Janet Daby

I understand that there are some concerns regarding how the sector will contend with increases to employers’ national insurance contributions. As the Chancellor set out in the Budget, raising the revenue necessary to fund public services and restore economic stability requires difficult decisions on tax, which is why the Government are asking employers to contribute more. We strongly believe that this is the fairest choice to help to fund the NHS and wider national priorities, which were failed by the previous Government and strongly need a greater focus on building up public services and public provision. As set out in the November update on the financial sustainability of the sector, the OfS estimates that the fee uplift will represent up to an additional £371 million of annual fee income. The national insurance contribution changes for employers will result in additional costs for the sector of £133 million in 2024-25 and of £430 million in each year from 2025-26. The Department plans to publish its own estimates shortly, as part of its assessment of the impact of the planned tuition fee and student finance changes. We are committed to creating a secure future for our world-leading higher education sector so that it can deliver for students, taxpayers, workers and the economy. Although the Government have already taken action to help to move the sector towards a more sustainable and stable financial footing, we recognise that a real change of approach is needed, both from the Government and from the sector itself, to support our broader plans for higher education. For that reason, we look forward to working in partnership with the sector, the Office for Students, the Department for Science, Innovation and Technology, and UK Research and Innovation to shape the changes to Government policy.