Universities: Funding and Employment

Mohammad Yasin Excerpts

Wednesday 2nd April 2025 Westminster Hall

[Mohammad Yasin (Bedford) (Lab)]

I beg to move,

That this House has considered the impact of university finances on jobs in higher education.

It is a pleasure to serve under your chairmanship, Mr Vickers. The UK’s higher education sector is facing a severe financial crisis, with profound implications for both staff and students. Two years ago, university lecturers across the UK raised an urgent call for help when they voted to strike. Regrettably, their concerns were largely ignored. Over 5,000 job cuts have already been announced, with projections indicating that more than 10,000 jobs will be lost across the sector this year.

The Office for Students’ latest modelling suggests that nearly three quarters of English higher education providers could be in deficit by 2025-26. The University of Bedfordshire in my constituency has recently announced plans to cut over 200 jobs as part of its efforts to address financial challenges. Several factors have contributed to this situation, including tuition fees that fail to cover actual costs, rising operational expenses and a significant decline in international student numbers from 5,270 in 2023 to just over 2,000 in 2025.

The funding model, which depends on international students paying higher fees, has harmed universities since Brexit, as has the Conservative Government’s policy to crack down on student visas, despite international students contributing over £40 billion to the economy before the restrictions were introduced. The amount of income English universities receive for teaching home students has declined in real terms almost every year since 2015-16 and is now approaching its lowest level since 1997.

[Wendy Chamberlain (North East Fife) (LD)]

I congratulate the hon. Member on securing the debate. A 2024 report from PwC said that 10 of Scotland’s 15 universities were at risk of falling into financial deficit by 2027. Of the 18 institutions that students can now study in, seven have a deficit, so there is a particularly acute issue in Scotland. Does he agree that falling Government investment is part of the issue? Indeed, in Scotland, it is 22% lower than it was in 2013-14.

[Mohammad Yasin]

I will come to that point about universities in Scotland in a minute.

Even prior to the 2022 reforms, the UK had the lowest share of public funding in tertiary education among OECD member countries, with the majority of the funding coming from fees and student loans. The tuition fee system is unpopular with both students and universities. Although reversing it may be unrealistic, the model has to be improved.

A disturbing pattern of job cuts is emerging, with universities following suit at an alarming rate—even those that are running a surplus. Critical administrative and technical staff, key to the smooth running of courses and the welfare of students, are often the first to be let go. We are witnessing widespread deficits, restructuring, fire and rehire tactics and even the closure of entire departments, with faculties, schools and jobs being lost or downgraded. A survey of institutions in spring 2024 found that almost 40% had seen voluntary redundancies, almost 30% had reduced module choices for students and almost a quarter had closed courses.

In just the past month, universities in Dundee, Coventry and Bradford have announced similar measures. Perhaps most shockingly, Kingston University has proposed the closure of its humanities department. The closure of a humanities department, in a country renowned for its literary and cultural heritage—Shakespeare’s birthplace, no less—signals a troubling future for our higher education system. It is not merely a loss for humanities; it is a loss for the future of education in our nation and a blow to our global reputation as leaders in education. These subjects are disproportionately impacted by the cuts, and that reinforces the damaging notion that studying arts is the privilege of a select few—a hugely regressive step.

Under the previous Conservative Government a false narrative emerged, claiming that arts cannot equip students to thrive in a rapidly evolving world. In reality, these disciplines are adapted to a skills-based agenda, producing exceptional communicators, critical thinkers and researchers, which is still essential for a healthy democracy and a world increasingly driven by artificial intelligence.

The English higher education sector contributes £95 billion to the UK economy, while our vibrant creative industries generate £125 billion in gross value added each year. Last year, Labour unveiled our exciting plans for the arts, culture and creative industries as key sectors for driving economic growth, but none of that can be achieved without investing in the teachers and lecturers who train the next generation of skilled professionals. Post-1992 universities, which often serve the most diverse student demographics, are hit the hardest. Many students in those institutions are the first in their families to attend university and come from lower socioeconomic backgrounds. These universities are essential for students who cannot afford to live away from home.

The problem for the arts and humanities is not confined to post-’92 universities. Newcastle University, whose chancellor is the chair of the prestigious Russell Group, has announced plans to cut 300 full-time positions, including 65 academic roles. Cardiff University also plans to cut 400 academic staff, which is almost 10% of the total, and to eliminate subjects like music, modern languages, and nursing, despite ongoing NHS workforce shortages. The University of Edinburgh has a £140 million deficit forecast over 18 months, which outstrips the £30 million deficit recorded by Cardiff University. Durham University has joined the ranks of Russell Group institutions planning job cuts, with a target of reducing staff costs by £20 million over two years, starting with 200 professional services staff this year.

