Where does earnings data come from?
Earnings estimates are based on information recorded by HMRC through the Pay As You Earn (PAYE) and self-assessment tax return systems for collecting income tax and national insurance. Learners are only included in the figures if they have an earnings record on the self-assessment data or P14 (HMRC data), a record of sustained employment in the Real Time Information submitted to HMRC , and no record of further study at a Higher Education institution.
Limitations of earnings data
The PAYE records from HMRC do not include reliable information on the hours worked in employment so it is not possible to accurately distinguish between learners in full time and part time employment.
See the quality and methodology information that accompanies this release for more detail.
When interpreting the results below, it should be remembered that some of the difference in earnings could be a result of factors other than the qualification achieved, such as:
- the number and proportion of achievers in part time employment,
- the employment history of achievers,
- pay conditions within the local labour market,
- characteristics of individual learners.
The outcomes in this release are presented as raw figures. They do not seek to control for differences in learner characteristics that may influence outcomes over time or across different learner populations.
Changes to earnings data
The timing of the LEO data used for this publication means it only includes earnings information for learners in the latest cohort who achieved their aim before 5th April 2022. Recent analysis has shown that, for some types of provision (e.g., classroom-based learning), learners are much more likely to achieve their aim after 5th April in that academic year. This means we don’t have a full tax year’s worth of earnings for these individuals, which means earnings data would be based on a small sample of the overall cohort. As a result, earnings data for the 2021/22 academic year E&T cohort one year after completion has been removed. This data will be delayed until next year’s release, when the back series will be updated with more robust information. Earnings information for apprentices remains available for this cohort, as apprentices are more likely to complete their aim within the tax year.
As this will continue to be the case going forwards, this will be an ongoing change to the publication cycle to ensure accuracy and robustness of earnings information.
The median earnings is calculated by ranking all learners’ annualised earnings and taking the value at which half of learners fall above and half fall below. This is shown in the data label for each bar.
The lower quartile earnings is calculated by ranking all learners’ annualised earnings and taking the value at which three quarters of learners fall above and one quarter fall below.
The upper quartile earnings is calculated by ranking all learners’ annualised earnings and taking the value at which one quarter of learners fall above and three quarters fall below.
Earnings five years post training
Earnings steadily increase each year after achievement for almost all levels of learning.
Median annualised earnings one year after study for learners who achieved in academic year 2016/17 were:
• £17,540 for intermediate apprenticeships - rising 37.9% to £24,180 five years after study.
• £19,550 for advanced apprenticeships - rising 35.8% to £26,540 five years after study.
• £23,910 for Level 4 higher apprenticeships - rising 45.6% to £34,820 five years after study.
• £26,760 for Level 5 higher apprenticeships - rising 20.5% to £32,240 five years after study.
• £10,760 for Full Level 2 education & training courses - rising 81.2% to £19,500 four years after study.
• £11,390 for Full Level 3 education & training courses - rising 77.8% to £20,250 four years after study.
• £16,980 for Level 4 education & training courses - rising 24.0% to £21,050 four years after study.
• £18,990 for Level 5 education & training courses - rising 31.0% to £24,870 four years after study.
Earnings steadily increased each year after achievement for all levels of learning in both apprenticeships and education and training. At all levels, apprenticeships had higher levels of earnings one year after study than equivalent level education and training courses.
Earnings one year post training
Apprentices who achieved higher levels of learning tended to have higher median earnings one year after training.
For learners who achieved their course in academic year 2020/21, median annualised earnings in the first full tax year after training tended to correspond with the level of learning, with higher median earnings for those who had achieved higher level training:
- £21,800 for intermediate apprenticeships
- £26,010 for advanced apprenticeships
- £32,270 for higher (Level 4) apprenticeships
- £37,370 for higher (Level 5) apprenticeships
- £35,370 for higher (Level 6) apprenticeships
- £46,880 for higher (Level 7+) apprenticeships
Median annualised earnings vary considerably between sector subject areas for Advanced Apprentices
One year after study, median annualised earnings for learners who achieved an advanced apprenticeship course in academic year 2020/21 were:
- Highest in ‘Engineering and Manufacturing Technologies’ at £32,970
- Lowest in ‘Education and Training’ at £17,110.
Within some sector subject areas, earnings had a wide range between the upper and lower quartiles of earnings:
- The widest range was in ‘Construction, Planning and the Built Environment’, for which the lower quartile was £14, 570 and the upper quartile was £24,740
- Followed by ‘Business, Administration and Law’ which ranged from £14,570 at the lower quartile to £20,930 at the upper quartile.
Median annualised earnings vary considerably between sector subject areas for Advanced Apprentices
One year after study, median annualised earnings for learners who achieved an advanced apprenticeship course in academic year 2020/21 were:
- Highest in ‘Engineering and Manufacturing Technologies’ at £32,970.
- Lowest in ‘Education and Training’ at £17,110.
Within some sector subject areas, earnings had a wide range between the upper and lower quartiles of earnings:
- The widest range was in ‘Construction, Planning and the Built Environment’, for which the lower quartile was £14, 570 and the upper quartile was £24,740.
- Followed by ‘Business, Administration and Law’ which ranged from £14,570 at the lower quartile to £20,930 at the upper quartile.