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Higher Education Reform
04 November 2024
Lead MP
Bridget Phillipson
Debate Type
Ministerial Statement
Tags
EducationEconomyTaxation
Other Contributors: 29
At a Glance
Bridget Phillipson raised concerns about higher education reform in the House of Commons. A government minister responded. Other MPs also contributed.
How the Debate Unfolded
MPs spoke in turn to share their views and ask questions. Here's what each person said:
Government Statement
The Minister announces changes to the higher education sector for the upcoming academic year, 2025-26. She addresses the financial challenges faced by universities due to frozen tuition fees since 2017, emphasising that this Labour Government is determined to restore stability and take tough decisions necessary for reforming the system. The maximum cap on tuition fees will be increased to £9,535 from April 2025, marking a £285 increase per academic year compared to previous years. Despite the fee rise, students' loan repayments will not see an immediate hike since repayments depend on earnings rather than borrowed amount or interest rates. Additionally, maintenance loans will be increased by £414 for the 2025-26 academic year, supporting student living costs. The Government also introduces a lower tuition fee limit of £5,760 for foundation years in classroom-based subjects to promote access and efficiency. Further reforms include pressing ahead with the lifelong learning entitlement confirmed in the Budget and encouraging universities to spread opportunities equitably among disadvantaged students. Efforts will focus on improving teaching standards, ensuring good value for money, and fostering research collaborations that drive local economic growth.
Laura Trott
Con
Sevenoaks
Question
The Shadow Secretary of State criticises the sudden rise in tuition fees for students, highlighting inconsistencies with previous government promises. She queries how much of the increased cost will be offset by a national insurance increase and whether this is the only fee hike expected or if annual increases are planned. Laura Trott also questions the Office for Budget Responsibility's involvement in consultations regarding these changes and their impact on public finances.
Laura Trott
Con
Sevenoaks
Question
Critiqued the announcement as a betrayal of students, pointing out contradictions in previous statements made by Labour regarding tuition fees. Asked about how much of the increase will be absorbed by national insurance increases for university employees and if it is intended to be a one-off change.
Minister reply
Phillipson acknowledged that this was not an easy decision but necessary for securing long-term financial sustainability. She committed to setting out further plans to reform efficiency, access and participation for young people.
Helen Hayes
Lab
Dulwich and West Norwood
Question
Asked about steps being taken to ensure the announcement does not deter young people from low and middle-income backgrounds from applying to university.
Minister reply
Acknowledged the importance of effective communication regarding university opportunities for all qualified young people. Emphasised a commitment to improving support and widening access, especially for those from disadvantaged backgrounds.
Ian Sollom
Lib Dem
St Neots and Mid Cambridgeshire
Question
Questioned the fairness of increasing fees without substantial reforms. Inquired about restoring maintenance grants for disadvantaged students, raising repayment thresholds, recognising benefits of international students, and examining efficient use of £10,000 per student funding.
Minister reply
Acknowledged the importance of supporting young people to succeed and recognised the crucial role that international students play in local economies. Stated willingness to further discuss these issues with the sector.
Rachael Maskell
Lab Co-op
York Central
Question
Asked about including the cost of housing as part of reforms.
Minister reply
Acknowledged the importance of addressing student accommodation costs and stated that clear expectations will be set for how universities work with local councils to address these issues.
Julian Lewis
Con
New Forest East
Question
Asked about pausing commencement of provisions in the Higher Education (Freedom of Speech) Act 2023 and its future.
Minister reply
Explained that regulation needs to be workable, thus taking time to listen to a range of voices before acting on further steps.
Darren Paffey
Lab
Southampton Itchen
Question
I would not be standing here today were it not for the incredible opportunities of a university education. I was the first in my family to attend and I spent the next 20 years as a higher education lecturer, watching culture wars break out and the financial system become increasingly broken. Does the Secretary of State agree that we now have an opportunity to restore universities as machines of opportunity and economic growth?
Minister reply
I agree with my hon. Friend who recognises the crucial role that our universities play in towns and cities, and their potential for providing opportunities for young people. There is a need for more progress on care-experienced young people’s opportunities at university.
Christine Jardine
Lib Dem
Edinburgh West
Question
Does the Secretary of State accept that it might have been better to hold a wider review of the whole system instead of jumping immediately to putting up tuition fees? She says that we all respect and want to protect our world-beating universities, but how does she square that with her Government removing the funding for the exascale computer at Edinburgh University?
