Question to the Home Office:

To ask His Majesty's Government, with reference to the tender for market testing for Home Office English Language Testing services published on 28 August, what is the rationale behind the Home Office decision to tender this service; and what plans the Home Office has to engage and consult (1) other government departments, in particular the Department for Education, and (2) sectors and industries that may be significantly impacted by this policy, before making any decision.

Answered by Lord Hanson of Flint - Minister of State (Home Office)

A person applying under the Immigration Rules for certain visa or citizenship applications may need to show they meet an English Language requirement by passing an approved English Language test. As the contracts delivering these approved tests expire, it is necessary to put new contracts in place. Therefore, work has begun to engage the market on the contract to replace those services. Market engagement, which will support development of the requirements, is ongoing, and OGDs will be engaged as part of the project.

Question to the Department for Education:

To ask His Majesty's Government, with reference to the review of the student finance system, (1) what steps they are taking to reduce opportunities for systemic and organised fraud identified by the National Audit Office and Public Accounts Committee; and (2) what was the rationale for paying postgraduate master's loans of up to £12,471 directly to students themselves rather than to universities, as is the practice with loans for undergraduate study.

Answered by Baroness Smith of Malvern - Minister of State (Education)

The government’s response to the report from the Public Account Committee (PAC) into student loans issued to those studying at franchised higher education providers was published on 5 September 2024. This is attached and can also be viewed here: https://assets.publishing.service.gov.uk/media/66d9d2bfe87ad2f12182650e/E03194725_HMT_Treasury_Minutes_Sept_24_Accessible.pdf. The response sets out how the government is implementing the PAC recommendations including greater collaboration between the Department for Education, the Office for Students and the Student Loans Company to tackle risks to public money swiftly and decisively. The response, which also addresses the National Audit Office’s recommendations, confirms that the government intends to consult on proposals to strengthen oversight of partnership delivery in higher education by January 2025.

The postgraduate master’s loan is a contribution to the student’s costs of study. It can be used by students, according to their personal circumstances, to cover tuition fees which may be lower than the amount of the loan, living costs and/or other course related costs. This flexibility would not be available were the loan paid directly to the provider.

Question to the Department for Education:

To ask His Majesty's Government, for the purposes of increases in undergraduate tuition fees in the 2025–26 academic year, which higher education providers in the Approved (fee cap) category of registration with the Office for Students are providers without a Teaching Excellence Framework award but with an Access and Participation Plan.

Answered by Baroness Smith of Malvern - Minister of State (Education)

The government recognises that UK higher education (HE) creates opportunity, is an engine for growth in our economy and supports local communities. In recognition of the financial challenges the sector is facing, the government has made the difficult decision to increase tuition fee limits for the 2025/26 academic year in line with the forecast rate of inflation of 3.1%. This will provide additional financial help for HE providers in 2025/26 after seven years of no increases to maximum tuition fees, meaning that fee limits have not kept pace with inflation.

Maximum fees for approved (fee cap) providers without a Teaching Excellence Framework (TEF) award and with an access and participation plan will increase by £275 in the 2025/26 academic year from £9,000 to £9,275.

This 3.1% increase is in line with the same percentage uplift to maximum fees for approved (fee cap) providers with a TEF award and with an access and participation plan from £9,250 to £9,535.

There are 58 providers in the approved (fee cap) category of the Office for Students (OfS) Register that do not have a TEF award but do have an access and participation plan for 2024/25. The OfS Register, with these providers, can be viewed here: https://www.officeforstudents.org.uk/for-providers/regulatory-resources/the-ofs-register.

Question to the Department for Education:

To ask His Majesty's Government what is the reason for limiting higher education providers without a Teaching Excellence Framework award but with an Access and Participation Plan to undergraduate tuition fee increases of only £25 for full-time courses in the 2024–25 academic year.

Answered by Baroness Smith of Malvern - Minister of State (Education)

The government recognises that UK higher education (HE) creates opportunity, is an engine for growth in our economy and supports local communities. In recognition of the financial challenges the sector is facing, the government has made the difficult decision to increase tuition fee limits for the 2025/26 academic year in line with the forecast rate of inflation of 3.1%. This will provide additional financial help for HE providers in 2025/26 after seven years of no increases to maximum tuition fees, meaning that fee limits have not kept pace with inflation.

