Recommendations & Conclusions
26 items
2
Conclusion
9th Report - Higher Education and Fundi…
Accepted
The Office for Students’ TRAC data shows that Government research spending is not funding 80% of full economic costs of research in the way it should. The UKRI is undertaking research into why this is the case. We welcome the Government’s increase in research and development funding over this Parliament, …
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The Office for Students’ TRAC data shows that Government research spending is not funding 80% of full economic costs of research in the way it should. The UKRI is undertaking research into why this is the case. We welcome the Government’s increase in research and development funding over this Parliament, and commitment to retaining the real-terms value of QR-funding. The Department for Science, Innovation and Technology has also announced reforms to how research and development funding will be allocated into three buckets: of curiosity-driven foundational research; strategic government and societal priorities; and innovative companies. (Conclusion, Paragraph 50)
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Government response AI summary
The government maintains its commitment to meeting 80% of research's full economic costs and highlights existing actions by DSIT and UKRI to improve grant cost recovery, but states it cannot commit to a timeline due to institutional autonomy and applicant behavior.
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Department for Education
4
Recommendation
9th Report - Higher Education and Fundi…
Accepted
The representative bodies of small institutions, such as Conservatoires UK and Independent Higher Education, have highlighted the high cost of Office for Students regulations for such providers. The Office for Students should review the costs of its regulation to ensure they are fair to institutions of all sizes. (Recommendation, Paragraph …
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The representative bodies of small institutions, such as Conservatoires UK and Independent Higher Education, have highlighted the high cost of Office for Students regulations for such providers. The Office for Students should review the costs of its regulation to ensure they are fair to institutions of all sizes. (Recommendation, Paragraph 56)
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Government response AI summary
The government states it has already launched a public consultation on the Office for Students’ fee charging model, following an independent review that recommended a more proportionate approach. It will consider the committee's recommendation alongside the consultation's findings for future decisions.
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Department for Education
9
Conclusion
9th Report - Higher Education and Fundi…
Accepted
We heard concerns that the quality of governance had contributed to HE institutions facing financial difficulties. There is a need to ensure governing bodies have the capabilities and culture to challenge effectively the assumptions of senior leadership in higher education institutions, including on finances, projections of student numbers, and plans …
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We heard concerns that the quality of governance had contributed to HE institutions facing financial difficulties. There is a need to ensure governing bodies have the capabilities and culture to challenge effectively the assumptions of senior leadership in higher education institutions, including on finances, projections of student numbers, and plans for restructuring. (Conclusion, Paragraph 85)
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Government response AI summary
The government states that the Post-16 Education and Skills White Paper and the Higher Education Code of Governance already address the need for stronger governance, and that it will support the Office for Students in strengthening its management and governance conditions of registration.
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Department for Education
10
Recommendation
9th Report - Higher Education and Fundi…
Accepted
The Office for Students should develop a governance improvement programme for higher education institutions to ensure that good practice is disseminated, benchmarking tools are available and direct support to strengthen governance is available to institutions when needed. (Recommendation, Paragraph 86)
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The Office for Students should develop a governance improvement programme for higher education institutions to ensure that good practice is disseminated, benchmarking tools are available and direct support to strengthen governance is available to institutions when needed. (Recommendation, Paragraph 86)
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Government response AI summary
The government states that plans are already in place, referencing the Post-16 Education and Skills White Paper and an existing governance Code, and commits to supporting the Office for Students in strengthening its management and governance conditions of registration.
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Department for Education
17
Conclusion
9th Report - Higher Education and Fundi…
Accepted
The Government states that the present £9,535 fees are only worth £5,920 in 2012/13 terms, a reduction of 38%. Future increases in line with inflation will not reverse that historic reduction. We also know that publicly funded teaching for undergraduate home students costs more to deliver than the income received …
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The Government states that the present £9,535 fees are only worth £5,920 in 2012/13 terms, a reduction of 38%. Future increases in line with inflation will not reverse that historic reduction. We also know that publicly funded teaching for undergraduate home students costs more to deliver than the income received by HE providers, leaving them reliant on cross- subsidies. This means some higher education providers will continue to struggle in the next few years. Independent HE and the British Universities Finance Directors Group both highlighted the vulnerability of smaller and specialist institutions that are heavily dependent on tuition fee income. (Conclusion, Paragraph 103)
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Government response AI summary
The government has increased maximum tuition fees for the 2025/26, 2026/27, and 2027/28 academic years and committed to legislate for automatic future increases to provide long-term certainty and address the real-terms reduction.
