Question to the Department for Education:

To ask the Secretary of State for Education, what steps she is taking to help ensure value for money in tertiary education public spending.

The government defines tertiary education as all post-secondary education, encompassing both further education (FE) and higher education (HE). It includes education provided by colleges, universities and other specialist institutions, aimed at supporting progress to FE, training or work. Tertiary education typically starts from age 16.

The government publishes research on the net present value of FE, which consistently shows good value for the taxpayer, here: https://assets.publishing.service.gov.uk/media/609e78c6d3bf7f2883267c3b/Measuring_the_Net_Present_Value_of_Further_Education_in_England_2018_to_2019.pdf.

FE funding is designed to incentivise provision that has high economic value. For example, additional funding for 16 to 19-year-olds is available to encourage and support the delivery of selected courses in subjects that lead to higher wage returns. It is also available to support subjects that cost more to deliver. As part of the department’s FE accountability system, we issue guidance that requires colleges to publish an annual accountability statement detailing outcome targets for areas of the curriculum they are planning to change for the coming year.

The department knows that investment in apprenticeships provides good value for money for the taxpayer. Apprenticeships at level 2, level 3 and levels 4/5 deliver a net present value of £16, £16 and £25 respectively for each pound of government funding.

The department has also established Skills England, which will play a crucial role in identifying skills needs now and in the future and helping to ensure that training funded from the growth and skills levy delivers value for money.

In order for HE students to be eligible for publicly funded loans, HE providers are expected to meet the registration conditions set by the Office for Students. These include clear expectations for the quality of HE, including minimum thresholds for student outcomes.