Asked by: Abtisam Mohamed (Labour - Sheffield Central)
Question to the Department for Education:
To ask the Secretary of State for Education, what steps she is taking to help ensure the financial sustainability of universities.
Answered by Janet Daby - Parliamentary Under-Secretary (Department for Education)
The department understands that universities are under financial pressure, which is why we have taken the difficult decision to announce a tuition fee rise of 3.1% which will take effect at the start of the 2025/2026 academic year.
The tuition fee limit increase represents an increased investment from students for the sector and will support higher education (HE) providers in managing the financial challenges they are facing.
In return for higher investment, the government is calling for universities to strengthen efforts to improve access and outcomes for disadvantaged students.
The government will be boosting support for disadvantaged learners with an inflation linked increase to maintenance loans for those facing cost of living pressures.
My right hon. Friend, the Secretary of State for Education has already taken the important first step of appointing Sir David Behan as interim Chair of the Office for Students (OfS) to oversee the important work of refocusing the OfS 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 will also explore how to best continue improving access to HE, widening opportunity for students and learners.
Asked by: Abtisam Mohamed (Labour - Sheffield Central)
Question to the Department for Education:
To ask the Secretary of State for Education, what assessment she has made of the adequacy of the level of maintenance support available to students in England.
Answered by Janet Daby - Parliamentary Under-Secretary (Department for Education)
The government recognises that UK higher education (HE) creates opportunity, is an engine for growth in our economy and supports local communities. We are determined that the HE funding system should deliver for our economy, for universities and for students. This government is committed to supporting the aspiration of every person who meets the requirements and wants to go to university. The student finance system removes upfront financial barriers so that everyone with the ability and desire to enter HE can do so. We recognise the impact that the cost of living crisis has had on students.
That is why the government is increasing the maximum maintenance loans for living costs for the 2025/26 academic year by 3.1%, in line with the forecast rate of inflation, to ensure that more support is targeted at students from the lowest income families.
Upfront tuition fee loans allow students, including disadvantaged students, to access HE who would otherwise not be able to. Students undertaking nursing, midwifery and allied health profession courses qualify for additional grant support through the NHS Learning Support Fund. Students undertaking tuition fee based Initial Teacher Training courses leading to Qualified Teacher Status may qualify for bursaries or scholarships depending on their subject and/or previous qualifications.
Asked by: Abtisam Mohamed (Labour - Sheffield Central)
Question to the Department for Education:
To ask the Secretary of State for Education, what recent assessment she has made of the adequacy of maintenance loans for students.
Answered by Janet Daby - Parliamentary Under-Secretary (Department for Education)
The government recognises that UK higher education (HE) creates opportunity, is an engine for growth in our economy and supports local communities. We are determined that the HE funding system should deliver for our economy, for universities and for students. This government is committed to supporting the aspiration of every person who meets the requirements and wants to go to university. The student finance system removes upfront financial barriers so that everyone with the ability and desire to enter HE can do so. We recognise the impact that the cost of living crisis has had on students.
That is why the government is increasing the maximum maintenance loans for living costs for the 2025/26 academic year by 3.1%, in line with the forecast rate of inflation, to ensure that more support is targeted at students from the lowest income families.
Upfront tuition fee loans allow students, including disadvantaged students, to access HE who would otherwise not be able to. Students undertaking nursing, midwifery and allied health profession courses qualify for additional grant support through the NHS Learning Support Fund. Students undertaking tuition fee based Initial Teacher Training courses leading to Qualified Teacher Status may qualify for bursaries or scholarships depending on their subject and/or previous qualifications.
Asked by: Abtisam Mohamed (Labour - Sheffield Central)
Question to the Department for Education:
To ask the Secretary of State for Education, what assessment she has made of the potential impact of the increase in National Insurance employer contributions on university finances.
Answered by Janet Daby - Parliamentary Under-Secretary (Department for Education)
The department is aware that higher education (HE) providers will have to pay increased national insurance contributions. As my right hon. Friend, the Chancellor of the Exchequer set out in the Budget, 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 department understands that universities are under financial pressure, which is why we have taken the difficult decision to announce a tuition fee rise of 3.1% which will take effect at the start of the 2025/26 academic year.
The tuition fee limit increase represents an increased investment from students for the sector and will support HE providers in managing the financial challenges they are facing.
In return for higher investment, the government is calling for universities to strengthen efforts to improve access and outcomes for disadvantaged students.
The government will be boosting support for disadvantaged learners with an inflation-linked increase to maintenance loans for those facing cost of living pressures.
