Universities must demonstrate that they deliver the “best outcomes” for students in light of the increase in tuition fees, the Education Secretary has said.
Bridget Phillipson said universities should “raise the bar further” on teaching standards and “drive out poor practice”, and they should expand access and improve outcomes for disadvantaged students.
The Government will set out its longer-term plan for higher education reform by summer, she added.
It comes after the Government announced in November that undergraduate tuition fees in England, which have been frozen at £9,250 since 2017, will rise to £9,535 for the 2025-26 academic year.
It also announced that maintenance loans will increase in line with inflation in the 2025-26 academic year to help students with their living costs.
Universities have warned of financial concerns as a result of frozen tuition fees paid by domestic students and a fall in the number of overseas students.
In a written ministerial statement on Monday, the Education Secretary said: “We will expect the higher education sector to demonstrate that, in return for the increased investment that we are asking students to make, they deliver the very best outcomes both for those students and for the country
“We have set out our five priorities for reform of the higher education system and will work in partnership with the sector over the coming months to shape the changes to government policy that will be needed to support this reform.”
Ms Phillipson said she expects universities to make a “stronger contribution” to economic growth, and to play a “greater civic role” in their communities.
She also set out further changes to student support for the 2025-26 academic year.
Maximum loans for students undertaking postgraduate courses from August will be increased by 3.1% in 2025-26, and the same increase will apply to the maximum disabled students’ allowance for postgraduate students with disabilities in 2025-26.
The maximum allowance for students with disabilities undertaking full-time and part-time undergraduate courses in 2025-26 will also increase by 3.1%, as will maximum grants for students with child or adult dependants who are attending full-time undergraduate courses.
In her statement, Ms Phillipson added: “Bereaved partners and children of Gurkhas and Hong Kong military veterans discharged before 1997 who have been granted indefinite leave to enter or indefinite leave to remain will not be subject to the three-year ordinary residence requirement but will instead need to be ordinarily resident in England on the course start date to qualify for student support and home fee status.
“This change is being introduced as these students may find it difficult to meet the normal ordinary residence requirements for student support and home fee status.”
Nick Hillman, director of the Higher Education Policy Institute (Hepi) think tank, said: “The fee and maintenance increases are nothing like enough to cover rising costs.
“The national insurance increase alone, for example, will eat up all of the fee rise, so we know for certain that it won’t lead to a better student experience.
“Ministers should not claim that they are improving higher education when they are giving with one hand and taking with the other in this way.
“We know students need thousands more each year to live with dignity but they are being offered only a couple of hundred quid more in maintenance loans.
“In my view we need above-inflation increases for a number of years if we are to be fair to both universities and students. Neither the previous government nor the current one have supported that, sadly.”
Vivienne Stern, chief executive of Universities UK (UUK), said: “It is good that the Government has grasped the nettle and increased the undergraduate fee in line with inflation for the first time in nearly a decade. We also welcome the increase in maintenance loans.
“But this should be normalised. The fee should keep pace with inflation every year.
“Otherwise, we will be back where we started, with the income universities get for teaching falling in value every year as inflation erodes it, while costs rise. That would be unsustainable.”
A Department for Education spokesman said: “Due to the dire economic situation we inherited, this Government has taken tough decisions to put universities on a firm footing.
“Our reforms will ensure value for money for students while delivering the high-quality education they deserve and ensuring universities play their part in driving economic growth.
“The Office for Students is rightly refocusing its efforts on monitoring financial sustainability, to help create a secure future for our world-leading sector.”