Minister reply
The announcement today is in line with the Budget approach—a one-year settlement to fix financial sustainability. The sector must do more to support disadvantaged students and address economic growth.
Matt Western
Lab
Warwick and Leamington
Question
I commend my right hon. Friend for making such a bold and difficult decision here when so many of her predecessors shied away from it. Putting the sector on a sound financial footing is crucial, but I also welcome the move on maintenance support. Can she assure me that, when she talks about increasing efficiency in the sector, she is talking not about vice-chancellors balancing staff and workload, but about addressing the overspend in some capital projects?
Minister reply
Efficiencies do mean reeling in needless or excessive spend and waste. The minister emphasises that efficiencies should address unnecessary expenditures.
Richard Holden
Con
Basildon and Billericay
Question
Ten million pensioners, almost 30 million workers who the Institute for Fiscal Studies says will now see lower wages because of national insurance rises, tens of thousands of farmers, hundreds of thousands of small businesses seeing business rates rising, and today millions of students. Is there anyone that this Government told before the general election ‘Don’t worry!’ who they have not since shafted?
Minister reply
The right hon. Gentleman should reflect on his party’s record which left behind a £22 billion black hole.
Adam Thompson
Lab
Erewash
Question
Two things are clear: the Conservative party left the sector in utterly dire straits, and today’s measures are absolutely necessary for our universities to avoid bankruptcy. What steps is the Secretary of State taking with universities, students and campus unions to develop a new financial model—one that delivers excellence and value for students, and stability and security for university staff?
Minister reply
The Government will play its part in securing financial sustainability while urging the sector to do more, including working with further education providers.
Richard Foord
Lib Dem
Honiton and Sidmouth
Question
I welcome the Secretary of State’s announcement on increased maintenance loans and what that will do for equality of opportunity. I agree with her that the last Government did not properly value the contribution of international students. For more than 15 years, the much higher fees charged to international students have cross-subsidised British students, so should the Government remove international students from net migration figures?
Minister reply
The important contribution of international students is recognised, but removing them from net migration figures cannot be agreed.
Gareth Snell
Lab Co-op
Stoke-on-Trent Central
Question
Keele University and the University of Staffordshire have been warning for a long time of their dire financial circumstances. I welcome the announcement of this financial support to protect jobs in those institutions that currently face a desperate budget round. What is her Department doing to ensure funding is in place so that more young people from disadvantaged backgrounds can access higher education?
Minister reply
The Department will work with universities on an expansion in their civic role, including economic growth and widening participation.
Jeremy Corbyn
Ind
Islington North
Question
I welcome the Secretary of State’s announcement that universities must be home to robust discussion and rigorous challenge. Many students are put off going to university by already very high fees; there were no proposals in her statement to reform university finance, only a proposal to charge students more. Will this drive people away from university education?
Minister reply
Universities need greater work around economic growth and income sources, but the increase is necessary for stabilising the sector.
Clapham and Brixton Hill
Question
I thank the Secretary of State for her statement. I fully understand that something needs to be done, but we know university applications have been slowly declining. Has she any plans to review her actions if the equality impact assessment shows issues for disadvantaged students?
Minister reply
Further plans will be set out in coming months around sector reform; there is more that universities can do on disadvantaged students’ progression and completion rates.
Ian Roome
Lib Dem
North Devon
Question
Universities work in collaboration with FE sector institutions such as Petroc college in my constituency. Government funding for the FE sector has fallen significantly in real terms over the past decade, leading to falling teacher pay. What are the plans to fund the FE sector so that it can remain a viable and accessible option, particularly in rural areas such as mine, for people to access university courses?
Minister reply
The Government invested £300 million into further education, alongside a £300 million capital allocation, to ensure investment in further education colleges which are crucial parts of towns and cities.
Andrew Lewin
Lab
Welwyn Hatfield
Question
We have thousands of international students at the University of Hertfordshire in Hatfield—they are most welcome and they make a great contribution. However, when the Conservative party was in power, the independent Office for Students concluded that the entire higher education model was reliant on international fee income. Does my right hon. Friend agree that that was a completely unsustainable model—another example of the Conservative party ignoring a problem and leaving it to us to rescue and reform our higher education sector?
Minister reply
International students make an important contribution to our economy, but there can sometimes be pressures; we will set clear expectations for the sector regarding accommodation.
Vikki Slade
Lib Dem
Mid Dorset and North Poole
Question
I put on record that I am the parent of three students—two undergrads and one postgrad—who are all paying their fees. Does the Secretary of State agree that courses offering just eight hours a week of contact time do not represent good value for money? Will she ensure that element is fully evaluated in the reforms?
