Written by Education Officer, Sarah Jilani.
The Government says the new Post-16 Skills White Paper will strengthen quality and choice. We think it risks widening inequality and putting even more financial pressure on students.
This week, the Government published the Post-16 Skills White Paper, setting out its plans for Higher and Further Education. The proposals include new V-levels replacing many BTECs, linking tuition fees to measures of “quality,” and changes to maintenance loans and grants. If implemented, these reforms could significantly reshape colleges, universities, and the student experience for years to come.
What's in the Skills White Paper?
The Government’s Skills White Paper focuses on closing skills gaps and aligning education with the Government’s economic priorities. Key proposals that impact universities include:
- Home tuition fees will increase and be linked to "quality": Universities will be allowed to increase tuition fees for home undergraduate students in line with inflation. However, future increases to the maximum fee will be depend on measures, like teaching standards, student satisfaction, and student outcomes.
- International Student Levy: The proposal restates that the Government will tax universities on their international student income, which is likely to be 6%.
- Maintenance loans will rise with inflation, and the Government will reintroduce non-repayable, means-tested maintenance grants. However, these will only be open to students from the lowest-income households that are studying courses which the Government considers supportive of its "missions and Industrial Strategy". These grants will be funded by a new levy on international students, but further information on the detail of this is going to be given at the Government’s Autumn Budget next month.
- Accommodation: The Government say's it's committed to working with universities and local authorities to ensure the supply of accommodation meets demand. A forthcoming "statement of expectations" will be issued, calling on providers to develop strategic plans in partnership with local councils to meet demands.
Why does it matter?
- The rise in tuition fees, for the majority of home undergraduate students, will mean more debt for graduates. Linking fees to the quality of education risks nudging students (especially those from low-income backgrounds) towards poorer quality education. All students should be provided with a high-quality education wherever they choose to study.
- The proposed increase in maintenance loan is welcomed and something we have been asking for over many years. However, it is unlikely to be enough for many students who are already struggling with the rising cost of accommodation, food, and travel. With maintenance loans already falling short, an inflationary increase to the amounts available to students will only stop things from getting worse rather than deal with the actual problem. Alongside this, it is disappointing that the Government has not indicated any change to the income thresholds that already restrict the amount of maintenance loan available to students. These thresholds have not been updated since 2008/09.
- Restricting the new maintenance grants to government-defined "priority" courses risks creating a stark, two-tier system of financial support. A UCL undergraduate student from a low-income household studying a subject like Engineering or Computer Science may be eligible for a non-repayable grant. However, a student from an identical socio-economic background studying History, Law, or Modern Languages could receive no such support, despite facing the exact same living costs.
- To fund these maintenance grants, a new levy will be placed on international students. This would unfairly increase the costs faced by future international students, something that will be hugely damaging to our community at UCL. There is also a concern that this will lead to fewer international students coming to study in the UK, with the levy costing UCL an estimated £42 million per year, which the university would have to absorb or pass on to students. Initial sector analysis suggests that the financial impact could reduce the number of places available for home students.
- It is good to see that the Government recognises ongoing challenges in student accommodation, but meaningful change will only happen if students and Students’ Unions are directly involved in shaping the upcoming “statement of expectations”.
What we’re doing to represent you:
We’re making sure student voices are being heard directly by people shaping national policy. Last month, we participated in the Labour Party Conference and voiced our concerns to Baroness Smith of Malvern, Skills Minister, Helen Hayes MP (Chair of the Education Select Committee), and Sarah Smith MP (Labour Party Opportunity Mission Champion).
We’ve written to Members of Parliament and Peers to set out our concerns about some of the changes proposed by the Government, and we'll continue the conversation over the next few weeks. We also made a submission to the Autumn Budget to outline the priorities we would like the Government to consider.
In early November, I’ll be going to Parliament with other student leaders across England to discuss the impact these changes will have and call for a fairer deal for students.