The department will explore how best we can continue to improve access to HE, widening opportunity for our students and learners, while driving the HE system to play a bigger role in our ambitions for national growth.
Asked by: Abtisam Mohamed (Labour - Sheffield Central)
Question to the Department for Education:
To ask the Secretary of State for Education, what funding is available to universities via the Strategic Priorities Grant.
Answered by Janet Daby - Parliamentary Under-Secretary (Department for Education)
The government provides funding through the Strategic Priorities Grant (SPG) on an annual basis to support teaching and students in higher education (HE), including expensive to deliver subjects such as science and engineering, students at risk of discontinuing their studies and world leading specialist providers.
The total recurrent SPG funding to be distributed by the Office for Students (OfS) for the 2024/25 academic year is £1.426 million. This comprises £1.402 million in recurrent grant for providers and £24 million in funding for national facilities and regulatory initiatives.
The department made £281 million of funding available to providers for the 2024/25 academic year in the form of student premiums and mental health support to promote successful outcomes for students, including for disadvantaged students.
For the three-year period from 2022/23 to 2024/25, the SPG multi-year capital funding was set at £450 million to support investment in teaching and learning facilities. The outcomes for the distribution of capital grant funding by the OfS to eligible HE providers is available here: https://www.officeforstudents.org.uk/publications/capital-funding-for-financial-years-2022-23-to-2024-25/.
On 29 July 2024, the OfS published the outcomes of their decision on how the 2024/25 academic year SPG recurrent funding would be allocated to eligible HE providers. The full summary of their decision-making can be accessed here: https://www.officeforstudents.org.uk/media/467e28b4-7bc4-4223-bfbc-33de5836c349/funding-for-2023-24-ofs-decisions.pdf.
On 25 October 2024, the OfS also published the latest edition of the funding allocations for each provider for the 2024/25 academic year. The breakdown for each HE provider is available here: https://www.officeforstudents.org.uk/publications/recurrent-funding-for-2024-25/.
Asked by: Abtisam Mohamed (Labour - Sheffield Central)
Question to the Department for Education:
To ask the Secretary of State for Education, what plans her Department has to update the International Education Strategy.
Answered by Janet Daby - Parliamentary Under-Secretary (Department for Education)
The government will be conducting a review of the International Education Strategy, which will ensure that it continues to reflect the priorities of education stakeholders, businesses and this government. As part of the review, the department will undertake data collection and analysis, alongside engagement to gather feedback from sector stakeholders. The department aims to conclude the review in spring 2025, at which point an updated International Education Strategy will be published.
Asked by: Abtisam Mohamed (Labour - Sheffield Central)
Question to the Department for Education:
To ask the Secretary of State for Education, if she will make an assessment of the potential merits of providing funding for vocational qualifications at level three for the 2025-26 academic year.
Answered by Janet Daby - Parliamentary Under-Secretary (Department for Education)
The department funds vocational and technical qualifications for post-16 learners and will continue to fund them in 2025 in line with its broader policy on qualifications.
The government is clear that learners should study high quality qualifications that support its missions to grow the economy and break down barriers to opportunity. In July, the department announced that it was undertaking a rapid review of qualifications and paused the defunding due to take place on 1 August 2024. This review is well underway and will confirm the funding status for the Level 3 qualifications on the defunding lists.
There are qualifications on these lists which have low and no enrolments. These will have funding removed, although we also accept that there are exceptions, such as niche qualifications, and we will allow for this.
The department is open to qualifications continuing to be funded where they are needed. This could include large qualifications and those that overlap with T Levels where necessary. This may be in the short or longer term, and the department is clear that it wants to continue to reform qualifications so that quality improves.
The review of qualifications reform will be completed by the end of the year.
The department has also introduced new technical and academic qualifications at Level 3 and at Level 2 and these will be available from August 2025.
The qualifications landscape available in 2025 and beyond will include options in addition to A levels and T Levels, where they are needed to support economic growth, support employers and learners and broaden opportunity.
Asked by: Abtisam Mohamed (Labour - Sheffield Central)
Question to the Department for Education:
To ask the Secretary of State for Education, if her Department will make an assessment of the effectiveness of the Lifelong Learning Entitlement.
Answered by Janet Daby - Parliamentary Under-Secretary (Department for Education)
The government recognises that lifelong learning is a core part of a sustainable higher education system which provides opportunities for all and offers learners greater flexibility in an ever-evolving economy.
At present, the department is working to ensure that its approach to lifelong learning will be as effective as possible, enabling people to gain the skills they need to support their careers.