Commons Sense

House of Commons · Westminster Hall

Universities: Funding and Employment

02 April 2025 · 16 other contributors · 13,069 words

Opened by Mohammad Yasin Lab Bedford

Responding minister: Janet Daby

EducationEmployment

Summarised by AI from the official record, so it can contain mistakes.

Read the full transcript on Parliament.uk

At a glance

Mohammad Yasin raised concerns about universities: funding and employment in Westminster Hall. A government minister responded.

Key points

  • The UK's higher education sector faces a financial crisis with over 5,000 job cuts announced and projections of more than 10,000 job losses this year.
  • The University of Bedfordshire plans to cut over 200 jobs due to financial challenges.
  • Tuition fees do not cover actual costs, and international student numbers have declined from 5,270 in 2023 to just over 2,000 in 2025.

Key requests to Government

The government needs to improve the funding model which currently relies heavily on fees and student loans, as well as address the decline in Government investment that contributes to university deficits.

How the debate unfolded

MPs spoke in turn to share their views and ask questions. Here's what each person said.

Opened the debate

Mohammad Yasin Lab Bedford

The UK's higher education sector is facing a severe financial crisis with over 5,000 job cuts already announced and projections of more than 10,000 jobs being lost this year. The University of Bedfordshire plans to cut over 200 jobs due to financial challenges. Tuition fees fail to cover actual costs, international student numbers have declined from 5,270 in 2023 to just over 2,000 in 2025, and the amount of income English universities receive for teaching home students has declined since 2015-16.

Other contributors (16)
  • Alice Macdonald Lab/Co-op Norwich North

    While contribution details are not provided in the given text, it's inferred from context that she supported the concerns regarding higher education funding.

  • Ben Lake PC Ceredigion Preseli

    Welsh higher education contributes over £11 billion to the economy, supports over 60,000 jobs, and is crucial for research and development. The situation facing universities could lead to institution collapses without government intervention.

  • Chris Law SNP Dundee Central

    The hon. Member supports the idea of putting money into staff and students, mentioning critical challenges faced by the University of Dundee with almost 700 jobs at risk. He thanks the Scottish Government for a £22 million package of support for university staff and calls on the UK Government to reverse policies that harm international student numbers.

  • Al Pinkerton LD Surrey Heath

    As an academic, he echoed concerns about the impact of Brexit on international student numbers and stressed the importance of maintaining leadership in higher education.

  • Scott Arthur Lab Edinburgh South West

    Agreed with the impact of immigration policy but highlighted long-lasting challenges due to underfunding, particularly the drop in student fees and cap on places.

  • James Naish Lab Rushcliffe

    Emphasises the importance of universities in his constituency and across the east Midlands, highlighting their role in economic development through spin-out businesses and job creation.

  • Jessica Toale Lab Bournemouth West

    Discusses challenges faced by Bournemouth University and its role in the local economy, including impacts on student numbers due to visa changes and Brexit. Questions the stability of the fees-based model for higher education.

  • Jim Shannon DUP Strangford

    The hon. Member provides a Northern Ireland perspective, highlighting financial stability issues in higher education institutions. He mentions Queen’s University and Ulster University, noting significant income figures and warning about the reliance on international tuition fees.

  • John McDonnell Ind Hayes and Harlington

    Mentioned Brunel University where large numbers of job cuts are being threatened despite it doing everything asked by the government to provide skills training for the future. The refusal of management to engage with the union on transitional arrangements is disappointing.

  • Pam Cox Lab Colchester

    The hon. Member, a former professor of higher education, expresses optimism for the future of universities but highlights challenging times facing the sector. She calls for urgent action before it is too late to protect and support universities. Asked the shadow Minister to take responsibility for the current situation in universities.

  • Peter Prinsley Lab Bury St Edmunds and Stowmarket

    Highlights the plight of clinical academics who are vital to medical training and research but face redundancy due to lack of funding. Urges immediate action to prevent a crisis in the NHS workforce.

  • Rachael Maskell Lab/Co-op York Central

    There is a mismatch between the Chancellor’s growth agenda and policies impacting higher education funding, with every £1 of public investment generating £14 in economic output. The proposed UK Research and Innovation cuts could result in 22,000 job losses.

  • Rebecca Paul Con Reigate

    She highlighted the financial pressures faced by universities, citing a study suggesting that nearly three-quarters of English higher education providers could be in deficit by 2025-26. She also mentioned growing concerns about the value and sustainability of certain university courses, noting that around 30% of graduates would have been better off financially without attending university.

  • Stephen Gethins SNP Arbroath and Broughty Ferry

    Discussed the University of Dundee facing job cuts due to a two-thirds drop in taught postgraduate student numbers. Criticised Scottish Labour's priorities and their role in underfunding universities. Sought an opportunity to speak but was not granted it immediately due to time constraints.

  • Tom Hayes Lab Bournemouth East

    The MP highlights the critical role of higher education institutions in Bournemouth, noting that two out of three local universities face financial pressures and potential job cuts. He calls for a longer-term financial settlement to provide security for universities and certainty for teaching staff.

  • Wendy Chamberlain LD North East Fife

    A PwC report from 2024 indicated that 10 of Scotland’s 15 universities are at risk of falling into financial deficit by 2027, with seven institutions currently in a deficit. The hon. Member agreed that declining Government investment is part of the issue.

Government Response

Janet Daby

The Parliamentary Under-Secretary of State for Education

Minister Janet Daby acknowledges concerns about the financial sustainability of higher education and outlines government actions such as appointing Professor Edward Peck to focus on sector's financial stability. She also mentions temporary changes by the Office for Students allowing closer monitoring of financially pressured providers. The minister stresses the importance of working in partnership with the sector and highlights the significant contributions of universities to the UK economy, industry, innovation, and society. The maximum fee for a standard full-time undergraduate course in the 2025-26 academic year will increase by 3.1% to £9,535; fees for accelerated and part-time courses have also increased. The Government is committed to understanding financial risks in higher education through close collaboration with the Office for Students and representative groups like Universities UK. Providers at risk of financial failure will receive support from my Department to protect students' interests. Staff dedication during challenging times has been affirmed, while underlining that independent institutional providers must manage their budgets without government intervention. The Government aims to maintain strong relationships with employers, staff, and unions through continued dialogue.

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