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Department for Education
20
Conclusion
9th Report - Higher Education and Fundi…
Accepted
We have heard an early warning system is needed to give better information about the risk of a higher education provider becoming insolvent. Currently there is no clearly understood protocol for how the Government might respond to a situation of a provider at risk of imminent insolvency, which is a …
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We have heard an early warning system is needed to give better information about the risk of a higher education provider becoming insolvent. Currently there is no clearly understood protocol for how the Government might respond to a situation of a provider at risk of imminent insolvency, which is a very serious problem. (Conclusion, Paragraph 119)
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Government response AI summary
The government recognizes the concern and states that the Office for Students already monitors financial sustainability, has bolstered its approach, and is considering earlier intervention levers within the existing regulatory framework, with government support.
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Department for Education
21
Recommendation
9th Report - Higher Education and Fundi…
Accepted
An early warning protocol needs to be established with urgency. This follows calls for improved early warning from the Russell Group, the Institute of Physics and Aston University. A protocol would also address when the Government should intervene and ensure there is a clear process to manage the risk of …
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An early warning protocol needs to be established with urgency. This follows calls for improved early warning from the Russell Group, the Institute of Physics and Aston University. A protocol would also address when the Government should intervene and ensure there is a clear process to manage the risk of institutional insolvency. Such a protocol would be triggered by the Office for Students categorising an institution as being at risk of insolvency. (Recommendation, Paragraph 120)
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Government response AI summary
The government recognizes the need for early risk identification and management, stating that the Office for Students already monitors financial sustainability and has bolstered its approach, and is considering potential levers for earlier intervention within the existing regulatory framework.
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Department for Education
22
Recommendation
9th Report - Higher Education and Fundi…
Accepted
The protocol should include assessment of viability, quality of provision, size and scale and importance to the local community and economy, accompanied by a review of governance and greater financial reporting requirements. Costed plans would be required for protecting students, staff and the wider community in the event of insolvency. …
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The protocol should include assessment of viability, quality of provision, size and scale and importance to the local community and economy, accompanied by a review of governance and greater financial reporting requirements. Costed plans would be required for protecting students, staff and the wider community in the event of insolvency. A decision could then be made on which of a range of options to implement, including • Restructuring, • Merger or inclusion in a multi-university organisation, • Taken over by another institution, • Direct financial support, or • Orderly exit. (Recommendation, Paragraph 121) When a Higher Education provider becomes insolvent
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Government response AI summary
The government refers to existing arrangements, stating that the Office for Students already monitors financial sustainability, identifies risks, and has strengthened its approach to early intervention to protect students and the public interest.
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Department for Education
23
Conclusion
9th Report - Higher Education and Fundi…
Accepted
We have heard conflicting views about whether a higher education provider can continue to operate when insolvent. The Minister for Skills says that she thinks they can, arguing that institutions entering liquidation can carry on operating whilst being wound up. She stated that the threshold for government intervention in such …
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We have heard conflicting views about whether a higher education provider can continue to operate when insolvent. The Minister for Skills says that she thinks they can, arguing that institutions entering liquidation can carry on operating whilst being wound up. She stated that the threshold for government intervention in such a scenario would be very high. By contrast, the law firm Mills & Reeve LLP and sector stakeholders think an insolvent provider would, depending on their legal structure, potentially have to stop 113 trading and be liquidated immediately, which would have an immediate and devastating impact on students, who would not be able to complete their course. (Conclusion, Paragraph 133)
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Government response AI summary
The government outlines existing efforts where the Office for Students monitors financial sustainability, undertakes risk assessment, and has refocused on early intervention, with government support, to manage risks and protect students.
