Recommendations & Conclusions
11 items
3
Recommendation
9th Report - Higher Education and Fundi…
Accepted in Part
The Government should confirm its commitment to meet the 80% full economic costs of research, its timetable for when it expects to meet 80% full economic costs, and its assessment of the long-term sustainability of 109 this model given the reduction in cross-subsidy for home undergraduate students from other sources …
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The Government should confirm its commitment to meet the 80% full economic costs of research, its timetable for when it expects to meet 80% full economic costs, and its assessment of the long-term sustainability of 109 this model given the reduction in cross-subsidy for home undergraduate students from other sources such as fee income from international students. (Recommendation, Paragraph 51)
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Government response AI summary
The government confirms its commitment to meeting 80% of research's full economic costs and believes the model is sustainable, but cannot commit to a timeline for increasing cost recovery due to factors driven by independent institutions and other funders.
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Department for Education
8
Recommendation
9th Report - Higher Education and Fundi…
Accepted in Part
The Government should outline the measures it and the Office for Students are taking to ensure the sustainability of higher education institutions’ borrowing, to work with creditors to ensure they recognise the benefit of avoiding an institution closing, and measures to support HE institutions that are in particular financial difficulty. …
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The Government should outline the measures it and the Office for Students are taking to ensure the sustainability of higher education institutions’ borrowing, to work with creditors to ensure they recognise the benefit of avoiding an institution closing, and measures to support HE institutions that are in particular financial difficulty. This should include consideration of when tuition fee loans are paid to higher education providers, and 110 whether the Office for Students should have a role in agreeing high levels of borrowing, as occurred with its predecessor, the Higher Education Funding Council for England (HEFCE), and occurs in Scotland and Wales. (Recommendation, Paragraph 75)
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Government response AI summary
The government partially accepts the recommendation, stating it will continue to engage with providers, the Office for Students, and lenders on financial risks, and keep under review a potential role for the OfS in agreeing high borrowing. However, it rejects changing the tuition fee payment …
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Department for Education
14
Conclusion
9th Report - Higher Education and Fundi…
Accepted in Part
The Government has been welcoming of transnational education, but in such a tumultuous global situation establishing campuses abroad also carries financial risks. (Recommendation, Paragraph 94)
Government response AI summary
The government partially accepts the conclusion, recognizing providers' responsibility for managing finances. It commits to promoting high-quality transnational education, working with the Office for Students to set clearer expectations for international risk management, raising awareness, and investing £3m to support the sector in managing these …
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Department for Education
15
Recommendation
9th Report - Higher Education and Fundi…
Accepted in Part
The Government should outline how it and the Office for Students are working with HE institutions and franchisees to monitor this situation and manage the potential impact of a franchisee becoming insolvent. It should also outline what increased measures are being taken to monitor the risks of transnational education on …
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The Government should outline how it and the Office for Students are working with HE institutions and franchisees to monitor this situation and manage the potential impact of a franchisee becoming insolvent. It should also outline what increased measures are being taken to monitor the risks of transnational education on HE institutions. (Recommendation, Paragraph 95) 111
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Government response AI summary
The government partially accepts, outlining existing Office for Students monitoring for financial risks, including franchisees, and committing to further work with the OfS on international risk management for transnational education, including new guidance, a reporting route, and a £3m investment.
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Department for Education
36
Recommendation
9th Report - Higher Education and Fundi…
Accepted in Part
The Government and the CMA should continue to monitor the impact of competition law on the higher education sector, including whether it is deterring necessary conversations and moves towards closer 115 collaboration and mergers. The Government should also launch a consultation looking at whether any changes needed to be made …
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The Government and the CMA should continue to monitor the impact of competition law on the higher education sector, including whether it is deterring necessary conversations and moves towards closer 115 collaboration and mergers. The Government should also launch a consultation looking at whether any changes needed to be made to the operation of competition law in the higher education sector in the future. (Recommendation, Paragraph 182)
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Government response AI summary
The government accepts the recommendation to continue monitoring the impact of competition law and engaging with the CMA, but only commits to considering launching a consultation if needed, rather than initiating one as explicitly recommended.
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Department for Education
38
Recommendation
9th Report - Higher Education and Fundi…
Accepted in Part
There should be greater coordination between local higher education providers, with further education colleges (many of which offer higher education courses) and with metro-mayors and combined authorities. Following the proposal of Lincoln University, there could be a role for regional skills bodies and devolved and local authorities in co-designing and …
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There should be greater coordination between local higher education providers, with further education colleges (many of which offer higher education courses) and with metro-mayors and combined authorities. Following the proposal of Lincoln University, there could be a role for regional skills bodies and devolved and local authorities in co-designing and commissioning higher education provision to meet the need for skills in the public and private sectors in that region. (Recommendation, Paragraph 200)
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Government response AI summary
The government agrees on stronger local coordination and highlights existing initiatives to promote collaboration, but explicitly rejects formal co-design or commissioning of higher education provision by local or regional bodies, stating that providers are autonomous.
