Question to the Department for Education:

To ask His Majesty's Government whether they intend to make further funding available to further education colleges and universities to assist with their financial challenges.

All young people should have access to high quality education and training that meets their needs and provides them with opportunities to thrive. This is why, in the 2025/26 financial year, the government is providing an additional £300 million for further education to ensure young people are developing the skills they need to succeed.

The department recognises the financial strain that some higher education (HE) providers are under and are working closely with the Office for Students (OfS) to monitor any risks and to ensure there are robust plans in place to mitigate them. Sir David Behan has been appointed as interim OfS Chair to oversee the important work of refocusing the OfS’ role to concentrate on key priorities, including the HE sector’s financial stability.

HE providers are autonomous and responsible for managing their own budgets and business models. However, in recognition of the financial challenges the sector is facing, the government has made the difficult decision to increase tuition fee limits by forecast Retail Prices Index 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. Longer-term funding plans for the HE sector will be set out in due course.

Adapting to the changed context of the HE sector over the next decade will require providers to undertake a more fundamental re-examination of business models and much less wasteful spending. In return for the increased investment we are asking students to make in the sector, we will need to see far greater collaboration across the sector to drive efficiency. We will expect the sector to be significantly more transparent on how it is managing its resources and to be held to account for delivering great value for money for students and the taxpayer.