Universities and the post-16 education and skills white paper

There's much to consider in the government’s white paper. Substantial parts are intended to promote the further education and skills agenda, aligned with the prime minister’s target that two thirds of young people will participate in higher-level learning. These measures include the new V level post-GCSE qualifications, intended to promote vocational learning including by allowing V-level and A-level study to be combined, alongside other measures. 

For higher education in England, there's some expected (and hoped for) news on further inflationary fee cap increases. Other areas referenced include Lifelong Learning Entitlement and on tighter regulation of franchise arrangements, which are already known in some detail.

But alongside these announcements there's a much broader range of measures, some covered in a thematic way at this stage and others where there are brief mentions of points of detail. More details will emerge in further government and regulatory publications in the coming months.

Some broad themes

A number of broad themes feature; some are intended to align with the government’s growth agenda, others seek to identify areas where the sector is encouraged to drive efficiencies.

A key area is encouraging more collaborative activity and greater specialisation of providers. The paper acknowledges institutional autonomy, but also outlines that the government expects to see more consolidation and collaboration, which it says will make the sector stronger and more financially sustainable. Specialisation and collaboration will be “incentivised” through research funding reform. Included amongst the recommendations, the government says it will work with the Competition and Markets Authority to provide additional clarification on collaboration between providers within the existing legal framework. Some high level objectives will also be agreed with OfS to support collaboration, alongside a more robust market entry process. There is however no proposal at this stage for a special administration regime.

Stronger governance and a greater focus on aligning research funding with government priorities is another theme. There'll be closer alignment of OfS and UKRI approaches in some areas. Some research funding streams are to be better aligned with priority sectors supporting the Industrial Strategy and the Plan for Change. The Research Excellence Framework will become less reliant on publications. The paper outlines various work around research including cost recovery of research, including in relation to PhD programmes and improved efficiencies.

The white paper also indicates the importance of commercialisation activities and outlines some support for these, including through the Local Innovation Partnerships Fund.

Funding, finance and the international student levy 

The financial pressures in the sector are well known. The white paper provides some specifics around inflationary rises in home student undergraduate fee caps for the 2026/27 and 2027/28 academic years. But institutions should remember: before you rush to increase home student fees, check your (hopefully not so) small print.

At some point the government plans to legislate for fee caps to rise annually, linked to forecast inflation but “subject to periodic review”. However, future fee uplifts will be conditional on achieving a higher quality threshold under the OfS quality regime.

Maintenance loans will also increase yearly in line with forecast inflation, and some additional support will be available for care leavers. Targeted means tested maintenance grants will be introduced by the end of this Parliament funded by a new International Student Levy. Further detail will be set out in the autumn budget.

The paper references the government’s plans for replacing the student finance system with the Lifelong Learning Entitlement, starting in academic year 2026/27.  

There's also the promise of an alternative student finance product for those who “feel unable to use the current [interest based] student finance offer because of their faith”. This is an echo of similar proposals made by the 2010 coalition government, which never progressed.

The government also says it will “seek to better understand concerns within the post-1992 higher education sector about pension provision”.

Governance and regulatory reforms including student number controls and new awarding powers

The government says it will support stronger governance, including through stronger OfS conditions of registration, as well as through the review of the CUC code. There is government support for a reformed OfS regulatory framework “that focuses on driving out pockets of poor performance, strives to continue to improve quality and safeguards the financial health of the system in a balanced and proportionate way.”

OfS and government will also look at reforms to degree awarding powers, including a review of the merits of the external examiner system. The degree awarding powers reforms will also include powers in relation to a new Higher Technical Qualification (see below).

The white paper also includes: “When parliamentary time allows, we will legislate to ensure the Office for Students is able to impose recruitment limits where growth risks poor quality.”

Reference is also made to the tighter controls on franchising that'll flow from the recent DfE and OfS consultations. The promised legislation will also give the OfS stronger powers to act more quickly in relation to fraud or misuse of public money, including power to close down provision. The government is also considering further measures intended to tackle abuse of the student finance system by recruitment agents.

Alongside previously announced amendments to the Higher Education (Freedom of Speech) Act, the government intends to provide the OfS with stronger regulatory powers where a provider fails to meet its duties under the Act.

Among various plans intended to support access and participation, there'll be a more risk-based approach to access and participation plans. A “Task and Finish” group will focus on how best to widen access for those from disadvantaged backgrounds.  

Other higher education matters

The white paper covers a wide range of other relevant matters, some key elements being:

• More flexible modular provision and stronger progression routes from FE to HE. These will be supported by transferable credits and a consultation on student support for level 6 degrees being conditional on “the inclusion of break points in degree programmes”. The white paper indicates a plan for the break points to enable level 4 qualifications to be awarded in year one of studies, level 5 qualifications after year two. 
• The government and OfS will work to develop new Higher Technical Qualification (level 4/5) awarding powers to support greater flexibility of provision. Those studying level 4 higher technical provision will have options to progress either to level 5 at an FE or HE provider, or direct into the second year of an undergraduate degree.
• Proposals for a wave of short courses for employers called “apprenticeship units” starting from April 2026 initially in priority areas such as AI, digital and engineering. These short courses will be funded by employers through the Growth and Skills Levy.
• A “statement of expectations” on accommodation will call on providers to work strategically with local authorities to ensure there's adequate student accommodation for their student population.
• The Higher Education Mental Health Implementation Taskforce will continue for a further year, with greater student representation and to include focus on the recommendations from the National Review into Higher Education Student Suicides.
• There'll also be changes to UKRI postgraduate researcher training grants, with increased medical leave and improved parenthood leave arrangements.
• The government will publish a plan on artificial intelligence for science in the autumn. The OfS will also assess the impact of AI on assessments and qualifications.
• A refreshed International Education Strategy will be published.
• Existing initiatives on Lifelong Learning Entitlement, tighter regulation of franchising and measures concerning freedom of speech and tackling harassment are all referenced.

The government and regulatory bodies will set out further detail on the next steps in due course through consultations and other publications.