What does a new labour government mean for higher education?

Some of the key areas needing attention include:

Funding reform for universities and tuition fees

A report by the Office for Students forecasted that 40% of England’s universities would end this year in debt. Universities are facing financial difficulties due to frozen tuition fees for domestic students and visa restrictions on international students. Although Labour has not specified their approach to these funding challenges, they have acknowledged the need for reforms in tuition fees and university funding.

Visas and international students

On July 17, 2023, the UK government introduced new rules for international students, effective from January 2024. International students are no longer allowed to bring dependents to the UK via their student visa, except for those on postgraduate research programmes. This law change has led to a decrease in international student visa applications, exacerbating the financial strain on universities reliant on international tuition fees.

FE and Apprenticeships

Starting April 1, 2024, the government will fully fund apprenticeships in small businesses by covering the training costs for individuals up to the age of 21.

Additionally, the funding amount that levy-paying employers can transfer to other businesses will increase. Currently, employers can transfer up to 25% of their unused levy to another employer. The new measures will allow large employers to transfer up to 50% of their funds to support smaller businesses in taking on apprentices.

What difference do you think this will make within higher education?

The UK higher education sector has faced significant challenges due to the COVID-19 pandemic and a reduction in international student numbers, a crucial source of income.

A new government in the UK presents an opportunity to enhance the higher education sector by fostering innovation, increasing accessibility, and ensuring sustainable funding. By prioritising these areas, the government can support universities to continue delivering high-quality education, and equipping students with the skills and career opportunities needed to succeed.

Speak to our higher education expert by emailing moon.yates@waterstons.com