The government has published its Post-16 Education and Skills White Paper, bringing forward higher education reforms.

Commenting on the report, Kate Gallagher, head of higher education at UK and Ireland law firm Browne Jacobson, said: “The government's Post-16 Education and Skills White Paper offers some welcome relief for university financial planning through inflation-based fee rises, against a backdrop of Universities UK analysis which calculated the net (negative) impact of government policy decisions taking effect in 2025-26 to be £1.4bn. The fee increase, however, comes with important caveats connected to quality standards oversight by the OfS, student outcomes and the ongoing need for universities to factor in innovation and efficiency.  

“The effect of balancing fee increases on the one hand, and the incoming international fee levy and proposed changes to research funding on the other, is likely to impact institutions and their financial planning differently, especially if they are seeking to absorb rather than pass on the cost of the levy.  

“The position on creating more favourable conditions to encourage student mobility within Europe also remains an unknown and little is being said about it. But the potential for such a change to help in the ‘reset’ should be acknowledged by helping to fill gaps created by demographic changes (fewer 18-year-olds) and the shift to more ‘home’ students being accepted at higher tariff institutions. 

“As the fee increases are forward-facing, taking effect from next September, efficiencies and innovative ways of working remain an important part of the picture, with an express expectation of a change in approach by both government and universities.   

“While there is a steer towards collaboration, with a focus on regional partnerships, the change in regulatory approach to fully enable this is as yet undecided. Research funding is being re-aligned to the Industrial Strategy but the all-important detail will arrive at a future point. This reinforces why innovation and broader income strategies remain critically important. 

“There are various options for how these collaborations could be structured – including through group structures or shared delivery vehicles, as well as partnerships. This should give additional food for thought on structures at local level or across sector specialisms, as well as a renewed focus on curriculum design and programme development. 

“From our experience in working with multi-academy trusts from inception to large organisations, we believe there are valuable lessons to be learned from the academies programme in schools about how institutions can work together more effectively to achieve both financial sustainability and improved outcomes. 

“Given that the white paper's direction of travel suggests such collaborative approaches will become increasingly important for the sector's future, these will all be key considerations for university leadership teams.”