Asked by: Lord Johnson of Marylebone (Conservative - Life peer)
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.
Asked by: Lord Johnson of Marylebone (Conservative - Life peer)
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.
Asked by: Lord Johnson of Marylebone (Conservative - Life peer)
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.
Asked by: Lord Johnson of Marylebone (Conservative - Life peer)
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.
Asked by: Lord Johnson of Marylebone (Conservative - Life peer)
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.
Asked by: Lord Johnson of Marylebone (Conservative - Life peer)
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.
Asked by: Lord Johnson of Marylebone (Conservative - Life peer)
Question to the Department for Education:
To ask His Majesty's Government what is their most recent estimate of (1) the Resource Accounting and Budgeting charge, and (2) the estimated cost to Government of their support for the student finance system, based on future loan write-offs and interest subsidies, (a) in net present-value terms, and (b) as a proportion of the initial loan outlay.
Answered by Baroness Barran - Shadow Minister (Education)
In the 2022/23 financial year, the Resource Accounting and Budgeting (RAB) charge, which is the government subsidy on student loans, was £5.5 billion, or 27% of the £20.0 billion of loans issued that financial year.
Of student loans issued in 2023/24, the government is expected to subsidise about £5.6 billion, or:
These forecasts are subject to change. The next statistical publication on student finance forecasts, which will contain the final RAB figures for the 2023/24 financial year, will be available at the end of June 2024.
Asked by: Lord Johnson of Marylebone (Conservative - Life peer)
Question to the Cabinet Office:
To ask His Majesty's Government what plans they have to review their statistical methods regarding the inclusion of international students on postgraduate taught courses in net migration figures.
Answered by Baroness Neville-Rolfe - Shadow Minister (Treasury)
The information requested falls under the remit of the UK Statistics Authority.
Please see the letter attached from the National Statistician and Chief Executive of the UK Statistics Authority.
The Right Hon. the Lord Johnson of Marylebone
House of Lords
London
SW1A 0PW
19 April 2024
Dear Lord Johnson,
As National Statistician and Chief Executive of the UK Statistics Authority, I am responding to your Parliamentary Question asking what plans there are to review the statistical methods regarding the inclusion of international students on postgraduate taught courses in net migration figures (HL3762).
The Office for National Statistics (ONS) is responsible for publishing long-term international migration statistics. The most recent edition is for year-ending (YE) June 2023[1].
Net international migration accounts for a significant part of population change. Therefore, it is important that long-term international migration estimates account for those joining or leaving the UK population for all reasons, including international students (on both undergraduate and postgraduate courses). This ensures that the size of the population can be measured and the impact of migration on the economy and service requirements can be understood.
However, I recognise that there is also a user need for estimates of specific groups such as international students, as well as the need to understand the contribution of students to net international migration. Therefore, the latest long-term international migration estimates for YE June 2023 include breakdowns by reason for migration.
Alongside the latest estimates, the ONS also published an article named Reason for international migration: international students update: November 2023[2]. This presents further analysis of net migration of non-EU international students up to the YE June 2023 along with cohort analysis that provides insight on the changing behaviours of international students. This includes how long they spend studying in the UK before emigrating or, for example, transitioning onto work visas.
The ONS are continuing to develop their research in this area to provide more granular estimates, further insights on migration patterns of international students and identify priority areas for further research based on user priorities. Afurther update on this work will be published in May 2024, including estimates of international student migration for the YE December 2023.
Yours sincerely,
Professor Sir Ian Diamond
Asked by: Lord Johnson of Marylebone (Conservative - Life peer)
Question to the Home Office:
To ask His Majesty's Government what proportion of international students on student visas are undertaking postgraduate taught courses that can be completed in less than 12 months, and whether that proportion has increased following the COVID-19 pandemic.
Answered by Lord Sharpe of Epsom - Parliamentary Under-Secretary (Home Office)
The Home Office does not publish data on the proportion of student visas for postgraduate taught courses or how long people were resident in the UK on student visas.
The Home Office publishes data on sponsored study visas in the ‘Immigration System Statistics Quarterly Release’. Data on the outcomes of student visas are published in table ‘Vis_D02’ of the detailed entry clearance visas dataset. Information on how to use the dataset can be found in the ‘Notes’ page of the workbook. The latest data relates up to the end of December 2023.
The Home Office also publishes data on how people move through the immigration system in the Migrant Journey report. The report contains information on the number of people starting a journey each year broken down by immigration route (e.g. study) and for how long they continue to hold leave. It does not contain information on how long people were resident in the UK or the level of qualification for which they were studying. The latest report covers up to the end of 2022.
Asked by: Lord Johnson of Marylebone (Conservative - Life peer)
Question to the Home Office:
To ask His Majesty's Government how many international students on student visas who complete postgraduate taught courses and leave the UK within 12 months do not subsequently return to the UK on that visa.
Answered by Lord Sharpe of Epsom - Parliamentary Under-Secretary (Home Office)
The Home Office does not publish data on the proportion of student visas for postgraduate taught courses or how long people were resident in the UK on student visas.
The Home Office publishes data on sponsored study visas in the ‘Immigration System Statistics Quarterly Release’. Data on the outcomes of student visas are published in table ‘Vis_D02’ of the detailed entry clearance visas dataset. Information on how to use the dataset can be found in the ‘Notes’ page of the workbook. The latest data relates up to the end of December 2023.
The Home Office also publishes data on how people move through the immigration system in the Migrant Journey report. The report contains information on the number of people starting a journey each year broken down by immigration route (e.g. study) and for how long they continue to hold leave. It does not contain information on how long people were resident in the UK or the level of qualification for which they were studying. The latest report covers up to the end of 2022.