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Department for Education
24
Recommendation
9th Report - Higher Education and Fundi…
Accepted
Government should legislate to clarify the situation so that higher education providers that become insolvent can continue to operate and avoid a disorderly exit. Its response should also clarify the criteria for the threshold for Government intervention for each of the range of different types of entity that comprise higher …
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Government should legislate to clarify the situation so that higher education providers that become insolvent can continue to operate and avoid a disorderly exit. Its response should also clarify the criteria for the threshold for Government intervention for each of the range of different types of entity that comprise higher education institutions. (Recommendation, Paragraph 134)
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Government response AI summary
The government states that existing plans are in place, with the Office for Students already proactively monitoring financial sustainability, undertaking risk assessment, and engaging with providers. It highlights that the OfS is considering earlier intervention levers within the existing regulatory framework, but does not commit …
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Department for Education
25
Conclusion
9th Report - Higher Education and Fundi…
Accepted
We have heard differing views on whether a special regime would be beneficial to protect the interests of students, staff and other stakeholders, or whether creating a regime would distract from efforts to stave off insolvency. While we respect the concerns voiced by university organisations, the negative impact of a …
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We have heard differing views on whether a special regime would be beneficial to protect the interests of students, staff and other stakeholders, or whether creating a regime would distract from efforts to stave off insolvency. While we respect the concerns voiced by university organisations, the negative impact of a disorderly exit is too great to be left unchecked. (Conclusion, Paragraph 145)
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Government response AI summary
The government recognizes the importance of early risk identification and management, stating that the Office for Students already monitors financial sustainability and has bolstered its approach, and is considering potential levers for earlier intervention to protect students.
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Department for Education
26
Recommendation
9th Report - Higher Education and Fundi…
Accepted
A special regime, building on and learning lessons from the Further Education regime, could ensure an orderly exit. This would include ensuring teach-out processes for current students, protecting the sufficiency of sector-critical courses and allowing for mitigations to avoid geographical cold-spots. (Recommendation, Paragraph 146)
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A special regime, building on and learning lessons from the Further Education regime, could ensure an orderly exit. This would include ensuring teach-out processes for current students, protecting the sufficiency of sector-critical courses and allowing for mitigations to avoid geographical cold-spots. (Recommendation, Paragraph 146)
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Government response AI summary
The government asserts that the Office for Students (OfS) is already monitoring providers' financial sustainability, undertaking risk assessments, and considering earlier intervention levers within the existing regulatory framework to manage risks, rather than committing to a new special regime.
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Department for Education
33
Conclusion
9th Report - Higher Education and Fundi…
Accepted
There was strong support amongst our evidence from HE providers for the positive benefits of sharing services between higher education providers, but we have heard that a significant barrier to this is VAT on shared services for HE. Its removal would increase efficiency and enhance collaboration between providers. It is …
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There was strong support amongst our evidence from HE providers for the positive benefits of sharing services between higher education providers, but we have heard that a significant barrier to this is VAT on shared services for HE. Its removal would increase efficiency and enhance collaboration between providers. It is disappointing that HM Treasury was unable to provide us with details of the VAT receipts it receives from higher education providers that currently are sharing services and not benefiting from the Cost Sharing Group VAT exemption. (Conclusion, Paragraph 175)
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Government response AI summary
The government states it is already working across departments to explore how VAT rules constrain collaboration and is engaging with the sector on non-legislative measures, such as targeted guidance, to improve efficiency and foster more collaboration.
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Department for Education
34
Recommendation
9th Report - Higher Education and Fundi…
Accepted
Given the considerable financial pressures on higher education institutions and the potential cost saving benefits of sharing services, we recommend that the Department for Education works with the Treasury and the higher education sector to gather the necessary data to progress an exploration of removing VAT on shared services. (Recommendation, …
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Given the considerable financial pressures on higher education institutions and the potential cost saving benefits of sharing services, we recommend that the Department for Education works with the Treasury and the higher education sector to gather the necessary data to progress an exploration of removing VAT on shared services. (Recommendation, Paragraph 176)
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Government response AI summary
The government states it is already working across government to explore how VAT rules constrain collaboration and is engaging with the sector on non-legislative measures like guidance and best practice.
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Department for Education
35
Conclusion
9th Report - Higher Education and Fundi…
Accepted
Evidence from the higher education sector supported greater collaboration between providers. We welcome the CMA’s recent update about when collaboration with other higher education providers is permissible. We will monitor any future developments in this space, especially were a situation to arise in which competition law proved a barrier to …
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Evidence from the higher education sector supported greater collaboration between providers. We welcome the CMA’s recent update about when collaboration with other higher education providers is permissible. We will monitor any future developments in this space, especially were a situation to arise in which competition law proved a barrier to necessary and desirable collaboration between higher education providers. (Conclusion, Paragraph 181)
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Government response AI summary
The government acknowledges the need for competition law to allow collaboration and details existing engagement with the CMA, the provision of guidance, and an ongoing commitment to monitor and review the framework for potential future needs.
