Draft Higher Education (Fee Limits and Fee Limit Condition) (England) (Amendment) Regulations 2026

Dan Carden Excerpts

Tuesday 10th March 2026 General Committees

[Josh MacAlister]

Certainly not. In fact, the current student loan system—I believe it is plan 5—which is due to come online with the first graduates this year, has been increased in line with inflation by this Government. The point stands that the choice of the Government back then was to maintain the threshold where it was and effectively freeze it, capturing many more people into the system. The cumulative effect of 10 threshold freezes in a decade where inflation was ticking up is being felt by students now.

It is somewhat galling to hear that the Conservatives and Liberal Democrats are outraged that this Government, who were able to find the money to lift the threshold in our first year in office, are now balancing difficult decisions so that we can make sure that we have the funding needed for further education, since over half of students do not go to university and need a well-resourced skills system. Both parties seem now to be walking away from their responsibility to make a system that they designed work effectively, which is unfortunate.

The Committee will know how crucial this sector is for our economic growth—I am sure this is felt across the House. Members will recognise its importance in contributing to research and innovation and the impact that it has on local communities and the lives of students. Challenges in higher education have been left unaddressed for far too long, and providers have suffered a significant real-terms decline in their income.

The Government have not shied away from the decisions that are needed. We took action to raise the fee cap in 2025-26, and we have committed to bringing back maintenance grants and future-proofing maintenance loans for students, but we need to go further so that that our higher education sector can continue to deliver the world-class education and research that this country and future generations deserve.

[Dan Carden (Liverpool Walton) (Lab)]

I want to make a short intervention, as we may divide on this instrument. Although the Conservatives and Liberal Democrats do not have a leg to stand on in this debate, I have to take issue with the idea that by simply increasing the fee structure, we put universities on a secure and stable footing. They rely on cross-subsidy from international students, and it is widely debated outside this place as to whether the funding model in chaos and crisis.

In the end, we have a stonking great majority in the House of Commons, and we need to be thinking about reform that goes much further so that the university sector is fit for the modern day—especially for the AI revolution that is coming.

[Josh MacAlister]

I appreciate my hon. Friend drawing the Committee’s attention to the wider debate around higher education funding at the moment. It is true to say that fee income is only one line of income for universities and that they are facing a whole bunch of pressures in a competitive environment. The Government are committed to looking at the student loan system and making it fairer. I have made that commitment, as have the Prime Minister and the Education Secretary.

One urgent point that I would draw the Committee’s attention to is that a number of years of freezes on the tuition fee cap has eroded the income value, which is a significant income stream for universities. If that were to continue, it would further heighten the situation. As a Minister, I have spent time listening to MPs making very powerful representations about the challenges that universities in their constituencies face because of the legacy of the erosion of the value of the fee income. If we were to not increase fees in line with inflation, which is what we are talking about here, it would further add to that funding challenge that universities face. I do not think it would be responsible for us to do that, given that the financial years we are talking about are pretty imminent.