Question to the Department for Education:

To ask the Secretary of State for Education, what assessment he has made of the potential effect that the reduction to the Strategic Priorities Grant allocated to universities and higher education colleges for the 2021-22 financial year will have on students in London.

In January 2021, my right hon. Friend, the Secretary of State for Education, asked the Office for Students (OfS) to reform the Strategic Priorities Grant for the academic year 2021/22. The Strategic Priorities Grant is a limited funding pot provided by government to support the provision of higher education. Reprioritisation of this funding is needed to ensure value for money, and support strategic priorities across the sector, including provision of courses vital for the economy and labour markets, and continued support for disadvantaged students and underrepresented groups. The reforms for 2021/22 included the removal of the London Weighting element of the grant.

The OfS consulted on the Secretary of State for Education’s proposals and has recently published its conclusions[1]. The consultation responses were carefully analysed, and the issues raised were considered by both the OfS and the Secretary of State for Education in reaching their respective decisions about the allocation of the Strategic Priorities Grant for the 2021/22 academic year.

The London Weighting (additional grant money given to London-based providers to cover the higher costs of delivery in London) accounts for a small proportion of London-based providers’ income. Providers in London received around £64 million London Weighting in the 2020/21 academic year, which is less than 1% of their estimated total income.

The removal of London Weighting is required to enable the reprioritisation of the Strategic Priorities Grant towards the provision of high-cost subjects that support the NHS and wider healthcare policy, science, technology, engineering, and mathematics, and specific labour market needs. As a result of these reforms, including the removal of London Weighting, total funding for high-cost subjects for the 2021/22 academic year, such as medicine and engineering, is 12% higher than last year, an increase of £81 million. This additional high-cost subject funding will be available to providers in London, supporting provision for London-based students.

[1] https://www.officeforstudents.org.uk/publications/consultation-on-recurrent-funding-for-2021-22/