The impact of gaining an NVQ Level 2: will the Leitch Review recommendations address the low returns?

Abstract

Recent UK government policy initiatives to foster social inclusion through productivity and skills, such as Level 2 Entitlement and Train to Gain, have focused resources on Level 2 qualifications. Recommendations from the Leitch Review have, however, suggested the focus should rather be on intermediate skills at Level 3. This study uses data from two waves of the British Household Panel Survey to analyse the income and career benefits of individuals gaining NVQ Level 2 qualifications. It concludes that there is no significant net benefit, but that an individual’s income is affected more by factors such as gender and achieving qualifications at a higher level than NVQ 2.