Question to the Department for Education:

To ask the Secretary of State for Education, what assessment she has made of the adequacy of the financial stability of the higher education sector in (a) Norfolk and (b) nationally.

The financial position of individual higher education (HE) providers is highly commercially sensitive. As such, it would be inappropriate to comment on the financial stability of HE providers in any individual local authority area.

The department recognises that the financial environment of the HE sector is challenging. The Office for Students’ (OfS) update on the financial sustainability of the HE sector, published 15 November, states that up to 72% of HE providers could face a deficit in 2025/26 if they do not take mitigating action. The OfS has rightly affirmed that HE providers must take bold action to secure their long term sustainability. As autonomous bodies independent of government, it is for providers to decide on effective business models and to how to manage their finances.

However, in recognition of this challenging financial environment, this government has taken action to support the sector. The government has acted decisively to accept in full the recommendations of the independent review of the OfS undertaken by Sir David Behan. Sir David has been appointed as interim OfS Chair to oversee the important work of refocusing their role to concentrate on key priorities, including the HE sector’s financial stability. The department continues to work closely with the OfS to monitor any risks and to ensure there are robust plans in place to mitigate them.

Moreover, the government has made the difficult decision to increase tuition fee limits in line with forecast inflation. As a result, 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. The government also recognises the impact that the cost-of-living crisis has had on students. Maximum loans for living costs for the 2025/26 academic year will increase by 3.1%, from £10,227 to £10,544 for an undergraduate student living away from home and studying outside London. Longer term funding plans for the HE sector will be set out in due course.

As my right hon. Friend, the Secretary of State for Education set out in her oral statement on 4 November, this government will secure the future of HE so that students can benefit from a world class education for generations to come.