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Department for Education
39
Recommendation
9th Report - Higher Education and Fundi…
Accepted
There should be greater coordination by the Office for Students and UKRI with the Department for Education, the Department for Science, Innovation and Technology and other relevant Government departments and agencies, as called for by the Russell Group. This would build on the recent mapping of cold-spots published by HESA. …
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There should be greater coordination by the Office for Students and UKRI with the Department for Education, the Department for Science, Innovation and Technology and other relevant Government departments and agencies, as called for by the Russell Group. This would build on the recent mapping of cold-spots published by HESA. This could support greater collaboration between higher education providers once the CMA has clarified the law. (Recommendation, Paragraph 201)
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Government response AI summary
The government states that greater coordination is already embedded in the system through existing legislation, formal collaboration agreements, and close working between departments and agencies, noting ongoing efforts to enhance data sharing and analysis.
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Department for Education
44
Conclusion
9th Report - Higher Education and Fundi…
Accepted
We heard concerns about changes to the Graduate Visa under the previous and present governments. The graduate visa was one factor in the increase in international student numbers after 2021, and the changes since 2023 have been a factor in the subsequent reduction in the number of international students in …
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We heard concerns about changes to the Graduate Visa under the previous and present governments. The graduate visa was one factor in the increase in international student numbers after 2021, and the changes since 2023 have been a factor in the subsequent reduction in the number of international students in the last three years. These changes also mean the UK compares unfavourably to major competitor markets in Australia and Canada. (Conclusion, Paragraph 230)
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Government response AI summary
The government states that the independent Migration Advisory Committee has already conducted a review of the Graduate route and that the Home Office and DfE will continue to monitor the impact of changes and keep policies under regular review.
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Department for Education
45
Recommendation
9th Report - Higher Education and Fundi…
Accepted
The Government should carefully monitor the impact of its graduate visa changes, and publish an independent evaluation of the changes one year after the reduction to 18 months for undergraduate and taught postgraduate students takes effect. (Recommendation, Paragraph 231) 117
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The Government should carefully monitor the impact of its graduate visa changes, and publish an independent evaluation of the changes one year after the reduction to 18 months for undergraduate and taught postgraduate students takes effect. (Recommendation, Paragraph 231) 117
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Government response AI summary
The government states that the independent Migration Advisory Committee has already reviewed the Graduate route and that the Home Office and DfE will continue to monitor the impact of changes, but does not commit to a new independent evaluation one year after the 18-month reduction.
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Department for Education
46
Conclusion
9th Report - Higher Education and Fundi…
Accepted
We understand the Government’s wish to crackdown on abuse of the student visa system. The Government has decided to pursue this objective through reforming the BCA requirements. We have heard concerns from higher education providers and stakeholders about the implementation of the tougher BCA requirements, particularly how they would be …
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We understand the Government’s wish to crackdown on abuse of the student visa system. The Government has decided to pursue this objective through reforming the BCA requirements. We have heard concerns from higher education providers and stakeholders about the implementation of the tougher BCA requirements, particularly how they would be measured and publicised. We heard that the international student market is changing with demand from China expected to decline. This makes it vital that HE institutions can diversify the countries which they recruit from. However, the BCA reforms appear to be deterring HE institutions from diversifying where they recruit from, despite this being an objective supported by the Government’s International Education Strategy. (Conclusion, Paragraph 244)
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Government response AI summary
The government states that BCA changes are being phased in with transitional measures and discretion, and that UKVI is already enhancing data sharing mechanisms with institutions.
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Department for Education
48
Recommendation
9th Report - Higher Education and Fundi…
Accepted
The Government response should also outline how its approach on BCA will help rather than harm attempts to diversify where higher education providers recruit international students from. (Recommendation, Paragraph 246)
Government response AI summary
The government outlined its approach to the BCA framework, explaining that it does not restrict recruitment sources and is expected to encourage diversification by prompting sponsors to adopt risk-aware strategies and reduce over-reliance on specific markets.
