We regularly evaluate the effectiveness of our provision and are pleased to share the findings of two of our recent research projects looking at outcomes associated with the BTEC Level 3 Nationals, specifically:

• Salary outcomes using Longitudinal Educational Outcomes (LEO)
• Higher Education (HE) continuation rate (i.e. proportion of students that successfully progress into their second year of a degree).

These two projects speak to the dual purpose of BTECs, supporting entry direct into employment and HE.

Longitudinal Educational Outcomes (LEO) and salary outcomes

We believe it is important to understand the relative labour market outcomes of different qualification types to support a robust curriculum offer and to inform our qualification review and planning processes. Though we also recognise that numerous complex and inter-relating factors affect salary and it should not be viewed as the sole determinant of a qualification’s “value”.

In terms of scope for this project, we looked at the salary outcomes for four cohorts completing between 2012/13 and 2015/16, specifically those that took the BTEC Level 3 National Extended Diploma (three A level equivalent), i.e. a full study programme, or equivalent by another Vocational and Technical Qualification (VTQ) provider. Due to the period, this only includes those that studied the legacy ‘QCF’ version of the qualifications. These legacy qualifications were 100% internally assessment (i.e. coursework based) and were replaced on a phased basis from 2016 with the reformed BTECs containing a minimum of 30-40% external assessment (i.e. exams set and marked by Pearson).

We found that:

• BTEC students tend to earn higher salaries than their peers taking other Level 3 Vocational and Technical Qualifications (VTQs). BTEC students consistently outearned their peers taking other VTQs, with salaries 7-9% higher.
• BTEC also appears to help narrow the salary gap for specific disadvantaged groups of students more than other VTQs. For example, students with a BTEC and low Key Stage 4 prior attainment experience a smaller negative salary difference than their peers taking other VTQs. Similarly, this is also the case with those from an economically disadvantaged background as indicated by Free Schools Meals eligibility.
• Female learners gain a particularly significant salary benefit from studying BTECs compared to other Level 3 qualifications (including A levels). In some instances, BTECs reverse national trends for gender salary gaps. This is seen particularly for female workers using a BTEC qualification to access university, who start their careers on a higher salary than their male peers. In 3 out of our 4 cohorts, females that attended HE earned more than males, this was particularly the case when they did a BTEC versus another VTQ. The only exception was the 2012/13 cohort (the earliest cohort in scope), where males earned more than females, so this may revert to established national trends over time.
• BTEC students that do a degree linked to the BTEC sector they studied, and progress to a related job earn more than their peers that switch subject disciplines and/or work in an unrelated field. This is notably the case in the health and social care sector.

These findings suggest the value of BTEC qualifications in terms of salary outcomes, particularly to students from disadvantaged backgrounds.

Read the full report and findings

Note about the report:
This work was produced using statistical data from ONS. The use of the ONS statistical data in this work does not imply the endorsement of the ONS in relation to the interpretation or analysis of the statistical data. This work uses research datasets which may not exactly reproduce ONS aggregates.

Higher Education (HE) continuation rate

Given that approximately 60% of those who complete a BTEC Level 3 qualification progress to Higher Education, we wanted to understand the impact of this qualification choice on HE continuation rates.

To that end, we researched the rate of students moving into a second year of HE study of students entering HE in 2019/2020 and 2020/2021 holding different Level 3 qualification types, principally the reformed BTEC Level 3 Nationals, which contain a minimum of 30-40% external assessment (i.e. exams set and marked by Pearson) and the legacy QCF versions that were wholly internally assessed. These were introduced for first teaching from September 2016, with the first cohort completing and entering HE in 2018.

Critically, this is the first published study that examines the outcomes associated with students that obtained the reformed BTEC Level 3 Nationals.

We found that:

• BTEC students have a high HE continuation rate, much higher than international and national benchmarks, and well exceeding the Office for Students’ (OfS) threshold of 80% (for full-time students on a first degree).
• BTEC students that took the reformed versions of the BTEC qualifications had a higher HE continuation rate than their peers taking the legacy qualifications, at 91% versus 87% respectively in 2019/20.
• BTECs play a crucial role in supporting increased participation by traditionally under-represented groups in higher education. For example, students from areas with historically low levels of participation in HE are over twice as likely to enter HE with a BTEC as those from areas with higher levels of participation.

This research therefore suggests that the reformed BTEC Level 3 Nationals are better preparation for HE than the legacy qualifications, as was intended when external assessment was introduced into these qualifications.

Read the full report and findings

We look forward to continuing this important research and monitoring salary outcomes and HE continuation rates for future years.