, thrive and contribute meaningfully to these critical sectors.”

Pearson, which also delivers a large swathe of BTECs, reported a 13 per cent quarterly revenue increase in the vocational skills part of its business in the fourth quarter of 2025.

Last year, it reported £226 million in revenue and an adjusted operating profit of £8 million from vocational qualifications.