Maximum fees for approved (fee cap) providers without a Teaching Excellence Framework (TEF) award and with an access and participation plan will increase by £275 in the 2025/26 academic year from £9,000 to £9,275.

This 3.1% increase is in line with the same percentage uplift to maximum fees for approved (fee cap) providers with a TEF award and with an access and participation plan from £9,250 to £9,535.

There are 58 providers in the approved (fee cap) category of the Office for Students (OfS) Register that do not have a TEF award but do have an access and participation plan for 2024/25. The OfS Register, with these providers, can be viewed here: https://www.officeforstudents.org.uk/for-providers/regulatory-resources/the-ofs-register.

Question to the Department for Education:

To ask His Majesty's Government what assessment they have made of the change in total fee incomes to all higher education providers resulting from the increase in undergraduate tuition fees for the 2025–26 academic year.

Answered by Baroness Smith of Malvern - Minister of State (Education)

The government recognises that UK higher education (HE) creates opportunity, is an engine for growth in our economy and supports local communities. The 3.1% increase to tuition fee limits for the 2025/26 academic year will provide additional financial help for HE providers after seven years of no increases to maximum tuition fees, which has meant that fees have not kept pace with inflation. The department plans to publish an assessment of impacts, including on equality, of the planned tuition fee and student finance changes shortly.

The department is aware that HE providers will have to pay increased National Insurance contributions. As my right hon. Friend, the Chancellor of the Exchequer set out in the Autumn Budget 2024 statement, raising the revenue required to fund public services and restore economic stability requires difficult decisions, which is why the government has asked employers to contribute more.

The Office for Students (OfS) is responsible for monitoring and reporting on the financial sustainability of the HE sector. The OfS has made its own estimate of the impacts in their update published on 15 November 2024, and the update is attached.

The department also understands the financial pressures that the sector is currently facing, which is why my right hon. Friend, the Secretary of State for Education has already taken the first step of appointing Sir David Behan as interim Chair of the OfS to oversee the important work of refocussing the OfS’s role to concentrate on key priorities, including the HE sector’s financial sustainability. The department continues to work closely with the OfS as the independent regulator of HE in England to understand the changing financial landscape.

The department knows how vital securing a sustainable future for the HE sector is for the success of students. We will set out our longer term plans for HE reform by next summer.

Question to the Department for Education:

To ask His Majesty's Government what assessment they have made of the financial impact of the increase in employer National Insurance contributions announced in the Autumn Budget on higher education providers.

Answered by Baroness Smith of Malvern - Minister of State (Education)

The government recognises that UK higher education (HE) creates opportunity, is an engine for growth in our economy and supports local communities. The 3.1% increase to tuition fee limits for the 2025/26 academic year will provide additional financial help for HE providers after seven years of no increases to maximum tuition fees, which has meant that fees have not kept pace with inflation. The department plans to publish an assessment of impacts, including on equality, of the planned tuition fee and student finance changes shortly.

The department is aware that HE providers will have to pay increased National Insurance contributions. As my right hon. Friend, the Chancellor of the Exchequer set out in the Autumn Budget 2024 statement, raising the revenue required to fund public services and restore economic stability requires difficult decisions, which is why the government has asked employers to contribute more.

The Office for Students (OfS) is responsible for monitoring and reporting on the financial sustainability of the HE sector. The OfS has made its own estimate of the impacts in their update published on 15 November 2024, and the update is attached.

The department also understands the financial pressures that the sector is currently facing, which is why my right hon. Friend, the Secretary of State for Education has already taken the first step of appointing Sir David Behan as interim Chair of the OfS to oversee the important work of refocussing the OfS’s role to concentrate on key priorities, including the HE sector’s financial sustainability. The department continues to work closely with the OfS as the independent regulator of HE in England to understand the changing financial landscape.

The department knows how vital securing a sustainable future for the HE sector is for the success of students. We will set out our longer term plans for HE reform by next summer.

Found: of Wirral Montpellier University, France Lord Strathcarron Grenoble University, France Lord Johnson of Marylebone