Labour"s Plan to Address University Funding Crisis in 2023

Bridget Phillipson, the education secretary, is navigating a significant financial crisis in English universities, which are facing severe funding shortfalls. The situation has been exacerbated by a record high in home student numbers and a decline in international students. Universities UK has called for increased tuition fees for home students to prevent a decline in the sector, highlighting that funding per student has not kept pace with inflation, which could be around £12,000-£13,000 if it had. The government is considering various measures to address the crisis, including potentially removing international students from migration statistics and increasing class sizes, although these could impact educational quality. There is also pressure to reduce costs, particularly concerning salaries and pensions, as universities strive to maintain financial viability. Phillipson is aware of the precarious situation and is likely working with the Treasury to identify at-risk institutions and develop contingency plans. However, the current state of public finances suggests that significant rescue packages may not be feasible. The political landscape complicates matters, as Labour's commitment to enfranchising 16- and 17-year-olds could influence voter sentiment. Meanwhile, some factions within the Conservative Party may welcome the closure of what they perceive as inferior institutions, potentially alienating younger voters who are concerned about the future of higher education.