Question to the Department for Education:

To ask His Majesty's Government what plans they have to increase investment in skills training to meet the needs of more 150,000 additional students seeking higher education by 2030 in England.

It is important that the department has a sustainable higher education (HE) funding system that responds to the needs of the economy and that is fair to students and to taxpayers. The government keeps the HE funding system under continuous review to ensure that this remains the case, and to provide many different opportunities for learners to acquire vital skills.

The government is committed to creating a world-leading skills system, backed with an additional investment of £3.8 billion over the course of this Parliament to strengthen HE and further education (FE). This includes increasing opportunities for people to develop higher technical skills through T Levels, Apprenticeships, Skills Bootcamps, or Higher Technical Qualifications (HTQs). From 2025, the Lifelong Learning Entitlement will transform access to FE and HE, offering all adults the equivalent of four years’ worth of student loans to use flexibly on quality education training over their lifetime.

Through the Strategic Priorities Grant (SPG), the department is investing hundreds of millions of pounds in additional funding over the three-year period to the 2024/25 financial year to support high-quality teaching and facilities, the majority of which goes to supporting the provision of courses in high-cost subjects including in science and engineering, subjects that support the NHS, and degree apprenticeships. This includes the largest increase in government funding for the HE sector to support students and teaching in over a decade. The recurrent SPG budget is £1,456 million for the 2024/25 financial year. This includes an £18 million increase in support for strategically important high-cost subjects.

The department is also providing £40 million over two years through the SPG to support degree apprenticeship providers to expand and help more people access this provision. The department has seen year-on-year growth in degree level apprenticeships (Level 6 and 7) with almost 230,000 starts since their introduction in the 2014/15 academic year. The government has increased investment in the apprenticeships system in England to over £2.7 billion this financial year, to support employers of all sizes access high-quality apprenticeships at all levels.

The department’s Higher Technical Education reforms are growing skills at Level 4 and 5. The department has introduced new HTQs, which will increase the prestige and uptake of level 4 and 5 qualifications. To date, 172 qualifications have been approved as HTQs across seven occupational routes and are being taught at FE Colleges, Institutes of Technology, Universities, and Independent Training Providers. The department has provided up to £115 million in funding to providers to help grow provision across the country, on top of up to £300 million to create a network of 21 Institutes of Technology.