For a full view of the scale of the cuts, people can visit the UK HE shrinking page, compiled by Queen Mary University of London and the University and College Union, which tracks redundancies, restructures and closures across the sector.

[John McDonnell (Hayes and Harlington) (Ind)]

Before the hon. Member moves on, and to save people from going to the website, can I mention Brunel University? I have been on the picket lines with UCU, and there are large numbers of job cuts being threatened. It is a successful university that is doing everything asked of it by Government to provide skills training for the future. What is extremely disappointing to me is the refusal of management to even engage with the union to look at transitional arrangements and future planning. There must be a way in which we can work through this, after years of austerity. The Government must work with universities’ management and the unions to see the way through.

[Mohammad Yasin]

I am grateful to the right hon. Member for his comments; I must make some progress now.

Universities are major employers and significant contributors to local and national economies. A recent report on the economic and social impact of Lancaster University, for instance, found that it contributed £2 billion to the UK economy in 2021-22, with 61% of the impact felt in the north-west. If we continue to cut essential departments—English, nursing, modern foreign languages —where will our teachers and professors come from? The approach is so short-sighted. Without a strong university sector, how can the Chancellor grow the economy? Universities are central to delivering education, research and innovation in critical areas for future growth, including in science, technology, engineering and mathematics fields.

Degree-level apprenticeships are another important part of the Government’s strategy to address skills shortages and rebalance the economy. By combining academic study with practical work experience, apprenticeships offer a valuable alternative to academic degrees, but when universities shrink, the skills gap will only widen. In the blink of an eye, we are losing thousands of years-worth of accumulated knowledge. The university exists to pass expertise to the next generation; there is a moral imperative to protect it.

I urge the Government to review university governance and ask why expensive building programmes are being prioritised over investment in staff and students. Multi-year commitments on research and higher education funding are expected in June, when the Government’s spending review is finalised. The reduction in faculty options, loss of vital services and pressure on remaining staff all contribute to a diminished quality of education. This is not the future we should offer our students. We have to fix the broken funding model, safeguard staff, enhance the student experience, and ensure that our universities continue to be engines of economic growth and innovation.

[Chris Law (Dundee Central) (SNP)]

The hon. Member is making the powerful point that money should be put into staff and students. In my constituency, the University of Dundee faces critical challenges just now, with almost 700 jobs at risk. My thoughts are with those staff, and I thank the Scottish Government for the £22 million package of support for them. Does he agree that the UK Government need to reverse the Tory hostile environment policy for international students that means they cannot bring members of their family here? It has cost our university alone more than £12 million. Does he agree further that the national insurance contributions increase—an additional £3 million that the University of Dundee has to find—needs to be stopped right now?

--- Later in debate ---

[Mohammad Yasin]

I am asking the Government to look into this whole scenario very carefully, because it is impacting staff, students and future generations.

Higher education in the UK is at a crossroads. We have a choice: continue down this path of a boom-and-bust approach, cutting jobs and course offerings, or make the necessary investment to secure our universities as pillars of innovation, growth and opportunity. I urge the Government to take immediate action to address the crisis, consider a sustainable funding model, look at capping the numbers for a fairer distribution of students, and look again at student visas, to save our universities. They must ensure that higher education remains a vibrant and accessible resource for future generations.

[Several hon. Members rose—]

--- Later in debate ---

[Ian Sollom (St Neots and Mid Cambridgeshire) (LD)]

It is a pleasure to serve under your chairmanship, Mr Vickers. I thank the hon. Member for Bradford for securing the debate and raising this important issue—

[Mohammad Yasin]

Bedford.

[Ian Sollom]

I am sorry. I should know; I was just about to say that the hon. Member for Bedford (Mohammad Yasin) is a near neighbour of mine.

Although I am here as the Lib Dem spokesperson for higher education, the proximity of St Neots to Bedford gives me a particular constituency interest in the concerns that the hon. Member raised about the challenges facing the University of Bedfordshire, which, as we have heard from hon. Members across the Chamber, are echoed around the country. It is clear that many universities are feeling huge financial pressure, and it is something we are all concerned about. Universities’ financial challenges are not just numbers on a spreadsheet; they affect real people, their livelihoods and their communities, as well as the quality of education and research.

I am not as young as I used to be, so I hope it is valid for me to say that I cannot remember a time when universities faced such financial pressures. We desperately need the situation to change. The income that English universities receive for teaching UK students has declined in real terms almost every year since 2015-16, and is now approaching the lowest level since 1997. There are major budget shortfalls due to rising energy costs and, more recently, the increase in national insurance contributions, as well as a lack of investment and support after years of neglect from the last Conservative Government. That is coupled with a decline in international student numbers because of visa restrictions, as point that many hon. Members made well. We are in a global competition in that regard, and it is unsurprising that our institutions have ended up in such a fragile financial position.

