Third Delegated Legislation Committee
10 March 2026
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Third Delegated Legislation Committee House of Commons
00:08 - 03:23
Speaker 1
Order. Order. The draft higher education fee limits and fee limit I beg to move that the committee has considered the draft higher education fee limits and fee limit condition England amendment regulation '20 26. To begin, would like to take this opportunity very briefly to explain that within the explanatory note for the SI, there was a discrepancy in the percentage increase for twenty twenty six-twenty seven, stated at 2.7% when it should have stated 2.71% and the percentage increase for twenty twenty seven-twenty eight stated 2.8% when it should have stated 2.68%. I can reassure members that a correction slip has been arranged regarding this and the other figures, the consequential figures on monetary terms, are not affected in the SI.
It's a pleasure to serve under your chairmanship this afternoon Sir John. This SI, which was laid in draft on the February 5, increases the limits upon tuition fees for higher education providers so that they can charge students studying an undergraduate course at approved fee cap providers in the 2026, 2027 and twenty twenty seven, twenty twenty eight academic years. Our higher education sector is critical to delivering a key mission for this government, is economic growth. It does so through world leading research and innovation, supporting businesses up and down the country, and by equipping people with the knowledge and skills they need to thrive. In some ways, higher education plays a part in most people's lives in this country whether through direct participation in university, through research, or the role it plays in our local communities.
We're all impacted by universities. It is also crucial for our future prosperity and wealth as a country. But now the sector is facing severe challenges. Office for students analysis suggests that without mitigating action, 45% of institutions faced a deficit in twenty twenty five-twenty twenty six. English providers are attempting to manage significant financial pressures.
One of these is the £1,700,000,000 aggregated loss of domestic teaching and the need for providers to draw on other income to cover it. Such challenges have been unaddressed for far too long and seven years of frozen tuition fees plus overly optimistic strategic and financial planning and potential issues with governance have contributed to the financial challenge facing providers. This government didn't shy away from these decisions and we started to fix the foundations by increasing fee limits for twenty fivetwenty six and boosting the sector's income. But we must go further if we're to put the sector on a stable footing and provide it with the greater financial certainty that it needs. This can be achieved by boosting incomes with conditions of improving teaching quality.
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