Higher Education Funding

Debate between Gregory Campbell and Abtisam Mohamed

Wednesday 28th October 2026 Westminster Hall

[Abtisam Mohamed (Sheffield Central) (Lab)]

I beg to move,

That this House has considered higher education funding.

It is a pleasure to serve under your chairship, Ms Vaz. As co-chair of the all-party parliamentary groups on students and for international students and a member of the all-party parliamentary university group, and representing a constituency with one of the largest concentrations of students, I know at first hand the enormous value of higher education and the growing challenges facing the sector. It is worth saying from the outset that I am applying for a separate Backbench Business debate specifically on students that will cover the cost of living, maintenance support and the wider student experience. Those are important issues in their own right, but today’s debate focuses on the foundations and long-term sustainability of higher education itself.

My constituency is home to two outstanding universities: the University of Sheffield and Sheffield Hallam University. I have had the privilege of studying at both institutions and, like many people, I know personally the doors that higher education can open and the horizons it can broaden. We have a world-class higher education system whose institutions are often seen as a great equaliser, especially for working class communities. Walking into universities, we know right away why they are described as centres of innovation and industry. A good university acts as an anchor in our cities and is far more than just lecture halls and graduation ceremonies.

[Mr Gregory Campbell (East Londonderry) (DUP)]

I thank the hon. Member for giving way and congratulate her on securing the debate. On providing opportunities, particularly for working-class communities, would she agree with me that in my area, the likes of regional colleges, both on the north coast and the north-west, offer excellent opportunities, particularly for people who feel disadvantaged and who possibly left school without any qualifications and are really caught in a bind? The colleges offer them a way out of the position they are in with prospects for the future and for jobs.

[Abtisam Mohamed]

I agree with the hon. Member. He makes an excellent point. I will come on to talking about disadvantaged students and the role that universities play.

Universities train the nurses and doctors who treat us. They train the teachers who educate our children, the engineers who build our infrastructure, and the researchers whose discoveries save lives. They support businesses, attract investment, create jobs and drive progress. In Sheffield we see that contribution every day. Sheffield Hallam University trains around 3,900 healthcare professionals and 2,800 teachers every year. In a single academic year, those healthcare students contributed more than 365,000 hours through NHS clinical placements.

Meanwhile, the University of Sheffield generates an estimated £4.82 billion for the UK economy and supports 138 start-ups and spin-outs. Its research activity contributes billions more in economic value. Although those figures are impressive, behind them lies a fracture point. There is a growing disconnect between what we ask our universities to deliver and the resources that are available. We want universities to drive growth to boost productivity, tackle regional inequality and undertake world-leading research. We want them to support the NHS, public services and local economies, yet the sector faces a financial crisis that threatens its very survival.

We have to recognise the failed funding experiments of the last 16 years and bring them to an end. I draw colleagues’ attention to the Education Committee’s comprehensive report from earlier this year, “Higher Education and Funding: Threat of Insolvency and International Students”, that identifies the real-terms cut in undergraduate tuition fees as a huge factor, though one of many, in financial instability. It is also widely recognised that the UK’s public education funding levels rank well below the OECD average of around 70%. Funding levels have fallen so far that funding direct to universities now makes up just £2 billion out of a total of £16 billion—the complete inverse of what it used to be. The majority of Government funding is spent on a bloated student loan system that is wildly out of control, while current repayment threshold freezes are punishing lower-earning graduates. Last year, the Office for Students forecast that up to 40% of higher education providers will be in deficit. Put simply, far too many institutions are being forced into a cycle of cuts just to temporarily balance the books.