University Student Finance

Lord Mohammed of Tinsley Excerpts

Tuesday 30th June 2026 Lords Chamber

[Baroness Smith of Malvern (Lab)]

The first thing that indexation of tuition fee caps needs is political will from a Government. It was a lack of that political will that meant that they were frozen for seven years under the previous Government. We have already taken action, two years in a row, to increase the tuition fee cap. We will continue to do this up to the point at which we can legislate to index that.

[Lord Mohammed of Tinsley (LD)]

My Lords, I recently attended a meeting in my home city of Sheffield, where students and staff from the University of Sheffield and Sheffield Hallam University came together to highlight the chronic financial pressures that are leading to staff lay-offs and the closure of some of the courses. The key message from that meeting was: “When will this Government bring forward a long-term financial strategy that puts university education on a more secure and sound financial footing?”

[Baroness Smith of Malvern (Lab)]

We acknowledge the challenges that are facing higher education providers. While the providers are independent of government and responsible for managing their finances, it is this Government who have acted to secure a financial future for our world-leading higher education sector. We have increased tuition fee caps in line with forecast inflation for 2026-27 and 2027-28. We appointed Professor Edward Peck as chair of the Office for Students. He is working to strengthen its commitment to financial sustainability. The tuition fee increase brings into the sector an additional £6 billion over the next few years. Given that greater financial stability for the sector, we expect providers to work with their staff to develop sustainable models that retain talent and expertise and provide stability for the workforce and the institution.