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Written question asked by Baroness Benjamin (Liberal Democrat) on Tuesday, 14 July 2026, in the House of Lords. It was due for an answer on Tuesday, 28 July 2026. It was answered by Baroness Smith of Malvern (Labour) on Tuesday, 28 July 2026 on behalf of the Department for Education.

Universities: Finance

Question

To ask His Majesty's Government what steps they are taking to improve the long-term financial sustainability of universities, particularly in the light of rising operating costs, the declining real-terms value of tuition fees, and changes in international student recruitment.

Answer

The department remains committed to creating a secure future for the higher education (HE) sector. The Post-16 Education and Skills White Paper sets out our commitment to placing the sector on a more sustainable footing, supporting providers to drive efficiency, strengthening financial resilience, and adopting more effective operating models. We increased tuition fee caps in line with inflation in 2025/26 and are doing the same in 2026/27 and 2027/28.

HE providers are independent from government and are responsible for managing their finances. We encourage providers to work with their staff to develop sustainable business models that retain talent and expertise and provide stability for the workforce and the institution.

The department continues to work closely with the Office for Students to understand the sector’s changing financial landscape.

The International Education Strategy has confirmed our continued commitment to welcome international students who meet the requirements to study in the UK.

Secondary information

Type
Written question
Reference
HL2048
Session
2026-27
Grouped for answer
Yes
Subjects
Finance Overseas students Universities Operating costs
Link
View this Written question on www.parliament.uk