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.

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.