Question to the Department for Education:

To ask the Secretary of State for Education, what assessment he has made of the potential effect of the Office for Students' plans to exclude the London allowance factor in the calculation for relevant London-based higher education providers on the quality of teaching at London universities.

The Strategic Priorities Grant, formerly referred to as the Teaching Grant, plays an important role in supporting providers and students to develop the skills and knowledge needed locally, regionally, and nationally to support the economy.

We have asked the Office for Students (OfS) to reform the Grant for the 2021-22 financial year. These reforms include the reallocation of high-cost subject funding towards the provision of high-cost subjects that support the NHS and wider healthcare policy, high-cost STEM subjects, and subjects meeting specific labour market needs.

The London weighting accounts for a small proportion of London-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.

London universities will be able to benefit from the significant uplifts we are making to elements of the Strategic Priorities Grant, including the first real terms increase in years in per capita funding for high-cost subjects in grant funding, as well as being able to bid for capital investment to support the delivery of strategic subjects.

We have also asked the OfS for a £10 million increase to the specialist provider allocation, to support these institutions which are particularly reliant on Strategic Priorities Grant funding, many of whom are London-based. We want to ensure that our small and specialist providers, including some of our top music and arts providers, receive additional support, and that grant funding is used to effectively support students.

The OfS has now publicly consulted on these proposals, and responses from universities, students and others will be taken into account before any final decisions on allocations are made.