Question to the Department for Education:

To ask the Secretary of State for Education, what steps she is taking to ensure the financial resilience of the (a) university and (b) colleges sectors.

The department recognises that the financial position of the higher education (HE) sector is under pressure and this government has acted quickly to address this.

The department accepted, in full, the recommendations of the independent review of the Office for Students (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. On 2 December, the OfS announced temporary changes to its operations to allow greater focus on financial sustainability. The OfS will work more closely with providers under significant financial pressure in order to protect the interests of students. The department continues to work closely with the OfS to monitor any risks and 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 (3.1%). The department 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 also increase by 3.1%. 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.

The department also recognises the financial position of the further education (FE) sector is very important. As announced in the Autumn Budget 2024, the government is providing an additional £300 million for FE to ensure young people are developing the skills they need to succeed. We will set out in due course how that is distributed.