Phillipson tells universities to deliver better outcomes in return for higher fees

• Disadvantaged students supported to get on in life through annual rises in maintenance support in new Post-16 Education and Skills White Paper 
• Tuition fees to rise with inflation to put universities on firmer financial footing
• Only universities delivering strong outcomes for students to be allowed to charge maximum tuition fees 

Bold plans to break down barriers to opportunity, hold universities to account, and put the post-16 education system on a firmer financial footing have been unveiled as part of the government's plan for national renewal. 

Higher education reforms in the landmark Post-16 Education and Skills White Paper will ensure disadvantaged students are no longer priced out of university. Maintenance loans will automatically increase each year, with the biggest cash increases going to those from the lowest-income households, after the Education Secretary recently announced targeted maintenance grants will also be reintroduced. 

The announcement follows data showing the gap in university entrance rates between disadvantaged pupils and their better off peers had grown to its widest since records began in 2005. 

Last year tuition fees were increased in line with inflation for the first time since 2017. The Office for Students is forecasting 43% of institutions will be in deficit without further action to shore up their finances. 

To support universities in continuing to deliver world-class teaching and research, tuition fees will rise in line with forecast inflation for the next two academic years. Legislation will then be brought forward, when parliamentary time allows, to enable automatic increases to fee caps in future years in line with inflation but only for institutions that meet tough new quality thresholds set by the Office for Students. 

This means universities will need to earn the right to access future fee uplifts by delivering strong outcomes for students and meeting the Office for Students' tough new standards. 

Education Secretary Bridget Phillipson said: 

“Young people from all backgrounds feel they have been let down by a system that talks about opportunity but too often fails to deliver it. 
 
“This government and this White Paper will change that – restoring the prestige of higher and further education so every person, in every part of our country, has the chance to get on. 
 
“Universities charge significant fees for their courses. If they are going to charge the maximum, it is right that they deliver the world-class education students expect. 

“These reforms will ensure value for money, higher standards across our universities and colleges and a renewed focus on the skills our economy needs.” 

Where standards fall short, the Office for Students will act quickly to stop the expansion of low-quality courses and hold providers to account. Universities that underperform could face financial and regulatory consequences, ensuring public money is spent only on courses that deliver for students and the economy. 

The government will also tighten controls on franchising arrangements to protect public money and take action against the abuse of the system by recruitment agents. 

The new measures unveiled today build on earlier announcements from the Prime Minister, including a new target for two-thirds of young people to participate in higher-level learning– academic, technical, or apprenticeships – by age 25, up from 50% today. A sub-target will ensure at least 10% of young people pursue higher technical education or apprenticeships by age 25 by 2040, a near doubling of today's figure. 

This will be supported by the automatic backstop to ensure all young people have access to high-quality routes that meet employers' needs, enhanced by local skills planning to drive growth across England. 

Higher and further education will be more flexible and accessible for people at every stage of their working lives, supported by the introduction of Lifelong Learning Entitlement. 

Learners will be able to move between universities, colleges and training providers, building up qualifications over time to fit their evolving needs and ambitions. A consultation next year will look at introducing new “break points” within degrees, so students can gain recognised qualifications as they progress through higher education. 

The government will also work with universities and local authorities to ensure they offer adequate accommodation for their students and support efforts to drive down the cost of living. 

A new national taskforce, chaired by access and participation Champion Professor Kathryn Mitchell, will tackle regional university ‘cold spots' and break down systemic barriers that disadvantaged students face when trying to access higher education. 

ENDS 

Notes to editors 

• The Post-16 Education and Skills White Paper is available here https://www.gov.uk/government/publications/post-16-education-and-skills-white-paper

• We will increase undergraduate tuition fee caps for all higher education providers in line with forecast inflation in academic years 26/27 and 27/28. 

• We will legislate when parliamentary time allows to increase tuition fee caps automatically for future academic years. 

• We will make future fee uplifts conditional on higher education providers achieving a higher quality threshold through the Office for Students' quality regime. This includes strong employment outcomes, students equipped for career progression, and access to high quality resources and pastoral support. 

• Maintenance loans will automatically increase year on year in line with inflation on a permanent basis with no fixed end date. 
• Tuition fees caps for foundation years in classroom-based subjects will be frozen for academic years 26/27 and 27/28.