House of Commons · Westminster Hall
05 December 2024 · 4 other contributors · 9,076 words
Opened by Adam Thompson Lab Erewash
Responding minister: Janet Daby
Summarised by AI from the official record, so it can contain mistakes.
Adam Thompson raised concerns about higher education: financial sustainability — [valerie vaz in the chair] in Westminster Hall. A government minister responded.
Key points
Key requests to Government
The Government should commit to increasing funding for teaching through index-linking fees to inflation, restoring previous levels of the teaching grant, ensuring policy stability for international students, establishing a sustainable solution for increased pension contributions, and developing a contract with the university sector to manage growth in international student recruitment.
MPs spoke in turn to share their views and ask questions. Here's what each person said.
Opened the debate
Universities in the UK face declining investment despite recognition of their world-leading status. The financial sustainability challenge is exacerbated by reduced teaching grants, international student decline, and higher pension contributions for staff. These issues threaten economic growth, workforce skills development, and global standing.
Jim Shannon questioned whether the combination of cost-of-living pressures and increased higher education fees would lead to a situation where only wealthy families could afford university for their children.
University funding is in crisis, with institutions facing financial challenges due to increased tuition fees and reduced foreign student intake. The Liberal Democrats urge the reintroduction of maintenance grants for students from less well-off backgrounds. Universities are also experiencing a £4 million hit from reduced foreign student enrolment at the University of Gloucestershire. This has led to course consolidations and reductions in student choice, with cyber-security innovation as one positive move.
Focused on the teaching side of universities, acknowledging past successes in increasing participation rates among disadvantaged students. Noted that recent decisions have worsened financial pressures. Highlighted concerns about high student debt and marginal tax rates for graduates with dependents or postgraduate loans. Asked the Minister to address the impact of stopping accreditation for new institutions and to provide data on costs incurred by the national insurance increase across public services. Asked the Minister to confirm that due to the national insurance increase, resources in real terms for universities will decrease despite tuition fee increases. Reiterated the question stressing on the need for clear answers regarding the cost impact of the national insurance rise on education providers.
Ms Hopkins highlighted the University of Bedfordshire's role in Luton, noting its international student intake has declined by approximately 16% due to changes in visa policies. She expressed concern about the financial sustainability of universities and requested a confirmation from the Minister on whether an impact assessment was done for these policy changes. Asked for clarification on whether an impact assessment was done on the decision regarding foreign students. This intervention highlights the need for thorough evaluations of policy changes affecting universities.
Government Response
Janet DabyThe Government recognise the financial pressures on higher education institutions and have appointed Sir David Behan as interim chair of the Office for Students to focus on sector stability. The OfS will work closely with providers under significant pressure to protect student interests. Tuition fees will increase by 3.1% in line with inflation, from £9,250 to £9,535 for standard full-time courses and other increases for accelerated and part-time courses. Maximum loans for living costs will also rise by 3.1%, from £10,227 to £10,544. The Government set out five priorities for reform including expanding access for disadvantaged students and improving outcomes, contributing to economic growth, playing a civic role in communities, raising teaching standards, and undertaking efficiency reforms. They are committed to welcoming international students who successfully complete their studies and will have the opportunity to work, live and contribute to national life. The Government will also support low-income students with children or financially dependent adults through non-repayable grants. Research funding will increase to more than £6.1 billion for real-term protection of the UK's research base.