Figures released in November by the Office for Students revealed that 40% of education providers were already forecasting deficits, but I believe that new data suggests that, without mitigating action from the Government, up to 72% of providers could be in deficit by the 2025-26 academic year. It is unsurprising that many institutions are being forced to make difficult decisions on staffing across the sector, in all jobs—support workers as well as academic staff. That is deeply worrying, and will negatively impact the sector and the country more widely.

Universities play a crucial role in our country by providing a high-quality education to many, through research and development and, crucially, by boosting regional economies. Many universities are the largest employer in their area, and the knock-on economic benefits of students living in those areas cannot be over-emphasised. The bottom line is that higher education is an investment in our future on many levels.

When it comes to research and development activities, our universities are world leading and at the forefront of discoveries and innovations that boost growth and improve everyday life. The hon. Members for Colchester (Pam Cox) and for York Central (Rachael Maskell) mentioned that for every £1 invested in university research and innovation, the UK gets £14 back. I had a slightly more—dare I say it?—conservative figure, £10, but the order of magnitude is clear, and it is reassuring that different research reinforces similar numbers.

On top of that, universities are vital in supporting start-up companies across the country. Universities UK recently launched its “Unis start up the UK” campaign. It says that partnering with start-ups boosts economic growth by creating jobs and attracting investment, and sees universities equipping entrepreneurs with the right skills through incubator hubs. Analysis by the Higher Education Statistics Agency shows that between 2014-15 and 2022-23, there was a 70% increase in the number of start-ups founded in UK universities, and that in 2022-23, around 64,000 people were employed by those start-ups—up 170% from 2014-15. HESA predicts that, with the right support, 27,000 new start-ups, with a predicted turnover of around £10.8 billion, could be established by students and staff at UK universities by 2028.

Despite the positive contributions that universities make to social and economic life, in far too many cases their finances are simply unsustainable. In the past year, around three quarters of universities have implemented significant savings programmes, including, sadly, redundancies, course closures, reductions in module options, and the consolidation of professional services and student support.

Thriving universities are essential to a thriving UK, delivering stronger growth, better public services and improved individual life chances. If the Government are serious about their growth mission, they have to work with the higher education sector to stabilise funding, protect fair pay and jobs, and ensure long-term sustainability. We have been calling on them to implement a full-scale review of higher education finance. We believe there are many more things that could be done to support universities that do not involve raising tuition fees further, such as recognising the benefits that international students bring and giving universities policy stability in that respect, and reversing the decline in quality-related funding for research. Finally, the Government should work with the sector to put clear plans in place for any university that finds itself in financial distress. We really do not want to lose any university in the higher education sector.

--- Later in debate ---

[Mohammad Yasin]

It is an honour to open and close this important debate. I extend my heartfelt thanks to everyone who has participated and made a compelling case for the future of our higher education sector. It is clear that we all share a deep pride in our world-class universities and the exceptional staff who dedicate their lives to educating and shaping the workforce of tomorrow.

However, we must recognise that words alone are not going to be enough. We must take meaningful action to ensure that our universities remain sustainable and fit for the future, without compromising their invaluable knowledge base or limiting student choice.

I thank the Minister and the shadow Minister for their contributions. I look forward to the Education Committee session on this matter next Tuesday. Together, I hope that we can rise to the challenge and collaborate to ensure that our universities continue to provide transformative educational experiences.

Question put and agreed to.

Resolved,

That this House has considered the impact of university finances on jobs in higher education.

SEND Provision: East of England

Mohammad Yasin Excerpts

Tuesday 8th October 2024 Westminster Hall

[Mohammad Yasin (Bedford) (Lab)]

It is a pleasure to serve under your chairmanship, Sir Mark. I am pleased to say that the provision for children with special educational needs in Bedford and Kempston has improved greatly since 2018, following an Ofsted and CQC inspection that found significant areas of weakness in the local area’s practice. Next month, the brand new Rivertree Free School in Kempston for 200 children aged two to 19 with special educational needs will be completed, with transitions for students to start in January. It has taken a few years and it has been a frustrating wait for parents and children who are desperate to take up their places. I really hope this will be an improvement and provide the right environment for all the children to thrive; however, there is more to be done.

Families tell me they cannot access the health and mental health services they need. Most parents struggle for years to be heard and to get a diagnosis for their child. Securing an education, health and care plan is difficult and sometimes exhausting. We can trace the cuts to funding for all those services back to Tory austerity, and it will take time to recover and to train and recruit educational psychologists, speech and language therapists and other education specialists to help the most vulnerable children to access the support they need. However, I remain concerned about the waits for EHCPs, especially when the number of children with a SEND diagnosis is rising, as is the discrepancy between having a diagnosis and having an EHCP in place.

Sadly, all across the country, far too many children with a disability are still not having their needs met. I will stop here because of the time limit.