sector facing severe financial challenges with tuition fees frozen for the last seven years universities have suffered a significant real—time decline in income. we have found the regulator subject to political whim and able to focus on these challenges our universities face. a succession of conservative ministers who had for europe they are faced with tough decisions that them time and time again. we inherited in our universities is across so much of our public sector the consequences of long years of shameful abdication of responsibility. long years in which i hope —— heard too often but the gap between the coast they were promised and the experience they had. about the trouble they had making ends meet as they worked hard not merely at their studies but often had two or more jobs merely at their studies but often had two or morejobs on top. long years in which i saw the amazing research how universities deliver but how infrequently those triumphs

drove by the success. long years in which i so international students... this is the mess members opposite left behind. but where the conservative shirt of the hard choices this government has not hesitated to grip the challenges we face and take the tough decisions to restore stability to higher education, to fix the foundations and to deliver change. we have accepted in full the recommendations of the independent review of the office for students and we have brought new leadership to the office for students and refocus their work to monitor universities finances and hold leadership to account. we have posed to the commencement of the last government freedom of speech legislation while we consider the impacts on universities and students and the rig later. because whilst

universities must be home to robust discussion regulation must also be workable. i am here today to make two sets of announcements on higher education reform. addressing the challenges of students and universities face, dripping theseissues universities face, dripping these issues have arisen as a responsible government. firstly we will fix the foundations. we will secure the future of higher education so that students can benefit from a world—class education for generations to come. that is why i'm announcing today that in line with the folk are set out in the budget last week from april 2025 we will be increasing the maximum cap for tuition fees in line with inflation to £9,535, an increase of £285 per academic year. i understand some students may worry about the impact this increase will have on their debt so i want to reassure students already at university, when you start repaying your loan you will not see higher monthly repayments as a result of the changes to

fee and maintenance loans. that's because student loans and that like consumer loans. at the end of any long any outstanding loan balance including interest will be written off. increasing the fee cap has not been an easy decision. but i want to be crystal clear that this will not cost graduates more each month. universities are responsible for managing their own finances and must act to remain sustainable. but members across the house will agree it's no use keeping tuition fees down for future students if the universities are not there for them to attend node if students can't afford to support themselves while they study. so i can also confirm that we will boost support for students with living costs by increasing maximum maintenance loans in line with inflation giving them an additional £411; a year in 2025 and 2026. i am confirming that from the start of the 2526 academic year low

afy limit of £5,760 will be introduced for foundation years introduced for foundation years in classroom —based subjects like business, social science and humanities. this government recognises the importance of foundation years to promoting access to higher education but they can be delivered more efficiently in classroom —based subjects at lower cost students. the change this government is bringing must go further so the second set of announcements i make today signal the start of deeper change for our students, our universities and for our country. today i want to set up the scale of our ambition to build a higher education system notjust for the build a higher education system not just for the challenges for today but for tomorrow. in the months ahead we will publish our proposals because in universities as across our public services investment can only come with the promise of major reform. the contribution of higher education to our economy and our communities and our country must grow and strengthen. that begins with

universities doing more to spread opportunity to disadvantage students both in expanding access and improving outcomes and our most recent data shows why. the gap between disadvantaged students and their peers and progression to university by age 19 is the highest on record. i will not tolerate this shameful divide any longer. universities can do more and they must do more. they must rise to the challenge of technological change supporting adults with the flexibility they need to retrain which is why in the budget we confirm were pressing ahead with the lifelong learning entitlement. the uk is home to many world—class universities and this time all students in higher education in this country feel the benefit. it's time to raise the bar further on teaching standards, to improve our world leading reputation and drive out for practice. it's time to make sure all students get good value for money which if we are honest has not always been the case in the past. but it goes

further. universities must do more to raise their impact beyond the gains. they must do more to drive the growth of this country needs, attracting talent from around the world, joining with skills england and employers to deliver the sales people and businesses need and shaping world—class research to create good jobs across the country. members across the house will no importance universities can be for the areas that surround them, not just for local economies but for local communities. so i want universities to work harder to embed themselves in those local communities, civic anchors, the beating heart of local life in our towns and cities not ivory towers. they must be a further transformation and drive for efficiency. students and taxpayers the cost of all universities and their right to expect that every penny is spent effectively and we will not accept wasteful spending. universities must rise to the

challenge and that means ensuring the pay... i am determined that i will world—class higher education sector does not merely survive in the years ahead but thrives supporting students in every corner of our country and in every stage of their lives. i am determined our universities become all i know they can be. the scale of our ambition demands a new approach rooted in partnership. so i look forward to partnering with the sector, the office of student and innovation and i will work closely with ministers across government in particular the secretary of state for science innovation and technology to deliver a reformed and strengthened higher education system for our country. as today this government looks to the future i am reminded that more than 60 years have passed since the robbins report on higher education was presented to this house with its famous principal that courses of higher education should be available for all those who are qualified by ability and attainment to pursue them and

wish to do so. that principle drove the expansion of higher education over the decades that followed on successive governments of both parties. it is central to the thinking of this government today. that is why responsible governments must universities not as political battlegrounds but as a public good. 0n the side of the house we want to see the continued success of our young people and that is why we are determined to ensure the sustainability and success of our higher education sector not just in the years ahead but for the decades to come. i commend this statement of the house. can i thank the secretary of state — can i thank the secretary of state for— can i thank the secretary of state for a side of the statement in advance. we had a budget— statement in advance. we had a budget last week which declared war on_ budget last week which declared war on business, private sector workers — war on business, private sector workers and farmers. it seems today— workers and farmers. it seems today that _ workers and farmers. it seems today that the secretary of state — today that the secretary of state wants to add students to that list — state wants to add students to that list. not content with pushing up the cost of living for everyone with an

inflationary budget, and pushing down wages with a national insurance increase, we are now — national insurance increase, we are now in — national insurance increase, we are now in a situation where students _ are now in a situation where students will suffer. and yet again — students will suffer. and yet again there was no sign of this in the — again there was no sign of this in the labour manifesto. indeed. _ in the labour manifesto. indeed, the prime minister made scrapping — indeed, the prime minister made scrapping university tuition fees — scrapping university tuition fees centrepiece of his leadership campaign back in 2020 — leadership campaign back in 2020. perhaps we should start putting — 2020. perhaps we should start putting sell by dates on statements the prime minister makes — statements the prime minister makes. but it is notjust the prime — makes. but it is notjust the prime minister. injuly this year— prime minister. injuly this year the _ prime minister. injuly this year the secretary of state said — year the secretary of state said she _ year the secretary of state said she had no plans to increase _ said she had no plans to increase tuition fees. and yesterday the chancellor said there — yesterday the chancellor said there was no need to increase taxes — there was no need to increase taxes further. yet what is happening today apart from a hike — happening today apart from a hike irr— happening today apart from a hike in the effective tax graduates have to