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Higher Education: Response to the Resolution of the House, 13 September 2017

Statement made on 6 December 2017

Statement UIN HCWS318


On 13 September 2017, the House agreed the motion that the Higher Education (Higher Amount) (England) Regulations 2016 (S.I., 2016, No. 1206) and the Higher Education (Basic Amount) (England) Regulations 2016 (S.I., 2016, No. 1205), both dated 13 December 2016, copies of which were laid before this House on 15 December 2016, in the last Session of Parliament, be revoked. These Regulations cover maximum fee caps for the current academic year, 2017/18.

The Government listened carefully to the views expressed in the House on 13 September 2017, and to those expressed by young people and their parents. I therefore made a Written Ministerial Statement to the House on 9 October 2017 setting out changes to higher education student finance which will benefit students further in 2018.

In that statement, I confirmed that the Government had decided to maintain maximum tuition fees at their current level for the 2018/19 academic year. This means that the maximum level of tuition fees for a full-time course will remain at £9,250 for the next academic year (2018/19). This is around £300 less than it would have been had the maximum fee been uprated with inflation.

I also confirmed changes to the earnings threshold above which borrowers are required to make contributions to the costs of their education. From April 2018, the repayment threshold for loan repayments will increase from its current level of £21,000 to £25,000 from the 2018-19 financial year. Thereafter the threshold will be adjusted annually in line with average earnings. These changes apply to those who have taken out, or will take out, loans for full-time and part-time undergraduate courses in the post-2012 system. They also apply to those who have taken out, or will take out, an advanced learner loan for a further education course.

Increasing thresholds will put more money in the pockets of borrowers by lowering their monthly repayments with the greatest overall lifetime benefit for those on middle incomes. Borrowers earning less than the repayment threshold (currently £21,000 a year, rising to £25,000 for 2018-19) will continue to be exempt from repayments.

Following the Written Ministerial Statement to the House on 9 October, I can now make a further announcement on student finance arrangements for higher education students undertaking a course of study in the 2018/19 academic year beginning in August 2018.

Maximum grants and loans for living and other costs will be increased by forecast inflation (3.2%) in 2018/19. And for the first time, students starting part-time degree level courses from 1 August 2018 onwards will qualify for loans for living costs.

Further details of the student support package for 2018/19 are set out in the attached document.

I expect to lay regulations implementing changes to student finance for undergraduates and postgraduates for 2018/19 early in 2018. These regulations will be subject to Parliamentary scrutiny. The Department of Health will be making a separate announcement on changes to student finance for postgraduate healthcare students and dental hygiene and dental therapy students in 2018/19.

These announcements build on the Government’s existing reforms to Higher Education, which have delivered a 25% increase in university funding per student per degree since 2012. University funding per student is today at the highest level it has ever been in the last 30 years.

We have world class universities accessed by a record number of young people from disadvantaged backgrounds and a progressive funding system which ensures that costs continue to be split fairly between graduates and the taxpayer. The entry rate for disadvantaged 18 year olds is already at a record high this year, and significantly higher than at the end of the 2016 cycle. People recognise that degrees from our universities provide a route to rewarding and well-paid jobs, and that is why more people are deciding to go to university than ever before.

We will build on those strengths through our planned reforms, which seek to improve the quality of teaching and incentivise universities to focus on graduate outcomes through the Teaching Excellence and Student Outcomes Framework.

We will be consulting shortly on widening provision of accelerated degrees to enable students to study more intensively, obtain degrees at lower cost, and secure a quicker entry or return to the workplace.

And the Government is committed to conducting a major review of funding across tertiary education to ensure a joined-up system that works for everyone. As current and significant reforms move into implementation, this review will look at how we can ensure that our post-18 education system is accessible to all; and is supported by a funding system that provides value for money and works for both students and taxpayers, incentivises choice and competition across the sector, and encourages the development of the skills that we need as a country.

Linked statements

This statement has also been made in the House of Lords

Department for Education
Higher Education: Response to the Resolution of the House, 13 September 2017
Viscount Younger of Leckie
The Lords Spokesperson (Department for Education) (Higher Education))
Conservative, Excepted Hereditary
Statement made 6 December 2017