Asked by: Mary Kelly Foy (Labour - City of Durham)
Question to the Department for Education:
To ask the Secretary of State for Education, what steps her Department is taking to encourage strategic financial planning in the higher education sector.
Answered by Janet Daby - Parliamentary Under-Secretary (Department for Education)
The Office for Students (OfS), the independent regulator of English higher education (HE) providers, collects and analyses providers’ financial data to ensure they have an up to date understanding of the sustainability of the sector.
The OfS’ May 2024 report set out their assessment of the HE sector’s financial health for the 2022/23 financial year and forecasts for the next four financial years. On 15 November, the OfS published an update to this report, which found that the financial context for the HE sector has become more challenging since the May report. The government works closely with the OfS to understand the financial landscape in the sector.
While the sector is autonomous and independent, the government is determined to secure the future of our world-leading HE sector. That is why we have taken decisive action to support providers in moving towards a more stable financial footing.
In March, Professor Edward Peck was appointed as substantive Chair of the OfS. Professor Peck will continue the work of interim Chair, Sir David Behan, focusing on the sector’s financial sustainability and increasing opportunities in HE.
Moreover, in November, my right hon. Friend, the Secretary of State for Education announced the difficult decision to increase tuition fee limits in line with forecast inflation. The maximum fee for a standard full-time undergraduate course in the 2025/26 academic year will increase by 3.1%, from £9,250 to £9,535. In return for the increased investment we are asking students to make, the department expects the sector to deliver the very best outcomes, both for those students and for the country.
The department is clear that HE providers need to ensure their governance arrangements are robust and facilitate prudent, transparent and strategic financial planning. Providers must also ensure they are fit for purpose more widely, including upholding academic freedom, freedom of speech and ensuring good quality of provision. The OfS has recently consulted on proposals to strengthen the conditions related to management and governance for providers that wish to join its register.
The government also recognises the impact that financial pressures are having on the HE workforce. We are aware that some providers are making difficult decisions around staffing in order to safeguard their financial sustainability. Given universities are independent, they are responsible for pay and provision of staff and the government does not have a role in intervening. However, we expect providers to work with staff, using their knowledge and experience to help identify how best to operate efficiently. All efficiency measures taken by the sector should provide a better long-term future for staff, students and the country.
This government is determined to build a HE system fit for the future. Ministers and departmental officials remain dedicated to engaging with the OfS, the employer body, HE unions and the wider sector. Regular discussions are being held to gain a deeper understanding of the issues impacting HE providers, students and staff. This collaborative effort will contribute to the development of the department’s plan for HE reform, which we will publish in the summer.
Asked by: Mary Kelly Foy (Labour - City of Durham)
Question to the Department for Science, Innovation & Technology:
To ask the Secretary of State for Science, Innovation and Technology, what assessment his Department has made of the adequacy of levels of research funding in the higher education sector.
Answered by Feryal Clark - Parliamentary Under Secretary of State (Department for Science, Innovation and Technology)
Total government investment in research and development will amount to £20.4 billion in 2025-26, protecting the highest levels of public investment in the sector. UKRI has been allocated £8.8 billion, of which £6 billion has been allocated through research council R&D budgets. This includes £2.4 billion through Research England for strategic institutional research funding for higher education providers.
Asked by: Mary Kelly Foy (Labour - City of Durham)
Question to the Department for Education:
To ask the Secretary of State for Education, what assessment her Department has made of the potential merits of a review of the governance of higher education.
Answered by Janet Daby - Parliamentary Under-Secretary (Department for Education)
The Office for Students (OfS), the independent regulator of English higher education (HE) providers, collects and analyses providers’ financial data to ensure they have an up to date understanding of the sustainability of the sector.
The OfS’ May 2024 report set out their assessment of the HE sector’s financial health for the 2022/23 financial year and forecasts for the next four financial years. On 15 November, the OfS published an update to this report, which found that the financial context for the HE sector has become more challenging since the May report. The government works closely with the OfS to understand the financial landscape in the sector.
While the sector is autonomous and independent, the government is determined to secure the future of our world-leading HE sector. That is why we have taken decisive action to support providers in moving towards a more stable financial footing.
In March, Professor Edward Peck was appointed as substantive Chair of the OfS. Professor Peck will continue the work of interim Chair, Sir David Behan, focusing on the sector’s financial sustainability and increasing opportunities in HE.
Moreover, in November, my right hon. Friend, the Secretary of State for Education announced the difficult decision to increase tuition fee limits in line with forecast inflation. The maximum fee for a standard full-time undergraduate course in the 2025/26 academic year will increase by 3.1%, from £9,250 to £9,535. In return for the increased investment we are asking students to make, the department expects the sector to deliver the very best outcomes, both for those students and for the country.
The department is clear that HE providers need to ensure their governance arrangements are robust and facilitate prudent, transparent and strategic financial planning. Providers must also ensure they are fit for purpose more widely, including upholding academic freedom, freedom of speech and ensuring good quality of provision. The OfS has recently consulted on proposals to strengthen the conditions related to management and governance for providers that wish to join its register.
The government also recognises the impact that financial pressures are having on the HE workforce. We are aware that some providers are making difficult decisions around staffing in order to safeguard their financial sustainability. Given universities are independent, they are responsible for pay and provision of staff and the government does not have a role in intervening. However, we expect providers to work with staff, using their knowledge and experience to help identify how best to operate efficiently. All efficiency measures taken by the sector should provide a better long-term future for staff, students and the country.