Minister reply
We will be discussing quality, particularly teaching quality, further in the months to come and I would be happy to discuss this issue with her party.
Shaun Davies
Lab
Telford
Question
Universities are critical for students, of course, but also for economic growth, town and city regeneration, and much more. Reform and accountability are also important. Will the Secretary of State outline in a bit more detail the accountability to which she will hold these university vice-chancellors on teaching contact time, helping vulnerable students and ensuring that universities play a huge part in the wider communities?
Minister reply
We will expect higher education providers to play a stronger role in expanding access and improving outcomes for disadvantaged students, make a stronger contribution to their communities and economic growth.
Joshua Reynolds
Lib Dem
Maidenhead
Question
The reintroduction of maintenance grants will mean that living costs are not barriers to university for those disadvantaged students. Will the Secretary of State confirm the reintroduction of maintenance grants, so that no young people are put off university for fear of the costs?
Minister reply
We will look at this issue as part of wider reform and we want to ensure that university remains an attractive option for all young people.
Luke Myer
Lab
Middlesbrough South and East Cleveland
Question
The previous Government’s approach to regulation put ideology over evidence, and one example of that is in the role of the designated quality body. It was there to check on quality and standards in higher education, but it had to give up that role because the regulatory climate was non-compliant with international standards. Can the Secretary of State assure the House that the regulatory approach will be different from that of the previous Government?
Minister reply
Under its new interim chair, Sir David Behan, the regulator is focusing on ensuring not only that our universities are sustainable but also that they deliver better outcomes for students.
Jim Shannon
DUP
Strangford
Question
With fees to increase, how can we expect students to stay and work within the UK when it is much cheaper to live elsewhere? May I make a plea about the retention of student and junior doctors? Will she consider bursaries or forgiveness of debt against a job commitment?
Minister reply
For many young people, the chance to go to university is a long-term investment in their future prospects; this matter overlaps with the Department of Health and Social Care.
Scott Arthur
Lab
Edinburgh South West
Question
In Scotland, while undergraduate education is free, universities are grossly underfunded to deliver it. The announcement will only widen the gap between Scotland and England in that regard. Will the Secretary of State engage with the sector to ensure we have the right environment to attract the best students and staff?
Minister reply
The share of first-time university entrants from Scotland’s most deprived areas fell for the second consecutive year, and the SNP Government cut mental health provision for Scottish students.
Anna Dixon
Lab
Shipley
Question
Welcomed the Government's plan to reform higher education, noting that Bradford University has a high proportion of students from the city but many fail due to lack of graduate jobs. Invited the Secretary of State to visit and see the university’s civic contribution.
Minister reply
Expressed willingness to meet with MP and colleagues in neighbouring constituencies to discuss the approach taken by universities.
Peter Swallow
Lab
Bracknell
Question
Agreed that universities should expand access for students from all backgrounds, recognising social mobility opportunities, and asked about support for various degree types.
Minister reply
Confirmed the importance of subjects like science, technology, arts, and humanities in driving economic growth.
Alice Macdonald
Lab Co-op
Norwich North
Question
Asked if mechanisms are in place to ensure that increased income from fees translates into fewer job losses and helps encourage more students from lower-income backgrounds.
Minister reply
Expected universities to rein in excessive spending, increase efficiency, and play their part in providing sustainability for the sector.
Jayne Kirkham
Lab Co-op
Truro and Falmouth
Question
Asked if arts degrees will be an important part of the economy in future, given Falmouth University's world-leading status.
Minister reply
Emphasised the value of a wide range of courses including music, art, and others, as they contribute to well-paid careers.
Mark Sewards
Lab
Leeds South West and Morley
Question
Asked about expanding access for working-class students despite fees, based on his experience at the University of Leeds.
Minister reply
Agreed on opening up opportunities to working-class young people and encouraging collaboration among universities within regions.
Shadow Comment
Laura Trott
Shadow Comment
The Shadow Secretary of State criticises the Labour Government's decision to increase tuition fees, citing inconsistency with previous statements. She argues that the sudden hike will burden students financially and erode trust in government promises. Laura Trott highlights the importance of reforming the higher education system to ensure courses provide economic returns, foster university innovation growth potential, and uphold academic freedom for both students and lecturers. She questions the impact of the fee increase on public finances, its consultation process with budgetary oversight bodies, and future plans regarding annual fee adjustments.
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