Universities to deliver better outcomes in return for full fees
Source: gov.uk (2025-10-21)

Post-16 education and skills white paper to boost opportunity for disadvantaged students, hold universities to account and put sector on firm financial footing.

Bold plans to break down barriers to opportunity, hold universities to account, and put the post-16 education system on a firmer financial footing have been unveiled as part of the government’s plan for national renewal.

Higher education reforms in the landmark Post-16 education and skills white paper (https://www.gov.uk/government/publications/post-16-education-and-skills-white-paper) will ensure disadvantaged students are no longer priced out of university. Maintenance loans will automatically increase each year, with the biggest cash increases going to those from the lowest-income households, after the Education Secretary recently announced targeted maintenance grants will also be reintroduced.

The announcement follows data showing the gap in university entrance rates between disadvantaged pupils and their better off peers had grown to its widest since records began in 2005.

Last year tuition fees were increased in line with inflation for the first time since 2017. The Office for Students is forecasting 43% of institutions will be in deficit without further action to shore up their finances.

To support universities in continuing to deliver world-class teaching and research, tuition fees will rise in line with forecast inflation for the next 2 academic years. Legislation will then be brought forward, when parliamentary time allows, to enable automatic increases to fee caps in future years in line with inflation but only for institutions that meet tough new quality thresholds set by the Office for Students.

This means universities will need to earn the right to access future fee uplifts by delivering strong outcomes for students and meeting the Office for Students’ tough new standards.

Education Secretary Bridget Phillipson said:

Young people from all backgrounds feel they have been let down by a system that talks about opportunity but too often fails to deliver it.

This government and this white paper will change that – restoring the prestige of higher and further education so every person, in every part of our country, has the chance to get on.

Universities charge significant fees for their courses. If they are going to charge the maximum, it is right that they deliver the world-class education students expect.

These reforms will ensure value for money, higher standards across our universities and colleges and a renewed focus on the skills our economy needs.

Where standards fall short, the Office for Students will act quickly to stop the expansion of low-quality courses and hold providers to account. Universities that underperform could face financial and regulatory consequences, ensuring public money is spent only on courses that deliver for students and the economy.

The government will also tighten controls on franchising arrangements to protect public money and take action against the abuse of the system by recruitment agents.

The new measures unveiled today (20 October 2025) build on earlier announcements from the Prime Minister, including a new target for two-thirds of young people to participate in higher-level learning– academic, technical, or apprenticeships – by age 25, up from 50% today. A sub-target will ensure at least 10% of young people pursue higher technical education or apprenticeships by age 25 by 2040, a near doubling of today’s figure.

This will be supported by the automatic backstop to ensure all young people have access to high-quality routes that meet employers’ needs, enhanced by local skills planning to drive growth across England.

Higher and further education will be more flexible and accessible for people at every stage of their working lives, supported by the introduction of lifelong learning entitlement (https://www.gov.uk/government/publications/lifelong-learning-entitlement-lle-overview).

Learners will be able to move between universities, colleges and training providers, building up qualifications over time to fit their evolving needs and ambitions. A consultation next year will look at introducing new “break points” within degrees, so students can gain recognised qualifications as they progress through higher education.

The government will also work with universities and local authorities to ensure they offer adequate accommodation for their students and support efforts to drive down the cost of living.

A new national access and participation task and finish group, chaired by access and participation Champion Professor Kathryn Mitchell, will tackle regional university ‘cold spots’ and break down systemic barriers that disadvantaged students face when trying to access higher education.

Plans have also been announced for the introduction of V levels. These are new vocational qualifications tied to rigorous and real-world job standards. They will replace other qualifications to sit alongside T Levels and A levels, providing a clear option for young people who want to get on in the world of work, university or apprenticeships but want to explore different key sectors, which could include engineering, agriculture, digital or creative, before choosing where to specialise. Unlike T Levels, which are equivalent to 3 A Levels, young people will be able to take a mixture of V Levels and A Levels – offering more choice and flexibility.

For example, a student wanting to get into either the creative arts or media industry could choose to do a mixed V Level and A level study programme, by taking two V Levels (one in Craft and Design; and one in Media, Broadcast and Production) and one A Level in Music. Or, a student wanting to get into either the health or fitness industry – but also wants to learn more about digital – could do three V Levels (in Sport and Exercise Science; Digital; and Health and Care services).

The new qualification will streamline the confusing landscape of approximately 900 equivalent vocational qualifications at level 3 currently available to 16 to 19-year-olds which mean learners and employers are unclear about the purpose and value of some qualifications.

Young people will also be supported to get the vital pass they need in English and maths GCSEs and end the demoralising treadmill of repeated resits. A new qualification will be targeted at students with lower attainment to better prepare them to resit these GCSEs.

This will support white working class pupils in particular. More than six in ten White British pupils eligible for free school meals do not achieve a grade 4 or above in English and maths by the end of Key Stage 4, meaning they are more than twice as likely to need to resit these exams post-16 than their more affluent peers.

This package of ambitious reforms will drive up standards and better prepare young people for the world of work or further study – in turn, growing our economy and delivering on the government’s plan for national renewal.

The government has launched a consultation (https://www.gov.uk/government/consultations/post-16-level-3-and-below-pathways) to support the introduction of V levels, designed to strengthen skills across industry including in the government’s priority industries. T Levels will continue to expand to other subjects.

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