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The Government now only pays for a sixth of the cost of undergraduate degrees in England, a new report has found.
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report → see → England
New analysis from the consultancy London Economics shows the estimated state contribution has reduced from 48 per cent of the total in 2012-13 to just 16 per cent in 2024-25.
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contribution → show → 2024
Students and graduates are now expected to cover the remaining 84 per cent, up from 52 per cent 12 years previously, the report said.
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report → expect → cent
The study was produced for Universities UK, which represents vice chancellors.
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which → produce → chancellors
Government contribution was defined as direct funding, including teaching grants, as well as estimated costs absorbed by the Exchequer from loans being wiped in the future.
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contribution → define → future
All loans that remain unpaid are cancelled after 30 or 40 years, depending on which plan a student is on.
The data comes amid a row over student finance in England, with Education Secretary Lucy Powell under pressure to U-turn on a Labour policy to change the terms of Plan 2 loans.
Vivienne Stern, chief executive of Universities UK, said: 'This analysis shows that, over time, successive governments have been shifting more and more of the cost of getting a degree onto graduates.
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governments → remain → graduates
The government now pays for only a sixth of the cost of undergraduate degrees in England, a new report has found (file photo)
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report → pay → England
When the fee system was introduced, it was designed to be a co-payment model.
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it → introduce → ?
'We need a reset, which recognises that we all benefit when a student studies for a degree.
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student → need → degree
The Treasury makes a profit on investing in graduates because of the higher tax and national insurance contributions they make, and society benefits from graduates staffing public services and driving economic growth.
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graduates → make → growth
The report was published on the same day as a separate study from the Organisation for Economic Co-operation and Development (OECD).
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report → publish → operation
This found the UK as a whole significantly reduced state funding per university student in recent years – in contrast to most other countries.
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UK → find → countries
The OECD's report only examined direct government funding to universities, and did not include money written off at the end of loan terms.
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report → examine → terms
Its analysis included undergraduate, master's and doctoral level students.
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analysis → include → students
The figures showed an 8.8 per cent decrease in government spending on students in the UK between 2015 and 2023.
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figures → show → 2015
The only countries reducing their spending more in that period were Finland, by 15 per cent, and Bulgaria, by 28.7 per cent.
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countries → reduce → cent
Meanwhile, across the 34 countries included in the study, state spending on students increased by an average of 10.2 per cent.
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spending → include → cent
New analysis from the consultancy London Economics shows the estimated state contribution has reduced from 48 per cent of the total in 2012-13 to just 16 per cent in 2024-25.
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contribution → show → 2024
Of those, 21 counties increased their spending, while four reduced their spending by less than 2 per cent.
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four → increase → cent
It comes after the former chancellor Rachel Reeves announced in her autumn Budget last year that the earnings threshold for repayment of Plan 2 loans would be frozen for three years from 2027 at £29,385.
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threshold → come → 29,385
It means more low-earners will be dragged into payments, while higher earners will pay more, because the threshold will not rise in line with earnings.
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threshold → mean → earnings
Since taking up her role, Ms Powell has said she wants to make sure the student loans system is 'fair' and that the issue is at the top of her in-tray.
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issue → take → tray
A Department for Education spokesman said: 'We're backing our world-class university sector to continue to deliver high-quality courses and experiences for students: we've raised the cap on tuition fees in line with forecast inflation, and provide significant additional funding for higher-cost subjects and to address skills shortages.
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we → say → shortages
This is balanced with taking decisive action to improve the student finance system and break down barriers to accessing university, including increasing maximum maintenance loan support and reintroducing targeted maintenance grants.
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This → balance → grants
'The costs of higher education must be shared fairly and sustainably between students, graduates and taxpayers, whilst also supporting a financially sustainable higher education sector.'
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costs → share → sector
The Aporia