This government is determined to build a HE system fit for the future. Ministers and departmental officials remain dedicated to engaging with the OfS, the employer body, HE unions and the wider sector. Regular discussions are being held to gain a deeper understanding of the issues impacting HE providers, students and staff. This collaborative effort will contribute to the development of the department’s plan for HE reform, which we will publish in the summer.
Asked by: Mary Kelly Foy (Labour - City of Durham)
Question to the Department for Education:
To ask the Secretary of State for Education, what assessment her Department has made of the stability of higher education finances.
Answered by Janet Daby - Parliamentary Under-Secretary (Department for Education)
The Office for Students (OfS), the independent regulator of English higher education (HE) providers, collects and analyses providers’ financial data to ensure they have an up to date understanding of the sustainability of the sector.
The OfS’ May 2024 report set out their assessment of the HE sector’s financial health for the 2022/23 financial year and forecasts for the next four financial years. On 15 November, the OfS published an update to this report, which found that the financial context for the HE sector has become more challenging since the May report. The government works closely with the OfS to understand the financial landscape in the sector.
While the sector is autonomous and independent, the government is determined to secure the future of our world-leading HE sector. That is why we have taken decisive action to support providers in moving towards a more stable financial footing.
In March, Professor Edward Peck was appointed as substantive Chair of the OfS. Professor Peck will continue the work of interim Chair, Sir David Behan, focusing on the sector’s financial sustainability and increasing opportunities in HE.
Moreover, in November, my right hon. Friend, the Secretary of State for Education announced the difficult decision to increase tuition fee limits in line with forecast inflation. The maximum fee for a standard full-time undergraduate course in the 2025/26 academic year will increase by 3.1%, from £9,250 to £9,535. In return for the increased investment we are asking students to make, the department expects the sector to deliver the very best outcomes, both for those students and for the country.
The department is clear that HE providers need to ensure their governance arrangements are robust and facilitate prudent, transparent and strategic financial planning. Providers must also ensure they are fit for purpose more widely, including upholding academic freedom, freedom of speech and ensuring good quality of provision. The OfS has recently consulted on proposals to strengthen the conditions related to management and governance for providers that wish to join its register.
The government also recognises the impact that financial pressures are having on the HE workforce. We are aware that some providers are making difficult decisions around staffing in order to safeguard their financial sustainability. Given universities are independent, they are responsible for pay and provision of staff and the government does not have a role in intervening. However, we expect providers to work with staff, using their knowledge and experience to help identify how best to operate efficiently. All efficiency measures taken by the sector should provide a better long-term future for staff, students and the country.
This government is determined to build a HE system fit for the future. Ministers and departmental officials remain dedicated to engaging with the OfS, the employer body, HE unions and the wider sector. Regular discussions are being held to gain a deeper understanding of the issues impacting HE providers, students and staff. This collaborative effort will contribute to the development of the department’s plan for HE reform, which we will publish in the summer.
Asked by: Mary Kelly Foy (Labour - City of Durham)
Question to the Department for Education:
To ask the Secretary of State for Education, if she will take steps with Cabinet colleagues to remove the immigration health surcharge for international students.
Answered by Janet Daby - Parliamentary Under-Secretary (Department for Education)
It is right that international students pay the immigration health surcharge (IHS), which sees them make a financial contribution to the comprehensive range of NHS services available to them during their stay in the UK. Students are subject to the discounted rate of £776 per person, per year.
This government currently has no plans to remove the IHS for international students. We have, however, made clear that our overall approach is to welcome international students who enrich our university campuses, forge lifelong friendships with our domestic students and become global ambassadors for the UK.
Asked by: Mary Kelly Foy (Labour - City of Durham)
Question to the Department for Education:
To ask the Secretary of State for Education, what recent assessment her Department has made of the adequacy of higher education (a) funding and (b) governance.
Answered by Janet Daby - Parliamentary Under-Secretary (Department for Education)
Education is a devolved matter and as such issues relating to higher education (HE) in the devolved nations is a matter for the relevant government.
The HE sector needs a secure financial footing to face the challenges of the next decade, and to ensure that all students can be confident they will receive the world-class HE experience they deserve. This is why, after seven years of frozen fee caps under the previous government, the department has taken the difficult decision to increase maximum tuition fee limits for the 2025/26 academic year by 3.1%, in line with the forecast rate of inflation.
In return for the increased investment we are asking students to make, we expect the sector to deliver the very best outcomes, both for those students and for the country. We will publish our plan for HE reform in summer 2025, and work with the sector and the Office for Students (OfS), the regulator of HE in England, to deliver the change that the country needs.
The government also provides funding through the Strategic Priorities Grant on an annual basis to support teaching and students in HE, including expensive-to-deliver subjects such as science and engineering, students at risk of discontinuing their studies, and world-leading specialist providers.
Further, in December, the OfS announced temporary changes to its operations to allow greater focus on financial sustainability. Ultimately, HE providers are independent from government and as such must continue to make the necessary and appropriate financial decisions to ensure their long-term sustainability.
We are clear that HE providers need to ensure their governance arrangements are robust and facilitate prudent financial planning, and are fit for purpose more widely, including upholding academic freedom and freedom of speech and ensuring good quality of provision. The OfS has recently consulted on proposals to strengthen the conditions related to management and governance for providers that wish to join its register.