Higher Education: Finance
The question
To ask the Secretary of State for Education, what assessment she has made of the impact of the current funding model for higher education on (a) students and (b) University staff.
Answered by Janet Daby
The government is committed to creating a secure future for our world-leading higher education (HE) sector and has already taken a number of actions to help move the sector towards a more stable financial footing, including the difficult decision to increase maximum tuition fee limits for the 2025/26 academic year by 3.1%, in line with the forecast rate of inflation.
We have published an Equality Impact Assessment of the impact of changes to fee limits and student support for the 2025/26 academic year on undergraduate students with protected characteristics and disadvantaged students.
The department recognises that some HE providers are making difficult decisions around staffing in order to safeguard their financial sustainability. Ultimately the sector is independent from government and as such must continue to make the necessary and appropriate financial decisions to ensure their long-term sustainability.
However, we expect providers to work with staff, to help identify how best to operate efficiently. All efficiency measures taken by the sector should provide a better long-term future for students, staff and the country.
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