Asked by: Lord Johnson of Marylebone (Conservative - Life peer)
Question to the Department for Education:
To ask His Majesty's Government what is the reason for limiting higher education providers without a Teaching Excellence Framework award but with an Access and Participation Plan to undergraduate tuition fee increases of only £25 for full-time courses in the 2024–25 academic year.
Answered by Baroness Smith of Malvern - Minister of State (Department for Work and Pensions)
The government recognises that UK higher education (HE) creates opportunity, is an engine for growth in our economy and supports local communities. In recognition of the financial challenges the sector is facing, the government has made the difficult decision to increase tuition fee limits for the 2025/26 academic year in line with the forecast rate of inflation of 3.1%. This will provide additional financial help for HE providers in 2025/26 after seven years of no increases to maximum tuition fees, meaning that fee limits have not kept pace with inflation.
Maximum fees for approved (fee cap) providers without a Teaching Excellence Framework (TEF) award and with an access and participation plan will increase by £275 in the 2025/26 academic year from £9,000 to £9,275.
This 3.1% increase is in line with the same percentage uplift to maximum fees for approved (fee cap) providers with a TEF award and with an access and participation plan from £9,250 to £9,535.
There are 58 providers in the approved (fee cap) category of the Office for Students (OfS) Register that do not have a TEF award but do have an access and participation plan for 2024/25. The OfS Register, with these providers, can be viewed here: https://www.officeforstudents.org.uk/for-providers/regulatory-resources/the-ofs-register.
Asked by: Lord Johnson of Marylebone (Conservative - Life peer)
Question to the Department for Education:
To ask His Majesty's Government, with reference to the review of the student finance system, (1) what steps they are taking to reduce opportunities for systemic and organised fraud identified by the National Audit Office and Public Accounts Committee; and (2) what was the rationale for paying postgraduate master's loans of up to £12,471 directly to students themselves rather than to universities, as is the practice with loans for undergraduate study.
Answered by Baroness Smith of Malvern - Minister of State (Department for Work and Pensions)
The government’s response to the report from the Public Account Committee (PAC) into student loans issued to those studying at franchised higher education providers was published on 5 September 2024. This is attached and can also be viewed here: https://assets.publishing.service.gov.uk/media/66d9d2bfe87ad2f12182650e/E03194725_HMT_Treasury_Minutes_Sept_24_Accessible.pdf. The response sets out how the government is implementing the PAC recommendations including greater collaboration between the Department for Education, the Office for Students and the Student Loans Company to tackle risks to public money swiftly and decisively. The response, which also addresses the National Audit Office’s recommendations, confirms that the government intends to consult on proposals to strengthen oversight of partnership delivery in higher education by January 2025.
The postgraduate master’s loan is a contribution to the student’s costs of study. It can be used by students, according to their personal circumstances, to cover tuition fees which may be lower than the amount of the loan, living costs and/or other course related costs. This flexibility would not be available were the loan paid directly to the provider.
Asked by: Lord Johnson of Marylebone (Conservative - Life peer)
Question to the Department for Education:
To ask His Majesty's Government what is their most recent estimate of (1) the Resource Accounting and Budgeting charge, and (2) the estimated cost to Government of their support for the student finance system, based on future loan write-offs and interest subsidies, (a) in net present-value terms, and (b) as a proportion of the initial loan outlay.
Answered by Baroness Barran - Shadow Minister (Education)
In the 2022/23 financial year, the Resource Accounting and Budgeting (RAB) charge, which is the government subsidy on student loans, was £5.5 billion, or 27% of the £20.0 billion of loans issued that financial year.
Of student loans issued in 2023/24, the government is expected to subsidise about £5.6 billion, or:
These forecasts are subject to change. The next statistical publication on student finance forecasts, which will contain the final RAB figures for the 2023/24 financial year, will be available at the end of June 2024.
Asked by: Lord Johnson of Marylebone (Conservative - Life peer)
Question to the Department for Education:
To ask His Majesty's Government what is the bidding process for the £7 million of funding to tackle antisemitism in schools and universities, announced in the Autumn Statement.
Answered by Baroness Barran - Shadow Minister (Education)
Following the Autumn Statement announcement, the government is preparing to issue an invitation for interested organisations to tender to tackle anti-semitism in schools, colleges, and universities. The department encourages all interested organisations to consider submitting a bid in response to the invitation to tender.
Asked by: Lord Johnson of Marylebone (Conservative - Life peer)
Question to the Department for Education:
To ask His Majesty's Government, further to the speech by the Home Secretary on 8 October in which she said “too many students coming into this country who are propping up, frankly, substandard courses in inadequate institutions”, whether they will list (1) all substandard higher education courses and the criteria for their inclusion in this category, and (2) all inadequate higher education institutions and the criteria for their inclusion in this category; and how many international students in total attend substandard courses at inadequate institutions.
Answered by Baroness Barran - Shadow Minister (Education)
The department is committed to tackling low-quality courses and ensuring that students and the taxpayer see returns on their investment. We are working with the Office for Students’ (OfS) to implement a visible and effective investigations regime that will enable the OfS to intervene where it has concerns about the quality of provision or student outcomes.
Where higher education providers are found to be in breach of requirements, the OfS may choose to impose sanctions such as financial penalties, suspension from the OfS register or, in the worst cases, deregistration
These “boots on the ground” inspections are part of significant regulatory reform being taken forward with the OfS, which aims to introduce a more rigorous and effective quality regime. This also includes setting stringent minimum thresholds on student outcomes for the first time.