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Department for Education
40
Recommendation
9th Report - Higher Education and Fundi…
Accepted in Part
The Government’s reforms to the Strategic Priorities Grant should consider whether to reintroduce the Strategically Important and Vulnerable Subjects programme that existed in the 1990s and 2000s and as proposed by the Royal Astronomical Society and Universities UK. Funding through the grant could cover both high-cost subjects (which the Government …
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The Government’s reforms to the Strategic Priorities Grant should consider whether to reintroduce the Strategically Important and Vulnerable Subjects programme that existed in the 1990s and 2000s and as proposed by the Royal Astronomical Society and Universities UK. Funding through the grant could cover both high-cost subjects (which the Government has said it wants to prioritise) and strategically important subjects not currently eligible for teaching grants (e.g. modern languages). The diversity of the higher education sector should be reflected by targeting such grants at areas or types of institution where cold-spots are at risk of developing, to ensure the provision of high-cost and strategically important subjects across the country and at institutions with varying entry standards. (Recommendation, Paragraph 202) 116 International Students: Impact of the Government’s reforms
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Government response AI summary
The government partially accepts the recommendation, stating it is reforming the Strategic Priorities Grant to target high-cost and strategically important subjects. It will consider regional provision and collaborate with the Office for Students on access improvements, though it does not commit to reintroducing the specific …
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Department for Education
47
Recommendation
9th Report - Higher Education and Fundi…
Accepted in Part
The Government should address the concerns raised by higher education providers about how they will monitor the tougher BCA targets for institutions. It should commit to using real-time data, avoid using unreliable international ranking metrics, consider phasing in the changes, and ensuring the metrics do not treat smaller providers unfairly. …
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The Government should address the concerns raised by higher education providers about how they will monitor the tougher BCA targets for institutions. It should commit to using real-time data, avoid using unreliable international ranking metrics, consider phasing in the changes, and ensuring the metrics do not treat smaller providers unfairly. (Recommendation, Paragraph 245)
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Government response AI summary
The government is phasing in BCA changes, with tightened metrics taking effect in June 2026 and June 2027, and transitional measures in place. It will offer discretionary assessments for smaller institutions and has enhanced data sharing mechanisms, addressing concerns about monitoring and fairness.
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Department for Education
52
Conclusion
9th Report - Higher Education and Fundi…
Accepted in Part
We heard strong opposition from the higher education sector to the International Student Levy. They are concerned they may not be able to pass on the extra cost to students through higher fees and will struggle to absorb the additional financial cost given the sector’s wider financial difficulties. We were …
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We heard strong opposition from the higher education sector to the International Student Levy. They are concerned they may not be able to pass on the extra cost to students through higher fees and will struggle to absorb the additional financial cost given the sector’s wider financial difficulties. We were told by the Chair of the Migration Advisory Committee that he expects in the long run the cost will be passed on to international students. The Government told us that the funding of maintenance grants through the levy would tangibly demonstrate the benefits that international students bring to the UK higher education system, particularly through benefiting disadvantaged students in England. (Conclusion, Paragraph 275)
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Government response AI summary
The government states it has listened to the sector's concerns regarding the International Student Levy and has introduced measures such as delaying implementation until 2028/29, allowing payment in arrears, and providing an allowance for smaller providers, alongside a technical consultation and continued engagement.
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Department for Education
53
Recommendation
9th Report - Higher Education and Fundi…
Accepted in Part
The Government has decided to proceed with the international student levy, despite the evidence which we received expressing concerns about its impact on the higher education sector. We urge the Government to engage with and take on board the concerns of the higher education sector about the risks of the …
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The Government has decided to proceed with the international student levy, despite the evidence which we received expressing concerns about its impact on the higher education sector. We urge the Government to engage with and take on board the concerns of the higher education sector about the risks of the levy given the financial precariousness of different providers. (Recommendation, Paragraph 276)
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Government response AI summary
The government states it has listened to concerns and introduced mitigations for the international student levy, including delaying its introduction until 2028/29, allowing payment in arrears, providing an allowance for smaller providers, and launching a technical consultation for continued engagement.
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Department for Education
56
Recommendation
9th Report - Higher Education and Fundi…
Accepted in Part
During our visit to Warwick University we heard that the increased graduate unemployment in China and a currency shock in Nigeria have made students from those countries more price sensitive. There is also increasing competition with a growing number of countries seeking to attract international students. Therefore, the Government should …
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During our visit to Warwick University we heard that the increased graduate unemployment in China and a currency shock in Nigeria have made students from those countries more price sensitive. There is also increasing competition with a growing number of countries seeking to attract international students. Therefore, the Government should also research and publish how price elasticity differs among students by countries of origins. (Recommendation, Paragraph 279) 119
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Government response AI summary
The government states it is already conducting and expects to publish research on the price elasticity of EU and non-EU students by Autumn 2026. However, it will not assess price elasticity by country of origin, deeming such detailed analysis as not providing robust conclusions.
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Department for Education