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Department for Education
51
Recommendation
9th Report - Higher Education and Fundi…
Accepted
The Government should clarify whether it intends to continue with the Turing Scheme. It should also outline what lessons it has taken from the Turing Scheme, for instance around provision for students from disadvantaged backgrounds, the geographical range of institutions linked to, and how beneficial aspects will be built into …
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The Government should clarify whether it intends to continue with the Turing Scheme. It should also outline what lessons it has taken from the Turing Scheme, for instance around provision for students from disadvantaged backgrounds, the geographical range of institutions linked to, and how beneficial aspects will be built into association with Erasmus+. (Recommendation, Paragraph 251) 118 The International Student Levy and Maintenance Grants
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Government response AI summary
The government accepts the recommendation, confirming the Turing Scheme budget for 2026/27 and its transition to an expanded Erasmus+ in 2027/28. It outlines lessons learned from the Turing Scheme regarding disadvantaged students and inclusion, confirming these will be built into the new Erasmus+ program.
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Department for Education
54
Recommendation
9th Report - Higher Education and Fundi…
Accepted
In particular, we have heard there are concerns that the levy will disproportionately affect institutions with high numbers of local students and students from disadvantaged backgrounds, the very same students who the Government intends will benefit from maintenance grants. In its response, the Government needs to provide a more detailed …
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In particular, we have heard there are concerns that the levy will disproportionately affect institutions with high numbers of local students and students from disadvantaged backgrounds, the very same students who the Government intends will benefit from maintenance grants. In its response, the Government needs to provide a more detailed analysis than the Impact Analysis published at the November 2025 Budget. Specifically, it should provide further details of the impact on different types of providers, and the wider ramification on the local economy and community where those providers are located. (Recommendation, Paragraph 277)
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Government response AI summary
The government states that updates and refinements will be made to the International Student Levy’s impact analysis before its introduction, to consider the latest available evidence and data.
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Department for Education
55
Recommendation
9th Report - Higher Education and Fundi…
Accepted
In its Immigration White Paper the Government said the levy would be reinvested in the higher education and skills system. It should confirm whether it expects revenue from the levy to pay for other areas of the skills system in addition to higher education maintenance grants. (Recommendation, Paragraph 278)
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In its Immigration White Paper the Government said the levy would be reinvested in the higher education and skills system. It should confirm whether it expects revenue from the levy to pay for other areas of the skills system in addition to higher education maintenance grants. (Recommendation, Paragraph 278)
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Government response AI summary
The government confirms that the revenue from the International Student Levy will be reinvested into other areas of the skills system, in addition to higher education maintenance grants, as previously stated in its technical consultation document.
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Department for Education
58
Recommendation
9th Report - Higher Education and Fundi…
Accepted
The Government should establish monitoring and evaluation of the impact of the levy, which could be undertaken by the Office for Students, in terms of the impact on the financial sustainability of HE institutions. It should also evaluate the impact on international and domestic students and the wider local economy …
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The Government should establish monitoring and evaluation of the impact of the levy, which could be undertaken by the Office for Students, in terms of the impact on the financial sustainability of HE institutions. It should also evaluate the impact on international and domestic students and the wider local economy and community. This should be published each year. (Recommendation, Paragraph 281)
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Government response AI summary
The government commits to monitoring and assessing the impact of the International Student Levy as it is implemented.
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Department for Education
59
Conclusion
9th Report - Higher Education and Fundi…
Accepted
We heard support for reinstating maintenance grants and calls for better maintenance provision, given that the value of maintenance loans have fallen in real terms in recent years. (Conclusion, Paragraph 282)
Government response AI summary
The government is reintroducing targeted, means-tested maintenance grants of up to £1,000 per year for disadvantaged students, starting from academic year 2028/2029, to be funded by a levy on international students.
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Department for Education
60
Conclusion
9th Report - Higher Education and Fundi…
Accepted
We welcome the new maintenance grants as part of support for UK students. The Committee may well examine student funding as part of wider work into student wellbeing later in this Parliament. (Recommendation, Paragraph 283)
Government response AI summary
The government is reintroducing targeted, means-tested maintenance grants of up to £1,000 per year for disadvantaged students, starting from academic year 2028/2029, to be funded by a levy on international students.
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Department for Education